Nov 2008 17

The Telegraph reports that Ed Miliband is going to tell energy companies that they should cut their prices to reflect the fall in the oil price. The reasons why prices are not set to fall in line with the oil price are widely understood. In particular, there are going to be shortages of capacity expected this winter. Beyond that, many companies have already bought the power they will supply to consumers on the forward market. Even Robert Peston, the Government’s favourite business journalist, has set out the series of reasons why we shouldn’t expect energy prices to fall immediately in line with oil prices.

Instead of vainly hassling energy companies, Ed Miliband should concentrate on reducing the Government’s contribution to high energy prices. 14% of the average domestic electricity bill is the result of ineffective Government climate change policies that provide massive subsidies to the owners of wind farms but do little to reduce emissions. If Miliband stopped posturing and scrapped those policies that would soon lead to big savings for struggling families.


  • Adam Wissen

    ‘Instead of vainly hassling energy companies, Ed Miliband should…
    Actually grow some testicles and clamp down on their profiteering through enforced price caps/cuts with threats of a painful windfall tax if they don’t.
    or even better
    Renationalise our energy providers and run them for people’s needs and not shareholders gains. Compensation for smaller shareholders on basis of proven need only.

  • http://climateresearchnews.com/ Paul Biggs

    You’re missing the point Adam and the useless wind farm industry has shareholders too. Climate/carbon claptrap is costing us all.The energy industry is now aimed at Canutian climate control rather than providing reliable, affordable energy – who is to blame for that?

  • gildedtumbril

    This global warming twaddle is costing us dear. Methane is 23.5 times more efficient as a ‘greenhouse gas’ than carbon dioxide. When carbon dioxide was 10 times more plentiful in the air than now our coal measures were laid down…
    We still have 300 years of coal left beneath our feet.
    I will worry about ‘bird flu’ when my feathers start falling out.
    Al Bore got a Nobble Prize…for political scaremongering.

  • Dr G. Sen

    The Labour party that came to power with Blair and Brown is one of the the worst things that ever happened to the middle class. It is barely credible that various ministers are making plaintive appeals to energy and fuel companies to cut prices. Whatever happened to regulatory bodies and routine enforcement of competition? And where is the ‘right on’ Eurocracy on their magnificent salaries and perquisites supposedly apt to chase violators of competition rules? Actually, it is quite simple. A third or more of the profits end up in taxes and unregulated energy and fuel prices are therefore a form of tax privatisation. Provided they get a share of the loot I don’t think Gordon Brown cares about the associated cost in the shape of huge giveways to foreign-owned utilities. As for David Cameron, the less said the better. He and his toffs are quite clueless, which is exactly to be expected from people who have only worked in politics after leaving university.

  • Phil Ridley

    Inflation is 9/10ths of the reason why inflation has grown. http://mises.org/story/2914
    The cost of oil stayed remarkably stable, falling slightly against gold, as it should against sound money, so the American’s breaking from the gold standard in the 1970′s and the printing of fiat money is the real cause: http://www.thedailygreen.com/environmental-news/latest/oil-gold-commodities-47041507
    Climate Change, and Peak Oil are therefore propaganda diversions from the real cause of inflation, government and banks, via fractional reserves and derivatives, printing money.

  • Phil Ridley

    Inflation is 9/10ths of the reason why inflation has grown. http://mises.org/story/2914
    The cost of oil stayed remarkably stable, falling slightly against gold, as it should against sound money, so the American’s breaking from the gold standard in the 1970′s and the printing of fiat money is the real cause: http://www.thedailygreen.com/environmental-news/latest/oil-gold-commodities-47041507
    Climate Change, and Peak Oil are therefore propaganda diversions from the real cause of inflation, government and banks, via fractional reserves and derivatives, printing money.

  • Mr Sanders

    I think the energy companies/Government are ripping us all off.The Government/ofgem for years have tried not to take action as you have to remember taxes are raised through increased profits and Ofgem have people on the Board etc.. involved in the privatisation of utilities.I had a letter printed in Private Eye in issue 1221 on this,but the powers that be do not reply as they know its True.

  • http://www.power-hypnosis.com Ed Halbert

    Thanks for these nice stuff. I just love it indeed.

  • Tone

    All this talk of climate change and global warming is just a smokescreen to get us to pay more to the state and feed the european black hole .
    If we really think we can alter the destiny of the planet then we are living in “lala” land .
    Gaia will restore the balance and if the destruction of a corrupt and greedy species is part of this then so be it .

  • Terence Griffin

    For twenty odd years UK Governments have been terrified to address the energy problem. It is now 40 years since the fact that oil reserves were finite, became public knowledge. Higher and higher oil prices have made exploration and exploitation of more remote sources more profitable, allowing the government to put off the evil day while at the same time creaming off higher and higher taxes.
    Apart from a pitiful commitment to ‘renewables’ nothing has been done.
    The only reliable source of carbon-free electricity is and always has been nuclear. It seems odd that the French appear to have no inhibitions, producing 75% of their requirements by nuclear, while Britain once the world leader in this technology, struggles to maintain 20%, the balance made up by increasingly unreliable imports of oil, gas and even coal!
    Even at this late stage the government’s conversion to the obvious is equivocal, relying on the fact that the French will build the new reactors and will presumably shoulder the political flak.