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"big Six" Face A Competition Inquiry.
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At last someone has recognised that the much heralded increase in competition, and therefore cheaper prices that we were promised when these industries were hived off in the 80's, has not materialised. Why has it taken so long ?
At last someone has recognised that the much heralded increase in competition, and therefore cheaper prices that we were promised when these industries were hived off in the 80's, has not materialised. Why has it taken so long ?
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So long ? It was surely obvious prior to privatisation that, that would be the case. But political beliefs meant that many wanted to believe otherwise. Granted one can not control the global price of stuff but clearly an inquiry is due, especially the way prices have spiralled up over the last few years.
Cannot say as to why. Because for a long time the energy market was not really seen as a priority or as an issue.
It has only really become newsworthy, an issue, since the global collapse back in 2008 and the ensuing recession, long lag time of economic recovery, and the squeeze on home finances,the age of austerity and all of that. That's when people started examining in detail what comprises the cost of their monthly bill, noting the cost of "green taxes", and when people started looking into the relationships between the electricity generating firms and the energy retail firms, and, of course,when people really started looking at the way all the energy companies appeared to act in concert.
According to OfGEM, there is no evidence of a cartel, but the suspicion remains. As a regulator, OfGEMs powers need to be reviewed, as well. They appear pretty toothless, to me.
It has only really become newsworthy, an issue, since the global collapse back in 2008 and the ensuing recession, long lag time of economic recovery, and the squeeze on home finances,the age of austerity and all of that. That's when people started examining in detail what comprises the cost of their monthly bill, noting the cost of "green taxes", and when people started looking into the relationships between the electricity generating firms and the energy retail firms, and, of course,when people really started looking at the way all the energy companies appeared to act in concert.
According to OfGEM, there is no evidence of a cartel, but the suspicion remains. As a regulator, OfGEMs powers need to be reviewed, as well. They appear pretty toothless, to me.
Another suggestion naomi...years of Tory rule, where they initiated the situation where this problem arose, and then did nothing.
OG...right on the button. A fundamental mistake was made, purely for political reasons. The Government at the time bribed the British people by offering them a chance to make a small but quick buck ( Tell Sid ! )
OG...right on the button. A fundamental mistake was made, purely for political reasons. The Government at the time bribed the British people by offering them a chance to make a small but quick buck ( Tell Sid ! )
I don't speak for the Labour Party naomi, nor do I pretend to. But Labour would probably say that after the years of chaos and confusion left by MMMMajor, they had more important things to do, like employing more Nurses and Policemen. Taking the gas and electricity industries back into public ownership would have been far too expensive, when there were other more pressing priorities.
It will be interesting to see what this enquiry will uncover, but I have a fear that we will end up with a fudge, instead of real change.
It will be interesting to see what this enquiry will uncover, but I have a fear that we will end up with a fudge, instead of real change.
Labour came into the best economy that an incoming Government has ever come into. Their words.
Confusion, what confusion labour barely touched anything the Tories had done, just employed hundreds of thousands of extra civil servants with gold plated pensions we now all have to pay for.
For the record I too do not agree with utilities being in private hands. However it is very simplistic to assume it would be cheaper under public control. Unions, bad management and no controls usually mean public services are terribly run.
I would prefer the Country to own the utility but it run privately for a modest pre agreed profit.
Confusion, what confusion labour barely touched anything the Tories had done, just employed hundreds of thousands of extra civil servants with gold plated pensions we now all have to pay for.
For the record I too do not agree with utilities being in private hands. However it is very simplistic to assume it would be cheaper under public control. Unions, bad management and no controls usually mean public services are terribly run.
I would prefer the Country to own the utility but it run privately for a modest pre agreed profit.
Why has it taken so long?
Well the real problem has only come about due to rising wholesale prices coupled with green taxes making it easy for utilities to hide their costs. This seems to have started around 2009. You cannot accuse a company or prove they are anti competition without proof. Proof obvioulsy takes time to accumulate sufficiently to prove beyond doubt there is an issue that is not related to wholesale prices. And that is what has happened.
My beef is that it will be another two years of investigation and one has to ask why that long.
Well the real problem has only come about due to rising wholesale prices coupled with green taxes making it easy for utilities to hide their costs. This seems to have started around 2009. You cannot accuse a company or prove they are anti competition without proof. Proof obvioulsy takes time to accumulate sufficiently to prove beyond doubt there is an issue that is not related to wholesale prices. And that is what has happened.
My beef is that it will be another two years of investigation and one has to ask why that long.
ymb...why, if the economy was so spiffing in 1997, did Major lose so spectacularly ? I wasn't on AB then, and I'm not sure if it even existed in 1997 but what would your argument have been to vote Tory back then ?
I am genuinely interested in your views in this regard and I am not spoiling for a fight I can assure you !
I am genuinely interested in your views in this regard and I am not spoiling for a fight I can assure you !
The reason Labour can't address the problem is because it would be too expensive - that's why the Tories always sell off at such a low price, well below the actual market value and potential buy-back price. So for every £1 the Tory Government make would cost Labour Government £3 to buy back. You do the maths - the country can't afford it.
The Tories had been in too long, Major could not shine against the backdrop of Thatcher and could not hold the party together especially over Europe. For the record I actually didn't like him at all.
Blair came along with a soft Tory approach, he certainly was not a typical labour person of the time. This swayed middle England and he got in. The Tories collapsed as there was no one strong enough to step up to the helm. I think this has also happened in Labour too to a defree. Blair, for all his wrongs, was a powerful character and it is always difficult to match up to that even if you are a better person.
Blair came along with a soft Tory approach, he certainly was not a typical labour person of the time. This swayed middle England and he got in. The Tories collapsed as there was no one strong enough to step up to the helm. I think this has also happened in Labour too to a defree. Blair, for all his wrongs, was a powerful character and it is always difficult to match up to that even if you are a better person.
Interesting answer ymb and thank you.
It was as you say. Major and the Tories were unelectable in 1997, and remained so for three consecutive elections, mostly caused by choosing the wrong leaders to replace Major. It is my opinion that had Blair not abdicated in favour of the awful Brown, Labour would still have scrapped home 4 years ago. It was only when the Tories finally stopped messing about and put dave in place, that they stood a chance of winning a majority again.
It was as you say. Major and the Tories were unelectable in 1997, and remained so for three consecutive elections, mostly caused by choosing the wrong leaders to replace Major. It is my opinion that had Blair not abdicated in favour of the awful Brown, Labour would still have scrapped home 4 years ago. It was only when the Tories finally stopped messing about and put dave in place, that they stood a chance of winning a majority again.
Yes, handing the reigns to Brown was a huge mistake.
Would Blair have scrapped home, maybe, but I think any party that has been in that long tends to tire with middle England. They want something new and that is difficult to offer after so many years. Also the wars did not help him. Quite possibly he could have formed a coalition though !
Would Blair have scrapped home, maybe, but I think any party that has been in that long tends to tire with middle England. They want something new and that is difficult to offer after so many years. Also the wars did not help him. Quite possibly he could have formed a coalition though !
Anyway, back to the OP ;) The reason why it has taken so long is because it was not an issue high on the public agenda, and therefore on the politicians agenda, until relatively recently.
And I would agree with ymb. The government could take them back into state ownership relatively easily, although I do not doubt to howls of protest from the corporate sector should they elect to do so.
And I would agree with ymb. The government could take them back into state ownership relatively easily, although I do not doubt to howls of protest from the corporate sector should they elect to do so.
I agree with canary. It would have been punishingly expensive for Labour to have re-nationalised the industries that were hived off by the Tories, and they decided in 1997 to concentrate on matters of more urgency, like the NHS. The Tories knew what they were doing when they privatised the utilities, by tying the legislation up in knots, making it next to impossible to reverse the process. They have done the same with Royal Mail, something even Mrs Voldemort never had the courage or the willing to do.
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