Nationalisation the only way to solve our Energy problems

August began with British Gas announcing they were raising their electricity prices by 12.5%. The cost to the average household will £76, effecting 6 million of us.

However the increase will probably see other companies match this rise, that is to take place on September 15th.

Despite Theresa May promising to cap Energy prices during the election campaign the government have done nothing to halt the rise in bills that will hurt many working families that already struggle to get by. Yet another U turn by this Tory government that will come at the cost of working families.

However this is not a short term change. Prices have been going up ever since the Tories took power. They increased 37% between 2010 and 2013 for example. We need a long term solution.

The solution to providing affordable energy to all is not market regulation but simply nationalizing our energy companies. It's the solution that Labour proposed in their manifesto and it is the right policy to help the British people. Supported by the British people. Even among Tory voters we can see energy nationalisation is a popular policy, it is a sure fire way to reduce the cost of energy.

The problem with the energy market is it has zero competition between suppliers. Analysis discovered since December 2016 the costs for energy companies have fallen by 9 per cent, yet these savings have not been passed onto consumers. The Big Six have squeezed us collectively for every penny we have. It's time for a change.

Having state run companies is the way to go, but there are two ways to go. The French method or the Nottingham method.

The french method is classic statist socialism. EDF, the state run energy company own a majority stake in the market, 76%, the government keeps prices affordable and takes home the profit. Small companies are allowed in the market to add competition so is not a complete monopoly.

The policy could also be used to help reduce our deficit. Currently the big 6 energy companies make £1.32 billion in profits. If the public sector were to take these companies on board it could funnel some of that money to reducing our deficit, as well as keeping prices affordable to consumers.

Corbyn of course was branded as selling fantasies when he recommended a reform that works just across the English channel.

The French in 2011 payed 9% less for energy than we did.The UK has the most expensive energy prices in Europe. We should simply copy what works to reduce our energy costs.

In addition to the vast economic incentive to the tax payer and consumers the government controlling energy supply presents another opportunity. Renewable power. Market forces have been ineffective at switching the world over to Renewable power to combat the challenge of Renewable power. In countries where the state controls energy production this has not been an issue. And France is a leading example of that, where 80% of electricity produced is via renewable sources, mainly Nuclear in this case.

Nationalized energy at this scale can help reduce costs to the consumer and help reduce our CO2 emissions.

However for those who remember before Thatcher there is another option that nationalized energy could go down. An option that has already been taken by the City council in Nottingham.

Robin Hood energy is a local run not for profit energy company available to the people of Nottingham. Robin hood's price are on average £200 lower per year than the Big Six, and is cheaper for some residents in specific areas. The scheme allows for cheap energy provided by the state without huge government administration.

The scheme is so successful many areas have been keen to copy it.

The Warwickshire Energy Plan is a scheme similar to Robin Hood energy. Proposed in December 2014 by ,now MP for Warwick and Leamington, Matt Western. This deal has now been adopted by Warwickshire county council and looks to provide an alternative cheaper energy supplier to the people of Warwickshire.

Mr Western stated "“The ambitious plan aims also to eliminate fuel poverty that affects almost 30,000 households in Warwickshire and this will go a long way in helping to deliver that."

The scheme also aims to help encourage the use of solar panels to help increase the production of Zero Carbon electricty.

The fact councils can introduce these local run state run suppliers shows that Labour's proposal for public run energy is no fantasy. And the savings made from then show the true advantages to having energy in the public sector. We wait for a Labour government to see the advantages of public sector owned energy.

#JeremyCorbyn #LabourParty #Conservativeparty #MattWestern