Privatisation Of The Energy Companies Under Thatcher

[mikey4444]

SSE has now been fined £10.5 million for fraud by OFGEM. EDF were fined in March 2012 for exactly the same reason. There are two other companies that are still under investigation. Millions of pounds in fines and penalties have been paid by other companies over the last 20 years for misselling and malpractice.

Bearing all this in mind, and the huge price rises, together with the huge profits made by these private companies that took over the Gas Boards and the Electricity Boards, is there anyone else that still thinks that the privatisation of our energy providers under Thatcher was a good idea ?

For people not born in 1979, or perhaps have forgotten the facts, all our energy production was stolen away from the British people, and then sold back to us. The same happened to the Water Boards and the GPO.

[Kathyan]

They should all be non profit making in my opinion. Especially water as we would die without it!

[mikey4444]

Just listening to Mr Humphries interviewing the boss of SSE, on the Today program, who desperately tried to explain why this fraud took place, and why all the Managers, including himself, that were responsible for it are still in situ.

You couldn't make this up you know !

[emmie]

if they are non profit making how do you invest in the business.

[emmie]

i remember the days of British Rail, poor service, late or constantly cancelled services, inadequate carriages, cold and draughty, slam door types, little or no seating on the platforms. So renationalise them, and see the taxpayer subsidise them up the ying yang.

[mikey4444]

Thanks Kath. You have nearly got it right ! They should all be disbanded and the Gas, Electricity and water industries returned to public control.

Take water for instance. In mid -Wales near where I live, there are dozens of reservoirs, that were built by public money, most of it coming from Council ratepayers. The Councils weren't compensated when this was stolen from them by the government of the time.

How can that have been right ?

[EDDIE51]

We are now about to sell the Royal Mint and the Air Sea rescue service as well. Just wait till they sell the Police force to Group4 security !

[emmie]

ok, then answer me this, if all these businesses are returned to public ownership, where is the money to come from to keep them going, for investment, new equipment, and indeed modernisation.

[bazwillrun]

How else are these quangos going to stay in business unless they raise income from fines.

The fined companies will get the money back through price increases one way or another

[mikey4444]

Thanks em....but I don't remember saying anything about the railways in my original post ! But it was nice of you to take the trouble to reply, even though you changed the subject !

Most of these energy companies are nothing less than shysters.

I presume that you are happy paying huge gas and electric bills to help the companies pay these fines, as well as paying themselves huge salaries at the same time ?

Simple question !

[ummmm]

Where is the money coming from now?

[emmie]

i didn't change the subject, this is about privatisation, BR was a failure for a long while, union led, and strikes were common. As to paying bills for utility, well i do of course, do i like it, no i don't. If you put all the energy companies back into the public ownership, renationalise them, how do they get any investment for the future, where does the money come from if they are not for profit as some want.

[mikey4444]

Baz...best idea yet ! Abandon the regulators, or "Quangos" as you rather quaintly call them and let the companies commit fraud without any fear of retribution.

Well thought out !

[ummmm]

If they are 'not for profit' then any profit gets reinvested.

[bazwillrun]

@ummmm
government funded but fines means less from the government, so its win win allround.....except for Jo Public as usual

[mightyWBA]

I love the way they've started calling them "SSE" instead of "Scottish and Southern " on the news...very clever.

Labour had plenty of time to re nationalise utilities etc but continued allowing nearly everything we had from being sold or moved abroad...Stop blaming Thatcher for everthing..Blair and his gang did more damage.

[bazwillrun]

@mikey4444

what are you on, 500mg of distortion 3 times an hour or something ?!

please show where I said to abandon them or anything remotely similar and that they shouldnt be punished, I just pointed out some facts about how they currently operate.

[emmie]

if whatever business be it rail, telecomms or whatever, if it doesn't make any profit, how does it run its business, how does it invest in say new infrastructure, you can't run any company, business on a no profit basis, Won't the utility companies if they are returned to the nation, need money to keep them going, just as a private company does. Won't a renationalised energy industry have to rely on massive subsidy, which ultimately will come from the taxpayer. and you will still be paying your bills.

[ummmm]

Em...we would still have to pay our bills and cover our costs. Not for profit doesn't mean a company doesn't make a profit. It means the profit isn't spent on bonus' and shareholders but reinvested back into the company.

[mikey4444]

em...see ummmmm ! All you need is there !

Wasn't Blair still in school when the gas and electricity industries were stolen ?

I started this thread as its obvious that some of the energy companies have been behaving in a criminal fashion and I am frankly amazed that some posters at least thinks that OK !

The fines will be paid by US, the general public. It won't be paid out of the companies profits, or the wages of those company personnel that caused the problem.

We have been taken for a ride with energy supply for years now. Our bills are rising at the same rate as the companies profits.....it doesn't take a genius to work it out !

[youngmafbog]

I happen to agree that electric, gas, water and rail should be nationalized companies. I cannot agree on telephones, BP and other such companies.

Having said this there was a problem with the monopoly of the state and which there was no shopping for price (and it was not cheap). In addition you are prone to strikes from power hungry Unions who want to use the Utility as a political pawn.

I'm afraid much of the price rise would still be happening even if public owned. Wholesale prices have risen and a public company would have to pay it too. The profit they make does seem huge but if you divi it up amongst all that pay it does not really amount to much on each bill(Remember a public company still has to make a 'profit' to reinvest in the network)

The real reason our bills have risen is because the labour Government failed to invest. Instead they bickered over Nuclear, signed up to a European commitment to reducing coal and then banged on about renewable s that are still too much in their infancy to base a nations strategy on.

Nice rant though.