Quizzes & Puzzles42 mins ago
So How Is Red Ed Going To Achieve A Price Freeze?
24 Answers
http:// www.bbc .co.uk/ news/uk -politi cs-2514 9306
Bribery? Nationalisation? Subsidy?
Bribery? Nationalisation? Subsidy?
Answers
Best Answer
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For more on marking an answer as the "Best Answer", please visit our FAQ.Simple answer is, he cannot (and neither can the Tories 100% with negotiation).
The minute you try interfering with commercial companies by law (and that is how he would have to do it) then you are on the first step to communism, Red Ed despite his leanings will not want to be associated with anything like that.
The minute you try interfering with commercial companies by law (and that is how he would have to do it) then you are on the first step to communism, Red Ed despite his leanings will not want to be associated with anything like that.
The idea of privatisation was to introduce competition into the market and result in lower bills. That has failed miserably and a shake up of the industry is long overdue.
The reason there isn't the competition anticipated is because the big companies generate as well as sell electricity. That means there is very little trading in electricity in an open market. They will generate enough electricity for themselves, and not sell it to competitors or at a discount.
Labour want to split the generating side from the selling side. The generating side would have to supply many firms who ask for their product rather than the one at present. The more firms trading would make proper competition and in theory lower prices.
At the moment the big firms have a monopoly on generation, and a cartel between themselves on a price. And the consumer is being ripped off. The key is to free the market up to genuine competition. This is an attempt to do just that.
I woyld be careful about dismissing the plan because it is a vote winner. I'm confident the Conservatives will steal this plan, or come out with a similar one soon.
The reason there isn't the competition anticipated is because the big companies generate as well as sell electricity. That means there is very little trading in electricity in an open market. They will generate enough electricity for themselves, and not sell it to competitors or at a discount.
Labour want to split the generating side from the selling side. The generating side would have to supply many firms who ask for their product rather than the one at present. The more firms trading would make proper competition and in theory lower prices.
At the moment the big firms have a monopoly on generation, and a cartel between themselves on a price. And the consumer is being ripped off. The key is to free the market up to genuine competition. This is an attempt to do just that.
I woyld be careful about dismissing the plan because it is a vote winner. I'm confident the Conservatives will steal this plan, or come out with a similar one soon.
No need to even introduce new legislation, in theory. OFGEM could implement price control mechanisms on the retail market right now, if they wanted to, much in line with what they do for the supply side. At the moment they do not, because everyone says competition is the best way of ensuring low prices. That is not what the evidence is suggesting right now though, with this particular marketplace.
But we can see that competition has failed the consumer miserably, in the retail energy supply market, dominated as it is by 6 companies - all, incidentally also power generation companies. You could argue ( some do) that the current state of play would be the same as if the power companies were operating as a cartel - a sure sign that competition is not providing the consumer benefits it is supposed to.
Milvus,
Venezuela is self sufficient in gas. It is one of the world's major exporters which accounts for half the country's GDP. They can afford to subsidise its own population because they are raking it in with exports. It is not going broke. They had a major banking crisis in the 1990s with most of the banks having to be nationalised. The economy was in ruins for a decade, but exporting oil gradually got them through it.
Venezuela is self sufficient in gas. It is one of the world's major exporters which accounts for half the country's GDP. They can afford to subsidise its own population because they are raking it in with exports. It is not going broke. They had a major banking crisis in the 1990s with most of the banks having to be nationalised. The economy was in ruins for a decade, but exporting oil gradually got them through it.
Jomifl
Many power stations were closed altogether. The generating industry is undoubtedly more efficient than it was before privatisation. The contention is that because E-On generate the electric and then sell it to us, there is no incentive for them to make more electricity and sell it to 10 other companies who might then undercut E-On's retail price. Because they control the generation supply, they can keep smaller companies out and restrict competition.
Many power stations were closed altogether. The generating industry is undoubtedly more efficient than it was before privatisation. The contention is that because E-On generate the electric and then sell it to us, there is no incentive for them to make more electricity and sell it to 10 other companies who might then undercut E-On's retail price. Because they control the generation supply, they can keep smaller companies out and restrict competition.
Gromit
/// The idea of privatisation was to introduce competition into the market and result in lower bills. That has failed miserably and a shake up of the industry is long overdue. ///
Wasn't it Labour who reduced the amount of power firms so reducing competition?
Gromit I do believe you live somewhere near Stoke on Trent, what are your feelings regarding Npower shedding 550 jobs in Stoke and sending them to India?
I cringed when I heard Paul Massara, Npower chief executive:state that it was all in the interest of the customer.
http:// www.bbc .co.uk/ news/bu siness- 2513524 7
/// The idea of privatisation was to introduce competition into the market and result in lower bills. That has failed miserably and a shake up of the industry is long overdue. ///
Wasn't it Labour who reduced the amount of power firms so reducing competition?
Gromit I do believe you live somewhere near Stoke on Trent, what are your feelings regarding Npower shedding 550 jobs in Stoke and sending them to India?
I cringed when I heard Paul Massara, Npower chief executive:state that it was all in the interest of the customer.
http://
//Gromit I do believe you live somewhere near Stoke on Trent, what are your feelings regarding Npower shedding 550 jobs in Stoke and sending them to India? //
While Gromit responds or not , i'd just like to say i'm at this minute sitting opposite a colleague , who's wife is one of the 550 , who will be losing their job .
Very sad
While Gromit responds or not , i'd just like to say i'm at this minute sitting opposite a colleague , who's wife is one of the 550 , who will be losing their job .
Very sad
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