Showing posts with label energy prices. Show all posts
Showing posts with label energy prices. Show all posts

Tuesday, 1 October 2013

Party conference season: an ideal time to accept reality

So far the annual party conference season seems to have been dominated by issues of energy.

Whether those be Labour’s promise of a short-term gas and electricity price freeze, or the Tories’ efforts to energise the long-term unemployed back into work.

A cynic might observe that a key driver of the high energy prices charged to consumers has been the generous subsidies introduced for basically uneconomic forms of electricity generation like wind turbines and solar farms.

All founded on a policy of “carbon taxation” that was powerfully reinforced on the watch of a certain Labour Energy Secretary called Ed Miliband.


But it would be unfair to make this a party political point. Because everyone outside the always entertaining UKIP circus seems to take huge delight in pointing out what a brilliant job Britain has done in reducing its carbon emissions; while conveniently forgetting to mention that we have only achieved this by exporting most of our manufacturing industry to China.

Which may, in turn, have some bearing on the numbers of long-term unemployed.

In the overall scheme of things, taking credit for this makes about as much sense as a man boasting that he has eliminated his overdraft, while omitting to mention he has put it in his wife’s name instead. 

Reading the acres of coverage of last week’s UN report about the 95% certainty of manmade climate change, I found myself reminded of a friend who kept going back to her doctor with a debilitating chronic ailment.

Fed up with the lack of action to cure her, she finally asked in no uncertain terms why medical science was letting her down so badly. At which the doctor outlined in great detail the courses of treatment potentially available to her.

“But those sound even worse than my disease!” she protested.

“Exactly,” her GP calmly replied.

We can all observe that the climate is changing, as it always has, and we may accept that human activity is a factor. But where is the evidence that requires us to spray money like an unmanned fire hose in a futile attempt to cure the problem?

Every farmer and landowner in the country with an eye for a financial killing, and no appreciation of beautiful landscapes, is being powerfully incentivised to whack up ugly great wind turbines on their property, though these will make a minimal contribution to our overall energy needs.

The new view from St Cuthbert's Lindisfarne, courtesy of Tony Meikle
Last year my local council installed cavity wall insulation, completely free of charge, in the house I rent in Cheshire. Even though, if it actually worked (of which I have seen no evidence to date) it would clearly have paid me to do this at my own expense.

In the long run I and everyone else will be paying for these “green energy” developments and “energy saving” initiatives through higher bills, whether from our power companies or in local or national taxes.
There is never any such thing as a free lunch. No, not even for those primary school children Nick Clegg is so keen to feed. Why on earth does he want to supply free meals to the offspring of middle class parents like me who are perfectly capable of paying for them? Particularly when the coalition only recently (and reasonably) abolished my child allowance.

But then one might equally well ask why Ed Balls is now promising to reintroduce the 10p rate of income tax his mentor Gordon Brown abolished in 2008.


We appear to be going around in ever decreasing circles of political unoriginality, culminating in the ultimate dumb idea of reverting to the sort of price controls that failed so spectacularly in the 1970s.

Even reactionaries like me, whose ultimate goal in life is to put the clock back, would never choose to stop it there.

Every party should stop striving for the next news soundbite and pause to reflect on what really matters, whether for their cherished “hardworking families” or lazy so-and-sos like me.

They might well conclude on energy costs and climate change, as my friend did on her illness, that it is best to stop looking for non-existent miracle cures and simply accept reality, then adapt to it as best we can.


Originally published in The Journal, Newcastle upon Tyne.

Tuesday, 20 September 2011

Slowly adjusting to the brave new world of daylight robbery

Like many people, I made the schoolboy error of imagining that I had little choice but to buy my domestic energy from a greedy giant squid of a business that would jack up its prices whenever a movement in world markets gave it the flimsiest excuse to do so, yet prove strangely slow to react when wholesale prices edged in the opposite direction.

So I was greatly indebted to Energy Secretary Chris Huhne for his revelation at the weekend that the problem lay not with the energy companies but with consumers like me for being “too lazy” to shop around for the best deals.

Nothing to do with me, guv. I wasn't even in the car at the time.

This was ironic because I had just been spurred into action by a letter from my electricity supplier advising me that the price I pay would be going up next month by a staggering 30.5pc (no, not a misprint), because the “discounted tariff” I was blissfully unaware of enjoying was about to end and they would be switching me to their standard prices, which they had just put up.

They went on, helpfully, to outline what I could expect to pay for my power in a three bedroom cottage in Northumberland over the next 12 months: a mere £7,075.22. Admittedly this was based on their persistent delusion that I consume 90pc of my power during the day, whereas the reality is that I use it at night, at the much cheaper Economy 7 rate, for storage heating.

But this distinction would be of little importance if I were, say, a vulnerable old age pensioner, because instead of writing this column I would doubtless now be lying stone dead on the floor with their wretched letter in one hand and the other clutching my chest.

As it was, though I had no recollection of signing up for the aforementioned discounted tariff, it seemed that the best course of action would be to go to their website and sign up for another one without delay. And, yes, they had bargain deals on offer, but only if I agreed to buy my gas from them as well. Which is not really an option when one lives miles from the nearest mains gas supply.

So I finally went to one of those switching websites that Chris Huhne thinks are the bees’ knees and – yes, I could save more than £300 right away by switching supplier. And my great value new supplier is … npower, the people I am already with, along with everyone else in the North East who has lazily allowed their account to be passed, parcel-like, through the hands of NEEB and Northern Electric.

Cuddly ... nothing like a giant squid, so long as you don't mind paying 7,000 squid a year to heat your cottage

What a total farce. Though of a piece with my recent experience in car insurance, where a whopping premium increase from the company I have been using for the last seven years prompted me finally to try one of those comparison sites that advertise themselves with such infuriating persistence, with the result that I was able to obtain identical cover for less than half the price my established insurer hoped it could con me into coughing up.

Meanwhile the personal finance pages of every newspaper are full of complaints from often elderly people who placed their savings in accounts paying an attractively high rate of interest (by today’s pathetic standards) only to find their money shunted, at the end of the initial fixed term, not to the next best product currently on offer but to something paying virtually no interest at all.

The message to consumers in all cases is clear: loyalty is for mugs, and if you don’t watch us like hawks we’re going to rip you off at every chance we get.

Perhaps it is not that we are lazy, Mr Huhne. We are just taking a little time to adjust to the brave new world that has such people in it.

Originally published in The Journal, Newcastle upon Tyne.