POWER FOR THE PEOPLE

Here in Wales we need to create a national energy company for Wales to generate sustainable and reasonably priced energy, which can also be part of the solution to create a low carbon society. Plaid Cymru’s Shadow Cabinet Secretary for Energy, Climate Change and Rural Affairs, Simon Thomas, (Mid and West Plaid Cymru Assembly Member) has backed the idea to establish a national energy company, Ynni Cymru, which will run as a not-for-dividend company at arms-length from the Welsh Government.

Plaid Cymru’s vision for energy and the environment is for a Wales that reduces its carbon emissions, harnesses its natural resources sustainably, and seizes opportunities in the low-carbon and circular economies. The link between energy and climate change is clear.

One step, which the Party of Wales believes the Welsh Government should take now, to increase energy generation from renewables is to set up a national energy company, Ynni Cymru. to be run as a not-for-dividend company at arms-length from Welsh Government.

A number of actions could fall into the remit of Ynni Cymru, including: reducing the cost per unit of energy to homes and businesses in Wales, reducing the consumption of energy in homes and businesses and helping consumers to make informed decisions based on smart metering technology.

Ynni Cymru would be tasked with funding the mass installation, outsourced to local companies, of solar panels on the roofs of households, business premises and lampposts in Wales, beginning with public buildings and social housing. The company would coordinate and facilitate the use of publicly owned land for renewable energy purposes.

The company could finance the acquisition and development of new large-scale generating and storage capacity, ensuring Wales becomes self-sufficient in renewable energy and becomes a renewable energy exporter. It could boost our energy market by ensuring the development of a national producer cooperative among community energy organisations.

The problem we face is that our energy production and distribution model was restructured to primarily benefit the big 6 energy cartel members, their interests and their (City) profits. From the perspective of energy consumers and smaller scale energy producers, or anyone who wants things to change the problem is that all the Westminster based political parties have quietly bought into this cartel dominated model of energy production and ownership (or perhaps more truthfully were quietly bought).

The reality is that the UK’s cartel dominated model for energy production and distribution is not necessarily the norm everywhere in Europe or around the world. Now contrary to what you might think, and here from Westminster; realistic alternatives exist and actually prosper, a particularly good example of a balanced and healthy energy mix can be found in Germany. Small may very well be beautiful, even with a geographically sizeable state, especially in relation to energy, in 2012 some 22% of the countries energy came from small scale green entrepreneurs.

Community based co-operatives (both urban and rural), farmers and homeowners are part of the 1.3 million renewable energy producers and part of the energy mix. In Germany, citizens’, cooperatives, and communities own more than half of German renewable capacity. Small-scale electricity generation is having a knock on effect encouraging change throughout the energy system.

In Berlin, a cooperative (Burger Energie Berlin – literally Berlin Citizens Energy) continues to campaign to take control of the capital's electricity grid with some 35,000km of underground cables. The cooperative is a free, cross-party coalition of citizens who are committed to a sustainable, sustainable and democratic energy policy in Berlin. Members have one vote regardless of the amount their deposit and anyone who wants the power network to be in civil hand, is welcome.

Ordinary Berliners have invested their cash in the venture with the intention of producing a reliable 100 percent renewable energy supply. The aim is to promote the integration of renewable energy into the grid and to invest a portion of the profits from this directly into the transition to renewable energy.

At present the Berlin electricity grid is run by Vattenfall (whose concession runs out this year) regularly generates millions in profits, members of the co-operative believe that the profits from the grid operation should flow to Berlin’s citizens.

This is grass roots energy generation that has potentially the power to change the nature of the energy supply system (in Germany and elsewhere). They aim to build an energy grid that is better handle the rise of green power and allows local use of locally produced energy. This may well be a case of small being both beautiful and perhaps deeply disturbing from the perspective of Westminster and Cardiff Bay something that it is both community beneficial and community owned.

In Germany, there is a deliberate promoted policy of energy transition (or ‘Energiewende’) – this is a very different approach to what is practised in these islands (at least south of the Scottish border). For a start the ‘Energiewende’ is driven by a desire to reduce and eliminate any dependency on nuclear energy.

The introduction of the Feed-in-tariff (EEG) in 2008 was an important part of this process, along with (post Fukushima) the almost unanimous across the board political commitment to a wide range of targets (in 2011) which included a commitment to reduce energy demand (with a 50% reduction in primary energy use by 2050) and the achievement of an 80% renewable electricity share of total consumption (by 2050). This has resulted in a significant uptake of renewables in Germany.

The real striking difference is that the operation of the grid in Germany means that generated renewable electricity is used first and that distribution network operators (DNOs) are also seeking to reduce demand. This is so radically different from the way the energy is generated, distributed, exported and used here in our country.

A significant difference, aside from the scale and pattern of investment (in Germany), is that small businesses, co-operatives, individual households and local authorities benefit from investment distributed by a network of local banks (something we pretty much entirely lack in Wales). The whole thing is supported by the KfW (state investment bank) to the tune of 23.3 billion euro in the area of environment and climate protection (2012 figures).

These developments are a million miles away from the so-called ‘Free market’ for energy that exists in the UK, which is pretty dominated by the ‘Big 6’ energy cartel members. The fact that some former politicians have found rewarding post political career employment within the energy sector may be co-incidental but suggests that there is little desire for improvement within Westminster.

The way the current set up works, it is difficult to imagine ‘Government’ at most levels (at least outside of Scotland and perhaps Northern Ireland) in the UK grasping the concept, the practicalities and real possibilities of genuine community owned beneficial energy generation projects.

Here we have a visionless Conservative government in Westminster, which is hand in glove with despotic oil producing regimes in the Middle East and has little interest in renewables. This government , along with its predecessor continues to actively work to pull the rug out from under the renewables sector by cutting the feed in tariff something that has cost highly skilled jobs here in Wales.

POWER FROM THE PEOPLE?

As winter approaches it won’t be long before the National Grid warns about its  capacity to supply electricity this winter as per last year when it reported that capacity would be at a seven-year low due to generator closures and breakdowns. Spare electricity capacity, which ran at about 5% over the winter months in 2012/2013 and that it would be nearer 4% for 2014/2015, four years ago the margin was 17% for 2011/2012.

Hydro-turbine installed at the National Trust's Hafod y Llan farm in Snowdonia.

 

The loss of generating capacity is actually symptom of a much bigger more systematic sector wide problem as a result of the model for energy production, distribution and ownership being fundamentally flawed. Our energy production and distribution model was restructured to primarily benefit the big 6 energy cartel members, their interests and their (City) profits.

From the perspective of energy consumers and smaller scale energy producers, or anyone who wants things to change the problem is that all the Westminster based political parties have quietly bought into this cartel dominated model of energy production and ownership (or perhaps were quietly bought). The reality is that the UK’s cartel dominated model for energy production and distribution is not necessarily the norm everywhere in Europe or around the world.

Now contrary to what you might think, alternatives exist and actually prosper, a particularly good example of a balanced and healthy energy mix can be found in Germany. Small may very well be beautiful, even with a geographically sizeable state, especially in relation to energy, in 2012 some 22% of the countries energy came from small scale green entrepreneurs.

Community based co-operatives (both urban and rural), farmers and homeowners are part of the 1.3 million renewable energy producers and part of the energy mix. In Germany, citizens’, cooperatives, and communities own more than half of German renewable capacity. Small-scale electricity generation is having a knock on effect encouraging change throughout the energy system.

In Berlin, a cooperative (Burger Energie Berlin – literally Berlin Citizens Energy) continues to campaign to take control of the capital's electricity grid with some 35,000km of underground cables. The cooperative is a free, cross-party coalition of citizens who are committed to a sustainable, sustainable and democratic energy policy in Berlin. Members have one vote regardless of the amount their deposit and anyone who wants the power network to be in civil hand, is welcome.

Ordinary Berliners have invested their cash in the venture with the intention of producing a reliable 100 percent renewable energy supply. The aim is to promote the integration of renewable energy into the grid and to invest a portion of the profits from this directly into the transition to renewable energy.

At present the Berlin electricity grid is run by Vattenfall (whose concession runs out this year) regularly generates millions in profits, members of the co-operative believe that the profits from the grid operation should flow to Berlin’s citizens.

This is grass roots energy generation that has potentially the power to change the nature of the energy supply system (in Germany and elsewhere). They aim to build an energy grid that is better handle the rise of green power and allows local use of locally produced energy. This may well be a case of small being both beautiful and perhaps deeply disturbing from the perspective of Westminster and Cardiff Bay something that it is both community beneficial and community owned.

In Germany, there is a deliberate promoted policy of energy transition (or ‘Energiewende’) – this is a very different approach to what is practised in these islands (at least south of the Scottish border). For a start the ‘Energiewende’ is driven by a desire to reduce and eliminate any dependency on nuclear energy.

The introduction of the Feed-in-tariff (EEG) in 2008 was an important part of this process, along with (post Fukushima) the almost unanimous across the board political commitment to a wide range of targets (in 2011) which included a commitment to reduce energy demand (with a 50% reduction in primary energy use by 2050) and the achievement of an 80% renewable electricity share of total consumption (by 2050). This has resulted in a significant uptake of renewables in Germany.

It is worth noting that:

• In early 2012, around 25% of Germany’s power was generated from renewable sources;
• Costs for wind generated power have fallen by around 50% since 1990
• Costs for solar systems has fallen by around 80-90% since 1990
• In 2011, over 380,000 people were employed in the renewable energy sources industry
• Only 13% of Germany’s 60 GW of renewable energy is owned by utilities, with the rest being owned by households, communities, and farmers among others
• In less than 7 years, an energy market with 4 main suppliers has turned into one with more than a million suppliers
• Solar supply has already met peak lunchtime demand on several occasions.

Another of the benefits of the Energiewende is more local ownership of the means of energy production, more jobs, more security of supply and real meaningful action to tackle climate-changing emissions from energy.

The real striking difference is that the operation of the grid in Germany means that generated renewable electricity is used first and that distribution network operators (DNOs) are also seeking to reduce demand. This is so radically different from the way the energy is generated, distributed, exported and used here in our country.

A significant difference, aside from the scale and pattern of investment (in Germany), is that small businesses, co-operatives, individual households and local authorities benefit from investment distributed by a network of local banks (something we pretty much entirely lack in Wales). The whole thing is supported by the KfW (state investment bank) to the tune of 23.3 billion euro in the area of environment and climate protection (2012 figures).

These developments are a million miles away from the so-called ‘Free market’ for energy that exists in the UK, which is pretty dominated by the ‘Big 6’ energy cartel members. The fact that some former politicians have found rewarding post political career employment within the energy sector may be co-incidental but suggests that there is little desire for improvement within Westminster.

The way the current set up works, it is difficult to imagine ‘Government’ at most levels (at least outside of Scotland and perhaps Northern Ireland) in the UK grasping the concept, the practicalities and real possibilities of genuine community owned beneficial energy generation projects.

We have a Conservative government in Westminster which is hand in glove with despotic oil producing regimes in the Middle East and has little interest in renewables. This government is also actively working to pull the rug out from under the renewables sector by cutting the feed in tariff something that has cost highly skilled jobs here in Wales.

ED HAS SPOKEN…

Ed has spoken out about the failure of the energy companies to pass on cuts in their domestic retails bills to customers after the falls in the price of wholesale gas and the energy companies have trembled. All well and good, it is more than reasonable for the energy regulator Ofgem to be given new powers to force firms to cut gas and electricity bills - to reflect falls in wholesale energy prices.

Since June last year, oil prices have gone down by 50% and wholesale energy prices have dipped by 30%. But the prices being paid by households to heat their homes have not fallen at anything like that speed. 

While EON is the first of the big 6 energy cartel members to cut their domestic energy bills, it is probably fair to say that this was not driven by an Ed inspired pre panic. Energy UK – the energy supplier’s trade body’s pronouncement that they (the energy companies) are already passing on price cuts to customers. Ofgem at present does not have the power to force a reduction in prices. It is worth noting that Wholesale energy costs have been dropping in recent months, with the price of a barrel of Brent Crude oil falling to below $49 dollars this week.

The Labour leader has said that he would demand fast-track legislation on energy in a House of Commons debate next week. When he served as Secretary of State for Energy and Climate Change from 3^rd October 2008 until 11^thMay 2010, he showed no great desire to regulate the unscrupulous activities of the energy cartel on our behalf. We have been here before with mumbled words of condemnation from the former New Labour energy minister calling for the energy cartels to pass on the benefits of wholesale energy price falls to its customers. 

Warm words aside, Westminster is incapable or unwilling to deal with this problem, so perhaps it’s time for a home grown solution to the problem. We need a new Welsh national energy company, an Ynni Cymru to break the stranglehold of the Big Six energy cartel members on the energy market.

We in Wales, need a ‘not for dividend profit’ company, as with Glas Cymru works within our water industry. This would firmly ensure that customers come before shareholders dividends and the City of London and that all the profits would be reinvested back into the energy sector in our country, ensuring that Welsh families, households and small and larger businesses get a good deal on their energy and our country will end up with secure sustainable energy supplies. 

SHOW SOME AMBITION

The Labour in Wales Welsh Government needs to show some ambition and to strive to build a secure energy future for Wales. The devolution of energy powers to Wales can create a system of community beneficial renewable energy projects, and result in fairer energy prices for us - the customers. Our Government needs to be able to decide on energy projects for the whole of Wales to achieve long-term energy goals and to establish an arms-length, publicly owned not-for-distributable-profit energy company – Ynni Cymru.

Aside from our people, our country’s greatest asset is the potential of our natural resources. These need to be managed in a sustainable way that promotes fairness. Before we can develop a sustainable future for our country, the Welsh Government needs to make better use of its existing powers and achieve the devolution of powers over planning for renewable energy for Wales.

The Welsh Government needs to develop binding sustainable energy targets and to assume responsibility for delivering them. Our communities need to get a direct benefit from larger energy projects in their area and the opportunity to participate in and to develop small-scale community energy projects. All energy projects in Wales need to include community benefit clauses so that our communities get something back.

We need to urgently establish of an arms-length, publicly-owned, not-for-distributable-profit energy company – Ynni Cymru – something that should directly benefit Welsh energy customers by helping us to pay a fair price for their energy. Energy bills in Wales have risen three times faster than wages since 2008, and the establishment of Ynni Cymru can help to tackle this issue directly.

Once we were a world leader in carbon-based energy and we have the potential to be a world leader in developing sustainable energy projects. For this to happen then our Government needs to work to create the right environment so that everyone in Wales can benefit, rather than leaving it to disinterested Westminster based governments and the Big 6 energy cartel members. Our potential as a world leader in green industries needs to be unlocked and we need to create a stronger and more economically self-sufficient Wales.

DANCING IN THE DARK?

Yesterday the National Grid warned that its capacity to supply electricity this winter would be at a seven-year low due to generator closures and breakdowns. The National Grid revealed that spare electricity capacity, which ran at about 5% over the winter months last year, would be nearer 4% this year, three years ago the margin was 17%. The loss of generating capacity is a symptom of a bigger systematic sector wide problem as a result of the model for energy production, distribution and ownership being fundamentally flawed.

Our energy production and distribution model has been restructured to primarily benefit the big 6 energy cartel members, their interests and their (City) profits. From the perspective of energy consumers and smaller scale energy producers, or anyone who wants things to change the problem is that all the Westminster based political parties have quietly bought into this cartel dominated model of energy production and ownership (or perhaps were quietly bought).

The reality is that the UK’s cartel dominated model for energy production and distribution is not necessarily the norm everywhere in Europe or around the world. Alternatives exist and prosper, a particularly good example of a balanced and healthy energy mix can be found in Germany. Here small may very well be beautiful, even within a geographically sizeable state, particularly in relation to energy, back in 2012 some 22% of the countries energy came from small scale green entrepreneurs. 

In Germany community based co-operatives (both urban and rural), farmers and homeowners are part of the 1.3 million renewable energy producers and part of the energy mix. Incidentally in Germany, citizens’, cooperatives, and communities own more than half of German renewable capacity. Small-scale electricity generation is having a knock on effect encouraging change throughout the energy system.

In Berlin, a cooperative (Burger Energie Berlin – literally Berlin Citizens Energy) is campaigning to take control of the capital's electricity grid with some 35,000km of underground cables. The cooperative is a free, cross-party coalition of citizens who are committed to a sustainable, sustainable and democratic energy policy in Berlin. Members have one vote regardless of the amount their deposit and anyone who wants the power network to be in civil hand, is welcome.

Ordinary Berliners have invested their cash in the venture with the intention of producing a reliable 100 percent renewable energy supply. The aim is to promote the integration of renewable energy into the grid and to invest a portion of the profits from this directly into the transition to renewable energy. At present the Berlin electricity grid is run by Vattenfall (whose concession runs out this year) regularly generates millions in profits, members of the co-operative believe that the profits from the grid operation should flow to Berlin’s citizens.  

This is grass roots energy generation that has potentially the power to change the nature of the energy supply system (in Germany and elsewhere). They aim to build an energy grid that is better handle the rise of green power and allows local use of locally produced energy. This may well be a case of small being both beautiful and perhaps more disturbing from the perspective of Westminster being that it is both community beneficial and community owned.

In Germany, there is a deliberate promoted policy of energy transition (or ‘Energiewende’) – this is a very different approach to what is practised in these islands (at least south of the Scottish border). For a start the ‘Energiewende’ is driven by a desire to reduce and eliminate any dependency on nuclear energy. 

The introduction of the Feed-in-tariff (EEG) in 2008 was an important part of this process, along with (post Fukushima) the almost unanimous across the board political commitment to a wide range of targets (in 2011) which included a commitment to reduce energy demand (with a 50% reduction in primary energy use by 2050) and the achievement of an 80% renewable electricity share of total consumption (by 2050). This has resulted in a significant uptake of renewables in Germany.

It is worth noting that:

• In early 2012, around 25% of Germany’s power was generated from renewable sources;
• Costs for wind generated power have fallen by around 50% since 1990;
• Costs for solar systems has fallen by around 80-90% since 1990;
• In 2011, over 380,000 people were employed in the renewable energy sources industry
• Only 13% of Germany’s 60 GW of renewable energy is owned by utilities, with the rest being owned by households, communities, and farmers among others;
• In less than 7 years, an energy market with 4 main suppliers has turned into one with more than a million suppliers;
• Solar supply has already met peak lunchtime demand on several occasions.

Another of the benefits of the Energiewende is more local ownership of the means of energy production, more jobs, more security of supply and real meaningful action to tackle climate-changing emissions from energy.

The real striking difference is that the operation of the grid in Germany means that generated renewable electricity is used first and that distribution network operators (DNOs) are also seeking to reduce demand. This is so radically different from the way the energy is generated, distributed and used here in Wales.

Another significant difference, aside from the scale and pattern of investment (in Germany), is that small businesses, co-operatives, individual households and local authorities benefit from investment distributed by a network of local banks (something we pretty much entirely lack in Wales). The whole thing is supported by the KfW (state investment bank) to the tune of 23.3 billion euro in the area of environment and climate protection (2012 figures).

These developments are a million miles away from the so-called ‘Free market’ for energy that exists in the UK, which is pretty dominated by the ‘Big 6’ energy cartel members. The fact that some former politicians have found rewarding post political career employment within the energy sector may be co-incidental but suggests that there is little desire for improvement within Westminster.

The way the current set up works, it is difficult to imagine ‘Government’ at most levels (at least south of the Scottish border) in the UK grasping the concept, the practicalities and real possibilities of genuine community owned beneficial energy generation projects.

INDIFFERENT, INCAPABLE OR UNWILLING…

That cold nip in the morning is a reminder that winter is coming; as the evenings draw in and days get colder we should prepare ourselves for the annual energy company price hike. I have no doubt that the big energy cartel members, known collectively as the ‘big 6’, will take advantage of the relative lack of regulation to raise their prices to rake in the cash at our expense once again.

Sadly this state of affairs is something that we have all become used to with an effectively unregulated energy market and little action beyond weak weasel words from successive Labour or Conservative / Liberal Democrat Westminster governments. This winter, as previously people will be put into a situation where they have to make a stark choice between heating their homes and putting food on the table.

The Westminster elite is perhaps more focused on employment activities within the energy and banking sectors after they cease to politicians than stepping up to the mark to ensure proper regulation of the energy market and some degree of protection for the rest of us hard-pressed energy customers. Westminster is indifferent, incapable or simply unwilling to deal with this problem.

We need a Welsh national energy company, an Ynni Cymru to break the stranglehold of the Big Six energy cartel members on the energy market. Wales needs a ‘not for dividend profit’ company as with Glas Cymru works within our water industry. 
This would ensure that customers come before shareholders dividends (and the City) and that all the profits would be reinvested back into the energy sector in our country. This would ensure that Welsh families, households and small and larger businesses get a good deal on their energy and our country will end up with secure sustainable energy supplies.

PROFITS BEFORE PEOPLE

The news that the ‘Big Six’ energy cartel members are set to double their profit margins over the next year (and this is according to estimates by the regulator, Ofgem) probably won’t surprise anyone. Back in 2013, Ofgem estimated that suppliers would make an average pre-tax profit of £53 per dual fuel customer (a margin of 4%). Now, in the year ahead Ofgem expects the energy firms to make £106 per customer (increasing their margin to 8%). Naturally the cartel members have accused Ofgem of releasing inaccurate figures.

Ofgem has said that it was further evidence that the market was not working as well as it should. The big six (and the profits they make) have already been referred to the Competition and Markets Authority (CMA). Ofgem has also written to the suppliers asking why the falls in wholesale prices last winter have not resulted in lower bills for hard-pressed energy customers.

As part of the on-going struggle with the ‘Big Six’, Ofgem has also announced that electricity customers will see an average reduction of £12 a year on their bills, from April 2015. This follows plans to limit the prices that can be charged by Britain's six distribution companies, which carry power to homes and businesses. The price curbs could affect 29 million English, Scottish and Welsh energy customers. Ofgem's plans will also see the distribution companies spend £ 17 billion pounds to upgrade their networks. The distribution element makes up about 8% of a typical dual-fuel bill and is the only part controlled directly by Ofgem.

Five out of the six network companies (UK Power Networks, Northern Power Grid, SP Energy Networks, SSE Power Distribution and Electricity North West) were ordered by Ofgem to cut their prices. So far, only Western Power Distribution had its pricing and investment plans approved by Ofgem. The new energy prices will apply for eight years, from April 2015 until 2023. Ofgem will announce a final decision on the proposals in November 2014 after carrying out a consultation.

While this may bring a crumb of comfort to hard-pressed customers, it fails to address the fundamental problem with the so-called energy free market. The ‘Big Six’ can do because they are pretty much free from any meaningful and effective regulation. Any criticisms that may periodically emanate from Westminster can be pretty much ignored as the Westminster based political parties have little appetite to reform the deeply flawed energy market and even less inclination to curb the excesses of the ‘Big Six’ energy cartel members.

Meanwhile, in Wales, Plaid has been argued the case for the establishment of a ‘not for dividend profit’ company, simular to Glas Cymru which works within our water industry. This would firmly ensure that customers come before shareholders dividends and the City of London. An all Wales ‘not for dividend profit’ energy company would mean that all the profits would be reinvested back into the energy sector in our country. This would also ensure that Welsh families, households and small and larger businesses get a good deal on their energy and our country will end up with secure sustainable energy supplies.

POWER FROM THE PEOPLE

There are times when Westminster, the Euro sceptics and perhaps the City are happy for the 22 miles of water separating the British Isles from the European mainland to seem psychologically much wider than they are geographically. Economically at times, particularly when it comes to the model for energy production, distribution and ownership those few miles of water at times might as well be a thousand miles wide. 

I mention this because last week Ofgen referred the energy market (this is Ofgen speak for the big 6 energy cartel members) to the Competition and Markets Authority for a full investigation. Ofgem says that the investigation should ensure, once and for all, that competition works effectively for consumers, by bearing down on prices while driving improvements in customer service and innovation.

Let’s just say that I for one won’t be holding my breath... as our energy production and distribution model has been restructured (over the years) to primarily benefit the big 6 energy cartel members, their interests and their (City) profits. From the perspective of energy consumers and smaller scale energy producers, the problem is that all the Westminster based political parties had quietly bought into this cartel dominated model of energy production and ownership.

The reality is that the UK’s cartel dominated model for energy production and distribution is not necessarily the norm everywhere in Europe. Alternatives exist and prosper, a particularly good example of a balanced and healthy energy mix can be found in Germany. Here small may very well be beautiful, particularly in relation to energy, back in 2012 some 22% of the countries energy came from small scale green entrepreneurs. 

Community co-operatives (both urban and rural), farmers and homeowners are part of the 1.3 million renewable energy producers and part of the energy mix. Incidentally in Germany, citizens’, cooperatives, and communities own more than half of German renewable capacity. Small scale electricity generation is having a knock on effect encouraging change throughout the energy system.

In Berlin, a cooperative (Burger Energie Berlin – literally Berlin Citizens Energy) is campaigning to take control of the capital's electricity grid with some 35,000 km of underground cables. The cooperative is a free, cross-party coalition of citizens who are committed to a sustainable, sustainable and democratic energy policy in Berlin. Members have one vote regardless of the amount their deposit and anyone who wants the power network to be in civil hand, is welcome.

Ordinary Berliners have invested their cash in the venture with the intention of producing a reliable 100 percent renewable energy supply. The aim is to promote the integration of renewable energy into the grid and to invest a portion of the profits from this directly into the transition to renewable energy. At present the Berlin electricity grid is run by Vattenfall (whose concession runs out this year) regularly generates millions in profits, members of the co-operative believe that the profits from the grid operation should flow to Berlin’s citizens.  

This is grass roots energy generation that has potentially the power to change the nature of the energy supply system (in Germany and elsewhere). They aim to build an energy grid that is better handle the rise of green power and allows local use of locally produced energy. This may well be a case of small being both beautiful and perhaps more disturbing from the perspective of Westminster being both community beneficial and community owned. 

These developments are a million miles away from the alleged ‘Free market’ for energy that exists in the UK, which is dominated by the ‘Big 6’ energy cartel members. The way the current set up works, it is difficult to imagine ‘Government’ at most levels in the UK grasping  the concept, let alone the practicalities and possibilities of genuine community owned and community beneficial energy generation projects even crossing the collective mind of Westminster and some of the devolved institutions. 

TIME TO COME CLEAN ON ENERGY SUBSIDIES

The recent self generated row over the green levies is a classic attempt to distract people’s attention away from the realities of energy subsidies.  As the Con Dem government denounces proposals for a two-year price freeze as "socialism" the Westminster government has guaranteed EDF and Chinese state investors in the nuclear sector fixed above average prices for energy the next 35 years.

The small print of the deal for the new nuclear power station at Hinkley guarantees the French-owned EDF and Chinese state investors a strike price of £92.50 per MegaWatt Hour (or £89.50 if a second plant is built), this is around twice the current market rate for wholesale energy. This price per unit will rise in line with inflation and is being guaranteed for 35 years – so much of the ‘free market’.

The real irony is that in the event of wholesale prices falling or rising at a slower rate than expected, then it is we, the public who will pick up the tab in the form of higher taxes or higher bills. The Energy Institute at University College London has estimated that the annual public subsidy will be around £ 800 million to - £ 1 billion pounds. This is on-top of the current £ 2.3 billion pound annual subsidy most of which ends up as a form of funding to deal with legacy nuclear waste.

The problem is that we all face is significantly down to the cumulative effect of an almost unregulated energy market and the unscrupulous activities of the ‘Big 6’ energy cartel members who will continue to maximise their profits at our expense because they simply can get away with it. The three Westminster based political parties have dropped any pretence of trying to regulate the energy market, to curb excessive profiteering or even to attempt any long term energy planning.

There is no quick fix, as energy efficiency schemes install insulation help to reduce carbon emissions and reduce fuel energy bills over the long term rather than the short term. If green levies are to be reduced, and I don’t think that they should be, then energy efficiency and fuel poverty reduction schemes should be paid for out of (progressive) general taxation - with the burden placed on higher end of the income bracket.

AUSTERITY IS NOT WORKING

Lets be honest, Westminster austerity agenda is not working in our national interest. In response to the Chancellor's Autumn Statement, Plaid Cymru has renewed its commitment to securing a Welsh economic recovery and tackling the cost of living crisis by creating meaningful, well-paid jobs and bringing down energy prices. Over £ 1 billion pounds will have been wiped from Welsh economy this year by the Westminster Government, and cuts to Welsh public services extending far in to the future are having a devastating effect.

That is why Wales needs greater financial and policy powers to shape the economy here, create jobs and more sustainable growth. The Government response to the Silk Commission has said that Wales is set to have greater investment powers which would be maximised by the income tax sharing arrangements. All parties in Wales need to  push on with this for the benefit of the Welsh economy.

The change of focus in the Funding for Lending scheme from mortgages to businesses should be welcomed as both business investment and lending remain in a depressed state. Plaid Cymru would implement a public development / business investment bank ("A Bank of Wales") to lend to SMEs, and develop local industries here. Plaid Cymru also wants to cut business rates for thousands of Welsh businesses.

Although a reduction in consumer energy bills is to be welcomed, Plaid Cymru has concerns that the reduction will not apply to off-grid consumers in rural areas. The real reason for soaring bills is profiteering by the members of the ‘Big 6’ energy cartel, something that the current Con Dem Coalition government and the last Labour government entirely failed to tackle. That is why Plaid Cymru has proposed a publicly-owned energy company, Energy Wales, with a not-for-distributable-profit model.

Plaid Cymru has also criticised the Chancellor's announcement that workers will be expected to work for up to five years longer in changes to the state pension. We in Wales will be hit disproportionately by these changes due to our lower life expectancy, and it is particularly perverse to reduce the job opportunities available to young people at a time when UK youth unemployment stands at a million.

THE GHOST OF CHRISTMAS PAST...

It has been suggested that David Cameron is considering launching an investigation of the energy market. Whether or not the ‘’Big 6’ energy cartel members are colluding to rig prices or deliberately exploiting excessive market power to fatten profits in an unfair way is perhaps open to question in some circles. From the perspective of the cartel members (and investors) if any investigation is launched then they (the ‘Big 6’) may argue that uncertainty will surround the energy industry.

If there is an investigation then if a Competition Commission inquiry may investigate whether there are structural flaws in the industry which mean that competition does not serve consumers' interests adequately. One significant question that should be asked (and hopefully answered) is whether it is good or bad for consumers, and for the economy for energy companies to both generate and sell energy to their customers.

Now it can be argued that the all in one generators and sellers of energy have little incentive to keep retail prices as low as possible, since higher prices boost the profits of their generators, not to mention the value of whatever gas reserves they happen to hold. It is also worth noting that if the energy industry is referred to the Competition Commission rather than to Ofgem (the current and fairly toothless energy regulator) then that pretty much puts the skids under Ofgem. Downing Street may believe that that is important to show that the big players in the energy industry suffer from behavioural rather than any structural weakness.  

Oddly enough there was a Conservative pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry which was quietly dropped by the Com Dem Coalition Government in August 2010, when no doubt when they hoped no one would notice. Back in October 2009, the then Tory Energy Spokesman, Greg Clark has said that the "cartel" of the big 6 energy firms will be referred to the Competition Commission by an incoming Conservative Government.

He also said that there was an unacceptable lag between the cost of wholesale gas prices and household energy bills - noting that customers were on average being charged some £74 pound too much for their energy per year. An 'independent' investigation in the Energy companies refusal to pass on reductions in wholesale energy prices to customers was also mooted along with an overhaul the energy sector billing structure and charges. 

Few people this winter will have as snug a relationship with the gas companies as that exists between the political parties (within the Westminster village) and the energy supply companies. Before the last Westminster general election, the Conservatives and the Liberal Democrats made repeated criticisms (and much political capital) from New Labour for its failure to tackle prices charged by the Big Six suppliers. Both the opposition parties publicly and repeatedly demanded an inquiry by the Competition Commission. 

Now don't get me wrong, an investigation sounds great, but, it was a Conservative Government that was responsible for starting the whole sorry mess by privatising the energy market in the first place. Throwing any rational energy pricing structure upon the whims of the alleged 'free market' by allowing the newly privatised energy companies to price gouge customers in the first place was a catastrophically bad idea. By the time the dust settles the fact that Conservatives pre election pledge ended being kicked into the long grass may well yet come back and haunt them before the next Westminster election.