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. 

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.

THE GREAT ENERGY RIP-OFF

Energy firms are one again under pressure to cut domestic prices after an Ofgen (the energy regulator) report suggested their profit margins were up. While the Ofgem report noted that the average net margin for supplying the average gas and electricity customer was £105 a year in February 2009, up from £75 a year in November 2008, and while this has provoked calls for firms to cut their gas prices, little will happen because Ofgen is toothless and the UK Government has little appetite regulate the allegedly ‘free’ energy market.

It is worth noting that while, wholesale energy costs have fallen for over a year; there has been no fall in the energy costs for hard pressed energy consumers.The reality is that we can no longer afford the luxury of an effectively unregulated energy market or its consequences. Ofgen has failed, it has failed to protect consumers, failed to regulate the energy companies or the so called ‘free’ energy market.



It is pretty clear to most disinterested observers that the UK Westminster Parliament and most of the parties within it are not serious about developing secure sustainable energy supplies, they are more than happy to benefit from windfall taxes when energy company profits go up and happy to be wined and dined by the large energy companies (who are well known for throwing their money around during the Party Conference season) – at the consumers expense - but not happy to regulate their reckless profiteering.

The Energy companies, reaping a 500% increase in profits over the last half a decade, were pretty quick to blame rising oil and gas prices, and even quicker to rake in the profits – the average annual dual fuel bill rose from £662 a year in 2005 to 1,048 in 2007. The UK Government was very happy to rake in the extra tax revenues – the only real loser in this pretty picture was us, the energy customers.

The so called energy free market has failed, we have a monopoly on energy supply in the UK; the number of energy supply companies fell to six in the last ten years, with less that £30 differential between all of the energy supply companies, which works out to be no more than a few pence a week difference in bills, what we have is an energy cartel which brings minimal benefit to hard pressed energy customers, maximize profits at our expense and does not plan for the medium to long future.

We are in the midst of a particularly hard winter,which as yet shoes no sign of abating, many ordinary people are beginning to dread the energy bills that will drop through the letter box when spring comes around. No one, in a civilised 21st century country should ever be forced to make a literal choice between putting food on the table for their family and heating their home, our older people should not have to worry about whether or not they put the heating on, but that’s where many people now find themselves.

Not that long ago families could live on one salary, but, not anymore, today people are working all hours of the day to cope. A situation has now arisen where we have a culture that actively rewards greed and recklessness in the City of London (and beyond), which has promoted a vast increase in credit, and fed what became an absurd house price boom – that is how we have arrived at the credit crunch which has brought real economic hardship for many and yet continues to enrich the few at our expense.

Back in January 2010, Natural Gas prices rose to their highest level in 10 months (reaching 45p per therm) and this triggered the import of extra gas from Belgium and Norway via the natural gas (liquefied) importation terminal in Kent.So what you may ask? Well aside from the prospect of higher energy bills (and higher profits for the energy cartel (sorry companies) and even more tax for Gordon Brown’s government.

Now while other countries insured themselves against external shocks to their energy needs; successive UK Government’s entirely left it to the market (stop me if this sounds a bit like what happened with the banks) to sort out – so what did the energy companies do, they chased quick short term profits at our expense. The UK’s market driven approach has been entirely and utterly inadequate. Thirteen months ago as of January 2009, France could store 122 days of gas and Germany 99, the UK had storage capacity which would only 15 days and frantic efforts have been made to increase storage capacity.

In the 1980’s and 1990’s developing a long term energy strategy or making sensible long term decisions in relation to energy supply was never an option for the Tories during their last tenure on government. Likewise, the New Labour Government (and the nominal Conservative opposition) took the best part of a decade to recognise the need to increase storage capacity.The abject inheritance of the Conservatives privatisation of the energy companies is one of enshrined self-interest, short term profiteering and an utter absolute failure to plan for the UK's future energy needs.

As I have said before and will say again (and again) it should be a matter of urgency that the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources. If we develop a flexible self-sufficient energy development strategy within these isles that encourages decentralised microgeneration schemes and by actually implementing it could create jobs, useful skills and help to bootstrap the economy out of the developing recession as well as helping consumers.

There are many things that can be done to rectify this situation. On a UK level we need firm regulation of the energy sector, excessive profiteering must be curbed and we need a windfall tax on excessive profits. We need to break up the effective energy cartel, which neither supplies the needs of the energy customers or the UK's medium to long term energy needs, they only service the needs of shareholders. We need a series of public private partnerships to develop sustainable alternative energy resources and we need a firmly public owned planned national grid that is flexible enough to deal with small scale energy suppliers.

Here in Wales, the Plaid driven One Wales Government should be working flat out towards improving the energy efficiency of business operations and production processes to reduce CO2 equivalent emissions and to cut down on waste. We also need to encourage the development of new cleaner technologies and processes for businesses and promote the use of sustainable infrastructures with regard to energy and waste.

We need to welcome with open arms local plans to develop local energy plans, local energy supplies and welcome the development of community owned and community beneficial sustainable energy plants. We need new local authority planning guidelines and proper feed-in tariffs to rapidly promote the incorporation of small-scale renewable energy installations and much better insulation in individual homes, commercial and public buildings and groups of buildings - this is essential.

To make any of this happen, we needs a realistic and flexible energy strategy that will allow and encourage the creation of sustainable green energy job opportunities for our people and take full advantage of the extraordinary natural resources we in Wales are blessed with. If this happens, then there is absolutely no reason why Wales should not be amongst the most progressive countries in the field of sustainable alternative energy and sustainable green jobs and the UK can end it's dependence on fuel supplies from unstable regions and unsavoury regimes.

A VERY NEW LABOUR MOMENT!

Yesterday David (“Call me Prime Minister”) Cameron called for a "trusted, simple and transparent" market – simples everything is fine now. Now quite – anybody who thought for a moment that at the end of the energy summit that their energy bill was going to drop, seriously needs to have their head read. That's not what this was about this was literally David Cameron's Tony Blair moment – the energy summit was about looking good, sounding good, sounding concerned and saying the right things without actually doing anything.

Chris Huhne (the energy secretary) blamed the consumers (us) by saying that at the end of the day it's up to us (as consumers) to shop around and we should not expect the government to somehow resolve the issue of high energy prices. The caring Conservative (and that is definitely an oxymoron) went on to say that the energy companies are not charities ("They're not the Salvation Army”) they are private companies and that there is only so much that a government can do.

What was unsaid was that there is only so much a government can do short of any form of regulation. Part of the problem is that the privatised energy market is an almost sacred ideological inheritance from the Thatcher years. Expecting a Conservative Government (which despite Lib Dem bleating is what we effectively have) to tamper with the ‘free energy market’ would be a little like expecting Labour to remove clause 4 or curb the power and influence of the Trade Unions.

So after that stern talking too from David Cameron the Energy Cartel members are effectively free from pressure to cut domestic prices despite previous Ofgen (the energy regulator) reports that hinted at profiteering. Despite the energy summit and previous calls for firms to cut their gas prices, little will happen partially because Ofgen is toothless and partially because the UK Government has no appetite for regulating the allegedly ‘free’ energy market, even when it no longer works.

While, wholesale energy costs fell in 2009 – 2010; there was no corresponding fall in the energy costs for hard pressed energy consumers. We can no longer afford the luxury of an effectively unregulated energy market or its consequences. Ofgen has failed, it has failed to protect consumers, failed to regulate the energy companies or the so called ‘free’ energy market.

Plaid has rightly repeated calls for a windfall tax on energy companies profits after September's inflation figures were published, and show a 13% increase in gas bills and 7.5% in electricity. The money raised from a windfall tax could be returned to users to cap costs and introduce better insulation and other elements which will not just be cheaper, but also more environmentally friendly.

In October 2009 the then Tory Energy Spokesman, Greg Clark (currently a Minister of State in the Department for Communities and Local Government) said that the "cartel" of the big 6 energy firms would be referred to the Competition Commission by an incoming Conservative Government. The (then) Tory Energy Spokesperson also condemned the 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.

Strangely enough that pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry which has been subject to lengthy and repeated criticisms surrounding accusations of profiteering on electricity and gas, was quietly kicked in to the long grass by the Com Dem Coalition Government. Heaven forbid that we let simple ideological principle get in the way of profit.

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.

Any faint hope that the nefarious activities of the energy supply cartel might have prompted the reform of the industry did not happen. All the talk of encouraging new entrants to break the hold of the cartel which controls 99 per cent of the market and any thoughts of imposing price caps or windfall taxes to curb excessive profiteering have come to naught Only four months into the new Coalition Government, it was revealed that there was to be no inquiry and the Department of Energy and Climate Change quietly confirmed (17th August 2010) that it had no plans to refer the industry to the Competition Commission.

Perhaps there ought to be an inquiry into the dubious (and financial rewarding (in cash and kind) relationship between our political parties and the representatives of the energy supply companies who are pretty keen to shower enough goodies around during Party conference season (and beyond) – perhaps not? I mean it might upset the dinner guests...

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.

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.

A TANGLED WEB...

News that Ofgem (the energy regulator) has told energy firms they must offer simpler tariffs to help consumers compare prices is to be welcomed. Ofgem has also said that the "big six" suppliers should also face more competition, saying that it would force these firms to auction off up to a fifth of the electricity they generate, making room for new companies. Not to mention that Energy firms could be referred to the Competition Commission if they do not comply with the new system.

Now, of course, Ofgem launched a review of the energy market after claims were made that suppliers were making excessive profits. Certainly British Gas (earlier in the year) said operating profits had risen by 24% in 2010 to £742m. Back in November, Ofgem said that energy supplier's net profit margin per typical customer rose from £65 in September to £90 in November, which was a 38% rise. Interestingly enough, Ofgem also said that it had found evidence that the "big six" energy firms "have adjusted prices in response to rising costs more quickly than they reduced them when costs fell".

Factor in the possibility that Scottish Power, may face an investigation into its pricing regime and that this investigation is in addition to the ongoing Ofgem investigation into how British Gas, EDF Energy and Npower handle consumers' complaints. Not to mention that Ofgem is also still continuing to investigate allegations of misselling by EDF Energy, Npower, Scottish Power, and Scottish and Southern Energy and you may well draw the conclusion that the so called 'free market' in energy supply is joke that deliverers little save for fat profits for members of a self serving cosy energy cartel.

The problem is that any Ofgem investigation into questionable practices undertaken by the energy companies will not come close to the Conservative pre-election promise of a proper enquiry into the energy industry. Now oddly enough that pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry (which has been repeatedly criticised with accusations of profiteering on electricity and gas) 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.

Now don't get me wrong, this all sounded great, but, wasn't it a Conservative Government that was responsible for starting the whole sorry mess in the first place 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? So you may ask, why did it never happen? Well that was one reason may well be that the current shambles helps to feed the fat wallets of Tory chums in the City and the exchequer.

Its also worth noting the energy companies are busy gouge mining profits from their domestic customers. Back in February is was British Gas who's operating profits rose 24% in 2010 to £742m.This news, welcome to shareholders if no one else, two months after the UK utility announced a 7% rise in domestic energy bills, which it blamed on rising wholesale prices.

British Gas also said it had increased its number of customers by 267,000 during the year to 16 million. This helped parent company Centrica to achieve pre-tax profits of £2.8bn, with operating profits up 29% to £2.4 billion. Factor in continuing unrest in the Middle and near East which is leading to a rise in Oil Prices something which will also hit us at the pumps and elsewhere with increased food and energy costs and you would think that developing cheap sustainable safe secure energy would be pretty important.

This is more than important,it's the potential game changer and is far to important to be left to the profit chasing whims of an energy cartel. We need to seriously and actively pursue the development of sustainable, reliable and secure energy supplies here in Wales and elsewhere in the UK with a serious degree or urgency. What makes this interesting is that some of these energy can and should be community owned and community beneficial, something that could generate green energy and green jobs here in Wales.

IN THE MONEY

Here we go again; British Gas has announced increases to the gas and electricity prices it charges customers. The company (a member of the ‘Big 6’ energy cartel) has announced that it will raise its charges for both gas and electric by around 6%, which will add around £80 a year to the average dual fuel bill, from the 16ht November 2012. This not unexpected decision follows SSE (which trades as Scottish Hydro, Swalec and Southern Electric) announcement that it will increase its domestic gas and electricity prices by an average of 9% from 15 October.

SSE (also one of the ‘Big 6’) has blamed the increases on the extra cost of using the gas and electricity networks and rising costs in energy wholesale markets. Around 3.4 million gas and five million electricity customers will be affected with an average standard dual-fuel bill will pay an extra £102 for the year, or £1,274 in total. Back in May 2012, British Gas, reported a 2% rise in annual pre-tax profits to £1.33bn, though profits in its division which supplies electricity and gas to homes and businesses fell 20% to £321.6m.

Npower has also joined its fellow cartel members (sorry colleagues) British Gas in and SSE by announcing it is increasing gas and electricity prices in the UK. Npower announced that it will increase the price of gas by an average of 8.8% and electricity by 9.1% from 26th November. And then there were three…

In 2011, all the big-six energy suppliers raised their prices, in some cases twice. Earlier this year the ‘Big 6’ all staged a token gesture round of small price cuts, which affected their gas or their electricity customers. SSE cut its gas prices by 4.5% in March this year. British Gas last raised its tariffs in August 2011, gas prices rose by 18% and electricity prices by 16%. Back in January 2012, it cut its electricity prices by 5%. Centrica (which owns British Gas) in May 2012 warned that continued increases in the wholesale price of gas might lead to renewed domestic price rises this autumn.

The silence from the Con Dem Government is almost deafening. Truly we have come a long way from the heady days of opposition, when back in October 2009 the then Tory Energy Spokesman, Greg Clark  (currently Financial Secretary to the Treasury) said that the "cartel" of the big 6 energy firms would be referred to the Competition Commission by an incoming Conservative Government. The then Tory Energy Spokesperson also condemned the 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 into the Energy companies refusal to pass on reductions in wholesale energy prices to customers would have been very welcome along with the promised 'Energy Revolution' to overhaul the energy sector billing structure and charges. Oddly enough a Conservative Government started the whole sorry mess in the first place, privatising the energy market in the first place. This threw any rational energy pricing structure upon the whims of the 'market' by allowing the newly privatised energy companies to price gouge customers in the first place?

Oddly enough that pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry which has been subject to lengthy and repeated criticisms surrounding accusations of profiteering on electricity and gas, was quietly dropped by the Com Dem Coalition Government. Heaven forbid that principle get in the way of profit. No doubt in the next few weeks the other cartel members will feel duty bound to roll out energy price increases to their customers, I mean you have to keep the dividend up somehow and keep the shareholders happy.

Few of us this winter will have as snug and cozy a relationship with the energy companies as that which exists between the political parties within the Westminster village (and without) and the energy supply companies. Prior to 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 and repeatedly demanded an inquiry by the Competition Commission.

Sadly any faint hope that an inquiry into the nefarious activities of the energy supply cartel which might have had the power to reform the industry, encourage new entrants to break the hold of the Big 6 on the nominal free market and even possibly impose price caps quietly died in the summer months of  2010. Perhaps there should be an inquiry into the dubious (and financial rewarding) relationship between the Westminster based political parties and the representatives of the energy supply companies who are pretty keen to shower enough goodies around during Party conference season (and beyond) – perhaps not?

STAYING WARM THIS WINTER?

Even though many of us will be enjoying the summer, some of us will also be faintly wondering about what our winter fuel bills will be like if we have a bad winter. Some of us may be thinking about making a stark choice between heating or eating this winter. Energy supply wise, we are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers than ever before, and we the customers face unnecessarily expensive bills.

As a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources rather than pursing the dubious and costly (potentially in more ways than one) nuclear alternative that is particularly favoured by Whitehall civil servants.

The renewable energy sector can and should play a major role in creating more sustainable green energy jobs in Wales and elsewhere in the UK. If we can develop a flexible self-sufficient energy development strategy that actually encourages decentralised microgeneration schemes and then actually implement it then we have a fighting chance of creating jobs, useful new skills and will be able to bootstrap the economy out of the recession, as helping consumers and securing a stable safe energy supply.

As part of this process, we need to create a decentralised power generation system, which will create sustainable long-term jobs for local people, not damage the environment and contribute to providing our local communities with a long-term sustainable economic future. We can create more sustainable green jobs with exportable technology e.g. plumbers can install solar water heating and other professionals can install solar panels, micro-generation, biomass systems, green sanitation and water use can all contribute to the sustainable growth of our economy.

However, When it comes to energy supply in these isles, we are subject to the less than tender mercies of the so called 'free market', I say that because what we have is a virtual monopoly on energy supply in the UK. This is a direct result over the last eleven years of so or the departure from the commercial scene of a significant number of the energy supply companies - they fell from twenty two in number to six.

Now we have been told don't worry about it, that's the way the market works, and besides everybody took advantage to buy cheap shares in all the privatised utilities didn't they? Many people might have done so, but, how many people still have them or shares in their successor companies. By way of experiment at one of the Westminster election hustings (in Trelech) I asked that very question - out of well over 100+ people present only one person raised their hand. The only real beneficiary in the medium term was the City. Now the free marketeers will tell us that this was a good thing - I beg to differ the only real end result of the privatisations was that the ever richer minority in the City (and some of their friends in the Palace of Westminster) got richer at our expense.

Anyway, as I said, Free market, I think not, what we have is less than a £30 differential between all of the energy supply companies, which works out to be no more than a few pence a week difference in bills. We are all paying the price, and future generations will continue to pay the price of the economic consequences of an energy cartel which brings minimal benefit to hard pressed energy customers and maximises it's profits and which feeds the UK government impressive amounts of tax.

The Energy companies who have reaped vast profits over (500% between 2003 and 2008) were pretty quick to blame rising oil and gas prices, and even quicker to rake in the profits, as the average annual dual fuel bill rose from £662 a year in 2005 to 1,048 in 2007. The New Labour Government was pretty happy to rake in the extra tax revenues and ignore repeated calls for a windfall tax on excessive profits and the Energy companies were equally slow to pass on any reductions in energy costs to their customers – the only real losers in this pretty picture was us, the unhappy energy customers.

The then New Labour Government ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts. Over the next six years almost all of our old nuclear reactors, along with nine major coal and oil-fired power stations, will be closed, with nothing ready to replace them - now that is something to think about.

Now it's not all New Labours fault, that would be too easy and too simple. This mess has been along time coming, the real culprits are the Conservatives. Conservative complicity in the headlong dash to gas in the 1980’s was bad enough, but, things were compounded by a real and basic failure in strategic energy planning something that was made worse by the then New Labour Government's perverse decision to half-heartedly look at developing diverse reliable alternative energy sources.

Back in October 2009, the Tory Energy Spokesman, Greg Clark has said that the "cartel" of the big 6 energy firms would be referred to the Competition Commission by an incoming Conservative Government. He also condemned the 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.

Many people, at the time, could see the benefits of an 'independent' investigation into the Energy companies refusal to pass on reductions in wholesale energy prices to customers and welcomed the promise of a long overdue 'Energy Revolution' to overhaul the energy sector billing structure and charges. All good stuff, but, and don't get me wrong here, this all sounded great, but, it does seem to have gone awfully quiet over there (in Government).

Also if my memory serves me correctly wasn't it a Conservative Government that was responsible for starting the whole sorry mess in the first place by privatising the energy market in the first place, throwing any rational energy pricing structure upon the questionable whims of the 'market' by allowing the newly privatised energy companies to price gouge customers in the first place? One reason why it may have gone quiet is that the energy cartel helps to feed the fat wallets of their Tory chums in the City?

By the look of it and energy prices are set to rise once again and while no one is disputing that the six main energy suppliers have been ever so slowly (in most cases) reducing their prices since the beginning of this year, energy bills are still too high. Consumer Focus research suggests (in October 2009) that current gas bills should have been at least 7.4% cheaper (some £60.10 annually) and electricity bills should have been at least 3.1% cheaper (£13.80 annually). I suspect that the energy companies will move pretty swiftly to raise our bills if energy prices go up again.

Now the reality is that little has changed, vast profits are still being made by the energy companies. Customer Focus's research showed the reality, that the energy companies are pocketing £1.6bn extra, despite the belated passing on of some energy cost reduction to households, little has changed and if energy prices continue to fluctuate then once again millions of households may yet struggle to make ends meet this winter.