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 BEDROOM TAX AND THE UN

Just to make Mr Cameron’s day, a leading United Nation’s officialis visiting the UK to examine the impact of the Government’s toxic ‘bedroomtax’ policy on the human rights of thousands of vulnerable people in the UK. However, the UN special rapporteur for housing, Raquel Rolnik, will be visiting every UK nation apart from Wales during her two-week tour of major cities.

One of the not unforeseen consequences of the Con Dem Government’s (Labour approved) Bedroom tax will be an increase in the number of people and families ending up homelessness. The early effects of the bedroom tax arealready beginning to show in official figures with a rise in the number of Landlord Possession claims and orders issued in the 3 months from April to June 2013.

This follows the introduction of the bedroom tax, statistics show that - compared to the same period last year – the number of claims had risen by 11% and the number of possession orders issued increased by 16%. The majority of these claims and orders was in the social housing sector which is the sector most affected by the bedroom tax. The statistics also show an increase of 6.5% in the number of warrants for eviction issued in the private rented sector, as families in Wales continue to struggle with the cost of living and other changes to the benefits system introduced in April.

As we all brace ourselves for the financial consequences of a potentially hard winter (increased heating and fuel bills) it will be less well off vulnerable poorer families who will be least able to face the prospect of larger and more expensive heating and energy bills. If their finances have already been squeezed by the costs of the bedroom tax then extra heating and energy costs could be the final straw resulting in many families potentially facing eviction by Christmas.

HOPING FOR A MILD WINTER

When I was a child I always hoped for long warm summers so I could enjoy them. Now that I am older and paying my own energy bills, I still hope for mild winters and warm long summers. Not I hasten to add so that I can enjoy them, but, because I like most the people are getting fiscally violated by the ‘big 6’ energy cartel members and I need to keep my energy bills down.

So news that households in England and Wales cut their energy use by a quarter over a six year period, according to the Office for National Statistics (ONS) should come as now surprise. The ONS report that average consumption of gas and electricity fell by 24.7% between 2005 and 2011 – this should be good for us the energy customers and good for the planet (less green house gases) - save for the fact that we (the energy customers) have faced steep increases in our bills over the period, and are perhaps trying to economise as a result.

Personally if I can make it to October before I put the heating on, or later, then that from my point of view is a bonus.  Ofgem (the energy regulator) says that energy bills have risen by 28% in the last three years. Some of the saving are down to increasing use of energy efficiency measures, with insulation, double-glazing and new boilers – ironically this is something that Plaid first advocated some thirty years ago – long before we started getting fleeced by the energy companies.

The ONS also said that another reason for the fall in consumption might be down to the introduction of energy ratings for properties and household appliances, something which may allow customers to make informed choices. Ofgem also noted the price rises, pointing out that the average duel fuel bill is now £1,420 a year.

ONS figures also showed that energy consumption is highest in England in the East Midlands, and lowest in the south-west of England, which has the mildest climate in the UK. The Department for Energy and Climate Change figures showed that Scotland still has the highest energy consumption of any part of the UK. They also noted that gas consumption in Scotland fell by 14% between 2005 and 2010, as shown by figures from March 2012.

One thing that could help is the smart meter, which show people exactly how much energy that they are using at any particular moment in time. While both the concept and the real thing have been around for a while, when it comes to installing them, the big six members appear to be dragging their feet. It is hoped that they will be installed in 53 million homes by 2020.

Household energy bills have become a major drain on finances, with people literally choosing between heating or eating. Fuel poverty is now alive and well here in the UK. Successive Westminster governments, both formerly New Labour and Con Dem have done little to curb the excessive profits raked in by the ‘big 6’ energy cartel members but have been happy to rake in extra taxes on profits.  

FEEDING OUR FUEL AND FOOD INSECURITIES

As UK householders brace themselves for increased energy bills, they are also going to take a hit from increased world food prices.  The UN's Food and Agricultural Organization (FAO)World food prices has revealed that world food prices rose 1.4% in September (in July food prices went up by 10%), driven up by higher meat, dairy and cereals prices. The rise follows two months of relative stability when food prices remained steady.

Here in the UK, we will end up paying higher prices for the food on the shelves. Elsewhere on the planet there are real concerns about possible food shortages as drought hit grain crops in the US Midwest, Brazil, Russia, Europe and central Asia. The UN has also forecast a decline in global cereal production this year.

The FAO is predicting that 2.286 billion tonnes of cereal are likely to be produced, this is slightly down from the 2.295 billion tonnes that had been estimated a month earlier. This forecast would mean a 2.6% fall in cereal production from 2011's yield, which was a record crop. This would result in a significant reduction in world cereal stocks by the end of 2013, yet there may be some light at the end of the tunnel as the early indicators for wheat crops in 2013 are said to be good.

The UN and the US Department of Agriculture says that  around one third of all food goes to waste and that consumers in rich countries waste almost as much food as the entire net food production of sub-Saharan Africa. To feed the worlds expanding population basically we will need to produce 70% more food by 2050 and this despite the fact that Global corn stocks (reserves) have basically halved since 1998.

More than 100 million more people across the world now suffer from hunger due to recent food price rises. Of all the humans on the planet, one in eight not have enough food. The situation is being made worse because we are turning food into fuel. The UN food agency (aback in August) called on the United States to suspend its production of biofuel ethanol.

US law requires that 40% of the US corn harvest be used to make biofuel, the UN says that this quota could contribute to a food crisis around the world. The harsh drought and heatwave across the US has made the situation worse by destroying much of the country's corn crop, and driving up prices. The US is not alone in relentlessly chasing biofuel, many countries are increasingly exploring the possibility of growing some of their fuel rather than importing it.

The FAO's Food Price Index rose 3 points to 216 in September, but this is still below the record 238 reached back in February 2011. Cereal prices rose 1% from August, wheat and rice offset a decline in maize. Meat prices were up 2.1%. Dairy prices rose 7%, the sharpest monthly increase since January 2011.

Sugar prices fell 4.2%, reflecting an improved sugarcane harvest in Brazil, the world's largest sugar exporter. Oil prices fell by 0.4% in September and the International Energy Agency is predicting a fall in oil and gas prices. This no doubt explains why the energy companies are going to charge us more for our energy over the winter – or perhaps not!

HEAT OR EAT AGAIN?

While we are enjoying the occasional (if fleeting) summer days, many of us are wondering about what our winter fuel bills will be like, especially if we have a bad winter. Some of us may face the stark choice of 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 are facing increasingly expensive domestic energy bills.

News that research by Consumer Focus Wales now shows that a third of those asked described their energy bills as more of a worry than it was a few years ago will surprise few of us. The research shows that people on lower incomes, are unsurprisingly those most likely to be struggling to afford their energy bills. As has been previously noted the elderly and people in rural areas are also affected by increased energy bills. Almost 25% of people said energy bills needed only to go up by another £120 (a 10% increase) and they would also be struggling to afford the payments.

The stats make grim reading, the regulator Ofgem, has said that household energy bills have effectively doubled since 2002 and are now £1,250 per year. Back in 2008 the industry’s average dual fuel bill for both electricity and gas was £885. The ‘Big Six’ energy supplier’s cartel announced cuts of 5% in either their electricity or gas prices, but, this failed to reverse the years of price increases.

Consumer Focus Wales research shows that the proportion of people in Wales falling in to debt with suppliers is actually rising. Some 8% of energy consumers say they have fallen behind with energy bill payments in the last year – this figure rises to one in seven among young people and lower income households. Back in 2010 Consumer Focus Wales found that 5% of people were in arrears on their gas and electricity payments.

Back in February and March one by one of the 'Big Six' quietly announced a raise in profits at a time when many people were trying to avoid or to live with fuel poverty, something that was never going to go down well with hard presser domestic energy customers. Centrica (who own British Gas) revealed a group operating profit of £2.5 billion pounds, up four percent on 2010.

This unfortunately timed announcement came against a backdrop of growing fuel poverty, which affected (at the time) around 5.5 million households in the UK. The definition of Fuel poverty is when a household spends more than ten percent of their disposable income on gas and electricity. Fuel poverty is one of those things that the previous (and former) New Labour Government and the current Con Dem Government have done nothing about and no doubt quietly hope will go away or that the rest of us will continue to suffer it in relative silence.

Nothing has been done or will be done to curb or regulate excessive profits from the energy companies via windfall tax. The talk about customers benefiting from dual fuel bills, etc, is little more than a distraction. We have had a dual political failure, something that speaks volumes as to how far both the former New Labour Government and the Conservatives (and their Lib Dem coat holders) have gone to drop even the pretence of standing up for the interests of ordinary people in favour of courting the City.

It looks like we are going to get hit by another rise in domestic energy bills, kicked off this time by SSE, (Scottish Hydro, Swalec and Southern Electric) who have announced that they will increase its domestic gas and electricity prices by an average of 9% from October 15th. I'll bet the City and the shareholders will be happy, unlike the rest of us.

For growing numbers of ordinary people this winter it may come down to a choice of heat or eat, literally choosing between putting food on the table and heating their home. The only real winners here are HM Government (with extra tax) and the big six energy companies (with fat profits) all of us as customers are losing out hand over fist as the energy cartel continues to ramp up its profits.

EXIT STAGE LEFT PURSUED BY SUBSIDY...

Now David Cameron made much of being a ‘green’ environmentally caring Conservative when he was busy re-branding the pretty toxic Conservative brand, his government's publicly stated that it wanted to almost completely de-carbonise the electricity industry by the 2030s. All very well and good, yet, in the Draft Energy Bill, due to be published on Tuesday, no guarantee such a target will oddly enough appear nowhere in the bill.

The UK’s unhealthy expensive obsession with its expensive, heavily subsidised and floundering nuclear industry will ensure that the UK gas-dependent for many decades to come. To get out of this hole the UK may well be reduced to purchasing emissions permits on the European market to try to keep to its much publicised medium-term emissions reductions targets.

A well publicised failure to de-carbonise electricity will end up diverting the UK from its plan to reduce CO2 by 80% by 2050 - unless the gas-fired power stations were made to run with carbon capture and storage, a technology that is unproven on a large scale. Actually increasing these islands dependency on imported gas from unstable areas of the world at a time of rising energy costs is hardly the brightest thing to do.

The draft Energy bill is being introduced so the proposals can be fully scrutinised by parliament should appear as a fully fledged bill sometime this autumn. The final decision, no doubt subject to some discreet nudging from Cameron and the pro nuclear lobby will end up before the Westminster Energy and Climate Change Committee. The pro nuclear lobby may even find itself nudging the Conservative PM to persuade the EU that a public subsidy for nuclear power is fine.

The 2030 plan was publicly endorsed by the PM back in November 2010 may be quietly added to the too difficult in tray. So it may literally be a case of exit stage left pursued by nuclear subsidy for any fleeting Conservative aspiration to de-carbonise electricity in the 2030s. One way of the other we have been paying (and will go on paying) for Conservative and Labour failures to develop sustainable and secure energy resources for many years to come.

WATER, ENERGY AND OWNERSHIP

Not everything that works in Scotland will work in Wales, but, some things are worthy of consideration - Scotland is undergoing a sustained period of growth in small scale hydroelectric energy schemes, with scores of streams and rivers being earmarked and investigated for development. This sustainable energy 'gold rush' driven by water rather than minerals is helped by the fact that Scotland, just like Wales is blessed by pretty abundant water resources.

In Scotland, the energy consultants and developers are looking for specific locations where water that flows down steep enough slopes and ravines to allow it to generate an increasingly precious resource: energy.The Loch Lomond and the Trossachs National Park is supporting and encouraging the development of hydro power schemes within the park's boundaries and local communities are also planning to build their own local schemes (something that will deliver sustainable cheap energy and other financial benefits as well).

One of the reasons why the hydro rush will work and deliver long term sustainable benefits is the new feed-in tariff that came in 2010. The subsidy for producing green energy has been increased and it makes schemes more viable, which when combined with a progressive Government that is actively driving the growth of sustainable non oil and gas and non nuclear dependent energy supplies'- means that plans to develop sustainable renewable energy supplies are proceeding apace.

In truth, this is something that every Government (with or without half a brain) in Europe should be striving to actively accomplish, all this means that Scotland is on the up energy wise. One simple observation, if it works in Scotland then why can it not in Wales, are we not blessed with rain and blessed with some reasonably steep hills, the odd slopes, not to mention gully's and the occasional ravines?

I mention this because cheap sustainable secure energy is important, it's the potential game changer. The privatised energy companies are busy gouge mining profits from their domestic customers - us and piling up the dividends for their shareholders. British Gas who's operating profits rose 24% in 2010 to £742m. This news, which no doubt was welcome to shareholders, was not welcomed so warmly by domestic customers, it came barely 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. Parent company Centrica managed to achieve pre-tax profits of £2.8bn, with operating profits up 29% to £2.4 billion. Not to mention the fact that unrest in the Middle and near East is leading to a rise in Oil Prices which will also hit us at the pumps and elsewhere with increased food and energy costs.

With all that in mind why are we not seriously and actively pursuing the development of sustainable, reliable and secure (not to mention community owned and community beneficial) energy supplies here in Wales and elsewhere in the UK with a serious degree of urgency?

MORE BRICKS AND MORTAR

Whilst out on the stump today in Newport West and Newport East (and Blaenau Gwent and Merthyr on Wednesday) there is plenty of evidence that the pledge made by the Plaid driven one Wales Government to construct 6,000 affordable homes has been well and truly achieved being driven through by Jocelyn Davies (AM), Plaid Minister for Housing. While obviously more needs to be done this has been a major step in the right direction, and a clear statement of intention and action to try to solve the problem of affordable housing which continues to affect every part of Wales.

Giving our housing stock a lower carbon footprint and lower energy costs is something that is particularly important, especially when it comes to developing affordable housing and refurbishing existing housing stock. The planning policy (which was brought in 2009) for Wales, with new building regulations lead the way towards zero-carbon buildings and should be touted as an example of getting it right.

Lets be realistic though, while reducing energy costs in particular, as zero-carbon housing will be cheaper and thus more affordable over its entire lifetime - is a good thing. In truth, it does not directly and immediately help the young people in our communities who can't get onto the Housing ladder, but the construction of 6,000 affordable homes in every part of Wales (including Monmouthshire) is a small but significant step in the right direction.

Good intentions may have undue consequences, after May 5th whatever hue of Government is on office in Cardiff, as we continue to either wobble our way further into or out of the recession what may happen is that the Government in Cardiff may come under sustained pressure from the building industry to relax the rules, water them down or delay implementing parts of them.

This certainly happened in 1997 when the New Labour Government almost entirely caved in to pressure from the Building industry, the problem of energy efficient homes or the lack of them in Wales is not something we can merely put off to help bail out a faltering building industry sector (which has made fat profits over the last decade) merely puts off the problems for another day.

Let's be brutally honest, short term thinking will not do and there is a real danger that there will be further pressure for short term budgetary savings made at a time when when government budgets are going to be cut, when there is less money to spare for incentives, grants and initiatives - this will come back to haunt us with a vengeance further down the line.

There is a real need for want of a better phrase joined up thinking, with the banks and the building societies needing to change their lending criteria for truly zero-carbon houses, as logically people paying less for their energy could be able to afford to pay more for their mortgages.

At the end of the day, this is a particularly good example of how the Plaid driven One Wales Government has thought differently and made a significant difference and is a positive step towards helping to solving the housing crisis as well as tackling one of the major issues facing the whole wide world. More of the same please! Think Different, Think Plaid, Vote plaid twice for a better Wales.

THERE IS ENERGY IN THEM THERE HILLS!

Scotland is in the midst of a boom in small scale hydroelectric energy schemes, with scores of streams and rivers being earmarked and investigated for development. There's a sustainable energy 'gold rush' starting in the Scottish hills. Water rather than gold is one of Scotland's most abundant resources.

What the energy consultants and developers are looking for specifically is water that flows down steep enough slopes and ravines to allow it to generate an increasingly precious resource: energy.The Loch Lomond and the Trossachs National Park is encouraging the development of hydro power schemes within the park's boundaries and local communities are also planning to build their own local schemes (something that will deliver sustainable cheap energy and other financial benefits as well).

One of the reasons why the hydro rush will work and deliver long term sustainable benefits new feed-in tariff that came in last year. The subsidy for producing green energy has been increased and it makes schemes more viable, this fact combined with a progressive Government that is driving the growth of sustainable non oil and gas and non nuclear dependent energy supplies'

This is something that every Government with or without half a brain in Europe should be striving to accomplish, all this means that Scotland is on the up energy wise. One simple observation, if it works in Scotland then why not in Wales, are we not blessed with rain and blessed with some reasonably steep hills, the odd slopes, not to mention gully's and the occasional ravines?

I mention this because cheap sustainable secure energy is important, it's the potential game changer. Its also worth noting the energy companies are busy gouge mining profits from their domestic customers. The latest being British Gas who's operating profits rose 24% in 2010 to £742m.This news, welcome to shareholders if no one else, comes barely 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. Parent company Centrica to achieve pre-tax profits of £2.8bn, with operating profits up 29% to £2.4 billion. Not to mention the fact that unrest in the Middle and near East is leading to a rise in Oil Prices which will also hit us at the pumps and elsewhere with increased food and energy costs.

With all that in mind why are we not seriously and actively pursuing the development of sustainable, reliable and secure (not to mention community owned and community beneficial) energy supplies here in Wales and elsewhere in the UK with a serious degree or urgency?

OUR ENERGY SAFE IN THEIR HANDS?

Back in February 2010 an interesting report called ''The Oil Crunch - a wake up call for the UK economy'' was published which warned that will of us faced a serious rise in the cost of heating, transport, food and other goods, the hard-hitting report largely slipped by under the radar. The report researched by the Industry Taskforce for Peak Oil and Energy Security, which rather than consisting of the usual Green suspects, are actually a group of British companies members including Sir Richard, Brian Souter, chief executive of Stagecoach, Scottish and Southern Energy boss Ian Marchant and Philip Dilley, chairman of consultancy firm Arup.

The report which pulled no punches saying that Government must recognise the risks to the economy and produce contingency plans for transport, retail, agriculture and alternative power. It suggested that the challenges facing the UK will far exceed those currently presented by the financial crisis and that the poorest in society will be the most vulnerable to potentially significant increases in fuel costs. There were further dire warnings that unless the Government gets its act together on alternative energy then there is a real possibility that during the term of the next government that fuel price unrest could lead to real shortages in consumer products and compromise the UK's energy security.

I mention this because many of us are in the process of or about to get hit by a hike in domestic energy prices, driven rather than by shortages but by some of the members of the energy cartel that happily puts profit before people and the national interest. Back in November I blogged on the need for a serious investigation into the competitive practises of energy companies by the regulator. Any investigation must be thoroughly in-depth and tackle the cartel-like behaviour of these companies.There can be no justification for profit margins to rise by 40% in less than three months while at the same time inflicting significant energy price hikes on consumers.

British Gas customers are to face a 7% rise in gas and electricity bills which comes into effect on 10th December. As a result of rising wholesale prices, said British Gas. oddly enough British Gas has become the second major UK energy supplier to announce price increases for the winter months - when there is a greater demand, and coincidently a greater profit to be made. Scottish and Southern Energy also intend to raise their domestic gas charges by 9.4% at the start of December, blaming wholesale prices for the increase in customer bills. This price increase announcement, was made just before just before they reported a 6.1% fall in pre-tax profits to £386m in the first half of the company's financial year.

Back 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.

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. If a freshly elected Government is not prepared to allow an inquiry into the energy cartel, then there is scant chance of an inquiry into the dubious (and financial rewarding (in cash and kind) relationship that exists 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).

Anyone awake in the previous New Labour Westminster Government and anyone with half a brain in the current ConDem Government should be working with the devolved administrations in Wales, Scotland and Northern Ireland to develop a hands on energy strategy that will lead to an end to dependency on unstable overseas energy sources and dubious suppliers and lead to energy independence. I mention this because, all of a sudden all is urgency when it comes to speeding the development of all kinds of new (and not so new) forms of low-carbon forms of energy generation.

The writing is on the wall for all to see - you might have thought that Vladimir Putin's decision eighteen months ago to reduce further gas exported into Ukraine, through which 80 per cent of Russian gas exports to the EU flows, would have highlighted the real dangers of relying on imported energy. Especially as Russia has slowly declining cash reserves and its economy is still heavily reliant on its trade in gas – the risk of shortages (which raise prices) as a consequence of Mr Putin's geopolitical games is something we can truly all do without.

While other countries have attempted to protect themselves against external shocks to their energy needs; the UK's market driven approach has been proven to be entirely inadequate. France has storage capacity for 122 days gas and Germany 99. Yet the UK despite an increasingly desperate attempt to play catch up has relatively low storage capacity for gas - it was barely 15 days in April 2009; the old New Labour Government took almost a decade to recognise the need to increase storage capacity. The consequence is that UK has to sell gas during the summer because we cannot store it but UK energy suppliers struggle to purchase gas again when it is needed in the winter.

The problem was made worse by what can best be described as the complicit insanity of the Conservatives headlong dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the current Government's perverse decision to half-heartedly look at developing diverse reliable alternative energy sources. The old New Labour Government repeatedly ignored warnings that it was setting the UK on a path towards higher prices and energy blackouts.

Over the next five 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. We are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers and we the customers face unnecessarily expensive bills.

Now the Con Dems have woken up, somewhat belatedly to the problem, but, can anyone trust this Tory dominated Government to put the people's interests before those of a fat profit for their dubious friends in the City? they certainly did not do that the last time they had their hands on our energy resources...

HEAT OR EAT?

I note that there were some mutterings at the Lib Dem conference today about the possibilities of a windfall tax on excessive bank profits and bank bonuses - I wonder how well that will go down at across the Cabinet table - where some may well have longer term plans for a safe seat on the board after their political careers are done and dusted.

The real interesting part of the days proceedings lies with the conspicuous silence in relation to any mutterings and musings about introducing a windfall tax on energy companies which could help people in their struggle with rising gas and electricity bills – and curb excessive profiteering from what has effectively become a closed energy market.

The reality is that we have a monopoly on energy supply in the UK, the number of energy supply companies fell to six in the last eleven, with barely more 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. The energy cartel brings pretty minimal benefit to hard pressed energy customers, being pretty quick to blame rising oil and gas prices, and even quicker to rake in the profits.

It is worth remembering, lest we forget, that the average annual dual fuel bill rose from £662 a year in 2005 to 1,048 in 2007. The then New Labour Government was more than happy to rake in the extra tax revenues – the only loser in this happy picture was us, the energy customers.

New Labour’s failed conspicuously to do anything about a windfall tax on excessive profits from the energy companies. I suspect that the Con Dem's will also do nothing and fail to consider a windfall tax to curb excess profits from the utility companies.

Forget dual fuel bills, what we have here is a dual political failure that crosses the political divide (such as it is) and speaks volumes as to how far both New Labour, the Lib Dems and even the Conservatives have left behind the ordinary people in favour of continually courting the money men in the City.

Sadly for growing numbers of ordinary families this winter it may come down to a choice of eat or heat as the interests of big profit for big business comes before the needs of ordinary families. No one, in the 21st century, should be forced to make a choice between putting food on the table for their family and heating their home, but that's where many people may find themselves. Not that long ago families could live on one salary; but today people are working all hours of the day to cope.

This situation has arisen of a culture that rewards recklessness in the city of London, which has promoted a vast increase in credit, and an absurd house price boom. A fatal combination of greed, recklessness and little regulation ensured that we have arrived at the credit crunch something that brought real economic hardship for many and enriched the few.

NOBBLED? - SURELY NOT?

News that the Com Dem Coalition Government has quietly shelved plans 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, should come as no surprise to even the most impartial observers of the consequences of a warm relationship between the political parties within the Westminster village (and without) and the energy supply companies.

Interestingly enough, for sometime 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. 

There was a hope that an inquiry into the nefarious activities of the energy supply cartel (sorry companies) might have had the power to reform the industry, encourage new entrants to break the hold of players such as British Gas and EDF on 99 per cent of the market and even possibly impose price caps. Yet, it appears that barely four months into the Coalition Government, there will be no inquiry has been called for and the Department of Energy and Climate Change confirmed on the 17th August that it has no plans to refer the industry to the Competition Commission.

Hmmm... 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 keen to shower enough goodies around during Party conference season (and beyond) - perhaps not? 

BRICKS AND MORTAR

Giving our housing stock a lower carbon footprint and lower energy costs is something that is particularly important, especially when it comes to developing affordable housing and refurbishing existing housing stock. The planning policy (which was brought in 2009) for Wales, with new building regulations lead the way towards zero-carbon buildings and should be touted as an example of getting it right.

Lets be realistic though, while reducing energy costs in particular, as zero-carbon housing will be cheaper and thus more affordable over its entire lifetime - is a good thing. In truth, it does not directly and immediately help the young people in our communities who can't get onto the Housing ladder, but the construction of 6,000 affordable homes in every part of Wales (including Monmouthshire) is a small but significant step in the right direction.

The pledge to construct 6,000 affordable homes is part of the One Wales Agreement being driven through by Jocelyn Davies (AM), Plaid Minister for Housing is on its way to being honoured, while more needs to be done this is a step in the right direction, a statement of intention and action to try to solve the problem of affordable housing which affects every part of Wales.

Good intentions may have undue consequences, as we wobble or way out of the recession what could also happen is that the Plaid driven one Wales Government may come under sustained pressure from the building industry to relax the rules, water them down or delay implementing parts of them.

This certainly happened in 1997 when the New Labour Government almost entirely caved in to pressure from the Building industry, the problem of energy efficient homes or the lack of them in Wales is not something we can merely put off to help bail out a faltering building industry sector (which has made fat profits over the last decade) merely puts off the problems for another day.

Short term thinking will not do and there is a real danger that there will be pressure for short term budgetary savings made at a time when when government budgets are going to be cut, when there is less money to spare for incentives, grants and initiatives - this will come back to haunt us with a vengeance further down the line.

There is a real need for want of a better phrase joined up thinking, with the banks and the building societies needing to change their lending criteria for truly zero-carbon houses, as logically people paying less for their energy could be able to afford to pay more for their mortgages.

At the end of the day, this is a particularly good example of how the Plaid driven One Wales Government has thought differently and made a significant difference and is a positive step towards helping to solving the housing crisis as well as tackling one of the major issues facing the whole wide world. More of the same please! Think Different, Think Plaid.

IN THE COLD AND IN THE DARK?

That Ofgen has said that there is "reasonable doubt" about the ability of the UK's energy market to deliver sustainable energy supplies in the coming decade, should come as no surprise to anyone with half an eye on what has been going on within the energy sector over the last twenty years. Neither should it come as much of a surprise when Ofgen goes onto say that the open competitive energy market, such as it is in the UK, may fail to deliver secure, sustainable supplies in the coming decade.

This is the result of a sustained lack of Government interest in the energy sector, particularly when it comes to developing the sustainable energy sector, especially when it comes to the development of realistic storage for gas and when it comes to developing sustainable green energy resources. UK Government interest in the energy sector and this applies equally to whoever has been and is in government at Westminster, has largely been focused on spending the funds received from the energy companies and profiting from higher tax returns when energy prices and energy company profits have risen.

Ofgen has effectively admitted that as a result of the credit crunch, the ongoing problems of maintaining international supplies, and dealing with the consequences of dealing with global warming that the UK needs to look for new solutions to protect security of energy supply. Ofgen, somewhat belatedly has also suggested that the private energy companies be required to deliver more generation capacity and gas storage. Things must be bad, because the suggestion has been made that the industry should revert to a form of centralised market control, which is potentially the most significant shake up of the complacent energy sector since privatisation.

The suggestion that the energy sector needs some £200bn of investment and stronger incentives to deliver sustainable and secure energy supplies for the UK within the next ten years, may prompt many people, who have been paying higher and higher energy bills since privatisation to wonder where all the vast profits that the privatised energy companies have been tucking away have gone?

And over the longer term who has really benefited from the privatisation of the energy market, save for the Tories and their money men and banker friends in the City of London, as we face in the short term yet another cold spell and in the medium term higher energy bills and in the longer term potential energy blackouts over the next few year, I suspect that the answer may turn out to be the few at the expense of the many.

TO HEAT OR TO EAT?

For some families this winter is may come down to a stark choice between literally heating or literally eating. No one, in the 21st century, should be forced to make a choice between putting food on the table for their family and heating their home, but that’s where many people now find themselves.

Not that long ago families could live on one salary; but today people are working all hours of the day to cope. This situation has arisen of a culture that rewards recklessness in the city of London, which had promoted a vast increase in credit, and an absurd house price boom – that is how we have arrived at the credit crunch which is bringing real economic hardship for many and enriching the few.

How did it come down to this? New Labour’s failure to help the people who will need help over the winter months and its failure to consider a windfall tax to curb excess profits from the utility companies speaks volumes as to how far New Labour has left behind the ordinary people in favour of courting the money men in the City. Sadly for growing numbers of ordinary families this winter it will come down to a choice of eat or heat as the interests of big profit for big business comes before the needs of ordinary families.








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