UNISONActive is an unofficial blog produced by UNISON activists for UNISON activists. Bringing news, briefings and events from a progressive left perspective.

Wednesday, 25 September 2013

Freeze prices, squeeze profits and reverse privatisation

#lab13 The reactions of energy companies to Ed Miliband’s modest proposal to challenge market failure and impose a 20 month price freeze (from 2015 to 2017) in utilities prices are as predictable as they are hysterical. Today’s media references to ‘disastrous consequences,’ ‘economic ruin’ and ‘power cuts’ reflect the determination of corporate interests to resist political regulation let alone a return to public ownership.
    Neil Clark of the Campaign for Public Ownership has pointed out ultimately more radical measures will be required to resolve the underlying problem: ‘the experts tell us that we need more competition in the energy market. We need more regulation. We need the government to ‘get tough’ with the utility companies and make it easier for us to switch providers. But the reason why our utility bills are so high and continue to rise year after year above inflation is a simple one indeed. It is the same reason our rail fares are so high and continue to rise year after year above inflation. It's called privatisation’