Monday, 3 June 2019

Labour's Energy Nationalisation Plans: Interesting Stuff








Keep watching this one: it's interesting.



GridBot said...

I've been waiting patiently for your synopsis of these plans ND - pleased you've got round to bringing this up!

Having gone through "Bring Energy Home" (a take on grids "Bring Energy to Life") with a fine tooth comb - I believe the labor party must have had insider help in developing this document. How else could they make the assertions they do?

what is undeniable is that the relationship between Ofgem and National Grid is... complicated; it's grossly inefficient running an asset intense business, that needs a 20+ year strategy to asset manage properly, on 5 or 8 year price control periods.

In the lead up to the price control - a lot of effort will be put into arguing with ofgem; why the planned expenditure on asset investment (maintenance and replacement) is in the benefit the consumer. Ofgem ignore these because they are economists and know FA about the engineering implications of not getting it right - take the figure and decimate it (as many times as they feel is right).

On the other hand - in agreement regarding your position on grand plans. absurd is the only word. If anyone thinks these are going to drive down costs or increase renewable connections they are kidding themselves. as you put it - this needs to be done through quite complicated technical innovation. GP don't care about this - they just want to be able to watch X factor...

E-K said...

Da yoof are fucking pigs. I've forever taking my pick-up stick out and clearing up after them.

Ever seen the aftermath of a rock festival ?

E-K said...

Labour has to square how it's going to make poor people rich (including anyone who turns up in a dinghy) at the same time as reducing carbon footprint.

GridBot said...

Adding from a capitalist@work POV and for those not immediately aware - National Grid share price at the moment is primarily influenced by 2 factors. Bond Yields and political stability. NG has typically been a low risk option for those seeking an income stock and historically it has delivered great returns in a low yield bond market - as the yields on gvt and other bonds have increased, institutional investors (Pension funds) have moved to reduce there holdings in NG and opt for the lower risk bonds. Combine that with sentiment around uk prospect of nationalization has put a bit of a dampener on the whole affair.

Nick Drew said...

GB - all part of the service!

@ insider help in developing this document ... undeniable that the relationship between Ofgem and National Grid is... complicated

yes, plenty of evidence of knowledgeable help - albeit then overlaid by utopian and doctrinaire guff. I'm somewhat impressed on 2 levels: the 'tactical' (insider knowledge deployed), and the 'strategic' (choice of target for first big nationalisation)

I know of inward-investment plans for some new grid-related technical innovations, very germane to the 'green' future, and will be interested to see if they go ahead now

the Ofgem thing is a puzzle. Actually, Ofgem and the whole UK regulatory process, with all its many faults, is head-and-shoulders better than anything else in Eu (and everyone in Eu energy knows it)

there are some fundamental difficulties, incl:

(a) Ofgem is always running to keep up, they always miss the Next Bad Thing (e.g. the proliferation of tiny, and often bent, suppliers and [even worse] bent brokers etc); they never have enough tech or commercial insight

(b) the perverse incentive the Grid etc have to gold-plate stuff, given the guarateed rate of return - they never call out any 'green' plan, however crazy, because they know it means more work for / more investment by them. "Can you make this implausible scheme work?" - "Oh, yes, minister!"

andrew said...

I think the other side are playing a shell game on you.
They will be desperate to do something BIG that will have resonance with the jams and there on down.
Telling them that the leccy that they sometimes cannot afford will be community owned is not going to do it.

Nick Drew said...

The BIG thing they could do so-oo easily (I offer them this for free) is extend the Council Tax bands north of the current 'H' ('I' in Wales, for some reason). Drop of a hat. So easy, it's impossible for me to believe it hasn't been done already

James Higham said...


Say all we probably need to know about them.

hovis said...

@ND - CT bands much easier to do, however I thought McDonnell was a proponent of LVT - it was at last mentioned, if not in the last manifesto - true communism in action ..

Nick Drew said...

careful, hovis - Mark W will be in amongst us!

E-K said...

I think it's shocking that you can be giving such serious consideration to a Corbyn government but there you are.

This is the price of May.