GFTU BGCM 2019 Minutes

disruption and loss of food crops which are particularly volatile to climate

change, as extreme weather events affect international production, trade and

supply chains.

Moving on to energy, it is central to all our lives as workers and citizens within

our communities, that the markets will not deliver the rapid energy transition

needed to reach our 2050 targets. UK energy was privatised in the 80s and

90s as part of the Thatcherite drive to privatise public assets in what she

famously called a “share owning democracy”. The UK is fairly unique in having

a fully privatised energy system - generation, transmission, distribution and

supply. However, transmission is a natural monopoly and should be in public

hands, so that we can redefine energy as a public good to achieve important

public and social objectives such as development of renewable energy, control

of non-renewable generation, universal coverage, affordability, efficiency and

democratic accountability. Privatised energy companies have high profits and

high prices and are not concerned with issues of energy transition and fuel

poverty which comes as a result of high prices, low pay and poorly insulated

home. Mass retrofit programmes should be part of a programme of public

works to address energy poverty by making homes warmer and at the same

time reducing energy consumption and carbon emissions.

The 2017 Labour Party election manifesto said: “We will stop our financial

system being rigged for the few, turning the power of finance to work for the

public good” and committed to “transition to a public owned, decentralised

energy system”. The media often focuses on climate change levies as being a

cause of increases in energy bills. However, little attention is given to the vast

profits taken by energy companies such as the Big Six or network providers.

Citizens Advice has been critical of the price setting controls for energy

networks by Ofgem, saying it has “gifted huge profits that consumers have to

pay for through their bills”. A later report stated: “Energy consumers are

subsidising £7.5 billion in unjustified profits made by the businesses

responsible for the UK’s gas and electricity networks over an eight year period”.

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