UNITE: Time to pull the plug on energy profiteers

New union investigation reveals taking energy into public ownership would end the ‘scandal of energy company profiteering’
  • Last year bill payers could have saved £45 billion with average bills cut by £1800
  • Unite General Secretary Sharon Graham to urge Starmer to reconsider Labour policy.  

Taking public control of the UK’s energy network could reduce bills, reduce inflation, and pay for itself in a few years, reveals new research by Unite the Union.

 Unite Investigates “Renationalising Energy – costs and savings considers how a publicly run energy network could use the massive profits of Britain’s energy giants to reduce household bills and fund the transition to a green future with secure jobs.

Unite Investigates’ report  is the first to determine the potential costs and savings of taking public control of the entire UK energy network – including North Sea oil and gas production, electricity generation, transmission and distribution networks, and supply companies.

The report reveals that companies made £45 billion profit from the UK domestic energy system in 2022. If that money had been kept in public hands, it could have been used to save each household £1,800 on their energy bills. Read Unite general secretary, Sharon Graham’s interview in today’s FT.

Household energy bills have been one of the biggest contributors to high inflation. Using energy profits to freeze bills in summer 2021, when prices started to shoot up, would have meant inflation was at least 4.1% lower last year. So in due course nationalisation could markedly reduce inflation.

Unite’s report also investigates the potential costs of nationalisation. Using the ‘book value’ approach, which compensates companies for their spending, Unite estimates a total cost of £90 billion. That is equal to just two years of profits at the 2022 level. Even as energy prices fall, taking control of energy would pay for itself within a few years.

Sharon Graham, Unite General Secretary said: “It’s time to end the scandal of our energy system which allows profiteers to pocket billions while workers and communities are left in the cold.”

“For the first time we have laid out the full costs and savings of taking the entire energy network we all rely on into public ownership.

“It’s a tragic missed opportunity that, if the energy system had been run for the benefit of all not the profits of a few, households could have saved £45 billion, avoiding high bills that have left millions in the cold or searching for ‘warm banks.’

“It’s time to pull the plug on the energy profiteers. Unite is showing it’s no longer a question of ‘can we afford to’, it’s how long can we afford not to.”

This report follows the historic profits recorded by BP and Shell, who made a combined profit of £55 billion and British Gas owner Centrica.

Unite has previously exposed rampant profiteering by electricity and gas distributors, who made £6.3 billion in 2021 with huge long-term operating profit margins of over 40 per cent.

Publish ownership heralds new era for community rail in Scotland

Community-led groups looking to play major role promoting green travel by rail, as Scotland’s train services move into public ownership

Members of a grassroots ‘community rail’ movement are looking forward to playing a growing role helping Scottish communities to thrive, and working towards a greener transport future, as ScotRail services transfer into the public sector on 1st April.

As Scotland’s railways move into this new era, the country’s network of community rail partnerships and groups are set to play a key role in its future, engaging communities with local railways and stations, promoting social inclusion, and enabling and encouraging more people to get around sustainably by train.

This year, following on from COP26, they are especially working to get across the huge carbon savings of travelling by train instead of driving or flying, and engaging communities and rail partners to make it easier to use the train combined with walking, cycling, buses, and community transport.

To coincide with the changes in the rail industry, Scotland’s community rail partnerships are working with their umbrella body Community Rail Network to showcase the vital, sometimes life-changing work taking place in community rail, from the Borders to the Highlands, and get across the importance of train travel to tackling the climate emergency – including through a new inspiring promotional video.

This follows on from Community Rail Network’s ‘Community Rail in Scotland’ report, published in 2021, which highlight the efforts of 1,200 volunteers who give over 55,000 hours annually, valued at £4.7 million per year, to promote sustainable and healthy travel, wellbeing, economic development, and tourism in their local area.

Making up Scotland’s eight community rail partnerships and 260 station groups, they carry out projects to bring improvements to rail services and stations, such as improved accessibility and community facilities, while helping communities to have a voice in rail and transport development, working with train operators, local authorities, and other partners.

They also build local confidence and awareness around train travel, breaking down barriers and creating a sense of public ownership towards the railways.

Jools Townsend, chief executive of Community Rail Network, said: “As Scotland’s railways enter a new era, and with the need to encourage greener ways to get around more pressing than ever, Scotland’s community rail movement is redoubling its efforts.

“We see the shift of ScotRail trains into public ownership as a great opportunity to further connect local communities with their railways and get more people travelling by train.

“Community rail has an inspiring track record of doing just that: promoting travel confidence and increasing access to opportunity, while bringing people together, giving communities a voice, and putting railways and stations at the heart of community life.

“Over the coming years, we’ll be working closely with Scotland’s community rail partnerships, volunteers, and railway partners with a strong focus on supporting and enabling greener journeys by train. We’re looking forward to community rail playing a vital role in the great shift we need, towards more sustainable, inclusive, community-friendly transport.”

Transport is the largest contributor to climate emissions in Scotland, and in response to the climate emergency, Transport Scotland has committed to reducing emissions by 75% by 2030, and to a legally binding target of net-zero by 2045.

Rail accounted for just 1% of UK domestic transport emissions in 2019, despite representing 10% of the total distance travelled, and for a 30-mile journey, travelling by train instead of by car can reduce emissions by up to 86%.

Scotland’s community rail partnerships (CRPs) consist of: the Borders Railway Community PartnershipSouth West Scotland CRPEast Lothian CRPStrathallan CRP; the Highland Main Line CRP; and the West Highland CRP. There is also Rail 74 CRP, which covers stations in South Lanarkshire, and the Edinburgh-based 6VT Youth CRP, the only youth-led CRP in Britain.

The partnerships are supported by Community Rail Network and the Smarter Choices, Smarter Places programme, funded by Transport Scotland and administered by Paths for All. This support helps to develop projects and deliver work promoting sustainable journeys with rail at their heart, aligning with Scotland’s vision of a sustainable, inclusive, safe, and accessible transport system.

Graham McQueen, Smarter Choices, Smarter Places manager, said: “Changing the way we make everyday journeys is good for our health, it’s good for our communities, and it helps protect our environment.

“We need to drive less and walk, cycle, and use public transport more. We are delighted to support Community Rail Network in Scotland as community support and engagement is key to the integration of train stations into communities, making them more pleasant and accessible, and ultimately encouraging more people to use sustainable transport options for longer journeys.

“The Paths for All Smarter Choices Smarter Places programme supports hundreds of creative projects throughout Scotland, all looking to encourage behaviour change towards a happier, healthier, and greener way of life.

“The way we travel is central to this and that’s why we’re delighted to support this promotional video that shows how rail travel can play a key role in changing the way we travel and how travelling by train can be more inclusive and sustainable.”

The video can be accessed here and further information on community rail in Scotland can be found at communityrail.org.uk/Scotland

Scotland’s railways in the hands of Scotland’s people

Local candidate welcomes Scottish Government taking over Scotrail

Edinburgh Western SNP candidate Sarah Masson has welcomed the announcement that the SNP Scottish Government is taking over the running of the country’s rail franchise.

ScotRail services will move into public sector control when the current franchise with Abellio expires – expected to happen in March 2022.

Transport Secretary Michael Matheson announced that rail services will be run by an arm’s length company owned and controlled by the Scottish Government.

The Scottish Government’s decision to run our railways through what it known as the ‘Operator of Last Resort’ has been shaped by a number of factors, including faults with the current franchising system, uncertainty from a year-long delay in the UK Government’s rail review and the effects of the Covid pandemic.

Commenting on the announcement Sarah Masson, SNP candidate for Edinburgh Western, said: “This bold move by the SNP Scottish Government will bring welcome stability and certainty to those who use our railway for work and leisure, both in Edinburgh and across the country.

“And the news that current ScotRail staff will transfer to the new Scottish Government owned company, with their terms and conditions protected, will also provide much-needed security to those who rely on our railways for their livelihoods.

“The SNP have long argued that the future structure of Scottish railways should be in Scotland’s hands. It’s well beyond time that the Tory UK Government listened and devolved rail powers to Holyrood.

“However, this move is both bold and welcome and will ensure Scotland’s rail users are provided with the well-run, affordable and reliable service we rightly expect.”

Letters: This Is Not Living

Dear Editor

Over seventy years ago the people of the UK decided the NHS was a necessary public service to be owned by the public and to be publicly funded.

Many struggles tok place to maintain this principle. Today, people take great pride in this social way of organisation. We owe a great debt to all those past and present who foresee the future.

From January to May 2020 the population has taken a hammering from the coronavirus.

In order for people to ‘stay at home’ and not go to work unless they were key workers, a Government scheme was launched to pay companies money for up to 60 – 80% of their employees wages. At best this was approximately a 25% reduction in income for most people.

As we know the kindness and generosity to others has been amazing, as with the recent recalling of the end of World War II, when the prevailing mood at that time in 1945 was that we, the people, will make changes in how our things are run and organised for the benefit of all.

Today, the people are are realising that the kind of society that has been created over this past century is a massive apology for living.

The daily chase to work on packed buses,trams and railways or packed in traffic jams of thousands – whatever transport is used, it eats up eveyone’s time, pollutes the air and dmages the climate. This is not living. There must be changes.

More and more people whilst having to deal with the coronavirus have also been aware that things have to change, making our lives more in harmony with the world and not in the interests of money makers and investors.

People have seen that investors control which industries operate, whom they employ and under what conditions – be that full time working, flexi work or zero hour contracts – all of these are decided by the companies.

Wealthy investors’ ownership of major parts of the economy as ‘theirs’ cannot be justified in any way.

As happened with the formation of the NHS, rail buses and trams must be brought into public ownership. Now people are recognising how indispensible the NHS is, so too are rail, buses and trams – they are an essential part of normal society, not an investment for greedy individuals.

During this lockdown major lessons have been understood, people appreciating a calmer environment with less traffic, cleaner air and being able to hear the birds sing.

Major changes have been taking place in our daily lives. At this moment in time working people are in great danger, even worse than the last six years of austerity.

Even the subsidy to wages that the government borrowed for the employers to hand out will be clawed back from the working people: in taxes, longer hours, cuts in services and raised prices.

These same working people will ‘pay back’ the investors and gamblers, banks and city corporations who will fight with all their guile and strength to recoup every penny of their wealth – and continue to amass fortunes and control the lives of the population.

Tony Delahoy

Silverknowes Gardens

 

Letters: Public services more vital than ever

Dear Editor

The National Health Service has always been valued as a people’s organisation. This value has always been appreciated – but never more so than today.

This lesson on the importance of people’s services shows the way our society must be run. If the NHS is vital, so are gas, electricity and water. As are the railways, buses and trams. Make them public services, too – serving the people.

The value of the NHS to the people is immense: a publicly funded service, available ever day.

Also ever day, 30 million people travel to and from their places of work using rail, bus and tram.

Work, in order to live, is a necessity. These transport industries must also become part of a fully funded, publically owned service with the NHS. It can be arranged and organised as a public service.

The NHS has been our lifeline. People have always guarded the principle of a service of the people.

How right that is!

Tony Delahoy 

Letters: Capitalism cannot control the greedy

Dear Editor

It never fails to amaze me to see the varied skills and knowledge of working people and their dedication. This is made clear to each and every one of us when we need help.

Working people are the largest section of the total population; they make and design everything that we use and need.

The importance of each and every one cannot be overstated: it is the skills of the working people that make things – no investor or financial institution can or does produce anything. Their contribution, if investing can be called that, is to buy the abilities and skills of people for a weekly wage. Then, they lay claim to everything that has been produced, making even more profit from the labour of working people.

This is how the society in which we live operates – it is called Capitalism, an outdated system that works for the benefit of the wealthy.

It buys the labour power and skills of working people, as many hours as possible and for as little pay as possible, and when the goods are made takes them as theirs to sell for their own profit. What an incredible system we tolerate!

To change this blatant exploitation of working people needs examples of where public ownership of such industries as Gas and Electicity, railways and other public passenger transport; water companies, too, would also benefit not just the people employed but the public at large.

Capitalism cannot control the greedy, or solve any problems.

A. Delahoy

Silverknowes Gardens

Letters: Essential utilities must be publicly owned

Dear Editor

Every one of us needs the supply of electricity and a lot of people also need gas for heating and cooking. We all need a supply of fresh water: yet all of these industries are owned by private companies, able to fix prices to maintain multi-million pounds of profit for investors.

This supply of electricity, gas and water is essential and is provided by workers in those industries.

Why, then, should such essential services be in the hands of private companies? These basic essential services should be publicly owned.

The control of these basic essential services cannot be left to private individuals and groups of investors. It is backward thinking; it is greedy and immoral however measured.

A. Delahoy

Silverknowes Gardens

Letters: Ask the right questions

Dear Editor

The 52% who in 2016 voted to leave the European Union expressed various reasons for doing so. In the main there was widespreda concern about how the country was being run: frozen wages, rising prices and drastic cuts in both local and national public services – and there seemed to be no end in sight to this policy. It was indeed a deliberate policy, aimed in turn at different sections of the population, a ‘divide and rule’ tactic to exercise control.

Massive confusion was created in the UK and those in power seem to talk about anything but the real problems, such as who own major industries – and are they operated to benefit all, or just shareholders and investors?

Major industries such as electricity, gas, water supply and sewerage, public passenger transport; all these are life essential services for all people – and because they are they should be publicly owned.

These are the questions that should be put to the people, and only the Labour Party is doing that. It is not right that these industries should be privately owned and controlled to make millions in profit for the few.

A. Delahoy,

Silverknowes Gardens

 

Letters: Essential services for the many, not the few

Dear Editor

In the medical field funding for research is being directed into preventing disease and ill health. It must seem to most people an obvious and sensible thing to do and will benefit everyone in many different ways.

In the economic field, research and study have been made by many, particularly into the capitalist system under which we all live today.

Capitalism as a system has been greatly aided by new technology developed over two hundred years, enabling almost complete control over the workforce by  a few people. This control is needed to maintain the sytem.

Many improvements to people’s lives have been won through struggles by the workforce but the capitalist system is incapable of working in a progressive, continuous way. It creates slumps, mini booms and further slumps: each slump gets more severe, sometimes leading to terrible wars between countries.

Detailed studies of capitalism show it is confrontational with the workforce to extract the maximum profit from it’s work. This profit is in the form of goods made to be sold, but if the buying ability of the workforce here and abroad are restricted a slump will occur with all the poverty and hardships that follow.

So what is it possible to do?

To start, the major industries essential for everyone’s survival: the energy utilities and bus, rail and tram passenger transport should be taken into public ownership: this would ensure the whole population benefits, not the few.

These actions are political and need laws passed to proceed – only the Labour Party have said they will do it.

But first every Labour candidate for election must make building maximum unity on these issues a priority, and, when elected, act in the declared interests of their constituents by supporting the required legislation.

It can be done; changes can be made to benefit everyone.

A. Delahoy

Silverknowes Gardens