#rigged market

[eaglesnick]

“Markets can remain irrational longer than you can remain solvent” –John Maynard Keynes

Last year (September 2023) the Labour Party set out its plans to create Great British Energy:

“…a new publicly-owned clean energy company (which will) save £93 billion for UK households”

And more recently,

“Labour will work with the private sector to double onshore wind, triple solar power, and quadruple offshore wind by 2030.” (Labour: 'Make Britain a clean energy superpower’. 2024)

Bravo! Who doesn’t want, cheaper, cleaner energy production and a move away from reliance upon fossil fuels other than the big oil companies? But did you spot the possible contradiction between the two statements?

In the first statement Great British Energy was to be publicly owned and in the second Labour is going to work with “the private sector”.

How will Labour square the circle of private sector involvement coupled to public ownership? Your guess is as good as mine. Here is what the Financial Times had to say:

“Plans are light on detail. But the party has said it wants to co-invest alongside the private sector…The terms at which it will invest are unclear. (FT: 06/07/24)

What we are not going to get is an entirely state-owned energy company like EDF in France which generated 139.7bn euros  in revenue for the French government in 2023.

So before we get too excited we should remember Britain’s railways are organised within a mishmash of private and public ownership, and have been described as “broken" and “no longer fit for purpose”. Is this going to be the case for Great British Energy?

Even if Great British Energy is 100% publicly owned, and the cost of renewable energy is brought down there is still the small problem of how the price of generated electricity is artificially pegged to the cost of gas. Nowhere have I seen Labour promising to fix this unfair practice.

The UK already produces over 41% of its electricity through renewable sources and private companies buy and trade energy at the market price. This market is different to the energy provider market where you and I buy our energy, which is controlled by OFGEM.

The energy generator market operates on the principle of marginal cost pricing which has nothing to do with competition or the cost of renewable generation.  Marginal cost pricing is where ALL units of electricity are sold at the price of the most expensive unit needed to meet demand at a particular moment in time.

The most expensive units of electricity are gas turbine generated. In other words, cheap renewable energy is sold at the same price as that produced by the most expensive gas plants. Until this artificial pricing structure is replaced by something fairer, the price you and I pay for electricity, whether renewable or not, will remain artificially high.

[godisarepublican]

It was probably the news of the magical "$81 million" she pretends to have raised already. If they're cheating already, what are the odds for an honest election?

[chuuyayanya]

im working on a new fanfic

its a yttd x bsd crossover 🙃

(Edit: I should specify that it’s about chuuya going undercover to take down asunaro)

[modormouth]

consider: mass production evangelions inspired by those air screamers from silent hill

[coralreeferband]

Either an NY - NY or an NY - LA World Series mean that we have lost as a nation

[bluestjayy]

Since I don't have twitter rn for mental health reasons this app has become my venting space so rip you guys

[lupismaris]

when the worst person you know invokes mary olivers name in an attempt to be both poetic and holier than thou

[butchyena]

also i moved my roach colony into my 75 gal tank my beardie used to live in. im gonna see if i cant make some cash on the side dealing Bugs

[condraws]

red markets moved into the first few games of our communist train enclave getting on it's tracks! gnomies has a new look and a new crew, and the same old stinky attitude

[poojagblog-blog]

The global Digital Oilfield Market is expected to reach USD 43.0 billion by 2029 from USD 30.1 billion in 2023 at a CAGR of 6.3% during the forecast period according to a new report by MarketsandMarkets™.

[dreadark]

no way

[taintedlxve]

Okay but something I'm sure RWBY fans can agree with me on

Why the FUCK does Ruby's Vtuber model look so cheap what the actual FUCK Rooster Teeth

[edenorisshitposting]

hi guys, I need your help to rig an election. Culture Hustle featured my black circles in their weekly showcase, and if I win I get a 50$ gift card.

VOTE FOR ME BY COMMENTING 3 IS YOUR FAV UNDER THIS POST

[reggiecristal]

[eaglesnick]

101 Things You Should Know About the UK Tory Government

Thing 79

Publicly at least, Conservatives often extol the virtues of a free market economy. But if we delve a little deeper, they do not always practice what they preach. Let us take Jeremy Hunt's latest utterances claiming how he is going to bring down inflation, especially the massive price rise in energy costs. This is what he claims:

“We are investing a lot of money in renewable and nuclear power so our energy prices are not at the whim of international gas markets.”

On the face of it this statement   promises that if we expand our energy production sector via renewables the price of energy to the consumer will come down. The statement also suggests we are free to bypass the international gas market.  These implied assumptions are wrong on several fronts.

First, half of renewable energy firms in the UK are foreign owned, profits going abroad and not into the UK exchequer.

“Nearly half of all the UK's offshore wind capacity is owned by state-owned or majority state-owned foreign entities, according to new analysis exclusively shared with Sky News."  (Sky news: 26/09/22)

So, when Hunt says he is investing in wind-generated renewable energy he means he is giving UK taxpayers money to foreign own firms who will funnel the profits back to their shareholders.

Second, the ownership of Britain's nuclear power stations, both present, and those yet to be built, are also dependent upon foreign ownership. An example being:

“Sizewell C: UK taxpayers to pay Chinese state-owned nuclear group to quit nuclear power station. A Chinese state nuclear group initially had a 20 per cent stake in Sizewell C, but control will now be shared 50-50 between the Government and the French energy giant EDF.”

( I: 29/11/22)

Third, even if the British government owned all energy production and renewables accounted for 99% of production,  the cost of energy would not come down. This is because we belong to an international energy market that is rigged. Free-market principles are not followed in this market. Instead, the price of ALL electricity sold, regardless of the production costs, is set by the most expensive source, even if that source only accounts for a small fraction of overall production.

It is time this Conservative government told us the full truth about energy prices and the ALL of the reasons behind the exorbitant costs of heating our homes.

[acitybythelightunited]

Putting Trump in office is like hiring an 8 year old to be a brain surgeon because they played doctor at recess once

stop talking about the USA. I have heard enough about that wretched place