Labour's plan to reform our broken energy market deserves cross-party support

Lack of competition and transparency has created an unfair market that consumers don’t trust, says former Conservative special adviser Tom Burke.

Ed Miliband’s energy price freeze met with a predictable, if not always credible, response from the energy industries. Led by Angela Knight, who was last heard from a few years ago asking us to stop being nasty to bankers, we were warned that this would halt investment and turn out the lights.

The current energy market doesn’t work either for consumers or for all the non-energy businesses in Britain. Lack of competition and transparency has created an unfair market that consumers don’t trust. The only lights going out now belong to households that can’t afford the electricity.

But what about investors? Will they really go on strike? Is it true that only ever larger profits must be made in order to to deliver investment , even if it is at the cost of consumers?

Keep two key points in mind as you listen to this argument. First, when you drill down into company accounts you see that some of the companies with the highest profits are investing the least in new plants. Rather than plough returns into a broken energy market they have opted to pay out dividends. Centrica has made the highest profits but 74% of this has gone back to shareholders.

Across the "Big Six", an average of 56% of their profits are going into dividend payments. This is a perfectly legitimate business strategy if there is no urgent need for investment. But it certainly questions the link between higher profits and investment. If there are no value-creating projects to invest in, you cannot argue that the lights will go out if you don’t invest.

Second, profits have grown over the last three years but investment has slumped. Large scale clean energy investment went from £7.2bn in 2009 to £3bn in 2012. And this takes us to the fundamental point. The market isn’t working any better for investors than for consumers.

The reality is that what investors need is long-term certainty. And the complex and incoherent measures in the Energy Bill are simply adding to the uncertainty. And this is why it was so encouraging to hear what Labour had to say on reforming the market. Commitment to the 2030 power sector decarbonisation target will help convince investors that there will be long-term demand for clean energy.

Combined with the proposals to revitalise the investment in energy efficiency, the contracts for difference for new generation and an Energy Security Board that will mean one body charged with doing everything necessary to meet the country’s energy needs, this will create a market that will offer investors much more stability than they have at present.

Tom Burke CBE was formerly a special adviser to three Conservative secretaries of state for the environment, and director of Friends of the Earth and the Green Alliance. He is currently a Founding Director of E3G

Ed Miliband gives an early morning radio interview next to a giant ice cube representing Labour's energy price freeze at the Labour Party conference in Brighton. Photograph: Getty Images.
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Labour is a pioneer in fighting sexism. That doesn't mean there's no sexism in Labour

While we campaign against misogyny, we must not fall into the trap of thinking Labour is above it; doing so lets women members down and puts the party in danger of not taking them seriously when they report incidents. 

I’m in the Labour party to fight for equality. I cheered when Labour announced that one of its three Budget tests was ensuring the burden of cuts didn’t fall on women. I celebrated the party’s record of winning rights for women on International Women’s Day. And I marched with Labour women to end male violence against women and girls.

I’m proud of the work we’re doing for women across the country. But, as the Labour party fights for me to feel safer in society, I still feel unsafe in the Labour party.

These problems are not unique to the Labour party; misogyny is everywhere in politics. You just have to look on Twitter to see women MPs – and any woman who speaks out – receiving rape and death threats. Women at political events are subject to threatening behaviour and sexual harassment. Sexism and violence against women at its heart is about power and control. And, as we all know, nowhere is power more highly-prized and sought-after than in politics.

While we campaign against misogyny, we must not fall into the trap of thinking Labour is above it; doing so lets women members down and puts the party in danger of not taking them seriously when they report incidents. 

The House of Commons’ women and equalities committee recently stated that political parties should have robust procedures in place to prevent intimidation, bullying or sexual harassment. The committee looked at this thanks to the work of Gavin Shuker, who has helped in taking up this issue since we first started highlighting it. Labour should follow this advice, put its values into action and change its structures and culture if we are to make our party safe for women.

We need thorough and enforced codes of conduct: online, offline and at all levels of the party, from branches to the parliamentary Labour party. These should be made clear to everyone upon joining, include reminders at the start of meetings and be up in every campaign office in the country.

Too many members – particularly new and young members – say they don’t know how to report incidents or what will happen if they do. This information should be given to all members, made easily available on the website and circulated to all local parties.

Too many people – including MPs and local party leaders – still say they wouldn’t know what to do if a local member told them they had been sexually harassed. All staff members and people in positions of responsibility should be given training, so they can support members and feel comfortable responding to issues.

Having a third party organisation or individual to deal with complaints of this nature would be a huge help too. Their contact details should be easy to find on the website. This organisation should, crucially, be independent of influence from elsewhere in the party. This would allow them to perform their role without political pressures or bias. We need a system that gives members confidence that they will be treated fairly, not one where members are worried about reporting incidents because the man in question holds power, has certain political allies or is a friend or colleague of the person you are supposed to complain to.

Giving this third party the resources and access they need to identify issues within our party and recommend further changes to the NEC would help to begin a continuous process of improving both our structures and culture.

Labour should champion a more open culture, where people feel able to report incidents and don't have to worry about ruining their career or facing political repercussions if they do so. Problems should not be brushed under the carpet. It takes bravery to admit your faults. But, until these problems are faced head-on, they will not go away.

Being the party of equality does not mean Labour is immune to misogyny and sexual harassment, but it does mean it should lead the way on tackling it.

Now is the time for Labour to practice what it preaches and prove it is serious about women’s equality.

Bex Bailey was on Labour’s national executive committee from 2014 to 2016.