Miliband is right to stand up to the energy companies' blackmail

Were trade unions threatening to plunge the country into darkness, Cameron would be calling in the troops.

Ed Miliband's promise to fix energy bills for 20 months if Labour win the 2015 election will remove some of the pressure that ordinary people across the country feel every day. Households are already paying £2bn more for their gas and electricity after the last hikes in November 2012. Now the energy companies are looking to add another £1.4bn onto bills this coming winter. This has added £300 to the average bill in this parliament. This cannot go on.

Immediately after Ed’s announcement, the usual shouts came that this was "meddling in the free market". "Back to the seventies" and "you can't beat supply and demand" echoed on. Let us put aside the fact that the average yearly growth in the 1970s, 2.88%, is more than the economy has grown in total since Quarter 3 2010. The energy market in this country is not a free market, it is a racket. Six multinational companies dominate, and in much of the country choice is reduced still further. These companies are now threatening blackouts if their profits are in any way challenged by an elected government. Were this a trade union threatening to plunge the country into darkness, Mr Cameron would be calling in the troops. Yet when it is time to challenge a private cartel about that classic seventies question, “who runs Britain?” this government is silent. 

Npower were first out of the traps on Tuesday, with their spokesman decrying these "easy answers", and that the "global market" would drive costs regardless of what they did. The biggest shareholders in Npower, or to give it its proper name Rheinisch-Westfälisches Elektrizitätswerk Npower plc, are a group of German towns and cities. In other words, the profits Npower extracts from the British people allow German municipalities to keep the rates down. The people of Middlesbrough are effectively paying rent to the people of Münster. It seems state intervention is acceptable when investing in your corporation, but bad when it seeks to limit your profits.

This confused attitude to the "free market" runs through all the "Big Six". Iberdrola, owners of Scottish Power, are kept liquid by €27bn in state backed loans and massive subsidies from the struggling Spanish government.  Both Centrica and Scottish and Southern Electric are receiving over £50m each in subsidies just for wind power. E.On’s decision whether or not to build a new biomass generator in Bristol was not dependent upon ‘market forces’, but how much tax-payer money the Department for Energy and Climate Change would promise it.

Perhaps the greatest example of state interference however is Électricité de France, EdF, controlled by the French state. They are the company that we are turning to to build a new generation of nuclear power stations. Britain, which built the first commercial nuclear generator in the world at Calder Hall, must now wait on the whim of the French President.

Has it really come to this? That a country once the workshop of the world relies on the French to build its power stations? On the Danes to forge its turbines? On Norwegian gas to keep our lights on? Is Britain a ‘third world’ country that it has to beg for foreign investment to upgrade its infrastructure?

I welcome companies from all around the world who want to set up shop in Britain. This nation gains greatly from international firms bringing their skills and expertise here, and we are richer for it. Our membership of the European Union and good working relationship with our European neighbours is a key part of this attraction. But those meetings must always be as equals, not as supplicants.

The repeated refusal of the British state to back its own people has led to the basics of life; from water, to energy, to transport being sold off not to thousands of plucky entrepreneurs, but to American corporate titans, Chinese and Arab sovereign wealth funds, or the state-backed enterprises of our savvier European cousins. Rather than invest in our own youngsters, our own infrastructure, our own future, a small elite have skewed our economy not by accident, but by design. As Ed said on Tuesday, Britain can do better than this.

Andy McDonald is the Labour MP for Middlesbrough

The logo of the French electricity company EDF is pictured on a building of the Fessenheim nuclear power plant reactor in eastern France. Photograph: Getty Images.
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Is defeat in Stoke the beginning of the end for Paul Nuttall?

The Ukip leader was his party's unity candidate. But after his defeat in Stoke, the old divisions are beginning to show again

In a speech to Ukip’s spring conference in Bolton on February 17, the party’s once and probably future leader Nigel Farage laid down the gauntlet for his successor, Paul Nuttall. Stoke’s by-election was “fundamental” to the future of the party – and Nuttall had to win.
 
One week on, Nuttall has failed that test miserably and thrown the fundamental questions hanging over Ukip’s future into harsh relief. 

For all his bullish talk of supplanting Labour in its industrial heartlands, the Ukip leader only managed to increase the party’s vote share by 2.2 percentage points on 2015. This paltry increase came despite Stoke’s 70 per cent Brexit majority, and a media narrative that was, until the revelations around Nuttall and Hillsborough, talking the party’s chances up.
 
So what now for Nuttall? There is, for the time being, little chance of him resigning – and, in truth, few inside Ukip expected him to win. Nuttall was relying on two well-rehearsed lines as get-out-of-jail free cards very early on in the campaign. 

The first was that the seat was a lowly 72 on Ukip’s target list. The second was that he had been leader of party whose image had been tarnished by infighting both figurative and literal for all of 12 weeks – the real work of his project had yet to begin. 

The chances of that project ever succeeding were modest at the very best. After yesterday’s defeat, it looks even more unlikely. Nuttall had originally stated his intention to run in the likely by-election in Leigh, Greater Manchester, when Andy Burnham wins the Greater Manchester metro mayoralty as is expected in May (Wigan, the borough of which Leigh is part, voted 64 per cent for Brexit).

If he goes ahead and stands – which he may well do – he will have to overturn a Labour majority of over 14,000. That, even before the unedifying row over the veracity of his Hillsborough recollections, was always going to be a big challenge. If he goes for it and loses, his leadership – predicated as it is on his supposed ability to win votes in the north - will be dead in the water. 

Nuttall is not entirely to blame, but he is a big part of Ukip’s problem. I visited Stoke the day before The Guardian published its initial report on Nuttall’s Hillsborough claims, and even then Nuttall’s campaign manager admitted that he was unlikely to convince the “hard core” of Conservative voters to back him. 

There are manifold reasons for this, but chief among them is that Nuttall, despite his newfound love of tweed, is no Nigel Farage. Not only does he lack his name recognition and box office appeal, but the sad truth is that the Tory voters Ukip need to attract are much less likely to vote for a party led by a Scouser whose platform consists of reassuring working-class voters their NHS and benefits are safe.
 
It is Farage and his allies – most notably the party’s main donor Arron Banks – who hold the most power over Nuttall’s future. Banks, who Nuttall publicly disowned as a non-member after he said he was “sick to death” of people “milking” the Hillsborough disaster, said on the eve of the Stoke poll that Ukip had to “remain radical” if it wanted to keep receiving his money. Farage himself has said the party’s campaign ought to have been “clearer” on immigration. 

Senior party figures are already briefing against Nuttall and his team in the Telegraph, whose proprietors are chummy with the beer-swilling Farage-Banks axis. They deride him for his efforts to turn Ukip into “NiceKip” or “Nukip” in order to appeal to more women voters, and for the heavy-handedness of his pitch to Labour voters (“There were times when I wondered whether I’ve got a purple rosette or a red one on”, one told the paper). 

It is Nuttall’s policy advisers - the anti-Farage awkward squad of Suzanne Evans, MEP Patrick O’Flynn (who famously branded Farage "snarling, thin-skinned and aggressive") and former leadership candidate Lisa Duffy – come in for the harshest criticism. Herein lies the leader's almost impossible task. Despite having pitched to members as a unity candidate, the two sides’ visions for Ukip are irreconcilable – one urges him to emulate Trump (who Nuttall says he would not have voted for), and the other urges a more moderate tack. 

Endorsing his leader on Question Time last night, Ukip’s sole MP Douglas Carswell blamed the legacy of the party’s Tea Party-inspired 2015 general election campaign, which saw Farage complain about foreigners with HIV using the NHS in ITV’s leaders debate, for the party’s poor performance in Stoke. Others, such as MEP Bill Etheridge, say precisely the opposite – that Nuttall must be more like Farage. 

Neither side has yet called for Nuttall’s head. He insists he is “not going anywhere”. With his febrile party no stranger to abortive coup and counter-coup, he is unlikely to be the one who has the final say.