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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Philip Hammond's house gaffe is a reminder of what the Tories lost when David Cameron left

The Chancellor of the Exchequer's blunder confirmed an old fear about the Conservative Party. 

Philip Hammond got into a spot of bother this morning describing the need for a transitional agreement with the European Union by comparing it to moving into a house, saying: "you don't necessarily move all your furniture in on the first day you buy it”.

This immediately surprised a lot of people, because for most people, you do, in fact, move all of your furniture in on the first day you buy a house. Or rent a house, or a flat, or whatever. Most people who buy houses are part of housing chains – that is, they sell their house to raise some of the capital to buy another one, or, if they are first-time buyers, they are moving from the private rented sector into a house or flat of their own.

They don’t, as a rule, have a spare bolthole for “all their furniture” to wait around in. Hammond’s analogy accidentally revealed two things – he is rich, and he owns more than one home. (I say “revealed”. Obviously these are things you can find out by checking the register of members’ interests, but they are, at least, things that are not immediately obvious hearing Hammond speak.)

That spoke to one major and recurring Conservative weakness: that people see them as a party solely for the rich. Focus groups conducted by BritainThinks consistently showed that when people were asked which group of TV families might vote Conservative, the only one that people consistently picked were the “posh couple” from GoggleBox.

David Cameron’s great achievement as Conservative leader was in winning two elections – the first, in 2010, the most successful night for the Conservatives since 1931, with 97 gains overall, the second, their first parliamentary majority for 23 years – despite being a graduate of Eton and Oxford leading a party that most voters fear will only look out for the rich.

He did it by consistently speaking and acting as if he were significantly less well-to-do than he was. Even his supposed 2013 gaffe when asked what the price of bread was – when he revealed that he preferred to use a breadmaker – projected a more down-to-earth image than his background suggested His preferred breadmaker cost a hundred quid and could easily have been found in any upper-middle class home in any part of his country. One of Cameron’s great successes was in presenting himself as an affable upper-middle-class dad to the nation, when he was in fact, well-to-do enough to employ a literal breadmaker had he so chosen.

This is slightly unfair on Philip Hammond who went to a state school in Essex and is by any measure less posh than Cameron. But his gaffe speaks to their big post Cameron problem (and indeed their big pre-Cameron problem) which is that while many conservative ideas are popular, the Conservative Party isn’t. Most of their big politicians are a turn-off, not a turn-on.

And until they can find a genuine replacement for David Cameron, miserable results like 2017 may become the norm, rather than the exception. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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