Electricity re nationalisation has begun...

ProDave

With re nationalising part of the grid.  https://news.sky.com/story/government-to-nationalise-key-part-of-electricity-grid-to-help-meet-climate-goals-12583678

That seems to have gone through with little input from the HOC or at least none reported?

I speculated a while ago with energy companies being forced by the cap to sell at a loss, none can last long term and nationalisation may be the only answer.

wild666

Nationalisation could mean that the government could charge whatever it likes for the energy they provide. OFGEM would become obsolete and there will be no new energy companies set up and people won't be able to search for the cheapest energy deal. 

Section62

ProDave said:

With re nationalising part of the grid.  https://news.sky.com/story/government-to-nationalise-key-part-of-electricity-grid-to-help-meet-climate-goals-12583678

That seems to have gone through with little input from the HOC or at least none reported?

I speculated a while ago with energy companies being forced by the cap to sell at a loss, none can last long term and nationalisation may be the only answer.

I think the headline is a lot more dramatic than the actual news.

Rather than nationalisation of the grid, the move appears to be closer in nature to the formation of the (shadow) Strategic Rail Authority in (1999) 2001.  Which itself was abolished in 2006.

It took another 20 years (and a global pandemic) before the UK's rail system came vaguely close to something resembling a nationalised operation.

I wouldn't get too excited about electricity renationalisation yet.

rp1974

Was everything perfect before privatisation?,and would it be so again if re-nationalised?.
For what it's worth my own viewpoint was,is and always will be that essential utilities such as water,gas,electricity should never have been privatised but that ships long since sailed.
I've not much idea as to what would be any better,but the current nonsense set up and specifically OFGEM is not fit for purpose.

Fred2712

Any savings made by competition is immediately wiped out by all the costs involved in customers changing supplier !! So should never have been done.
In France energy costs increase has been pegged at 4% this year by the Gov.

BUFF

Fred2712 said:

Any savings made by competition is immediately wiped out by all the costs involved in customers changing supplier !! So should never have been done.
In France energy costs increase has been pegged at 4% this year by the Gov.

& EDF in France (majority owned by the French gov) is losing over 10 billion euros this year v a profit of over 1 billion euros last year.
Of course, the fact that there is a French govt. election shortly didn't come into the decision at all ...

agentcain

BUFF said:

Fred2712 said:

Any savings made by competition is immediately wiped out by all the costs involved in customers changing supplier !! So should never have been done.
In France energy costs increase has been pegged at 4% this year by the Gov.

& EDF in France (majority owned by the French gov) is losing over 10 billion euros this year v a profit of over 1 billion euros last year.
Of course, the fact that there is a French govt. election shortly didn't come into the decision at all ...

How's EDF losing 10B euros? Did the price of uranium increase?
Or is it maybe that its losing 10B out of the projected profit? Oh, poor them!

BUFF

I was wrong as their losses are increasing ... 
https://www.energyintel.com/0000017f-9d1f-d81c-a9ff-9f9fb8000000
https://www.bloomberg.com/news/articles/2022-03-14/edf-sees-26-2-billion-euro-hit-from-regulatory-steps-output-cut

agentcain

EDF is projecting losses of at least €26.2 billion ($29.9 billion) this year, the French state-owned company announced after reviewing estimates for its 2022 earnings before interest, tax, depreciation and amortization
...
losses of €10.2 billion (previously estimated at €8.4 billion) from the government-mandated increase in the amount of nuclear-generated electricity EDF must sell to rivals at a tariff set well under the market price

Their "losses" are calculated against projected profits. Its not like they're going bust. 
That's what a proper government does for its people. Here, we should be thankful for the 200£ mandatory loan.

BUFF

They are projecting zero or near zero profits before interest, taxes, depreciation & amortisation. & after those? EDF is heavily burdened with 43billion euros in debt upon which it has to pay interest.
Yes, they won't go bust because the French govt. is the majority shareholder but the French people may well end up paying for it one way or another. As the article says the govt. may be considering renationalising EDF due to "the critical situation".

ispookie666

We will likely see the price of electricity and gas stop tracking each other with the gas price increasing disproportionately.