Kevin Parslow, Socialist Party in Unite
Unite the Union has called for the nationalisation of the entire energy sector, as the conclusion of extensive research into the industry. [Unite Investigates: Renationalising energy – costs and savings].
The sector more than tripled its profits in 2022 from the previous year, to £45 billion, which has been done by ruthlessly exploiting its workers and customers alike. For example, British Gas fired and rehired its service engineers on worse terms. The GMB held a series of strikes over six months to oppose the plans, which, unfortunately, were eventually accepted by most of the workforce. Workers who refused to sign the new contracts were dismissed.
Inflation
Customers have been subject to some of the worst inflation in the system. Electricity prices in the UK rose by 66.7% and gas prices by 129.4% in the 12 months to March 2023, according to the Office for National Statistics. These increases in charges have fuelled the cost-of-living squeeze facing the working class, and boosted the obscene profits of the energy companies.
Sharon Graham, Unite general secretary, says she has presented the findings to Labour leader Keir Starmer, and has urged him to reinstate energy nationalisation into Labour’s election manifesto. Starmer has dropped this pledge of former leader Jeremy Corbyn, instead proposing the state set up a competing company to attempt to speed up the push to a low-carbon economy. This would leave control of the majority of energy in the hands of the millionaire bosses to continue to extract vast profits, with a state company playing by their market rules.
The Socialist welcomes Sharon’s call for nationalisation. But we disagree with her acceptance of the need to pay a price to buy these companies, between the book value of the energy companies, £90 billion, and the market value, £196 billion! Haven’t these sharks screwed us for enough? Big shareholders should not be compensated any further for their massive gains from exploiting us.
We say, yes nationalise energy, but compensate only on the basis of proven need. For example, any workers who may still hold a few shares given to them when the public companies were first privatised by Tory governments in the past.
But don’t give the industry back to the same managers. Run it under democratic workers’ control and management, as part of a socialist planned economy, which could provide cheap and environmentally friendly energy for all.
This is why Socialist Party members argue for a debate in Unite about how we achieve political representation for Unite members and the wider working class. We need a new mass workers’ party that would implement this programme.
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