#WORLD #WORLDWIDE #UK #ANARCHISM #News #Journal #Update - (en) #UK, #ACG: Fuel crisis is a capitalist crisis (ca, de, it, fr, pt)[machine translation]

 The increase in energy costs has hit people hard, especially those on low

incomes. Already thousands die because they cannot afford to heat their homes and
the situation is only going to get worse. Despite investment in wind and solar,
the UK stills relies heavily on natural gas and oil for energy because renewables
are as unreliable as the wind and sun that they depend on. The increase in the
wholesale price of gas and oil prices has therefore had a huge impact on both
consumers and a wide range of industries. ---- UK energy suppliers, which
proliferated with privatisation, have struggled to survive with many going under.
Despite their love of the market, those companies that are left are seeking help
from the government. The regulator OFGEN has already given out handouts to the
big companies so that they will take over the customers of those that went bust.
The companies make out that they are concerned about the consumer but in fact
they are protecting themselves. They want to keep making profits and expect
taxpayers to subsidise them. So if we aren't paying out in higher fuel bills we
will be paying out in other ways, increased taxes on the working class and cuts
in services.

But what caused this rise in wholesale prices? The media makes it sound as if it
is an ‘Act of God', something we can do nothing about. In fact, it is caused by
the workings of the market, supply and demand, i.e. capitalism. If supply goes
down or remains the same, and demand goes up, then prices go up. It is not always
a conscious decision - it is just accepted that prices are determined by this
impersonal market. This recent increase has been caused by a number of things,
including: increased demand as economies make up for lockdown, low supplies
because of a cold winter last year and reduction in the supply of natural gas
from Russia for political reasons. However, what no one talks about is that the
oil and gas companies all over the world are refusing to increase production to
meet this increased demand. Instead, they are making enormous profits (see The
Guardian, 2 Nov and The Guardian, 6 Dec). Why increase production when you can
sit back in rake in billions?

This article illustrates how investors can make a fortune while others suffer.
The advice to those who can afford it:

"Wouldn't you like to feel a little better about shelling out so much cash at the
pump? I think it's high time drivers get proactive by investing in industries
that thrive when gas prices rise. Now, let's take a peek at some of these
industries".

In addition, UK energy suppliers are being less than honest. They go on about the
rise in wholesale prices but in fact it is not the current wholesale prices that
are relevant.

"In fact the gas and electricity flowing into households and businesses across
the country today will have been bought by the energy suppliers anytime between
now, and as far back as five years ago. Suppliers will likely have spread out
their purchases of energy for delivery today over a long period of time, to
mitigate risk caused by volatility in the wholesale market" (BBC Business News,
17 Nov).

The companies who went under are the ones who were not able to have such a
long-term strategy, but those big companies now arguing for ‘helping' the
consumer to pay the new high bills will certainly have such a strategy. It is yet
another example of the market failing and companies expecting to be bailed out
while the working class foots the bill.

The increase in energy costs needs to be discussed in the context of the climate
crisis. It seems that we are having to increase production of oil and natural gas
in order to ensure that ordinary people can afford to heat their homes when in
fact we should be reducing production. The fact that renewables are inadequate in
providing the needed energy is also significant. Actually reducing demand by
making our energy use more efficient and less wasteful is rarely talked about.
Part of the recent increase in demand has come from Chinese industry, which is
busy producing all those consumer goods many people are salivating over in the
Christmas sales. There is also considerable waste in industry and in offices.
Finding ways of reducing demand for energy, however, is not a top priority for
all those involved in the energy industries. Profits are not going to be made by
less energy being used.

The example of Drax power station says it all. They have made record profits
because of the general increase in energy prices. They claim to be ‘green'
because they burn biomass and receive millions of pounds in subsidies from the
government (i.e. us). Yet, burning biomass, e.g. wood pellets, is anything but
green. This is how capitalism is dealing with the climate crisis: expanding
renewables and other dubious technologies that appear to be green, still relying
on fossil fuels for most energy, and refusing to do anything about actually
reducing the amount of energy used. Meanwhile, the working class and the planet
pay the price.

https://www.anarchistcommunism.org/2021/12/27/fuel-crisis-is-a-capitalist-crisis/
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