Topic: State owned renewable energy company.

[PaulF]

I think starmer said labour would do this.
I think it's interesting enough to have its own thread. I'm sure politics will be involved but I'm not hung up on it.
Instinctively, I love the idea. But I see so many hurdles.
 
Would this company drag prices down, or more likely divert profits to the government.
How do they keep it fair? If they back offshore wind, does that help or hinder existing  generators. Will they poach staff.

If they back on shore wind, will they have planning permission advantages?
Will they be able to sell overseas or create overseas companies.

Just interested in your thoughts please.

[jymbojetset]

Not sure if you've seen this Paul? But Welsh government is planning exactly this.

On top of the fact that Dwr Cymru (Welsh water) is a not for profit company it's possibly giving UK Labour of view of how it could work nationwide?

Personally, I'm all for it - I don't think that we should be using energy and water as profit making institutions. How we reverse what has been done over last 40 years is another question though.

There was a link recently (think I saw in here) that last labour government "gave" (sold at discount) rights to seabed to the crown estates?

https://www.walesonline.co.uk/news/wales-news/welsh-government-announces-new-state-25353759

[Elmo!]

Would this company drag prices down, or more likely divert profits to the government.

I'm in favour of the idea, but would want it run very hands off, with any profits getting reinvested into infrastructure etc, and not into governments coffers.

Like Scottish Water is run for example.

[KillieRed]

I’ve always wondered when looking at the massive profits of energy companies or even supermarket chains, why doesn’t the government get some of that action for the benefit of its citizens? Create companies where excess profits are pumped back into the economy or even handed to all of its employees as bonuses when things are good. Surely a whole country could take advantage of its resources better than a private corporation whose main duty is to provide profits for shareholders?

Too socialisty? No donations from BP or Tesco to party funds if you set up a National Energy Firm or Supermarket Chain?

[BarryCrocker]

No chance this will happen. Being the devil's advocate the creation of a state owned energy company will take too long to get up and running and if and when it does it will struggle to attract the talent unless it offers corporate salaries that are in already in the industry.

Only way to kick this off is by offering leases for free and for employees to be offered some sort of income tax free package,

[liverbloke]

I’ve always wondered when looking at the massive profits of energy companies or even supermarket chains, why doesn’t the government get some of that action for the benefit of its citizens? Create companies where excess profits are pumped back into the economy or even handed to all of its employees as bonuses when things are good. Surely a whole country could take advantage of its resources better than a private corporation whose main duty is to provide profits for shareholders?

Too socialisty? No donations from BP or Tesco to party funds if you set up a National Energy Firm or Supermarket Chain?

one word answer - greed

no matter the economics, the politics, the philanthropy, the common sense - it's greed that wins

[PaulF]

No chance this will happen. Being the devil's advocate the creation of a state owned energy company will take too long to get up and running and if and when it does it will struggle to attract the talent unless it offers corporate salaries that are in already in the industry.

Only way to kick this off is by offering leases for free and for employees to be offered some sort of income tax free package,

Why can't they match corporate salaries? I got the impression this would be run like a company, but the government would be the sole shareholder?

[PaulF]

Not sure if you've seen this Paul? But Welsh government is planning exactly this.

On top of the fact that Dwr Cymru (Welsh water) is a not for profit company it's possibly giving UK Labour of view of how it could work nationwide?

Personally, I'm all for it - I don't think that we should be using energy and water as profit making institutions. How we reverse what has been done over last 40 years is another question though.

There was a link recently (think I saw in here) that last labour government "gave" (sold at discount) rights to seabed to the crown estates?

https://www.walesonline.co.uk/news/wales-news/welsh-government-announces-new-state-25353759

Thanks for this. Interesting.  it seems there are state owned energy companies elsewhere. Be interesting to see what model they work on.  Isn't Amraco one, probably the Saudis. The government might not be right, but possible lessons to take from there on how to run a state energy company.

[Red-Soldier]

Thanks for this. Interesting.  it seems there are state owned energy companies elsewhere. Be interesting to see what model they work on.  Isn't Amraco one, probably the Saudis. The government might not be right, but possible lessons to take from there on how to run a state energy company.

Yes.  A great example there.

[KillieRed]

Why can't they match corporate salaries? I got the impression this would be run like a company, but the government would be the sole shareholder?

Well, yes. I can see that building infrastructure would be time consuming & costly, but surely worth it in the end? Probably better than Brexit.
How does the Norwegian sovereign wealth fund work? I assume they sell leases to private companies rather than have their own energy company?

[PaulF]

Well, yes. I can see that building infrastructure would be time consuming & costly, but surely worth it in the end? Probably better than Brexit.
How does the Norwegian sovereign wealth fund work? I assume they sell leases to private companies rather than have their own energy company?

Not necessairly. If they started with say onshore wind. It wouldn't need much to start a company. It might be five years before the first kW hits the grid.  Sure they'd need money for offices and staff but not much in the grand scheme of things.  What prompted this thread though, is could they just buy an existing wind company to get started or is that too fraught with legal challenges?