On the Beat

There has been a lot of talk over the past few months about the need (or otherwise) of the UK government to charge the energy companies – electricity, gas and oil – with a windfall tax.

Labour MPs, unions and even 70% of the public support such a tax (sorry – I can’t find the reference).

I really don’t understand this at all.

The argument goes that a windfall tax is needed because the energy companies are making excess profits: that is, they are profiting from unfair market practices – they either represent an oligolopoly or, locally, a monopoly.

The electricity and gas companies – privatised in the 1980s and 1990s – are regulated by the Office of Gas and Electricity markets – Ofgem. If any energy companies are abusing their market position, they should be subject to sanction by Ofgem, the Office of Fair Trading - “making markets work well for consumers” (I mean, jeez! It’s their bloody job!) or the Competition Commission.

That’s right – there are three different regulatory bodies who have the power to investigate market abuse by energy companies.

If MPs or the unions believe the energy companies are profiting from excess prices because the energy retail or wholesale markets aren’t working properly, they have lots of ways of prompting an investigation – which would result in large fines.

As it is, these companies are making large profits at the moment. (I have no idea if these are excessive or not.) As a result, they pay a large amount of money in corporation tax – this is a good thing: it pays for hospitals and schools and lots of other things we need money for in society.

This is a very different argument to saying that energy prices are high, and many people may need help to pay their bills this coming winter. This is something MPs and unions can do something about. Indeed, looking after their constituents is what they should be about. But they don’t need to bash businesses whilst they are about it.

The Scottish Government (nee the Scottish Executive - its legal name) is seeking views about changing local taxation.

Tax is something that, believe it or not, I am quite interested in: the way tax is charged and collected can have a huge impact on society, business and the economy; it can change the way we do things, the way we behave, and how we spend our money.

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A fascinating post by Ben Goldacre on how we like to spend money on things we shouldn't.

I am left-handed. Indeed, people close to me have said I am the most left-handed person they have come across.

So I looked at this post by Chris Dillow with a lot of interest.

Apparently, I am more likely to be depressed than right-handers - although my usual state is positively overbrimming, I have probably scored over the two-weeks test in the past couple of years. (Still, I feel pretty positive about this!)

On the other hand, I am also meant to earn 5% more than right-handers, so maybe it is worth. And I should move to the States - where I'd earn 15% more.

And of course I am a wonderful footballer. (This last bit, unfortunately isn't proven.)

Beckham moves to LA in a five year deal worth £128M.

That makes it about £500K a month.

Scary, scary, scary.

How are people feeling about the Stern report?

I had expected that they'd be more journal-chatter about it, especially knowing the leanings of many on my f-list.

I am not sure that I can really get worked up about it, other than to feel a smug "told you so" (which won't stop me drowning, will it?).

I hope it translates into a bit more action.

Of course, I haven't read it - jeez, it comes into at 600 pages or something - but it has been all over the papers today.

There has recently been a furore in the UK over energy prices. The cost of electricity and gas to consumers have been higher than before; this was put down to deregulation of the energy supply markets, uncertainty of supplies from Europe, and the fact that the UK has now become a net importer of gas.

So I was very amused when I saw this story on BBC.com about how there is now a glut of gas coming into the UK - such that it can't be stored, so gas traders are paying to offload it. The wholesale market price of gas has turned negative!

This must say something about supply and demand. And the fact that a new pipeline has just opened...

Nicol Steven made one very good joke when he gave his lecture on Thursday. He was talking about globalisation, and the role of China in the world. He pointed out that each year, more than five million students attend Chinese universities as first years students. "That must be one hell of a freshers' week!", he said.

According to an article in the current issue of the Economist (which I don't think I can link to since most of their content is protected, and anyhow I can't load their site at the moment), "19% [of Americans] agree that 'God favours the United States in international politics'". God only knows what would happen with a God who didn't favour the US!