Food or fuel? The choice now facing workers and pensioners this winter

We are truly lucky to be living in an age of free market capitalism. Time and time again the unplanned chaotic 'hidden hand' pulls a rabbit out of the hat. Housebuilding slowing down when 3 million need to be built. Enough food to comfortably feed the whole world and yet there are shortages and starvation. And now, gas prices up 35%! Thank goodness everyone's pay (and benefit) rises are keeping in line with inflation....

British Gas made the announcement, citing the need to maintain their profits because of the increase in wholesale gas prices. While it is true that wholesale gas prices have increased recently, they were declining quite sharply over the course of 2006 and the start of 2007, and yet British Gas continued to increase the price of the gas it sold. The same is true for the other gas companies, who will no doubt follow suit with eye watering increases of their own in the wake of today's news.

In February of this year, British Gas announced that it made a profit of £571 million in 2007. Clearly this is not enough for the shareholders, who wish to freeze pensioners this winter to maintain and boost their income.

All privatisation and deregulation has done is increase the price of gas while enriching executives and shareholders. Any 'externalities' (consequences of a corporation's actions that do not impact on profit) are disregarded. These externalities include people struggling to pay fuel bills, squandering of finite natural resources by wasteful exploitation, damage to the environment and rank inefficiency and anarchy.

All the gas and energy companies should be nationalised immediately, with compensation paid only on the basis of proven need. The infrastructure and operations can then be harmonised and used according to a national energy plan determined democratically by gas and energy workers and the public at large. Massive investment in researching and developing renewable energy sources will enable non-renewable resources like oil and gas to be used only where they are needed, as a source of other chemicals and for heating, rather than the generation of electricity.

This will result in cheaper fuel, but also ensure that supplies are not squandered.
In addition, gas and oil must be stored in the event of shortages, not sold off for a quick buck as is presently done.

There is a rational, effective way to use natural resources, for the benefit of all and nature. The claims of pro-capitalist propagandists that their system is that way are looking increasingly threadbare and nonsensical.