A regulated market is not a free market and we see this in the energy arena with Labour wanting to force gas companies to lower their prices to British customers in line with lowered wholesale gas prices.Privatisation was supposed to remove the state from meddling in price fixing etc but of course it has done no such thing and what we have is the typical mixed economy model, distorting prices through regulation, and swingeing taxation which in the case of gas is as much as a staggering 80%.
What you will never hear from Labour or any of the other parties is the promise to reduce the eye wattering 60% taxation on petrol and gas which is hobbling the economy and which proves that their concern for struggling middle England is mere rhetoric and cynical politiking.
Milliband's incursion into gas prices arena is further illustration of his economic illiteracy as only half the profits of gas companies is down to the wholesale price of gas and the rest is impacted by infrastructure spending,taxation,regulation and it purchases in the wholesale market two years in advance to protect against price volatility ie long before the recent fall in gas wholesale prices.The Mad Marxist Miliband who thinks he is more intelligent than he is venturing in areas way beyond his pay grade.
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