The Anonymous Widower

Labour’s Spending Plans

In my varied life, I have had a lot of experience of the mechanics of borrowing money and the costs of running financial companies.

Consider.

  • One of my best friends was the Business Banking Director of a well-known Clearing Bank
  • Another good friend was the Chief Management Accountant of the same Bank.
  • I learned a lot of the mechanics of leasing and managing assets and obtaining the finance to do so from a Company Accountant.
  • I owned a Local Finance Company.
  • I was an early investor in Peer-to-Peer Lending.
  • I have extensively modelled banking and finance systems, including the aforesaid Clearing Bank.

After reading summaries of the billions that Labour propose to spend and borrow, I fear that their plans have one serious hole.

What makes them think, that any reputable Bank, Pension Fund or Financial Institution, thinks they will lend them what they need?

Blair’s Government was able to borrow because, it was offering profitable deals like PFI, which I doubt the Corbynistas would.

Corbyn, McDonnell et al are in Cloud Cuckoo Land.

May 17, 2017 Posted by | Finance, World | , , | 2 Comments

Stephen Fitzpatrick Of OVO On Energy Policy

Stephen Fitzpatrick, the founder of OVO Energy was on BBC Breakfast this morning.

Some of what he said was very enlightening.

Nationalisation Of Distribution Networks

He indicated that this was almost irrelevant, as the technology of energy distribution is changing.

I agree.

Near to where I live, is the Bunhill Energy Centre, which has been built by Islington Council to provide heat and electricity to a local area.

Systems like this are common in some European countries and increasingly, we will see small scale units like this in cities.

In the countryside, solar and wind power linked to energy storage will become more common.

Large industrial users of energy will increasingly generate their own power.

So the distribution networks will become less and less important.

Energy Efficiency

This will become increasingly important, as innovators make devices and appliances that use energy more efficient.

It is interesting, that no Political Party has so far said, that they will promote devices and items that use less energy, by perhaps sponsoring ideas.

OVO’s Customers Spend Forty Percent Less On Gas Than When The Company Started

This was surprising, but it probably indicates that our houses and businesses are getting more energy efficient.

Energy Price Caps

He was in favour, because he believes it opens up the market for energy.

I think it also favours innovative, ethical and highly-regarded energy companies.

Say an energy company predicts that because of the price cap, it will become less profitable.

It can do one of the following.

  1. Increase the number of customers.
  2. Sell customers new and innovative goods and services.
  3. Go out of business.

OVO are taking over a respected boiler servicing company.

I think one of the good things about an energy price cap will be, that bad suppliers, big or small, will be forced out of business.

Conclusion

It was an impressive performance and the BBC should sign him up for Question Time.

 

May 17, 2017 Posted by | World | , | Leave a comment