I can't really apologise for the length of this quote from Zoe Williams in The Guardian this morning, when it is about me:
Into the mix of the spiralling energy cost crisis came two opinions that were fascinating for different reasons. The first was from the radical accountant Richard Murphy, a member of the Tax Justice Network, who did a breakdown of energy costs, trying to get to the bottom of why prices were rising so precipitously. I assumed that his thoughts would contain a lot of graphs, which I would fast cease to comprehend the minute they stopped being pie charts, but in fact it was devastatingly simple. Only 36% of “a typical bill” comprises the actual cost of energy, the rest being tax, delivery, billing, customer services, environmental schemes and profit. So even if the price of gas doubles, triples, goes wild, only just over a third of your bill should double, triple or go wild, the other costs being static, give or take inflation. Murphy posed a second question, why should people who get their energy from renewables suffer the same hikes? He ran some speculative numbers on how much of your new bill would go towards energy company profits. He could find no explanation for the coming price rises, beyond exploitation.
The only thing wrong was the suggestion that I might still have anything to do with the Tax Justice Network*.
She then contrasted my view with that of Martin Lewis, saying:
The other opinion was from Martin Lewis, the founder of Money Saving Expert, a far less political figure than Murphy.
However, as she noted:
His predictions were absolutely stark – without serious intervention by the chancellor, poverty was set to become so severe that civil unrest would follow.
As Zoe Williams concluded:
When financial experts are this interesting, it is time to really worry. But, also, thank God for interesting accountants dragging corporate flam-flam and political diversion tactics back to reality.
I'll take that.
* This has now been corrected
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Now, when will the Daily Mail call you??
No, seriously, good to see you getting some traction in the print media.
The Mail call more often than anyone else – seriously
That is good….. but do they print what you say? I really don’t know as I never read the Daily Mail – the Daily Mash is more interesting and closer to the truth.
I get quoted, very occasionally, but to suit their agenda
Keep providing the excellent analytical contributions which expose the shameful inequalities which pollute society and explain why they are unnecessary and unnatural. Radical wealth redistribution and public ownership of essential services must be at the heart of a civilised society.
Well done.
It’s as if this Rentier State we are in is going to use the fuel crisis to balance their books at our expense.
I don’t think it will be quick, but this stupid Government are just putting the noose around their necks in the long term with such unneeded hardship. Eventually resentment and possibly hatred can only grow towards them – I hope!!
Bravo, finally the meeja are listening.
My concern is this:
“I assumed that his thoughts would contain a lot of graphs, which I would fast cease to comprehend the minute they stopped being pie charts”
…..what happened to our education system such that a journalist (one assumes that they are well educated?) can’t get beyond a pie chart?
you deserve a “chapeau” for being able to put stuff over in a way that even elements of the meeja can understand.
The problem is that Williams & co only seem to listen to experts when the going gets very very rough – otherwise they focus on the words of imbeciles/politicians.
As for Lewis, I agree, transport fuel is going through the roof, energy costs in homes ditto, we are entering pitchfork territory & not just the UK – the EU.
Just completed an analysis of Germany France & Spain (Friday/Sat/Sun). Lesson: vast amounts of renewables drive down elec prices – even when gas is still in the system (Germany). Germany enjoyed Euro20/MWh prices (Sat) whilst France in the same period “enjoyed” Euro250/MWh, Spain similar. This was all down to the impact of zero-marginal-cost RES in Germany, little RES in France & not enough in Spain (prices bumped around Euro200/MWh). There is a one pager plus graphs for those interested.
I am interested…..
Indeed. if Wikipedia can be believed, It seems Zoe Williams was educated at Godolphin and Latymer, and then read history at Oxford, so I don’t really believe that she cannot understand anything more complicated than a pie chart (although, seeing the students struggling with a simple first derivative on University Challenge last night, perhaps this is not so unusual).
Perhaps it makes for better copy: for some reason, it is more socially acceptable for literate people to gleefully admit ignorance of any science or mathematics than for mathematicians or scientists to be ignorant of art or music or literature. Few scientists would broadcast that do not to read any books without pictures, for example.
The maths on display last night was not good…..and they won
If it’s any consolation, their knowledge of jazz was even worse!
Although it is not original observation, It is remarkable and slightly frightening that in the 21st Century there are supposedly educated people like Ms Williams who would be horrified if a colleague admitted that they were functionally illiterate but still think it is OK to humblebrag about their functional innumeracy.
Do any other cultures share this attitude?
Only crises produce real change to politics, and only then the strength of the argument (if adequately published) can even make a difference against the ‘flim-flam’ of the overwelmed conventional wisdom (that suddenly looks cheap and tawdry). Take a bow, Richard.
Flim flam is a term that so well describes Conservative government and neoliberal ideology, it may be worth a thought for a telling place in the title of your book (you surprised me with the one you proposed – it seemed so – unnecessarily, inadvisedly, prosaically – dull to me)!
congratulations Richard
make sure she gives you an interview when your book comes out
radical accountant hey
i just thought you were telling it as it is
We do know each other…
Richard,
I am fascinated by your comments on The Mail.
I can see that at least some of your points if view might play well with them
What are they like to deal with and what do they do with what you say?
I talk to their investigative journalists in the main – and they usually are good and doing good things
Pity about the awful, bullying, vicious s*** who is editor then, eh Richard? A man who according to the Eye, makes frequent use of the C-word to cooleagues, but whose paper acts as though (and yearns for a return to) we’re still in the 1950’s.
Still, if even the DM will publish your material, perhaps there is some hope.
I can’t change the editor
The message matters
And I have even talked to The Telegraph – and they look to have been even more in Putin’s pocket than RT news
We keep hearing that if Europe stopped all imports of gas, it would bring Russia to its knees.
I would question this. Russian weapons are made in Russia, they produce their own fuel, they pay the troops in their own currency.
It would leave Russia without the foreign currency income it provides. But they have large reserves at present. Long term it might have more effect but I am sceptical about short term.
Note their request to China
They are not an island
I’d be interested to learn how people on pre-paid meters are being impacted by fuel price increases. I know that they pay more for a unit of energy than the rest of us, which is perverse, but has the additional ‘surcharge’ been increased to?
Nicholas
I have a pre-payment meter in the flat that I rent. It is not my choice. To be honest when I moved in (several years ago) I didn’t ask about the meters as prior to that I had always paid by direct debit, quarterly etc. I didn’t think to ask. Pre-payment meters have the most expensive rates even though by and large it is the people who can least afford to pay who have them. For example, if you get into debt with the supplier they might force a pre-payment meter on you. I think it is criminal that those who can least afford it and have already had debt problems are then forced to pay more for their energy. A typical Tory way of doing things though.
I just got my estimated bill for this year. The standing charge for electricity is going up from 28.14p a day to 49.68p (about £181 a year just to have the meter on the property). The gas standing charge is going up by about 2p a day. Criminal profiteering if you ask me and Ofgen are in on it too (if you go to Ofgen’s website you can see the increases in standing charges that they are happy with for this year). I just think that standing charges are a total con. Fortunately, I am not a big user of energy at home and I will attempt to save more, but it really pees me off that regardless of what yo try to save they screw more out of us with the standing charge regardless of use. In my case even if I used zero gas and electricity this year I would be charged £317.
Just a couple of things. It seems to me that the former nationalised industries should not be allowed to make profits and pay dividends on the back of these price rises. Second, if and when wholesale prices fall, it will be interesting to see if that is passed on to the customer. I bet that it won’t be, or at least not all of it.
To add insult to injury the standing charge has gone up to pay the costs of failed energy companies – which are really the result of failed regulation in the supposed market the government, now being dumped on those least able to afford them.
We’re you happy with ZWs lumping all the add-ons together! Does that open this out to analysis as to for instance super profits (my term, as alternative to windfall). “Only 36% of “a typical bill” comprises the actual cost of energy, the rest being tax, delivery, billing, customer services, environmental schemes and profit. ” Are there in this necessary charges aka green taxes, which could be done differently?
She linked the analysis – which covered the risk for ne
Do green taxes make a difference? No, because I don’t think taxes can deliver green energy. Solar, wind and other renewables – especially tidal – do
I often enjoy Zoe Williams’ writing. Just a pity that The Guardian’s other dedicated economics and financial journalists have not been engaging with you. They have a lot to learn – which might explain this…
Perhaps you could ask Ms Williams why The Guardian does not often, if ever, permit readers to comment on the offerings of said economics and financial journalists?
They also give an easy ride to the current (and previous) Chancellor of the Exchequer when the neoliberal capitalist model he is attempting to follow has been discredited, a total failure. They frequently outrage me, despite some of their reputations. They could start on ‘paying for Covid’…
Keep up the excellent work, Richard!
All those journalists know where I am
Larry Elliott is a bit compromised by being a friend
“Radical” wow. Not as radical as Ben Affleck as The Accountant? Humanitarian is the description I’d say.
I’d be happy with both.
Hi Richard,
Keep up the good work.
If you ever meet Martin Lewis, can you ask him to update his explanation on what happens with bank deposits and loans. As early as Jan 2022 he has said on his weekly Radio 5 Live segment that people’s bank deposits are used when loans are made.
All the best!
Noted!
We have communicated on this