Public energy companies necessary for a fair transition

By Dries Goedertier - Trade Unions for Energy Democracy, April 19, 2021

The debacle with the reversing electricity meter [also called “net-metering” in many contexts — a billing mechanism that credits solar capacity owners for electricity they feed into the grid] shows the limits of Flemish energy policy, which places the responsibility for the much-needed energy transition in the hands of the individual as consumer, investor and entrepreneur. For a socially just and democratic energy transition, the necessary efforts of energy cooperatives will not be sufficient. Only the state can regain control of the energy sector on behalf of, and for the benefit of, society as a whole.

Flemish energy policy has recently suffered from a severe heat stroke. The Constitutional Court has put an end to the reversing electricity meter. The decision dealt a heavy blow to those families who, after the (apparently worthless) guarantees of a bunch of liberal energy ministers about the legality of this particular support scheme, decided to install solar panels on their roofs before the deadline of January 1, 2021. Many of them feel cheated and that is certainly understandable. However, a critical inquiry should not stop there. The whole debacle shows the limits of an energy policy that places the responsibility for the much-needed energy transition in the hands of the individual as a consumer, investor and entrepreneur. 

“The sun has become a neoliberal investment product,” stated Dirk Holemans (Oikos). Holemans, together with Dirk Vansintjan (Ecopower & REScoop.EU), is arguing for a shift to a collective model in which citizens pool their resources and capacities in energy cooperatives. There is indeed a lot to be said for that. After all, energy cooperatives have a lot to offer in terms of democratic, social and ecological benefits. 

If we really want to democratize the energy sector in function of social and environmental objectives, then public energy companies will have to play a major part

In my opinion, however, the admirable self-organization of thousands of citizens will not be enough to break the dominance of the current for-profit energy model. The market power of the established players is simply too great for that. Only the state has the capacities, resources and potentially democratic legitimacy to regain control of the energy sector on behalf of and for the benefit of society as a whole. 

If we really want to democratize the energy sector in the service of social and ecological objectives, then public energy companies will have to play a major part. This does not have to be at the expense of energy cooperatives, as is sometimes incorrectly claimed. I am convinced that energy cooperatives in a public-driven model of energy democracy will actually have more opportunities to unleash their potential. But in order for that to happen, we must dare to question the liberalization of the energy sector. 

Read the entire article - here.

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.