I write as former marketing director of the Electricity Council, a position I held until 1990, when the industry was privatised (“Do Britain’s energy firms serve the public interest?”, Comment, 27 October).
The Electricity Act required the council to produce a specified return on capital, employed by taking “one year with the next”. If we had a cold winter, electricity sales went sky high and the excess profit was clawed back by lowering prices the following year.
With the present system, the companies pocket the excess and are not obliged to put any money into building new power stations.
So, err, what was that return on capital? And are the current companies making more or less than that?