There are three elements to the electricity and gas energy sectors.
An addition to Keynesian theory is the marginal efficiency of (public sector) labour.
- suppliers/generators
- national grid and national gas pipe network
- end users.
Taking Keynes to the market...
A market exists in the generation of electricity and the supply of gas into the national networks of pipes and wires.
A market exists for the maintenance of the national network of pipes and wires.
There are national security issues in terms of consistency of supply in the event of war or similar. At least a basic supply of gas and electricity should be under the control of the national government.
To maintain national security a government should take a leading stake in these markets. But there are suppliers and generators in the market that are in the 'private sector' and there's no reason why competition should not be encouraged in the generation of electricity and supply of gas. It's possible to have competition in the maintenance of the networks.
There is no market for gas and electricity that is in the grid.
It is not possible to buy electricity current that is in the wires.
Although theoretically possible to buy gas in the pipeline. An entity, public or private could build or lease gas holders, buy gas from a supplier, store it and sell it locally and pay some form of rental for the use of the national pipe network. This isn't a practical market.
There is no wholesale market for gas and electricity between suppliers and end users.
But the suppliers and maintenance organisations, whether public or private need to be paid.
Market sensitive instead of market driven?
There are several key national factors involved in energy supply. From National security to the health and well being of children, the ill and the elderly. The administration and payment of gas and electricity cannot be allowed to be market or profit-driven.
But it must be market sensitive.
The most practical method would be a publically owned and operated admin system to pay for the supply and maintenance of the gas and electricity supply and grids.
This could be national or regional. Perhaps something like a 'National Energy Supply Corporation. Its structure wouldn't necessarily be the same as previous nationalised corporations. The original idea of British Gas a public company that anyone could buy and sell shares in was a good but flawed idea. Something similar could be brought into being with safeguards.
A true public sector corporation owned by the public as well as the government..
Marginal efficiency in public sector organisations
The economist J M Keynes argued against nationalised industries. He argued that the government should support industry. A fine line? The essence of Keynesian theory is to stimulate demand by creating well paid jobs.
He died before his theory was put into practise after WW2. Until Thatcher lied her way into power and brought the current 18th century dog eat dog ideology to the UK.
A British worker is taxed at between 70 to 80% of her/his income. Believe it or not, there's a whole range of taxes. Every licence is a tax. In fact, the word licence is something of a trick because a licence is a tax.
National enterprises, public sector corporations whatever they might be called do not need to operate at maximal efficiency in terms of people employed. The benefit to the wider economy is greater than the cost of wages and there's a tax offset in that about 75% of those wages go back to the government in tax.
Marginal efficiency of (public sector) Labour.
The public sector can employ more people than are strictly needed without costing taxpayers an extra burden. This marginal over employment feeds into and benefits the wider economy more than the cost to taxpayers.
A theoretical addition to Keynesian theory he didn't live to put forward but I'm sure he would agree.
Footnote: John Maynard Keynes died begging America to help Britain after WW2.
America refused to help Britain because we dared to elect a Labour government.
A Labour government, even one led by Starmer, is needed again.
