What If They Gave Us Capitalism - But Nobody Cared?

What if they gave a war and nobody came? Why, then, the war would come to you! -- Bertolt Brecht

The current Conservative Government (and their Labour predecessors) are obsessed with the idea of competition. Their theory is that competition lowers prices, improves services, and makes the world more efficient. The free market will arrive at an optimal solution for everything.

In some cases, this is correct. In my own field - mobile phones - we see a tooth and nail fight between companies which has dramatically lowered the price of phones, improved them immeasurably, and created a lot of value in our economy.

But not all services are like this. It turns out that, in some cases, people just don't care about competition.

The energy sector is one fine example. David Cameron recently announced that all energy companies would be forced to put people on their cheapest tariffs.

Why? Surely, as capitalist citizens, we should relish in the choice of dozens of energy providers - each with their own myriad of tariffs? Whenever our bill comes in, we should shop around and get the best price?

This doesn't happen. It turns out that inertia is a more powerful force than capitalism.

• It takes time to compare all the different tariffs.
• The savings make are comparatively small compared to other household costs.
• There is a fundamental disconnect between price and service.

The last is the most important. I can understand why the apples at Sainsbury's cost less than the apples at Tesco.

But my electricity comes through the same wires - no matter the provider. It comes from the same power station, across the same pylons, and works in exactly the same way.

So, how can Company A's prices be radically different from Company B's?

Some Have Choice Thrust Upon Them

The Government appears to be suggesting that every energy provider should be forced to move their customers to the cheapest possible tariff.

This strikes me as an odd move for a Tory Government. They seem to be interfering with private business, forcing households not to engage in competitive behaviour, and are distorting the market. Don't get me wrong, I think cheaper energy bills are a good idea - I'm just surprised that they're doing it this way.

Where does this end?

• Will mobile networks be forced to write to their customers and say "You only used 200 minutes of your 600 minute bundle - we suggest you move to a price plan which is £5 per month cheaper"?
• Will Tesco have to email me to say "On a like for like basis, you'd be better off shopping at Waitrose"?
• Will the Tory party have to send out local council election leaflets saying "Your tax rate would be 7% cheaper under a Lib Dem administration"?

We have a fairly free market for energy (and phones, and shopping) so people are free to compare.

If we are moving to a period where companies' policies are being directed by central government - are the Tories saying that Socialism is better for the British people?