Thatcherism: Switzerland Has Done The Math

Switzerland’s government has published the data on the price development in the market for electricity, comparing the period prior to the privatisation of the electrical companies up to 2004, and the period since up to 2009. The result was no surprise, but as usual, the believers in the housewife (Margaret Thatcher) will close their eyes to science and math and continue to believe in the gospel of a political newt.

The price comparison was executed by the Swiss price ombudsman, an institution that may be called on by any person or company with domicile or second domicile in Switzerland. The census covered all electricity companies active in the Swiss market and was not only done comprehensively but completely. It has been conducted in several categories such as family apartments heated exclusively by electricity, family apartments heated by other means, small apartments, farms, and small businesses.

First the good news: The price comparison for small businesses was inconclusive. What a triumph for the Thatcherites. Exactly as predicted, the prices fell, or rose, or not. Free market is such a winner, isn’t it?

Now for the part that was no surprise: The prices in all other categories rose. The farmers faced the lowest price hike over the period of only 2.9 percent, which is just over inflation. The private households in turn faced price hikes of up to 12.5 percent, which amounted to about five times the inflation for the same period. This alone amounts to banditry.

Another part of the comparison was no surprise either. The big companies and the electricity companies refused to supply the data for the large electricity guzzlers. Which can mean only one thing: Those prices fell. Which means translated into plain language, that the taxpayers subsidized the prices for the shareholders of large companies. Does anybody wonder the poor get poorer and the rich richer all the time?

I promised a twist at the outset. The prices compared were the prices as they were actually charged in the invoices. If that sounds obvious, please excuse me. What is not obvious is that Swiss parliament had intervened twice with legislation, when the electricity bandits were really trying to cash in. In one instance, they cut the intended price hikes to 50 percent of the planned increase. That means, had the electricity companies had their free market, the price hike would have been 10 times the inflation.

In a second intervention, they made the companies reduce already invoiced prices by 40 percent. Add this to the total above, and electricity would have gone up by 20 times of inflation. That really makes you admire the system of free markets, doesn’t it? At least if you are a large shareholder in an electricity company.

As these figures in their tendency hold true in any country in Europe, they may be applied in their conclusiveness to Britain. For the election this means: Vote Tory, they promise to put down taxes for the rich to take more money into their portfolio by means of banditry on the poor. The modern day Robin Hood is called David Cameron, don’t you agree. Oh, And long live Baroness housewife, will hardly forget her with every price rise impounded on us.