Chapter 7.3.

👉The table of contents so far is here.

Chapter 7: Economic Planning and Energy Supply

7.3. Energy Business Entities

The nature of the energy business entity responsible for energy production and supply to households, corporations, and other energy consumers is not unrelated to the mode of production in general, but it does not necessarily have an inevitable relationship with it.

In other words, even in the capitalist mode of production, due to the policy of public ownership of natural resources, energy enterprises often take the form of public enterprises such as state-owned enterprises (especially resource enterprises such as oil companies), and although they are stock companies, they sometimes take the form of officially recognized monopolies that are guaranteed the privileges of a monopoly by the state. The state has also taken the form of a recognized monopoly.

However, recent so-called neo-liberal ideology extends to the liberalization of energy production and supply, and in particular, there is a growing trend toward privatization and competition in the electric power industry.

In contrast, energy enterprises in a sustainable planned economy, where supply planning is based on transnational management of energy, are based on socially owned public enterprises. Specifically, it will take the form of a production business organization, which will be discussed later.

For example, in the case of electricity, it is the Electric Power Organization. Such an entity will not be divided by region, but will be established as a unified entity on an all-Zonal basis. However, regional offices will be established in each of the several regional jurisdictions to ensure a certain degree of decentralized management.

In addition, primary energy sources such as oil to be managed by the private sector will not be imported commercially, but will be planned and supplied according to the supply quotas of each Zone, so an entity that will serve as a unified receiving window is necessary.

In this regard, as an entity under the direct control of the Energy Planning Council, which is a subordinate body of the Economic Planning Conference and consists of energy business entities, the Natural Resource Liaison Organization, which will serve as a comprehensive receiving window for supplied resources, will be established  and will be in charge of everything from the negotiation of supply quotas to marine transportation. The Energy Planning Council will be in charge of the secondary supply of the received resources within the Zone.

A sustainable planned economy that does not use nuclear power generation also includes the historic and time-consuming energy disposal process of phasing out nuclear power generation. Such a nuclear phase-out plan will be implemented on a global scale, and for the time being, a specialized entity such as the Nuclear Phase-Out Organization will be established separately from the Electric Power Organization in the Zone.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 7.2.

👉The table of contents so far is here.

Chapter 7: Economic Planning and Energy Supply

7.2. Energy supply planning

In the previous section, we pointed out that the starting point of the economic planning process under a communist planned economy is the energy plan. Let us now look back at the principles of a sustainable planned economy described in Chapter 4.

A sustainable planned economy already includes environmental assessment, and therefore must be combined with not only a "material balance" aimed at adjusting the quantity of production, but also a qualitative "environmental balance" that includes the selection of energy resources that are compatible with environmental sustainability and the regulation of production methods and product structure.

In particular, an energy plan is necessary as a prerequisite for this "environmental balance." In that case, there is a technical problem of whether to separate the energy plan from the main economic plan and incorporate it independently, or to incorporate it as a prerequisite part of the economic plan.

The integrated type seems appropriate in order to emphasize that the energy plan is not an external regulation of the economic plan, but an internal premise for the entire economic plan; however, in any case, such an energy plan is a guideline that is applied to production companies with the same normative power as the economic plan itself, and is not simply a programmatic set out of the basic principles of energy policy.

Furthermore, because energy supply is closely related to the system of global joint management of energy sources, it must also be linked to energy resource management plans at the global level, and a "single-nation energy plan" cannot exist here.

In terms of content, the plan is based on the conservation of non-renewable energy sources such as oil and the active use of renewable energy, with environmentally sustainable total quantity restrictions on electricity, which accounts for the largest proportion of all secondary energy sources in advanced industrial society, being an important pillar of the energy plan.

Incidentally, with regard to power generation, nuclear power has been proven to be unparalleled in its environmental destruction in the event of an accident, so it cannot be evaluated as a qualitatively safe and sustainable energy source, and is therefore excluded from the sustainable energy plan.

The body that formulates such energy plans is also not a government agency, but the Economic Planning Conference, which is made up of production companies, but the original energy plan is formulated by the Energy Planning Council, a subordinate organ of the council made up of energy-related business entities such as oil refining and electricity.

👉The papers published on this blog are meant to expand upon my On Communism.