Energy Bills: Govt Wants Price Freeze Until 2015

Written By Unknown on Jumat, 29 November 2013 | 12.25

The Energy Secretary has written to the big six energy providers asking them to freeze their prices until after the 2015 general election, according to Sky sources.

The call, barring any big increase in wholesale fuel costs, is to try to avoid another round of price rises that could be blamed on Government green levies, industry sources have said.

Annual bills could be cut by around £50 by the move, it is claimed.

Ed Davey has promised to help firms by introducing changes to the green levies that Prime Minister David Cameron and Chancellor George Osborne have pledged to "roll back".

Ed Davey Energy Secretary Ed Davey is believed to be seeking a deal with firms

He first wrote to the firms last week and followed-up his appeals with fresh letters this week.

It is understood the companies have so far given no commitment to his proposal.

Ministers are proposing to change the Energy Company Obligation (ECO) - one of the green levies branded "green crap" by a Tory source last week.

The Government wants to be able to announce a pledge or deal in the Autumn Statement on December 5.

The Department of Energy & Climate Change described the claims as speculation, stating there would be no comment on the issue ahead of next week's statement.

Protesters burn energy bills during a protest against budget cuts and energy prices on Westminster Bridge, central London Bills are burned during a protest this month against prices and budget cuts

The move comes ahead of a speech by Ed Miliband later in which he will pledge to end the energy "rip-off".

The Labour leader is to call for a tough new regulator with powers to order firms to pass on wholesale savings to customers, and intervene in the market to ensure they get good value in the future.

An independent Energy Security Board would be created modelled on the Office for Budget Responsibility, to help draw up and implement a timetable for building energy capacity and ensure the lights stay on.

He will also promise action to boost competition among suppliers, simplify bills for customers and "secure energy which is affordable and available".

Ed Miliband at a TUC protest march in 2012 Labour leader Ed Miliband is to pledge to end the energy "rip-off"

The shake-up - described by Mr Miliband as the biggest since privatisation in the 1980s - would be implemented during the 20-month price freeze he has pledged if Labour wins the general election.

Launching the party's energy green paper at Manchester Town Hall, Mr Miliband will refer to the famous "Tell Sid" campaign advertising British Gas privatisation under Margaret Thatcher.

"In the past three years it has become clear to everyone but this government that the energy market is broken," he is expected to say.

"Prices are rising year on year without justification. And Britain is not getting the investment in energy we need to secure supplies for the future...

"We have a new message for Sid: We will freeze your bills for 20 months. We will reset the market with real competition and proper regulation so that prices are affordable. We will secure the investment we need.

"We will stop you being ripped off and, together, we will power Britain into the next century."

Other commitments include preventing power generation companies doing exclusive deals with their retail arms and ensuring all environmental and policy levies on bills are delivering "value for money".


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