Energy bills will be frozen by Labour for 20 months if the party wins power at the 2015 general election, Ed Miliband announced on Tuesday in his boldest policy move since becoming leader three years ago.
Speaking to delegates at his party’s conference in Brighton, Mr Miliband revealed plans to transform the energy market and break up the power of the “big six” companies.
The emergency price freeze, the party claims, will save the average household £120 and businesses £1,800, and cost the big six energy companies £4.5 billion over the duration of the measure.
Energy companies said the freeze was “unaffordable” and will halt investment in the industry.
Professor Philip Booth, editorial director at the Institute of Economic Affairs, said: “Ed Miliband has failed to get to grips with why the costs of energy are so high in the first place. It is only because of repeated government interventions and regulations that household bills have reached such an unaffordable level.”
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