Ed Milliband Pledges To Freeze Energy Prices If Labour Wins Next Election
By Cynthia Taylor
The leader of the Labour Party, Ed Milliband, told his supporters that if Labour won the next elections they would freeze gas and electricity bills. This announcement was said at the party's annual conference that was being held in Brighton.
Speaking for over an hour Mr Milliband talked about his vision of how Britain could do better under a Labour government. He said under Labour the economy would work for the ordinary people again.
He said that the freeze would be for 20 months for every household as well as businesses and he said that the saving for household consumers would be £120 and that businesses would save £1,800 over the 20 months. The freeze will be in operation until the beginning of 2017.
Mr, Milliband said that millions of families a well as millions of businesses will benefit from this move. He continued by saying that was what he meant by a government that will fight for the people – and that Britain could do better than this.
He said that the energy companies will not like it, but that they have been overcharging for too long and it was time to reset the button as the market did not work.
A Report from Which? A consumer group, said that it estimated that consumer in UK paid about £3.9 million too much for energy usage die to the flaws in the market. They said that the energy companies overcharged because they did not pass on reductions in the wholesale prices.
Prices of energy is said to be the second biggest costs that is faced by most of Britain's households, they said that there were £300 in increases on average on a family's energy bill since 2010.
Which? Welcomes Labour's plan, they said that it gave hope to millions who are worrying about how they will be able to afford to heat their homes.
Executive Director of Which? Richard Lloyd said that they look forward to see details of how this would work. He continued that wholesale costs are the largest part the increases in energy bills, which has been ongoing over the past 10 years.
He also said that by making the wholesale market more competitive by the separation of energy generation from the supply is essential to helping to keep prices in check.
Labour was already committed to the separation of energy companies into the retailing and generation bodies in order to create greater competition, they also want the energy watchdog Ofgem abolished, and want to appoint a much tougher regulation body to give customer a 'fairer deal”.
The Labour party has said that the move was not an echo of price controls and nationalisation that had existed in the UK previously, but just a temporary measure to help consumers until there was a tougher and more consumer-oriented regulatory body has been put in place, that has the power to force the energy companies to sell wholesale energy in a market that is pooled.
The proposal is likely to be popular and a possible vote winner for Labour and should attract support from all sectors of society.
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