At the Labour Party's Annual Conference in Brighton, Ed Miliband, Leader of the Labour Party, announced radical plans to reset the energy market, to rebuild trust and put fairness back in. And in the time it takes to do this, he will freeze energy bills.
The Energy market isn’t working for ordinary families and businesses. Energy bills have risen by almost £300 for families and businesses say it’s the second biggest cost they face. Bills are going up because when the price of energy increases (wholesale price) energy companies pass this on but when it drops consumers don’t see their bills fall. When energy prices went up in 2008, bills went up. But when energy prices fell by 45% in 2009, household bills only fell by 5%. This over-charging is unfair and undermines trust in the market. This has been possible because of limited competition and weak regulation from Ofgem.
A One Nation Labour Government will reset the market to restore trust and fairness. We will increase competition and transparency by forcing the energy companies to do 3 things: separate out the parts of their business that generate energy from the parts that sell to consumers, sell all their energy in an open pool, and introduce a simple new tariff structure.
We will abolish Ofgem which has failed to stand up for consumers and replace it with a tough new energy watchdog from January 2017.
But until these reforms kick-in, we will put a stop to unfair price rises by freezing energy bills up to January 2017 for people coping with a cost of living crisis. An incoming Labour Government will legislate with immediate effect to make this happen. This will save a typical household £120 and an average business £1,800
We will provide the policy certainty and support needed to unlock investment in clean energy by setting a 2030 decarbonisation target, giving the Green Investment Bank more powers.
Find out how much you could save by using our energy saver calculator - http://action.labour.org.uk/page/s/energy-calculator
And click here to sign the petition calling on David Cameron to freeze energy prices now.