Labour pledges to force energy price cuts by winter

The Labour Party is to give Ofgem new powers to force energy companies to cut gas and electricity bills. Leader Ed Miliband said he will pass a new law giving […]

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By Priyanka Shrestha

The Labour Party is to give Ofgem new powers to force energy companies to cut gas and electricity bills.

Leader Ed Miliband said he will pass a new law giving the regulator a “legal duty to ensure fair prices this winter” if he wins the general election. Ofgem would have to review prices by this autumn to see if consumers are paying “fair” prices and if not, it would have to force companies to cut them.

He previously pledged to freeze prices until 2017, which is expected to cut annual bills by £120 a year.

Mr Miliband stated on a Facebook post: “Now we’re going further, setting out a plan to give regulators the power and a duty to cut prices in time for Christmas.”

He added his government will be “different”: “We will stand up to the big energy companies. We will go ahead with our price freeze. We will reset this broken energy market for the long term so that proper competition and regulation can ensure fair prices are charged in the future.

“And we will pass a law to ensure falling costs are passed on to the consumer this winter. This will be a law giving the regulator a legal duty to ensure fair prices. This will be a law that gives regulator the power to cut prices and keep homes warmer this winter.”