Miliband energy price freeze rejected as ‘superficial’

Miliband energy price freeze rejected as ‘superficial’

Well intentioned Government policies to promote household energy efficiency and renewable energy, supported by all parties, have been placed on energy bills and are rising significantly in cost.

“Instead of price freezes which will lead to unsustainable loss-making retail businesses, the Labour Party should put policy costs into general taxation, taking them off energy bills. This would wipe £110 off the average person’s bill and shift the cost away from those who cant afford to pay and on to those who can.”

Angela Knight, head of Energy UK, the trade body:

“Freezing the bill may be superficially attractive, but it will also freeze the money to build and renew power stations, freeze the jobs and livelihoods of the 600,000 plus people dependent on the energy industry and make the prospect of energy shortages a reality, pushing up the prices for everyone.

“No other industry is facing the investment challenge of the energy sector. Last year alone the energy industry invested £11.6bn – the equivalent of building the Olympic stadium twenty times over. We need to invest £110bn over the next ten years to build and renew the power stations, the wires and the pipes everyone in the country needs to keep the lights on, our homes warm and to supply the power for British business to compete, to recover and to grow.”

John Cridland, CBI director-general:

“Rising energy bills are tough on families and businesses. But the proposed energy price freeze will deter much-needed investment and is at odds with Labour’s pledge to decarbonise the economy and create a million green jobs.

“The main reasons that bills are going up is the combination of rising wholesale prices, the cost of policies needed to keep the lights on and the move to a low-carbon economy.”

John Longworth, British Chambers of Commerce chief:

“Price freezes will be attractive for consumers and small businesses, but we are concerned about the impact that Ed Miliband’s proposal would have on investment in Britain’s ramshackle energy infrastructure.

“Keeping the lights on and our businesses working is absolutely critical. Short-term price controls and green energy commitments could have a negative effect on Britain’s energy security.”

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