This article was last updated on April 16, 2022
Labour leader Ed Miliband has proposed during his Labour conference speech in Brighton on Tuesday to freeze energy bills for a period of 20 months in case Labour party stands successful after the 2015 general election to aid Britons.
Mr. Miliband has promised that his party will support the people in coping with Britain’s “cost of living crisis”.
The Labour leader has said to ensure that energy firms would not increase their prices until 2017, after the Labor party get into power in the next general election.
The proposed plan features to confirm that gas and electricity prices will be frozen for homes and businesses for 20-month span, and Labour claim that implementation of such plan would led to a savings of £120 for the typical household and £1,800 for an average business between May 2015 and January 2017.
However, the energy companies have not been consulted regarding the fresh policy, and it has been estimated that they will lose an estimated £4.5bn if it is implemented.
Mr. Miliband said: “The companies won’t like it because it will cost them money. But they have been overcharging people for too long because the market doesn’t work. It’s time to reset the market.”
The Labour leader shows the determination that his party would reform the energy market and said to bring “a meaningful freeze”.
Liberal Democrat Energy Secretary, Ed Davey has cautioned regarding the repeat of California’s attempted restructuring of the energy industry in 2000 and said: “When they tried to fix prices in California it resulted in an electricity crisis and widespread blackouts.
“We can’t risk the lights going out here too. Fixing prices in this way risks blackouts, jeopardises jobs and puts investment in clean, green technology in doubt.”
Mr. Miliband has dismissed any rising fears that the fresh proposal to freeze energy prices could lead to power cuts, by quoting any comparison with California as “extraordinary” because the U.S. state had a “completely deregulated market”.
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