Energy Bills: Govt Price Freeze Plea Denied

The Government is not asking the big six energy companies to freeze prices, Downing Street has insisted.

Sources had suggested the firms were being pressed to keep tariffs the same until after the 2015 general election.

It had been claimed the call was an effort to avoid another round of price rises that could be blamed on Government green levies.

But a Number 10 source told Sky News: "This story is utterly misleading. The Government has not asked for a price freeze. People should wait for us to announce our plans."

Energy Secretary Ed Davey was believed to be seeking a deal with firms

Energy minister Ed Davey has promised to help firms by introducing changes to the green levies that Prime Minister David Cameron and Chancellor George Osborne have pledged to "roll back".

But it is understood the energy companies have so far given no commitment.

Speaking while attending a EU summit in Lithuania, Mr Cameron said: "I want to help families by getting sustainably low energy prices - by increased competition and rolling back costs of some levies on peoples bills.

"I said I'd do it - we will do it. That's a world away from a vague promise about something you might do in 10 months time, without knowing how - that's a con. We're dealing with real policy and real difference."

Npower issued a statement saying: "If the green levies are rolled back then Npower will cut prices to its customers as soon as possible.

Bills are burned during a protest this month against prices and budget cuts

"We need to understand the detail of the roll back before we can comment further."

Meanwhile, an EDF statement said: "EDF Energy fully supports the ambitions behind the schemes and has consistently delivered its obligations.

"However, to ease the burden on customers, energy companies, politicians and consumer groups need to work together to define an affordable solution. The company believes changes can be made without impacting vulnerable customers."

Ministers are proposing to change the Energy Company Obligation (ECO) - one of the green levies branded "green crap" by a Tory source last week.

Labour leader Ed Miliband is to pledge to end the energy "rip-off"

Despite Downing Street's denial, the Government remains determined to announce a pledge or deal in the Autumn Statement on December 5.

It comes ahead of a speech by Ed Miliband later in which he will pledge to end the energy "rip-off".

The Labour leader is to call for a tough new regulator with powers to order firms to pass on wholesale savings to customers, and intervene in the market to ensure they get good value in the future.

An independent Energy Security Board would be created modelled on the Office for Budget Responsibility, to help draw up and implement a timetable for building energy capacity and ensure the lights stay on.

He will also promise action to boost competition among suppliers, simplify bills for customers and "secure energy which is affordable and available".

The shake-up - described by Mr Miliband as the biggest since privatisation in the 1980s - would be implemented during the 20-month price freeze he has pledged if Labour wins the general election.

Launching the party's energy green paper at Manchester Town Hall, Mr Miliband will refer to the famous "Tell Sid" campaign advertising British Gas privatisation under Margaret Thatcher.

"In the past three years it has become clear to everyone but this government that the energy market is broken," he is expected to say.

"Prices are rising year on year without justification. And Britain is not getting the investment in energy we need to secure supplies for the future...

"We have a new message for Sid: We will freeze your bills for 20 months. We will reset the market with real competition and proper regulation so that prices are affordable. We will secure the investment we need.

"We will stop you being ripped off and, together, we will power Britain into the next century."

Other commitments include preventing power generation companies doing exclusive deals with their retail arms and ensuring all environmental and policy levies on bills are delivering "value for money".

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