Labour pledge to cut energy bills if elected

Ed Miliband has pledged to bring in powers to cut energy bills if he is elected.

The Labour leader said he would freeze energy prices until 2017 and also give the energy watchdog Ofgem new powers to cut prices if they are deemed too high.

The new legislation is being drafted to put an immediate end to the overcharging by the Big Six energy firms which consumer groups estimate is costing families and businesses £2.5 billion a year.

Miliband said: "The cost of energy to the Big Six firms has fallen by 20 per cent, but the sky-high prices that families pay have only fallen by a fraction of that.

"Gas bills have declined by between one per cent and five per cent. Electricity bills haven't fallen at all.

"What better evidence do we need of the chronic over-charging, the broken market and the rip-offs being faced by millions of families and businesses across Britain?

"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 go still further. We will pass a law to ensure falling costs are passed on to the consumer this winter; a law giving the regulator a legal duty to ensure fair prices this winter; a law giving the regulator the power to cut prices and keep homes warmer this winter."