Labour attacks Govt over energy

Ed Miliband's plan to freeze energy prices for 20 months, if a Labour government is elected at the next general election, is seen as potentially a real vote winner.

The coalition government have condemned that as a con, but they have struggled to come up with their own alternative.

Tomorrow, the Prime Minister and his deputy have written an article for a Sunday newspaper in which they will outline how they plan to help families with the soaring cost of energy prices.

It has been reported that part of that may be a £12 rebate for every household on their electricity bills.

That would be paid for by the Warm Home Discount Scheme, being paid for by the government rather than by the energy companies.

The government are not confirming that, but I understand there will be a package of measures which aim to make us all about £50 better off.

Chancellor George Osborne is expected to announce any reductions in energy bills in his Autumn Statement next week, as the coalition try to respond to Labour's pledge to freeze energy prices for 20 months if it wins the general election.

Speaking from Vilnius in Lithuania where he is attending a summit, Prime Minister David Cameron said:

Read: Household energy bills 'could drop by £50'

Household energy bills could drop by £50 as a result of cuts to green levies being drawn up by the coalition.

The reductions are expected to be finalised in negotiations taking place with the "Big Six" power firms this weekend.

There is also speculation that some of the suppliers will pledge to freeze charges until 2015 - as long as wholesale market costs do not spike.

Prime Minister David Cameron has signalled his determination to "erode" environmental and policy levies on gas and electricity bills.

They are estimated to add £112 to average annual charges, to support renewable power and subsidise insulation and other efficiency measures for lower income households.

Read: Miliband: Government's policy changes 'hour by hour'

The Government today denied claims they had asked the "Big Six" energy companies to fix prices until the next election.

Labour leader Ed Miliband, who has pledged a price freeze until 2017 if he comes to power, said the story showed Prime Minister David Cameron was "weak and flailing".

ITV News Political Correspondent Libby Weiner reports.

Ed Miliband has pledged to end Britain's energy "rip-off" if he is elected Prime Minister. The Labour leader says he will force energy firms to:

• Freeze bills until 2017

• Split their retail and wholesale businesses

• Replace Ofgem with a tougher regulator

The Coalition contends that increasing competition in the energy market and cutting green levies will help to reduce bills.

Labour leader Ed Miliband said it was "hard to keep up" with the Government's energy policy, claiming it changes "hour by hour".

Mr Miliband made the comments as he outlined Labour's pledge to end the energy "rip-off" and freeze bills for 20 months should they be elected into power in 2015.

Labour leader Ed Miliband has accused David Cameron of being a "weak and flailing Prime Minister".

Mr Miliband said: "What we now know is that while David Cameron has in public been opposing an energy price freeze, in private he has been pleading with the energy companies to get him off the hook.

"What Britain needs is Labour's strong, credible plan that we're publishing today to freeze energy prices until 2017 and reform a broken energy market so it properly works for business and families."

Downing Street has denied reports the Government has asked the "Big Six" energy firms to try and avoid another round of price rises, calling the story "utterly misleading".

"The Government has not asked for a price freeze", a Number 10 source told the Press Association.

"People should wait for us to announce our plans," they added.

Energy UK, which represents the energy firms, said there are substantial increasing costs on household bills that are "outside the control of the companies".

Chief executive Angela Knight told the Today programme that the cost of environmental and social levies "are of concern".

Ms Knight continued: "If you look at an average energy bill, only about half of it is energy.

"The only piece that actually sits within the control of the energy company themselves is the 18%-20% of the bill for operating costs and so forth."

Prime Minister David Cameron said Labour's energy price freeze promise is "a con" and that the Government's policy was "a world away from making such a vague promise about something you might do".

Mr Cameron said the only way to ensure sustainably lower household energy bills was by "increasing competition and rolling back the costs on some of the levies on people's bills".

Read: Miliband 'will end energy rip-off'