Update – David Cameron has denied asking energy suppliers not to hike rates before the next election.
When asked about the allegations today at an EU Summit, he said: “I’ve said all along I want households and families to have sustainably low energy prices now and the only way you can do that is by increasing competition and rolling back some of the costs of some of the levies.
“I’ve said that’s what we’re going to do and that is what we’re going to do.
“That’s a world away from saying you might do something in 20 months’ time and with no ideas about how to do it.
“That is a con. We’re talking about real policy.”
Did Cameron request a price freeze?
According to the Telegraph, it is thought that the government requested that energy companies not raise prices in the run up to the general election.
Should the energy firms agree, gas and electricity prices could remain in place for up to 18 months.
A source working for one of the big six energy suppliers informed the BBC that they were in favour of price freezes but would require the government to change the level of subsidies which need to be paid as part of the Energy Company Obligation (ECO).
Echoes of Labour’s proposed price freeze
The news echoes Labour Leader Ed Milliband’s pledge to freeze energy prices for 20 months, should his party win the next general election. The promise was then criticized by the conservative party, which referred to the pledge as a “con”.
‘David Cameron is making himself look weaker and weaker’
Labour’s Shadow Energy Secretary Caroline Flint MP was quick to react to the Prime Minister’s alleged comments: “David Cameron is making himself look weaker and weaker with every passing day.
“For months he has been saying Labour’s energy price freeze is a con. Now he is begging the energy companies to do the very same thing.
“But the truth is that only by legislating for a freeze can we guarantee that it will happen. David Cameron won’t do that because he’s not prepared to stand up to the big energy companies.
“All this shows is why we need a Labour government implementing Labour policy to freeze prices until 2017 and reset the energy market so that it works for the long term.”