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Labour lays out plans to ‘reset’ the energy market

Labour leader Ed Miliband has explained how he would look to change the energy market during his proposed 20-month price freeze

Ed Miliband lays out his plans for the energy market

Ed Miliband lays out his plans for the energy market

Miliband has promised the biggest shake up in the UK energy market since the 1980s, in a move that would see the “stranglehold” of the big six firms – five of which have hiked their prices in the last month – challenged.

In addition to this he also said that the government’s energy watchdog, Ofgem, would be abolished should Labour secure victory in the election set to take place in May 2015.

His plans come just a day after Prime Minister David Cameron promised his own changes to the energy market, including lengthening the time it will take to roll out energy saving measures to poorer households across the country in a bid to halve the impact this has on energy bills.

Green Paper promises

Miliband’s Green Paper has promised to replace the “toothless” Ofgem with a new body that the opposition leader promised would have a real bite and power to make a difference in the market and cut bills by challenging the big six.

He is expected to say in Manchester today: “In the past three years it has become clear to everyone but this government that the energy market is broken. Prices are rising year on year without justification. And Britain is not getting the investment in energy we need. Labour is setting out our plan to make sure gas and electricity is affordable and available for this generation and generations to come.”

He will also say that his new energy body, to replace Ofgem, would be stringent in its bid to challenge and cut out overcharging across the market.

In addition to this, Miliband will pledge to bring real competition and regulation back to the energy market in a bid to bring bills back to a price that is more affordable and realistic.

Overpaying would be curbed by competition

He believes that UK consumers have overpaid to the tune of £3.6 billion in the past year, adding that competition would have kept bills down by £100 per household throughout this time.

The final issue that he seeks to address in his Green Paper is that surrounding the worry over the lights going out.

In recent months, National Grid officials have warned that the UK could be pushed to its limits in terms of energy supply with a very bad winter. Miliband said he would set this straight by appointing a new Energy Security Board that would strive to supply the power the country needs.

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