Profiteering energy firms would be stupid to believe they can hold Labour to ransom

Mike Sivier's blog

The UK’s private energy companies will be playing a very dangerous game if they think they can call Ed Miliband’s bluff on price-freezing.

According to The Guardian, Mr Miliband’s announcement that energy prices will be frozen for 20 months under a Labour government has sparked a chorus of protest from the affected firms.

In the first skirmish in the new political battle over the cost of living in the UK, Mr Miliband wants to “reset” what he sees as a “failing” energy market in which customers had paid £3.9 billion more than necessary since 2010. The measure would save families an average of £120 and businesses £1,800.

Energy firms say it would lead to blackouts similar to those seen in California. They say it will stall investment in new power stations.

Energy UK, which represents the largely foreign-owned energy firms, said: “It will… freeze the money to build new power…

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