The Courier & Advertiser (Perth and Perthshire Edition)
Cameron’s welcome for price freeze
BIG SIX energy supplier SSE yesterday pledged to freeze household gas and electricity prices until January 2016, immediately putting rivals under pressure to do the same.
The move, which comes amid intense political lobbying on energy companies over rising bills and soaring profits at a time when household wages are being squeezed, was hailed by Prime Minister David Cameron as “hugely welcome”.
The sector faces the outcome of a regulatory probe within days, which is widely expected to see it referred for a fullscale two-year competition investigation.
Six months ago, SSE criticised a pledge by Labour to force suppliers to freeze prices, saying it would lead to “unsustainable loss-making retail businesses”.
Labour’s policy was dismissed at the time by Mr Cameron as unworkable and “Marxist”, and Ed Miliband told the House of Commons yesterday that SSE’s decision had “totally demolished” the Prime Minister’s arguments on prices.
“Week after week, he denounced Labour’s call for an energy price freeze to help families and businesses, but now apparently he supports a price freeze,” Mr Miliband told MPs.
“Can he explain why a price freeze was wrong six months ago but it’s the right thing to do today?”
Mr Cameron said SSE had made clear that a principal factor allowing it to freeze prices was the Government’s decision to roll back green levies on energy bills, which saved households an average £50 a year.
“It is hugely welcome in our country that energy companies are cutting and freezing their bills,” Mr Cameron said at the weekly session of Prime Minister’s Questions.
“What we have done is reduce the cost of energy charges so that companies are able to cut their bills.
“It is our policy that bills should be cut and bills are being cut under this government.”
Mr Cameron said that since the rollback of green levies, British Gas and E.On had cut £50, Scottish Power £54 and EDF £65 from dual-fuel bills, while npower, Scottish Power and EDF had all announced that prices will not go up further in 2014.