Ed Miliband’s Energy‑Price‑Cap Controversy
When Labour’s front‑bench leader, Ed Miliband, floated a 20‑month cap on energy price rises if he won the 2015 election, the energy sector threw a fitting pie at him. Think of it as a shortcut to a “price‑freeze” — a move that experts warn could cripple future power stations, kill jobs, and affect 600,000 people who depend on the industry.
Why the Switch‑Off Isn’t Pretty
- Energy suppliers say a long‑term cap is as good as a dead‑end loop: it stifles the investment needed to build new plants.
- Industry bodies like the IoD, BCC, and CBI claim the proposal is a straight‑up setback for everything that makes Britain “business‑friendly.”
- Centra‑C, the group that runs British Gas, issued a chilling “We’ll leave the UK” threat if the plan goes ahead.
Stumbling Block for Energy Innovation
Ed says he’s “written a letter to energy companies” because he feels the system has lost confidence. He’s hoping the deal‑makers can be part of the solution; unfortunately, many feel they’re being told to take on a role in a revolving door that might end in failure.
Industry’s Take on the Freeze
“If prices were to be controlled against a background of rising costs it would simply not be economically viable for Centrica, or indeed any other energy supplier, to continue to operate,” the supplier says.
“Far less to meet the sizeable investment challenge that the industry is facing.”
And the IoD chief Simon Walker warns: “We should think very, very carefully before piling more distortion on an already grossly distorted energy market.” He adds that domestic shale gas could be a game‑changer, but a price freeze knocks it out of the equation.
Meanwhile, the CBI’s John Cridland says the proposals could send a “tiringly negative message” to the business community: higher energy costs mean steep bills for families AND a deterrent to fresh investment.
Everybody knows rising bills are tough. But a price cap that freezes those increases for 18 months could lock the industry in a long‑term orgy of under‑investment — and that’s why the consensus is… no thanks, Miliband.
Clips in the Air
In addition to the controversy, Miliband’s team also floated an £800 m tax break for small firms — hoping to feel like a champion of the underdog. In a flip‑side, the London Assembly chair bemoaned Boris’s pricing strategy that’s allegedly pushing Londoners out in favour of overseas buyers.
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— London Loves Biz
