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Labour's £80 Energy Bill Bombshell

January 30, 2014 3:56 PM
Originally published by UK Liberal Democrats

New research shows that Labour's energy freeze could push bills up by £80, as companies will push their prices up before and after the freeze.

Conwall Energy, an independent energy market consultancy, has published a study into the impact that Labour's headline-grabbing policy will have on prices.

The report says that to cover the cost of a price freeze, energy companies could need to increase household bills by over £60 in advance of the freeze, adding around 5% to the typical dual fuel bill.

However, suppliers would also have to factor in potential and unexpected volatility in costs, which could result in an overall bill increase of £80 per household. This would increase the typical dual fuel bill by approximately 6%.

Cornwall Energy managing director Nigel Cornwall said: "Independent energy suppliers have brought considerable benefits to businesses, and are now doing the same for households. While political concerns about the state of the market are understandable given rising bills, we believe that a blanket price freeze would turn "friendly fire" on the smaller players whose competitiveness is doing ever more to keep bills down and improve service to customers."