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No 10 says it has not asked Big Six energy firms to freeze prices No 10 says it has not asked big six energy firms to freeze prices
(34 minutes later)
Downing Street is not calling on the Big Six gas and electricity companies to freeze prices until after the next election, David Cameron's official spokesman has said. Downing Street is not calling on the big six gas and electricity companies to freeze prices until after the next election, David Cameron's official spokesman has said.
The No 10 aide dismissed a report saying that Ed Davey, the energy secretary, had written to firms asking them not to raise prices until mid-2015, barring a rise in international fuel prices.The No 10 aide dismissed a report saying that Ed Davey, the energy secretary, had written to firms asking them not to raise prices until mid-2015, barring a rise in international fuel prices.
The BBC reported that energy companies were under the impression that they had been asked to keep down prices if the government cuts green levies on energy bills.The BBC reported that energy companies were under the impression that they had been asked to keep down prices if the government cuts green levies on energy bills.
Downing Street said no such request had been made, but did not deny that ministers might have suggested to firms that they could afford to hold down bills in exchange for cuts to green charges.Downing Street said no such request had been made, but did not deny that ministers might have suggested to firms that they could afford to hold down bills in exchange for cuts to green charges.
"The story is utterly misleading. The government has not asked for a price freeze. People should wait for us to announce our plans," the spokesman said."The story is utterly misleading. The government has not asked for a price freeze. People should wait for us to announce our plans," the spokesman said.
According to the BBC, Davey made the request as part of negotiations over government plans to "roll back" green levies on energy bills. Quoting industry figures, it said one energy company was prepared to make the commitment barring any increase in wholesale costs of fuel, while another did not believe it was possible while other costs were rising.According to the BBC, Davey made the request as part of negotiations over government plans to "roll back" green levies on energy bills. Quoting industry figures, it said one energy company was prepared to make the commitment barring any increase in wholesale costs of fuel, while another did not believe it was possible while other costs were rising.
Ministers are looking to take around £50 off bills by slowing down a programme to cut energy usage for the most vulnerable households called the Energy Company Obligation (Eco) and moving the cost of another scheme into general taxation. Ministers are looking to take about £50 off bills by slowing down a programme to cut energy usage for the most vulnerable households called the energy company obligation (Eco) and moving the cost of another scheme into general taxation.
It comes as Cameron is under pressure over Labour's pledge to freeze energy prices from 2015 and the rising cost of living. It comes as Cameron is under pressure following Labour's pledge to freeze energy prices from 2015 and the rising cost of living.
However, the energy companies deny they are responsible for rising bills, blaming international fuel prices for the rises that have led bills to hit a record high of more than £1,300 a year. But the energy companies deny they are responsible for rising bills, blaming international fuel prices for the increases that have led bills to hit a record high of more than £1,300 a year on average.
Speaking to BBC Radio 4's Today programme, Angela Knight, chief executive of industry group Energy UK, said the sector was already very competitive.Speaking to BBC Radio 4's Today programme, Angela Knight, chief executive of industry group Energy UK, said the sector was already very competitive.
"You're talking about retailers who operate in a pretty competitive market," she said."You're talking about retailers who operate in a pretty competitive market," she said.
"There is some very significant choice, and there is some very significant switching. One of the issues here is that that choice is something people do need to look at and concentrate on. She added: "What you've got now is an increasing number of suppliers, you're seeing an increasing number of people switching, you're seeing an increasing number of competitive offers. So it's actually happening there on the ground."
"What you've got now is an increasing number of suppliers, you're seeing an increasing number of people switching, you're seeing an increasing number of competitive offers. So it's actually happening there on the ground." Speaking to BBC News, Cameron said the government's focus was on trying to lower energy prices by "increasing competition and rolling back the costs of some of the levies on people's bills", rather than a price freeze.
Speaking to BBC News, Cameron stressed the government's focus on trying to lower energy prices by "increasing competition and rolling back the costs of some of the levies on people's bills", rather than a price freeze. "I said that's what we were going to do. That is what we're going to do, and I think that's a very positive step forward," the prime minister said.
"I said that's what we were going to do. That is what we're going to do, and I think that's a very positive step forward," he said. Ed Miliband, the Labour leader, accused Cameron of being a "weak and flailing prime minister", adding: "What we now know is that while David Cameron has in public been opposing an energy price freeze, in private he has been pleading with the energy companies to get him off the hook.
Ed Miliband, the Labour leader, accused Cameron of being a "weak and flailing prime minister".
"What we now know is that while David Cameron has in public been opposing an energy price freeze, in private he has been pleading with the energy companies to get him off the hook," he said.
"What Britain needs is Labour's strong, credible plan that we're publishing today to freeze energy prices until 2017 and reform a broken energy market so it properly works for business and families.""What Britain needs is Labour's strong, credible plan that we're publishing today to freeze energy prices until 2017 and reform a broken energy market so it properly works for business and families."
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