Labour leader Ed Miliband attempted to reignite the political energy debate last weekend at his party’s spring rally in Birmingham.
The move comes on the heels of needling from some political commentators who suggested his dramatic price freeze pledge of 2013 had become irrelevant in light of the collapse of wholesale oil and gas prices and subsequent reductions, to varying degrees, in consumer bills.
Miliband’s return to the energy battle ground reflects his conviction that energy affordability remains a vote-winner, despite the changed market conditions. Reorienting his seminal price freeze pledge, Miliband said Labour will now force energy suppliers to immediately cut their prices, should he gain power in May.
These cuts could be up to 10 per cent – a figure based on recent research from consumer watchdog Which? (see below) – and the promise seeks to position Labour as a consumer champion, ensuring suppliers charge a “fair price” for their energy, and one that reflects falling wholesale prices. This comes on top of the promise of a 20-month cap and the introduction a whole raft of reforms
The shift by Miliband away from focusing on the freeze and towards cutting bills is important now that the promise of a freeze has lost its mojo. While the coalition claims credit for some of the recent reductions in energy bills (a consequence of increased competition, nurtured by Ed Davey, they say), Labour is not satisfied that market forces can be trusted to get the best for “hard working families up and down the country”.
Yet, coupled with a relatively mild winter and falling tariffs, bills are lower than many expected and Miliband has clearly understood that a price freeze – even when it is a cap – no longer cuts the mustard. A promise of further cuts is, at least in the eyes of the party, a much more appealing – and a vote-winning – sound bite.
With only 48 days until Britons go to the ballot box, Milband – a former energy secretary – has done his best to put energy costs back at the centre of political debate.
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