The SNP launches its general election manifesto today, and it expected to say it would give Ofgem the power to control prices and force energy firms to pass lower costs on to consumers.
The party’s energy spokesperson Mike Weir told the Sunday Mail: “It’s time that Westminster put consumers first and not the energy companies.
“The SNP will campaign for the energy regulator to have the power to control retail prices and force energy companies to pass on cuts to consumers.”
Labour leader Ed Miliband promised his party would cut consumers’ energy bills in March by pushing through legislation to make Ofgem pass on cuts in the wholesale energy price.
The Labour Party press team suggests that a cut of 10 per cent could be made, based on estimates from consumer watchdog Which?.
The SNP’s promise could result in a supply and confidence deal between the two parties, at least on this issue, although Labour’s plans to introduce the price freeze may prove a stumbling block as SNP MPs voted against the motion in April last year.
The SNP is also expected to push for a transmission charging regime which supports Scotland’s energy industry “rather than undermining it as the current regime does”, as outlined in its business pre-manifesto.
“Our proposed changes to Westminster’s failed transmission charging regime will provide much needed support for our energy industry at all levels,” said SNP MSP John Swinney.
The SNP claims that the current transmission charging regime penalises the energy industry in Scotland, with generators in the north of the country paying £26 per kilowatt and in Fife paying £17.10/kW. This compares to Cornwall where generators pay £5.80/kW and Somerset where they pay £3.94/kW.