Ed Miliband has pledged to freeze energy prices, but will consequences follow?

The Labour leader Ed Miliband has recently pledged to freeze energy prices till 2017 if he wins the 2015 election. Many consumer groups have been thrilled by this promise due to the rise in energy prices over recent years, but the ‘big six’ suppliers are dubious and warn it could lead to many consequences.

The Energy Secretary for the Liberal Democrats, Ed Davey has voiced that is risks “the lights going out.” Miliband has spoken to the ‘big six’ suppliers warning them that without changes to prices, the taxpayer funded assurances to the energy firms may not be maintainable.

His pledge for the freeze came out in his party conference speech earlier in the week after having argued that suppliers have been overcharging consumers for several years and that homes would benefit from this temporary freeze at a time when finances are under pressure. The suspected save for households would be £120 and for businesses would be £1,800.

Over the last six years, average gas bills have risen 41% and average electricity bills have risen 20%.

Speaking of the energy companies he says, “It’s time we fixed it and they can either choose to be part of the problem or part of the solution. I hope they choose to be part of the solution.”

In regards to the speculation of possible blackouts, Ed Miliband has accused the industry of dispersing “scare stories.”

Speaking of the price freeze, Energy UK, the governing body of the big six energy companies has described it as “superficially attractive” and it could bring with it a stop to infrastructure projects.

Miliband has made a significant change to climate change but he could put this at risk with his pledge that might turn away investors to low carbon power generation.