Belfast Telegraph

Home News UK

Warning on Labour energy price plan

Labour leader Ed Miliband's plans for a 20-month freeze on energy prices have been sharply criticised by the head of an international economic watchdog.

Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development, said the freeze - which Labour has said it will implement if the party wins the next general election - would simply drive away investors.

"If you freeze the price of energy and the international prices of energy rise, it means there is going to be a very big difference to pay," he told BBC One's Panorama programme.

"Who's going to be paying the difference? Are you going to ask the investors to take the difference when they'll probably go bankrupt? How are you going to get people to come in and invest to get their money back in 30 or 40 years' time when you are saying there is going to be a freeze?

"I think this is not consistent, not economically objective."

His comments are a blow to Labour, which has used the promise of a temporary price freeze - announced by Mr Miliband at Labour's annual party conference in September - to put pressure on the Coalition over rising household energy bills.

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting?


From Belfast Telegraph