Government says no to allowing Ofgem to force energy tariff cuts

MPs have voted against the fast tracking of legislation to give industry regulator OFGEM the power to force an energy tariff price cut. The initiative by Labour Leader Ed Miliband was criticised by Ed Davey who pointed to the increased competitiveness of the market. He went on to say, “Labours proposed regulations involving wholesale-retail price links would produce yo-yo pricing and higher pricing and consumers do not want either”. Caroline Flint countered by reiterating that competition “clearly isn’t working” as power suppliers haven’t passed on the lower wholesale costs evident for all to see.

MPs voted against Milibands’s plan to push through the fast track legislation by 305 votes to 228.