THE LABOUR party will today publish its new energy market policy, which promises to force energy companies to pass on price cuts when wholesale costs fall.
The opposition party says it will abolish Ofgem, the existing regulator, and create a new watchdog that will take a more active role in forcing down consumer prices for electricity and gas.
It would also force energy firms to pool the power they generate in order to make it easier for new entrants to secure supplies.
“At the moment, most energy is bought and sold through secret bilateral deals between energy companies. Requiring energy companies to put all the power they generate into a pool, allowing any retailer to bid for that energy and sell it on to the public, will make the market more transparent,” the report says.
The party would also force energy firms to put all over-75s on the cheapest available energy tariff, following research that older people are less likely to seek out the best possible deal.
However the last proposal stops some way short of David Cameron’s apparently inadvertent policy announcement last week, which saw him pledge legislation to force energy companies to put all customers on “the lowest tariff”. Full details of the coalition plans are due to be included in next month’s Energy Bill.