As even Conservatives now privately concede, Ed Miliband’s pledge to freeze energy prices has had more political impact than any announcement since George Osborne’s 2007 promise to cut inheritance tax. In the five weeks since the Labour conference, rarely a day has passed without it leading the debate.
If the Tories are hoping to change the subject this week, they’re likely to prove disappointed. On Tuesday, representatives of the big six will appear before the energy select committee to be questioned on price rises, and the day hasn’t begun well for them. New data from the energy regulator Ofgem shows that while consumers have been hit by price increases of up to 11.1%, wholesale prices have risen by just 1.7% over the last year. It’s a finding that will make it even harder for the firms to justify their inflation-busting price hikes. While the wholesale element of the average bill has risen from £600 to £610, Ofgem estimates that companies’ average net profit margin has more than doubled from £45 a household to £95.
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