Labour in the UK declares a crisis in energy…problem now solved

Oh dear lord, it seems Ed Miliband has David Cunliffe and the NZ Labour party advising them.

They are even mimicking declaring a crisis for particular industries and just like in New Zealand they have tried to come up with their own power solution.

It has of course been widely mocked.

Labour’s flagship energy price freeze was branded ‘a joke’ last night, as senior figures in the party confirmed it has been reviewed in the light of falling prices.

The price freeze, which Mr Miliband pledged would last until 2017, has been thrown into turmoil in recent weeks as a slump in the price of oil saw the prospect of falling energy prices.

The Daily Mail revealed yesterday that Labour is conducting a U-turn on the policy, which was launched by Ed Miliband in 2013.

It has now been ‘re-branded’ as a price cap, which will allow bills to fall to reflect tumbling wholesale prices.

Yesterday E.On became the first Big Six firm to offer a cut in gas prices of 3.5 per cent to its customers, and others are expected to follow suit. 

Labour’s energy spokesman Caroline Flint yesterday insisted the freeze had always been designed to act as a cap, which would allow prices to be cut. She told MPs: ‘If anyone is labouring under the illusion that the price freeze can be used as an excuse for not delivering price cuts then let me disabuse them of that.’

She explained that Labour would change the law to give the regulator Ofgem the power to force energy firms to cut bills when wholesale prices fall.

However the party’s work and pensions spokesman Rachel Reeves confirmed the shift, saying the ‘world has changed’ since the freeze was announced. Miss Reeves acknowledged that the party ‘didn’t use the word cap’ when the policy was launched.

She told the BBC’s Daily Politics show: ‘Clearly at the time, prices were going up… The world has changed, and now we’ve got falling energy prices.’ Conservative chairman Grant Shapps seized on the admission as evidence that the policy was in ‘complete chaos’.

And David Cameron mocked the Labour leader, saying: ‘He cannot talk about his energy price freeze, because it has turned him into a total joke.’ The policy is still being promoted on the party’s website with an image of an energy bill frozen in a block of ice, with a message stating: ‘Ed Miliband’s energy plan – gas and electricity bills will be frozen until 2017.’

But critics have pointed out that the policy will backfire if families fear they will be stuck with high bills while prices fall.

And experts think the policy proposal may have kept bills artificially high, with firms unwilling to lower prices in case Labour wins the election and fixes bills at the lower level.

So, as usual a complete cock-up all round by a Labour party.

It seems though that the best way to solve a crisis is for a Labour party to declare a crisis exists and then the crisis evaporates, literally before ones eyes.

 

– Daily Mail

 


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  • peterwn

    Some years ago in Wellington the power company wanted to reduce prices immediately but were obliged to give three months or so notice. Not wanting a Fitzgerald v Muldoon situation on their hands they ran an ad saying they were going to reduce power prices immediately, but customers could individually apply to retain the current prices for the three month notice period.

  • Day Day

    Labour always like to drum up one crisis or another.

  • deanobravo

    The sooner they declare the Black Caps are in crisis the better.

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