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article imageLabour Party plan on energy bills wipes £2 billion off shares

By Dawn Denmar     Sep 27, 2013 in World
Ed Miliband's speech to the Labour Party Conference this week included a promise to freeze energy bills for 20 months if Labour win the next election. It had surprising results, as nearly £2 billion was wiped off the share value of UK energy companies.
UK news headlines yesterday highlighted plummeting share prices in the major UK energy companies following Labour Party leader Ed Miliband's promise to freeze energy prices if Labour win the 2015 election.
Shares in Centrica, owner of British Gas, and Scottish and Southern Energy (SSE) fell by 5 percent. These are the only major energy suppliers quoted on the London Stock Exchange and £1.9 billion in total was wiped from their share values.
The defiant Labour leader responded to criticisms by saying it was possible that if he led government he may also seek control of other markets, This has fuelled speculation that a Labour government might impose regulatory controls on water, rail and petrol, in moves reminiscent of the nationalisation of the 1970s.
According to the Daily Express, Ed Miliband followed up his party conference speech by writing to the major energy suppliers, including European owned nPower and E.ON.
He accused the companies of overcharging millions of consumers and failing to invest their profits in infrastructure. He said: “We face a stark choice. We can work together on the basis of this price freeze to make the market work in the future or you can reinforce in the public mind that you are part of the problem not the solution.”
Opinion polls in the UK have suggested that British people feel energy prices are the biggest threat to Britain's economy and energy bills have become the second-largest expense faced by most typical British families.
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