The paper shows how the market will be ‘reset’ during the 20 month price freeze that leader Ed Miliband announced at the party conference in September.
They aim to improve competition and transparency in the retail and wholesale market, establish a new Energy Security Board to deliver new capacity and to replace Ofgem with a new regulator ‘with real teeth to prevent overcharging.’
Plans to ring-fence supply and generation businesses, develop an energy pool for wholesale trading and formalise ‘over the counter, unclear trading.’
The policy paper also said, if they win the 2015 general election, Labour would simplify tariffs; deliver “value for money on policy costs that impact on bills”, “take forward” the contracts for difference to encourage investment; set a 2030 decarbonisation target to “boost investor confidence”; and give the Green Investment Bank the “power to leverage new investment”.
Miliband is expected to say at the launch of the report “In the past three years it has become clear to everyone but this government that the energy market is broken.
“Prices are rising year on year without justification. And Britain is not getting the investment in energy we need to secure supplies for the future.”
Responding to the policy document, Energy UK said it and its members “are up for change, but it has to be honest and real, not soundbites and rhetoric”.
In a statement, the trade association added: “Reform is already underway. Currently competition is increasing, companies have simplified tariffs, people are switching and more suppliers are coming in.
“No other industry is facing the investment challenge of the energy sector and we will work with all parties to keep the lights on and keep us secure.”