Government 'wants big six energy firms to hold prices'

All of the big six energy suppliers, barring E.on, are upping or have already raised gas and electricity prices this winter (join our free Cheap Energy Club to find the best tariff for you).

But the Government's call – to hold prices, barring any big increase in wholesale fuel costs – is aimed at avoiding another round of hikes that could be blamed on green levies, industry sources told the BBC.

Annual bills could be cut by around £50 by the move, it is claimed.

But the Department of Energy and Climate Change describes the claims as speculation, stating there would be no comment on the issue ahead of next week's Autumn Statement from Chancellor George Osborne.

Energy price freeze

The reports come as Labour leader Ed Miliband is due to pledge to end the energy "rip-off" today, when he details proposals for reforming markets.

He is to call for a tough new regulator, and an independent body to plan new infrastructure and ensure the lights stay on. He will also promise action to boost competition among suppliers, and simplify bills for customers.

The shake-up – described by Miliband as the biggest since privatisation in the 1980s – would be implemented during the 20-month price freeze planned if Labour wins the general election.

Prime Minister David Cameron told reporters in Vilnius, Lithuania, where he is at a summit: "I want to help households and families by getting sustainably low energy prices.

"Now, the only way you can do that is by increasing competition and eroding the costs of some of the levies on people's bills. I said that's what we were going to do, that is what we are going to do and I think that's a very positive step forward.

"That's a world away from making a vague promise about something you might do in 20 months' time with no idea about how you are going to do it. That is a con. What we are dealing with is real policy that can make a real difference."