Rising bills highlight Labour's first major misstep

The Independent reports that Ed Miliband has urged energy watchdog Ofgem to crack down on soaring costs as forecasts show the typical energy bill could soon rise by over £100 a year.

The paper says that Whitehall sources have indicated that they expect bills in most UK regions to increase by around £9 a month over next three months, hitting Labour’s pledge to curb the cost of living:

Forecasts of exactly how much rates will rise again in April vary, but most key analysts agree they will be increasing. Large energy firms such as British Gas, E.On and EDF predict the price cap will increase by between five and seven per cent.

Experts say increased volatility in the global gas market is a key source of the rises. The transit deal that allowed gas to flow to Europe from Russia via Ukraine recently ended, adding more uncertainty.

Meanwhile, the lack of gas storage in Britain and Europe is also adding to the issue at a time when cold weather has greatly increased demand in recent months.

Mr Miliband, the energy secretary, has now written an urgent letter to Ofgem, asking the regulator to move faster to protect consumers against coming price rises. Writing to chief executive Jonathan Brearley, he said there are steps Ofgem could take to combat the “rollercoaster” of global gas markets.

“In recent months we have seen once again the dangers for our country of being exposed to fossil fuel markets controlled by petrostates and dictators,” he wrote, adding that the UK is “highly exposed to these global gas markets.”

“Once again, the British people and British businesses will face the consequences of fossil fuel markets we do not control,” he said.

Labour's problem though goes deeper than worries about the country's lack of gas storage and dependence on fossil fuels. Another price increase will serve to rmeind voters once again about their misjudgement in abolishing the winter fuel allowance for most pensioners.