Labour's claims it will cut energy bills by £300 are 'false', Tories insist

Ed Miliband says expanding nuclear and renewable energy will save consumers money. Photo: ANDY BUCHANAN/AFP

Claire Coutinho accused Labor of misleading voters with claims that green energy plans would cut household bills by £300 a year. 

The Energy Minister has said the Opposition's net-zero emissions plans are nothing more than a «gimmick» based on outdated data. 

The criticism followed a statement by Ed Miliband, the shadow energy secretary, that a massive expansion of wind, solar and nuclear power would cut consumers' bills by an average of £300 a year by 2030.

However, Ms Coutinho pointed to new analysis which claims Labour's proposals, which revolve around creating a new kwang called Great British Energy, would increase bills.

She said: “Labour's GB Energy proposal is a gimmick that will generate no energy and will not cut bills, while the rest of Labour's policies jeopardize the UK's energy security.

“We now know that Not only will Labor increase your taxes by at least £2,094, but Ed Miliband's latest vanity project will increase your energy bills.»

The Conservatives claim Mr Miliband has substantiated his claim of £300 savings sterling cost of electricity a year ago — when prices were much higher. A Tory spokesman said this reliance on outdated prices made his claim false and irrelevant.

In response, Mr Miliband criticized the government for insulating too few homes and moving too slowly on offshore wind expansion.

It marks the latest war of words between MPs as energy bills become a key battleground during the election campaign.

From July the average household will pay £1,568 a year for electricity and gas, although experts warned on Tuesday that energy bills could rise within months. LCP Delta, a consulting and research firm, warned that energy costs could «bounce back this autumn» if Europe's gas storage tanks are not replenished in a timely manner. Britain relies on the rest of Europe for gas supplies during the coldest months because it has little storage capacity of its own. 

Sam Hollister, head of economics, policy and investment at LCP, warned that Europe could face a crisis if storage volumes continue to decline, including due to Russia. attacks on facilities in Ukraine as liquefied natural gas (LNG) supplies are diverted to Asia.

He added: “As Russia’s invasion of Ukraine disrupted pipeline flows, Europe has come to rely heavily on off-season storage to protect and boost supplies during the cold winter months.

«However, high stock levels are being eroded as LNG exports are diverted from Europe to higher-priced Asian markets.

«If Ukrainian storage is lost, Europe's storage buffer will fall further… increasing the chances of utilities 'rushing for gas' to avoid winter shortages.»

Labour has been contacted for comment.