Ofgem's report into the grip the "Big Six" gas and electricity providers have on Britain's energy supply is "an admission of failure" on the part of the regulator, according to the Shadow Minister for Energy.
Labour's Caroline Flint said Ofgem's "state of the market" report into the energy industry proved the watchdog was failing to make sure the industry was competitive.
Energy bills are going up by £120 this winter alone, shadow energy secretary Caroline Flint has said after the Government announced that homebuyers are to be handed £1,000 to spend on energy-saving measures.
Ms Flint added: "[The] Government are dealing with less than half this year's increase, never mind the £300 that bills have gone up by since they got into power.
"It's no surprise with this Government that they're not asking the energy companies to pay for it. David Cameron always stands up for a privileged few. This shows why only a price freeze will do".
Shadow energy secretary Caroline Flint said David Cameron is "going round with a begging bowl to the energy companies pleading with them to do a freeze" on prices.
Ms Flint told Daybreak, "The only certainty in this is that the Labour Party led by Ed Miliband is absolutely clear, we won't go with a begging bowl we will legislate to make sure that there's a price freeze".
Shadow energy secretary Caroline Flint said Ofgem's report shows the Prime Minister "is too weak to stand up to the energy companies and just stands for a privileged few".
Ms Flint said, “However you look at it, there’s no hiding the fact that on David Cameron’s watch the energy companies have increased their profits on the back of spiralling bills for hard-pressed consumers.
She said: "Hard-pressed energy customers struggling with the cost of living need action now, not endless reviews and consultations from an out-of-touch Government that refuses to stand up to the energy companies. "
“What we need now is a price freeze because this is the only way we can deal with the energy companies overcharging," she added.
Shadow energy secretary Caroline Flint said firms "must come clean" about why they have chosen to raise energy prices "when they are already making huge profits".
Speaking ahead of the appearance of directors from the "Big Six" companies before MPs, Ms Flint said: "The latest revelations about rising profits and the growing gap between wholesale costs and household energy bills highlight why answers are needed.
"Britain's energy market isn't working for ordinary families and businesses."
These fresh allegations suggest that price fixing could be happening in the electricity market, as well as the gas market, which is deeply worrying and must be investigated as fully and rapidly as possible.
Whatever the outcome of these investigations, it is increasingly clear that there are deep structural problems with the way our energy market works and is regulated.
For too long, these energy companies have been allowed to get away with running their businesses in such a complicated way that it is almost impossible for anyone to know what the true cost of energy is.
These allegations show why it is more important than ever to create a tough new regulator the public can trust and to force the gas and electricity companies to sell the energy they generate into a pool, to open up the market and ensure fairer consumer prices.