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.
Responding to Ed Davey's statement, Labour shadow energy secretary Caroline Flint has attacked the coalition's plans to reform the energy market.
She said that the reform mean that "energy companies will still be allowed to put up people's bills this winter".
"There is not a single measure that will cost the energy companies a single penny," she added.
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".
Labour's pledge to freeze energy prices would not scare away investment in the energy market, the shadow energy secretary told Daybreak.
Problems with investment had been "going on for the last three to four years" because of the conflicting energy policies of the two parties in the Coalition Government, Caroline Flint said
"We've seen investment in renewable energy halve in the last three years. Of course we want certainty."
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.
Labour's shadow energy secretary Caroline Flint has said that the changes announced in the energy statement will "do nothing to help people with their bills this winter".
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."
Labour has said David Cameron's comments during Prime Minister's Questions today show he is "standing shoulder to shoulder with the big energy companies."
Shadow energy secretary Caroline Flint said the Prime Minister was "out of touch" and "panicking over his failure to address soaring energy bills".
Ms Flint said: "People are seeing the cost of heating their home rising by 10% right now and all he offered was yet another review of a market that everyone knows is broken".
"Rather than standing up to the big energy companies he proposes letting them off the hook by scrapping the very same green levies that his own Government introduced."
Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary, commenting on allegations of price fixing in the electricity market reported by ITV Business Editor Laura Kuenssberg, said: