Mandelson attacks energy plan

Lord Mandelson has warned that Ed Miliband's plan to freeze energy bills risks taking Labour "backwards."

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Freeze 'would not be economically viable for Centrica'

Centrica suggested British Gas might not continue to operate if prices were frozen. Credit: PA

Centrica, which operates British Gas, suggested it would not be able to continue to supply household energy if Ed Miliband's plan to freeze prices came into force.

"If prices were to be controlled against a background of rising costs it would simply not be economically viable for Centrica, or indeed any other energy supplier, to continue to operate and far less to meet the sizeable investment challenge that the industry is facing," a statement said.

"The impact of such a policy would be damaging for the country’s long term prosperity and for our customers.”

British Gas' residential business increased profits by 3.2% to £356 million in the first half of this year, Centrica announced in July.

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