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Centrica boss hits out at Ofgem amid price row

The boss of British Gas parent Centrica has told ITV News the company will make far less profit from energy bills than watchdog Ofgem has suggested.

Chief executive Sam Laidlaw told ITV News the energy firm would make £40 profit per customer per year - some way from the £106 Ofgem says energy companies are set to make.

The company has come under pressure to cut bills after watchdog Ofgem pointed to falling wholesale gas and electricity prices.

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Ed Miliband energy freeze 'will bring up bills'

Energy bills are likely to go up in the longer run if Labour come to power, the chief executive of British Gas owner Centrica has told ITV News.

Ed Miliband pledged an energy price freeze if Labour wins the election. Credit: PA

Leader Ed Miliband pledged to freeze energy bills for 20 months if his party wins the general election, but Sam Laidlaw says the plans are likely to scare investors, thereby raising the cost of capital for energy companies and in turn leading to higher bills.

Asked if the plans were already having such an effect, Mr Laidlaw said general "political uncertainty" was raising the cost of capital for energy firms.

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