SSE and Centrica decline as Miliband pledges to give Ofgem more power to cut energy costs
Energy stocks declined on Friday morning, ahead of the Labour Party conference, during which Ed Miliband is expected to outline plans to cut energy prices if his party wins the General Election.
Electricity
10,151.02
10:24 30/04/24
FTSE 100
8,184.34
10:25 30/04/24
FTSE 350
4,499.97
10:25 30/04/24
FTSE All-Share
4,453.35
10:25 30/04/24
SSE
1,684.00p
10:25 30/04/24
The Labour leader has stated his intention to push for legislation allowing the energy regulator Ofgem to force companies to cut prices by as much 10% if costs continue to drop, which would save the average household nearly £100 a year.
"We will pass a law to stop the Big Six ripping you off," Miliband said on the eve of his party's conference in Birmingham, referring to Britain's six main energy providers, EDF, npower, E.ON, British Gas, Scottish Power and SSE, which overcharge customers by an estimated £2.5bn a year.
"Utilities are down on the back of Ed Miliband's comments again that energy regulators should have bigger teeth to bite into energy providers," said Alastair McCaig, IG market analyst.
"There hasn't been a lot of focus on May's general election in financial markets so far this year, but utilities have seen the effects. Attention will shift to the vote from here."
As of 10:05 on Friday, SSE shares were down 1.68% to 1,466.00p, while Centrica dropped 1.49% to 237.80p.