Energy investors ‘may be bankrupted’ by price freeze plan

<p>Labour’s plan to freeze energy prices has been criticised by the OECD.</p>

Labour's plan to freeze energy prices for 20 months if it wins the next general election in 2015 has been criticised by the Organisation for Economic Cooperation and Development (OECD).

The party's leader Ed Miliband confirmed the proposals at its recent annual conference, but the OECD's secretary-general Angel Gurria stated that this could damage investors financially.

"If you freeze the price of energy, and the international price of energy rises, it means there's going to be a very big difference to pay," he said, asking who would be made to cover this.

Mr Gurria added that they would "probably" go bankrupt as a result of the price difference.

Npower chief executive Paul Massara stated that the UK's big six energy suppliers have been unfairly blamed for the rising cost of gas and electricity for consumers.

The share price of RWE npower is slightly up today (December 9th) on the back of the OECD's announcement. By 12:02 GMT, its stocks were trading 0.59 per cent up for the day.

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