British Gas threatens to leave UK if Labour's proposed price freeze comes into effect

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Centrica has warned that it will leave the UK if the Labour Party's proposed energy price freeze comes into effect.

The British Gas-owner has already revealed that it's pulled the plug on the creation of gas storage facilities in the North Sea and in East Yorkshire, with a lack government subsidies cited for the abandonment of the project.

In an official statement, Centrica stated: "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."

Other energy suppliers have followed suit in criticising the Labour leader, Ed Miliband's proposals.

Big six energy supplier RWE nPower's chief executive, Paul Massara, commented: "It's very easy for politicians to come up with simple-sounding solutions to difficult problems. But in reality, there are three main factors that influence prices: fixing inefficient housing stock, the investment required to replace the UK's energy infrastructure, and the cost of the buying energy on the global market.

"If the Labour Party can commit to reducing policy costs on household energy bills, stopping the smart meter roll-out, preventing commodity cost increases and accept there won't be any investment in new power stations and infrastructure, then we could freeze our prices. But will this make things better for Britain?," Mr Massara added.

SSE also responded similarly, arguing that the price freezes will lead to "unsustainable loss-making retail businesses."

Many of the so-called big six energy suppliers are partaking in the Green Deal. A government initiative, it allows homeowners to apply for funding for home energy efficiency improvements - from loft insulation to new boilers.

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