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Tories plan to switch energy industry structure to reduce bills - 30/11/2009

The Conservatives plan to pursue cheap energy bills and stimulate market competition by breaking up the UK's major energy companies.

In addition, Greg Clark, the shadow secretary for energy and climate change, plans to launch an investigation into consumer energy prices from the Competition Commission.

The new proposals could be published by the party in the next few weeks as the Conservatives form a manifesto for the general election that has to be called before next summer, although the Energy Retail Association (ERA) said a full pricing investigation could affect industry investment.

The ERA said: "Nobody wants a prolonged period of uncertainty when about £200 billion of investment is needed to improve Britain's energy infrastructure for the future."

Industry opponents to the plan say an investigation could take as long as four years, but the Tories have said any review would be limited.

In other news, the National Housing Federation claims EDF is the only major energy supplier not currently overcharging prepay customers.

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