MPs reject Labour energy freeze plan

Labour has lost a vote in the House of Commons over its plan to freeze energy prices for 20 months.

The proposal was rejected by 295 votes to 237 votes at the end of a debate on the pledge announced by Ed Miliband at the party's conference.

Energy firms have criticised the proposal, which would take effect if Labour wins the 2015 general election.

Labour's energy spokeswoman Caroline Flint said it would publish new energy efficiency proposals next year.

The vote came at the end of an opposition day debate called by Labour, with Conservative and Liberal Democrat MPs joining forces to defeat the proposal.

Since Labour announced the proposed freeze in September, four of the largest energy firms have announced substantial price rises, prompting calls for action from consumer groups.

The government has said a price freeze could actually push up household bills and what is needed is more competition.

It has also said it will review the environmental and social charges added to bills.