Energy Secretary Ed Miliband has insisted tax hikes will not impact customer bills, leading to a tense interview on Sky News. The Labour politician clashed with presenter Wilfred Frost after arguing that taxing energy companies at 78%, rather than the usual corporate tax rate of 25%, would not drive up consumer bills.

Miliband, who was appointed as Energy Secretary in July 2024, could not explain why the Government doesn’t tax every business at 78% to raise more money without impacting prices. He insisted throughout the interview that the price of oil and gas was based on the international market. When questioned on whether taxes also make an impact, Milliband argued: “In relation to oil and gas, they don’t.”

Miliband continued to insist taxes would not make any difference to bills, to which Frost quipped: “Yes it would!”

The Labour politician concluded: “We’ll have to agree to disagree about this. I’m convinced of my argument.”

Ed Miliband has also confirmed government is considering potential changes to the energy market, which could involve “zonal pricing and reformed national pricing”.

Under the scheme, costs would match local supply and demand, which, in practice, could lead to lower bills in areas with high wind generation like Scotland, rather than urban areas like households in the South.