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Huhne's bid to cut energy prices

Chris Huhne is taking steps to try and prevent a handful of big companies from dominating the energy market

Energy secretary Chris Huhne is to chair a summit of gas and electricity suppliers this week in a bid to cut prices.

Huhne has asked chiefs from smaller energy firms including Ovo Energy, First Utility, Ecotricity, Co-op Energy and Good Energy to Thursday's meeting in London.

The summit follows the MP’s comments last week that replacing fossil fuels such as oil and gas with nuclear, wind and wave power would protect consumers from rising prices and make the economy more resilient.

Huhne says he wants energy bosses to tell him what steps are needed to break big companies' hold on the market.

"Our energy market has been too cosy for too long. I'm calling a summit of independent energy suppliers so the small guys have an equal chance to bid for your business," he said.

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"We need more competition to keep bills down - it is madness that 99 per cent of people get their energy from the 'Big Six'. Over the next decade we need double our normal energy investment to replace old power stations and keep the lights on.

"Doing nothing isn't an option - addiction to more foreign gas will put us at risk of oil and gas price shocks."

The summit comes just days before the Government unveils plans to revamp the electricity market.

Ministers hope the biggest shake-up in a generation will deliver more than £110 billion of investment ministers believe is needed over the next decade to upgrade the UK's electricity system.

Huhne added: "The current market simply can't deliver, so we need more companies and more competition to keep price rises as low as possible.

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"By meeting directly with the up-and-coming small energy suppliers we can ensure they have a fairer shot at breaking the dominance of the Big Six.

"I've told my officials to knuckle down with (industry watchdog) Ofgem and make reforms so consumers can have more choice and better deals for their gas and electricity."

Huhne says Britain's reliance on fossil fuels leaves consumers vulnerable to fluctuations in international markets.

If Britain adopted a similar energy policy to France, which has three times as many nuclear reactors, our power bills would be lower, he said.

Electricity prices are expected to rise by about 9 per cent this year.

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Last week there were calls for Chris Huhne to resign as energy and climate change secretary after emails were released detailing his officials' efforts to co-ordinate a PR response to the Fukushima disaster with the nuclear industry.