Ed Miliband risks ‘disproportionately burdening’ families with energy bills shake-up

"I think this will be another example of families paying more for their energy bills at a time it was promised they would go down," Davies said.

He called for a more considered approach to energy policy.

"It's important we step back, have a proper policy, plan and agenda on how we rebalance our energy supplies and not be dependent on foreign sources so families aren't paying more and being disproportionately burdened," he added.

The comments come as Miliband prepares to make a decision on sweeping energy reforms that could see households in different parts of the country paying varying rates for electricity.

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Miliband is understood to be close to making a decision on whether to replace the country's single electricity market with several market zones.

The proposal, known as "zonal pricing", would mean different areas of the country would pay varying rates for electricity based on local supply and demand.

Under this system, energy users in the north of Scotland could pay some of the lowest market prices in Britain.

Meanwhile, market prices in the south would likely increase.

The Energy Secretary is expected to make his recommendation to cabinet colleagues within weeks.

A final government decision on the controversial plan is expected by mid-2025.

The proposals have already proven highly divisive within the energy industry.

Ministers across Whitehall departments are expected to give their views on the plans after a "write-around" consultation.

Industry sources anticipate this process will widen the argument over what some have dubbed "postcode electricity pricing".

The debate has created sharp divisions among energy companies.

Octopus Energy, Britain's largest household supplier, supports zonal pricing, arguing it could make the energy system more efficient and save consumers money.

However, major renewable developers including SSE and Scottish Power have voiced strong opposition.

These companies claim the market overhaul could put billions in investment and thousands of jobs at risk.

The controversy has sparked what sources describe as one of the industry's "ugliest" lobbying campaigns.

Ofgem's chief executive Jonathan Brearley recently intervened, warning companies against "lobbying on polarised positions".

A spokesperson for the Department for Energy and Net Zero told The Guardian: "In an unstable world, the only way to guarantee our energy security and protect consumers from future energy price shocks is by moving towards homegrown power."

Davies' comments reflect growing concern that despite promises of lower bills, the reforms could ultimately lead to higher costs for many households.