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Ghosts of U.S. Electric Deregulation Haunt Labour Party Pol Promising Electric Price Freeze

April 21,2014



Ed Miliband, Leader of the U.K. Labour Party which is seeking an electric rate freeze, has hired David Axelrod as a consultant, which the U.K. press noted could prove "embarrassing," as a firm led by Axelrod once led a campaign against price caps in the wake of the Illinois 2006 descending clock auction.

The U.K. press noted that Axelrod's ASK Public Strategies ran a campaign comparing legislative attempts to institute a rate freeze in the wake of post-rate cap Illinois pricing to policies which led to blackouts and utility bankruptcies in California, in an effort which was ostensibly painted a grassroots effort, as the Consumers Organised for Reliable Electricity, but largely bankrolled by Exelon's Commonwealth Edison.

"The Illinois advertising campaign contradicts Mr Miliband's general election pledge to freeze energy bills for nearly two years. The row has taken the shine off Labour's coup of recruiting the man who helped Barack Obama win two presidential elections," The Independent reports.

"David Axelrod – who helped to mastermind Barack Obama's two presidential election wins – is notorious in the US for a highly-criticised campaign to raise electricity bills. It is an embarrassing link for the Labour leader who has made a 20-month freeze on fuel prices a key promise ahead of next year's election," the Daily Mail reports

"Ed Miliband's new American political guru helped an energy company to raise its prices, it has emerged ... The disclosure could prove embarrassing for Mr Miliband, who has taken on the 'Big Six' energy firms by pledging to freeze prices if he wins next year's election," The Telegraph reports

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