Energy suppliers will face more competition if the UK Government moves ahead with its plans to allow local councils to generate electricity.

Under the Government proposals, local councils could be allowed to generate electricity by renewable resources to sell at cheap rates.

Currently, local councils are forbidden from selling electricity but Ed Miliband, the climate change secretary, has plans to eliminate this barricade to revolutionize local energy.

Speaking on the topic, the Department for Energy & Climate Change said, "Allowing local authorities to sell electricity generated by them from renewable sources would encourage the development of local renewable electricity projects."

The Government wants local councils to play their part in fight back the adverse consequences of climate change.

The Department for Energy & Climate Change has launched a consultation with the Welsh Assembly to determine how local councils can play an active part in the development of renewable heat and electricity.