British Prime Minister David Cameron said on Wednesday his government's energy policies had allowed British power utility SSE to freeze its prices until January 2016, a decision he said he welcomed.

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"It is hugely welcome in our country that energy companies are cutting and freezing their bills," Cameron told parliament, saying SSE had cited his government's rolling back of green levies as one of the main reasons it was able to freeze prices.

Ed Miliband, leader of the opposition Labour party, said SSE's move vindicated his own party's policy of forcing energy companies to freeze their prices - if it is elected next year -an idea Cameron has derided.

Cameron dismissed Miliband's assertion that SSE's decision had "demolished" his opposition to such a freeze.

(Reporting by William James; Editing by Andrew Osborn and Guy Faulconbridge)