DANGEROUS EU-US trade deal TTIP would stop governments renationalising utilities and the railways — and even put Labour’s energy price freeze policy in danger, MPs will hear today.

The latest warning on the shadowy Transatlantic Trade and Investment Partnership currently being cooked up in Brussels comes as attention is focused mainly on its impact on health.

But Swansea West MP Geraint Davies said the scope of a clause allowing private companies to sue sovereign states did not stop at the NHS.

The investor-state dispute settlements (ISDS) clause will threaten policies in dozens of other areas.

If a political party wants “to freeze energy prices or have a one-off tax on privatised utilities such as the Royal Mail or renationalise the railways or tax fizzy drinks to protect people’s health, it needs to realise that the big corporations are preparing to sue it through investor-state disputes,” he warned.

“In other words, these corporations threaten our very democracy as they intimidate and financially punish the will of the people.”

MPs will debate a motion today demanding parliamentary power of scrutiny of TTIP — including the provisions specifically related to corporate ability to sue governments.

So far the Commons has had to make do with verbal assurances from PM David Cameron’s government, which will oppose the proposal.

Labour MP Mr Davies, who tabled the motion, said: “We cannot accept governments being sued in arbitration panels hidden from public view under ISDS rules to protect profits instead of people.”

The vote comes after shadow energy secretary Caroline Flint attacked profiteering power firms in an opposition day debate on Labour’s pledge to freeze energy prices until 2017, ensuring prices can fall but not rise.

“Wholesale costs have fallen, consumers have not seen the benefit and the reason is because competition is weak and the companies know this government will never do anything about it,” she told Parliament.

The Labour motion, which also called on the government to bring forward fast-track legislation immediately to impose a duty on regulator Ofgem to force energy suppliers to pass on wholesale price cuts to customers, was defeated 305 to 228 — a 77 majority.