‘unworkable’

Scottish Conservative energy spokesman Murdo Fraser has dismissed Ed Miliband’s proposed fuel price freeze as “completely unworkable”.

The Mid Scotland and Fife MSP insisted the big six would simply put up prices the day before the next general election, if Labour was on course for victory.

He said: “Ed Miliband’s idea of having this price cap is completely unworkable for three reasons.

“The first is if the retail price is capped and there’s suddenly a hike in wholesale cost, companies could face huge losses and potentially go out of businesses.

“The second point is its already deterring investment in energy. You hear this from people in the sector.

“Thirdly, it’s very easily got around. If the big energy companies thought Ed Miliband was about to win the election, they would just hike the prices up the day before.”

Mr Fraser called for “transparency” from the big six, accusing some of failing to disclose the full extent of their profits.

He said: “The profit margin quoted by the big six is around 4-5%, which is not excessive. However, there are other elements in the way they make money which I think conceals profit.

“One is on the production of energy where we know the companies produce energy and sell it to each other.”

He also urged governments turn away from renewable energy, insisting it will increase domestic fuel bills.

Murdo Fraser MSP.