It looks like Red Ed Miliband is channelling David Cunliffe again.
This time it is power…with all the same dire warnings of implementing such stupid policy.
Shares in leading energy firms dropped by up to five per cent today as the markets reacted to Labour’s 1970s-style plan to freeze power bills.
Energy firms said capping prices would halt the investment needed to avoid blackouts and lead to gas and electricity shortages.
But Labour leader Ed Miliband today dismissed the ‘scare stories’ which he claimed were being pedalled by the firms which have been overcharging people for years.
The Labour leader’s pledge to fix bills until 2017 if he wins the general election, which is calculated to appeal to struggling families, was welcomed by consumer groups.
But it prompted an extraordinary threat from one energy giant to quit the UK.
Centrica said it would ‘not be economically viable to continue’ if it had to freeze prices when its costs were rising. The firm’s chairman Sir Roger Carr called the policy ‘a recipe for economic ruin’.
Shares in Centrica, which owns British Gas dropped by five per cent on early trading to less than 377p.
Scottish and Southern Electric also saw shares drop in value, down more than four percent to 1,512p/
Angela Knight, of the Energy UK trade association, warned Mr Miliband’s plan would risk jobs and threaten the energy supply.
‘Freezing the bill, may be superficially attractive, but it will also freeze the money to build and renew power stations, freeze the jobs and livelihoods of the 600,000 plus people dependent on the energy industry and make the prospect of energy shortages a reality, pushing up the prices for everyone,’ she added.
No one wrecks investor wealth like a socialist.