Miliband energy plan "may spark Scots price hikes" ED Miliband's plan to freeze UK energy prices could lead to massive pre-emptive price hikes, blackouts, corporate insolvencies and cuts in jobs and investment, Scotland's Energy minister has claimed. Fergus Ewing described the Labour leader's party conference pledge as arbitrary and unworkable, citing a similar attempt in California which saw energy prices increased by 800 per cent. Mr Miliband pledged to freeze gas and electricity prices for homes and businesses for 20 months after the 2015 general election if his party wins power. Announcing the policy at the UK Labour conference last week, he said the move would save the typical household £120 and an average business £1,800 between May 2015 and January 2017. Speaking in Holyrood, Labour finance spokesman Iain Gray said the freeze and a proposed new UK regulator with the power to control pricing could benefit consumers if they vote No to independence and if Labour wins the next UK election. Mr Gray then asked the Energy minister if he would match that proposal after independence. Mr Ewing said: "The record of regulators in the UK when one considers regulation of banking, the railway or payday loans isn't one to boast about. Consumer experts have said that before this freeze comes in the companies will whack the prices sky-high and companies may put off decisions by energy companies to invest in new cleaner generation capacity. The industry, SSE and Scottish Power have said smaller companies would face insolvency and bigger companies would have to consider energy use and jobs. An arbitrary price freeze has been tried before in California in 2000, which led to blackouts and an increase in the wholesale price of 800 per cent. Never can I recall a measure introduced by a leader of a major political party in the UK which has received such widespread, utter and total condemnation as being completely unworkable. And worst of all for Scotland, such an arbitrary measure threatens to impair the essential investment in renewable energy schemes which are so important for this country. Mr Gray responded by saying the Mr Ewing's approach would see energy prices spiral in an independent Scotland. Labour's finance spokesman said: "I welcome the fact that the Scottish Government has finally ended its silence on this key issue and picked a side. Sadly, the SNP has chosen the side of the big energy firms over hard-pressed families being hit with growing energy bills.