Miliband: Bound to be 'scare stories' over energy policy

Labour leader Ed Miliband has accused the energy companies of peddling "scare stories" about the potential impact of freezing energy prices for two years.

Mr Miliband dismissed suggestions that his plans were similar to the attempted restructuring of the energy industry in California in 2000, which had to be scrapped amid widespread price rises, power shortages and company insolvencies.

He told Daybreak: "California was a totally different approach. It was a deregulated approach, not the kind of approach we are talking about.

"This system can work, it will work, it must work and we are going to make sure it works."