Wednesday 23 October 2013

Energy bosses called before MPs following price hikes

Bosses from the Big Six energy firms and other smaller suppliers have been called to give evidence to MPs about the recent price hikes.

Three of the Big Six suppliers – SSE, British Gas and npower - have so far announced an increase in gas and electricity prices this winter.

The Energy and Climate Change Committee are to quiz the energy bosses next Tuesday.

Chairman Sir Robert Smith MP said: “The Committee has today decided to call in the energy bosses in the context of the latest wave of price increases.”

The committee said the session will explore a range of issues, including reasons and justification behind recent energy price rises, difference of pricing between energy suppliers and how the "transparency of energy company profits" can be improved.

SSE’s dual fuel bill will go up by 8.2% from November 15th, British Gas will increase prices by 9.2% on November 23rd while npower’s prices are due to rise by 10.4% on December 1st.

ScottishPower is also set to announce a rise in gas and electricity prices “at some point this year”, the CEO of its energy retail and generation confirmed yesterday - the same day the firm was ordered by Ofgem to pay £8.5 million for misselling.

New rules banning energy suppliers from increasing prices on fixed-term contracts came into force yesterday.