MPs to discuss energy bills

MPs will meet energy bosses today to discuss rising fuel bills for consumers and businesses.

11:57 25 January 2005

MPs will meet energy bosses today to discuss rising fuel bills for consumers and businesses.

The House of Commons Trade and Industry Committee is investigating whether these price rises are part of a long-term trend or merely a knee-jerk reaction to high, fluctuating oil prices.

Over the past 12 months energy prices have rocketed on the back of record oil prices. The Office of National Statistics reported that in December that household energy costs stood more than ten per cent higher than at the start of 2004.

According to gas and electricity watchdog energywatch bills have increased by nearly 20 per cent for gas and 14 per cent for electricity for. It estimated the increases added 100 to annual fuel bills.

Consumers were due to pay out an extra total of 5.2billion this winter alone, energywatch has said.

Ahead of the committee meeting Allan Asher, chief executive of energywatch said: "We have been saying for some time that something is going seriously awry in the market. There were few compelling reasons why prices should have gone up as much as they did.

"I hope that the select committee will back our call for measures to ensure fair play for consumers."

Martin Temple, the Engineering Employers' Federation (EEF) director general also believes that prices are unnecessarily high.

"We have now got to the stage where it is difficult to understand the rationale for increases in gas prices on this scale," he said.

Oil firms Shell and BP will meet with the committee, along with a number of industry bodies.