Energy price inquiry opened

06 February 2008 / by None
The spate of recent price increases in the energy market has prompted an investigation into how the UK energy market operates.

This comes in the wake of another major supplier, Scottish Power, announcing substantial price increases, following similar hikes previously made by other leading utilities firms, reports the Guardian.

Commenting on the necessity of an inquiry into the structure of the market, Peter Luff, the chairman of the business, enterprise and regulatory reform select committee, said: "The continuing controversy over energy prices is an issue that demands to be addressed. It is a complex but vital question and one that affects everyone in the country."

The price increases now mean that an average combined bill for gas and electricity stands at around £1,000 a year, the report continues.

While the companies are according blame to the expense of oil, coal and gas, the committee wants to examine whether the existing structure of the market encourages "effective competition".

In related news, the Fuel Poverty Advisory Group has accused the government of failing families struggling with fuel poverty, according to the Guardian.

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