Calls for investigation into energy price hike.

Byline: By Abby Alford South Wales Echo 

An mp has called for energy companies to be investigated in the wake of the latest price hikes. Cardiff Central MP Jenny Willott called yesterday's announcement by British Gas of a 15 per cent rise in gas and electricity prices "very bad news", fearing it would push more poor families into fuel poverty.

The company's inflation-busting hike, affecting its 800,000 customers in Wales, followed similar announcements by Npower and EDF. Npower's customers now have to pay 17.2 per cent more for their gas and 12.7 per cent for their electricity. French-owned EDF raised its prices by at least eight per cent.

According to Energywatch Wales, a 10 per cent rise in fuel prices leads to a rise of four per cent in the proportion of households in fuel poverty, which stood at 240,000 in 2006.

A household is said to be in fuel poverty when it has to spend more than 10 per cent of its income on energy.

Liberal Democrat Miss Willott said: "Many poor families will be hit by these rises, pushing them further into fuel poverty.

"There is some suspicion that energy companies are quicker to pass on price rises from the wholesale energy price changes than price falls. "It may be a good time for an investigation across the whole energy industry. In addition, the Government should use the energy companies' profits from the Emissions Trading Scheme to help pensioners and the poorest families reduce their bills."