MP puts heat on the power suppliers

Aug 31 2006 By Neil Elkes, Birmingham Mail

A BIRMINGHAM MP was today spearheading an investigation into massive price rises inflicted on householders by gas and electricity suppliers.

John Hemming, chairman of the Independent Energy Scrutiny Panel, has launched a bid to find out who is profiting from the price rises.

He is also calling on the Office of Fair Trading to investigate the actions of leading energy suppliers.

Suppliers including British Gas, EDF Energy and Powergen have announced price rises of between ten and 22 per cent - for the second time this year.

Mr Hemming (Lib Dem, Yardley) said: "It seems clear that the UK gas market is not working properly."

He said the difference between the cost of gas charged to the customer did not tally with the price of natural gas

"Someone is clearly holding back production which has the result of increasing prices."

The MP said he was preparing a document of evidence to hand over to the Office of Fair Trading is calling for a full review of the gas market.

"The reality is that many people on low fixed incomes are suffering from the Government's acceptance of an inefficient gas market.

"I have started a consultation with the gas market to find their views whilst preparing the reference to the Office of Fair Trading."

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