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Energy suppliers 'must be transparent' - 16/06/2011

MPs have criticised an energy supplier's lack of transparency around its finances.

It has emerged that ScottishPower had enough "surplus liquidity" to lend the US branch of its parent company, Iberdrola, £800 million, despite saying it would not be able to afford to keep gas and electricity tariffs at current prices.

Tim Yeo MP, chair of the parliamentary energy committee, commented: "This does reinforce the need for much greater transparency in the pricing policy of the energy companies."

He added: "If cash is being drained out of the company overseas, it's all the more incumbent on them to make sure British pricing policies are fair."

The energy supplier's gas prices are set to rocket 19 per cent from August, while electricity customers will be hit by a ten per cent rise.

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