Price rises 'will push the poorest into fuel poverty' - 12/08/2011

People looking for cheap electricity tariffs might be persuaded to carry out an online energy comparison in order to avoid being hit with higher prices from their energy supplier.

The Peterlee Mail reported that Easington MP Grahame Morris has written to the industry regulator to call for the Big Six energy suppliers to be referred to the Competition Commission after four of them announced price hikes this summer.

In his letter to Ofgem, Mr Morris said the suppliers who followed British Gas' example and raised their own prices displayed "cartel-like behaviour to the detriment of the public".

"A full investigation is required to protect the public, promote competition and stop the cartel-like behaviour which results in ever-higher energy costs for UK households," the politician argued.

He warned that the price hikes will have an adverse effect on some of the most vulnerable people.

"As many pensioners are on fixed incomes and will be most affected by price rises, the latest price increase for gas and electricity will push some of the poorest people in society further into poverty."

The MPs' remarks came after National Energy Action suggested that if the remaining two energy suppliers - EDF Energy and npower - decide to implement their own price increases, some 6.6 million households could be categorised as living in fuel poverty by the end of this September.

This would be an increase of 1.2 million homes within 12 months.

Maria Wardrobe, director of external affairs at the organisation, noted that investing in insulation and other energy efficient measures could help people mitigate soaring fuel bills.

"Thirty-five per cent of heat is lost through the walls of a house, 25 per cent through the roof - closely followed by floors - [and] windows and doors at around ten to 15 per cent. Insulating cavity walls and loft spaces, placing carpets down rather than wooden floors, adding draught excluders to doors and fitting double glazing will all help lower energy use," she pointed out.

Householders who are concerned about their finances could also carry out an online energy comparison and switch gas tariffs if they find a cheaper option.

If you want to find out more about your energy options and how you could save up to £453 in minutes, click here.

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