A north-east MP has summoned the bosses of the “big six” energy companies for a grilling over recent price increases.
Sir Robert Smith vowed last night to “challenge” the executives on the controversial hikes to consumer bills, and try to find ways to protect hard-pressed families.
The Liberal Democrat MP for West Aberdeenshire and Kincardine is the acting chairman of the energy and climate change select committee at Westminster, and the powerful group revealed yesterday that it had asked the “big six” bosses to give evidence at a hearing next Tuesday.
The move comes amid anger at the decision of three of the six to announce fresh rises to bills this winter, with SSE increasing its average price by 8.2%, Scottish Gas hiking electricity by 10.4% and gas by 8.4%, and npower by 9.3% and 11.1% for electricity and gas respectively.
Speaking to the Press and Journal, Sir Robert said: “Clearly the price rises come at a particularly tough time for many consumers and we want to find out exactly what is behind them and what, if anything, can be done to protect consumers.
“Obviously committee members will want to challenge the companies who came up with these increases to get to bottom of why they are necessary.
“With winter approaching an temperatures falling, energy prices are at the forefront of consumers minds.”
In June, members of the select committee unanimously elected Sir Robert as interim chairman after his predecessor Tim Yeo referred himself to the parliamentary standards commissioner following newspaper claims that he used the powerful position to help business clients.
Former Prime Minister Sir John Major entered the debate over the price rises yesterday, predicting that the coalition government could have to “intervene”, with a levy on “excess profits” if it is a cold winter.
Labour, which has pledged to freeze bills if returned to power in 2015, seized on the remarks last night, branding it “deeply embarrassing” for Prime Minister David Cameron.
A Downing Street spokesman said it had “no plans” for such a windfall tax.
Both the proposals from Labour and John Major are likely to be raised at next week’s committee hearing.
A committee spokesman said that members would seek a justification for the rises, and also explore the difference of pricing between suppliers, and how the transparency of energy company profits could be improved.
Meanwhile, despite the row over price rises, SSE has been ranked top for customer services in a new survey.
The annual study, carried out for uSwitch consumer group by YouGov, asked more than 5,000 energy customers for feedback on energy suppliers, with SSE emerging the highest placed for the eighth year in a row.
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