Under-fire energy bosses were accused of producing a “list of excuses” last night after they attempted to justify recent price hikes to unimpressed MPs.
Executives from the “Big Six” power firms insisted bill rises were partly down to the UK Government’s green levies, which were branded a “poll tax”.
But a representative from small-scale competitor Ovo Energy undermined evidence from bigger firms, saying he “can’t explain” the price rises because his company was buying gas for cheaper than in 2009.
The energy and climate change committee at Westminster summoned the bosses for a grilling amid widespread anger at price hikes.
Acting committee chairman Sir Robert Smith, MP for West Aberdeenshire and Kincardine, kicked off the session by expressing his frustration at the need for the hearing. He added: “Christmas and winter are approaching and people are worried about their bills.”
Tony Cocker, chief executive officer of E.on, revealed in evidence that he had written to Prime Minister David Cameron to ask for an investigation by the Competition Commission into the whole energy market. He said: “I fundamentally believe that this market is competitive but I acknowledge we are not trusted and therefore I believe we need to have a very thorough competition commission investigation.”
Mr Cocker also described green taxes which push up energy bills as a “stealth tax” or a “poll tax”.
Mr Cameron has pledged to review the environmental levies.
William Morris, managing director of SSE, which trades in Scotland as Scottish Hydro and has announced an 8.2% price rise, said he regretted having to increase bills for customers, who he said were “struggling to maintain their budgets”.
Transport costs had increased by 10%, while the government’s environmental schemes had risen by 13%, he said.
However, Stephen Fitzpatrick, managing director of Ovo Energy, accused several of the big firms of “charging the maximum price they feel they can get away with to the customers that they feel will not switch under any circumstances”.