Energy boss exhorts Cameron to launch energy competition inquiry

The under pressure boss of one of Britain’ largest energy companies has written to Prime Minister David Cameron suggesting a full inquiry into the energy market.

Tony Cocker, chief executive of E.On, told MPs on the Energy and Climate Change Committee on Tuesday that a full investigation is necessary.

“We need to have a very thorough Competition Commission inquiry,” he said.

The industry has been vilified in recent days after British Gas, SSE, Scottish Power and Npower raised household bills by an average 9.1% for this winter.

E.On and EDF are expected to follow in the coming weeks.

The bosses of the six largest energy firms in the UK felt the heat from MPs at the committee hearing, being asked to justify their recent price hikes.

Increasing wholesale costs have been blamed for the price rises, with William Morris, managing director of SSE, telling MPs that his firm had faced a 4% increase in wholesale costs over the last year.

Part of any inquiry could focus on improving the transparency of the energy companies’ finances.

Mr Cocker agreed with Ian Lavery MP’s assertion that the UK population do not trust energy companies, but said E.On have “worked very hard to improve our business and simplify our tariffs”.

Mr Cocker said that his firm E.ON would “hold out as long as we can” over a possible price rise.

However, he said the drivers for each firm to make the increases were similar, citing increases in transport and wholesale costs, and “environmental obligations” (green taxes).

Energy regulator Ofgem told the MPs that a full review, due out next Spring, would examine energy market competition.