 Suppliers are passing higher wholesale costs onto customers |
An influential committee of MPs is to investigate gas prices after complaints from business and consumer groups. Martin O'Neill MP, chairman of the Trade and Industry Select Committee, has told industry insiders that an inquiry into pricing will take place.
Recently British Gas and Npower both raised prices by more than 10%, blaming higher wholesale gas prices.
The committee will meet on 12 October to discuss the inquiry's initial terms of reference.
Fuel poverty
 |  We welcome this investigation and want to see a light shone on the murky world of wholesale gas supply  |
BBC News Online has learnt that Mr O'Neill made the commitment to investigate gas prices at an industry seminar organised by consumer watchdog, Energywatch.
The Committee's investigation is likely to focus on wholesale pricing of gas and the impact on competitiveness and jobs.
"We welcome this investigation and want to see a light shone on the murky world of wholesale gas supply," Adam Scorer, Energywatch spokesman, told BBC News Online.
Mr Scorer added that a 10% rise in gas bills across the board would result in 500,000 more people falling into fuel poverty.
A person is deemed to be in fuel poverty if more than 10% of their income is spent on heating.
A spokesman for Npower, which recently raised its gas prices by 11.8%, told BBC News Online that they welcomed the inquiry.
"We are a customer of the wholesale gas market and a better deal for us means we can pass savings on to our customers," the Npower spokesman said.
"With that in mind we'd welcome an enquiry designed to ensure the most effective operation of the UK gas market."
The gas industry regulator, Ofgem, is currently investigating high prices and is expected to publish its report soon.
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