Concerns Over Energy Costs

The government has expressed its concern over rising energy prices after several companies have started raising costs.

It was only recently that energy provider Npower announced rises in electricity bills of 12.2%, while customers will also be hit by a 17.2% hike in gas bills.

Now with more companies including British Gas expecting to follow suit there is a worry that consumers especially vulnerable to price increases will be hit deep in the pocket. "We always try to protect our customers for as long as possible but sadly higher energy prices are a fact of life." Giuseppe Di Vita, managing director of Npower's residential business said.

The rise in prices has now forced Chancellor Alistair Darling into requesting a meeting with industry regulator Ofgem in an attempt to discover their views on any further price rises.

Although Npower have been quick to defend their own price rises, consumer watchdog Energywatch has shared the governments worry and condemned them, calling for a competition commission inquiry as a result of the rises in energy prices.

"If this is the shape of things to come over the next few months, we are going to see hundreds of thousands of consumers wonder how they can afford to keep their homes warm," said Energywatch spokesman Karl Brookes.

"Energywatch calls on other suppliers to respond to current high wholesale prices by competing over the long term with good value products, and not to simply load the risk of wholesale prices on their own customers."

The hike in energy prices has come at a time when, traditionally many struggle to cover their debts after the Christmas period. Price rises are nothing new at the turn of the year with commuters expecting rises in travel fares too.