EU to investigate electric bills

Ms Kuneva said there were concerns that electricity prices may be too high

An investigation into electricity prices across the European Union is to be launched by the Commissioner for Consumer Affairs, Meglena Kuneva.

Ms Kuneva said the decision followed an initial report, which showed that the prices charged by some suppliers across the 27 member states may be too high.

"Less than two thirds of consumers are satisfied with their energy supplier," said the commissioner.

The UK government has already said it may legislate to lower energy bills.

The comments came last month from House of Commons leader Harriet Harman, following concerns that some energy firms were not passing on enough of the sharp falls in oil and gas wholesale prices since last summer.

'More enforcement'

Ms Kuneva said she would conduct her investigation over the next 12 months in conjunction with Energy Commissioner Andris Piebalgs.

"I don't see the need for legislative action, but I clearly see a step forward on enforcement everywhere to make sure consumers can choose from more than one supplier," she said.

She added that across the EU, about 60% of consumers reported a rise in their electricity bills last year, while only 3-4% saw falls.

UK energy regulator Ofgem told British energy firms in October that they had to stop charging customers different rates if they paid by direct debit or pre-payment meters.

Ofgem said at the time that the UK energy market worked well for most customers, but told power companies they needed to deliver the benefits of competition to all.

Yet it found no evidence that firms had been working together to set prices.