'High' Welsh energy bills inquiry

The energy regulator Ofgem is to examine claims that people in Wales pay more for their electricity than customers elsewhere in the UK.

Ministers in Westminster and Cardiff both asked for an investigation after research by a watchdog group suggested some in Wales pay up to 10% more.

Energywatch Wales has voiced concern that 270,000 households are classed as "fuel poor," up from 130,000 in 2004.

It is claimed customers in Wales pay £47m year more than needed for energy.

Welsh Assembly Government Sustainability Minister Jane Davidson and Welsh Secretary Paul Murphy both asked for the investigation.

"Sir John Mogg has now written to me to confirm that he will ensure that the watchdog's review of energy markets will examine differences between different parts of the UK," said Ms Davidson.

"At a time when more people are at risk of fuel poverty due to rising prices it is important that Ofgem looks at regional price differences to ensure that Welsh consumers are charged the same as other parts of the UK.

"The evidence produced by energywatch indicates that consumers in Wales are paying more for their electricity than elsewhere."

Ms Davidson, who is meeting the six big energy suppliers on tackling fuel poverty, said the problem often hit "the most disadvantaged members of society, such as the elderly, families dependent on benefit and the sick and disabled."

A household in fuel poverty is defined as one which needs to spend more than 10% of its income to keep the home warm enough: 21C in the main living room, 18C in other occupied rooms.

In April, energywatch Wales compared the prices of electricity bills in Wales and England and found that, on average, south Wales customers paid 10% more and north Wales customers 4% extra.

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