EU to look into electricity bills

The European Commission will look into electricity bills after finding less than two thirds of consumers are satisfied with their energy supplier.

Energy, banking and urban transport are all underperforming across the EU's 27 member states but the commission is most concerned about the electricity retail market.

EU consumer commissioner Meglena Kuneva said: "Because of its importance in the basic household budget, I have decided to make the electricity retail market the target sector for investigation in 2009. Europe's consumers deserve better."

About 60 per cent of consumers reported price increases from their energy supplier, while only three-four per cent saw price decreases.

Energy was also the sector where consumers are least likely to switch: only seven per cent switched gas supplier, and eight per cent electricity.

Electricity bills take up around 2.1 per cent of the household budget, and the Commission is concerned that this is too high.

A study will be carried out into the comparability of offers, unfair commercial practices and billing.

Last month, the UK government said it would look into lowering energy bills, following concerns energy firms were not passing on falls in wholesale prices.