A WORCESTERSHIRE MP has launched a full-scale parliamentary investigation into the price of energy, as millions of people across the country fret about soaring fuel bills.

Peter Luff, the Conservative MP for Mid-Worcestershire, has used his position as chairman of an important House of Commons committee to initiate a major cross-party inquiry into possible anti-competitive behaviour in the UK energy market.

This week E.ON, formerly Powergen, became the fifth major power company to announce a large hike in customers' fuel bills, following similar announcements in recent weeks by Scottish Power, British Gas, npower and EDF.

With fears growing about the large numbers of Britons now falling into fuel poverty, Mr Luff said his business, enterprise and regulatory reform committee would be looking closely at why prices are so high.

"The continuing controversy over energy prices is an issue that demands to be addressed," he said. "It is a complex but vital question, and one that affects everyone in the country - individual consumers and households, small businesses and major energy users alike."

The energy companies have made it clear they blame the high price of oil, coal and natural gas for Britain's soaring fuel bills. Announcing price hikes of 15 per cent on gas bills and 9.7 per cent on electricity, E.ON managing director Graham Bartlett said: "We're doing everything we can to minimise this.

"Our announcement has been made in response to sustained pressures from the wholesale market."

Mr Luff's cross-party group of MPs plans to investigate a number of areas surrounding the energy market, including "whether the current market structure encourages effective competition in the retail markets for gas and electricity".

The inquiry has been welcomed by the consumer group Energywatch, which wants the six main energy firms referred to the Competition Commission.

Energywatch's campaigns director Adam Scorer said: "This could not have come at a better time. The fast and furious price increases this year will have a serious impact on the one in six households stuck on the treadmill of fuel poverty."

And charity Age Concern said pensioners would be hit particularly hard by the rising price of fuel.

Director-general Gordon Lishman said: "We are very concerned that the fear of unaffordable bills will lead to people risking their health by cutting back on their heating."