The Business and Enterprise Select Committee has said that the current price increases in the gas and electricity market are on the verge of forcing thousands of families into fuel poverty. The group of MP’s also warned that rising energy costs may also be affecting the British economy. A report ,produced by the committee, stated that the soaring energy prices that were causing financial hardship for consumers will also hit many businesses.

Business customers are now having to pay energy prices that far exceed the gas and electricity bills that are being paid by European companies. The report also said that there will be a risk to thousands of jobs if the current trend in energy price increases continued.

The Select Committee also requested that energy watchdog, Ofgem, the UK government and energy providers collectively tackle the problem of energy price hikes. It is unacceptable that so many consumers are suffering from the instability of the energy market.

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AA Insurance has predicted that car insurance premiums are set to rise for motorists who flout the law by using hand held mobile phones whilst driving.

In a new survey the car insurance company has found that car owners who are deemed, by the police, to be in contravention of mobile phone use laws could face a possible 18% rise in their insurance premiums. In some instances motor insurance companies have even rejected applications from mobile phone offenders.

As well as incurring the wrath of insurance providers there is a strong possibility that an offending motorist will be hit with a £60 fine, three penalty points and a charge of other driving related offences. Any car owner who is convicted of careless driving may find that some insurance firm’s will not hesitate to increase premiums by as much as 50%

An AA spokesperson pointed out that if a motorist is involved in an accident the police will normally take an interest in the driver’s phone records to determine how the use of the phone may have impaired the driver’s ability to control the vehicle.

It is estimated that the unlawful use of mobile phones will lead to UK drivers paying an extra £5 million for higher insurance premiums.

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Energy giant Npower has dismissed 6 staff from its sales department for misleading customers . 17 other staff are currently suspended pending further investigations.

Npower staff were alleged to have duped customers into signing contracts without their full knowledge. Customers were also misled over the energy firm’s tariffs. Industry regulations make it clear that customers must be told if they are entering into a contract

The firm’s actions have been brought to the attention of Ofgem, the energy regulator, and an investigation was launched on 22nd April. Npower now faces the real prospect of a heavy financial penalty if Ofgem finds evidence that the company has been misrepresenting its products.

Npower have stated that their staff are undergoing rigorous training to ensure their sales practices meet the regulatory standards that are expected within the energy industry.

Previously, London Electricity were fined £2 million by Ofgem in 2002 for mis-selling their products to customers.

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