Npower profits rise 34%

The German-owned firm a massive 34 per cent rise in profits to £413 million just months after hitting struggling households with inflation-busting price rises.

It increased gas bills by 8.8 per cent and electricity prices by 9.1 per cent last November, pushing up its average dual fuel bill by £108 to £1,352 a year.

Glasgow North West MP Mr Robertson, who sits on the influential energy select committee, said: "This has got to stop.

"It is about time the energy companies stopped lying about their reasons for putting their prices up.

They say price increases are due to government policies and yet they proudly announce despicable profits.

"They need to start investing in their own business, like all other businesses have to do, rather than ripping off struggling customers."

He called for energy firms that announce excessive profits while increasing their prices to be fined by Ofgem.

He said that the plans, which he wants added to the government's Energy Bill, would "finally force greedy energy barons to act responsibly."

Mr Robertson said the money raised from such a tax should be spent on tackling fuel poverty, which stands at around 40 per cent if it includes those who are just above the poverty line.

Npower's profits follow British Gas which last week announced an 11 per cent rise in profits to £606m.