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© Josh Westrich/CorbisCash guzzling: The Energy Select Committee was told how the major firms were making a £65-a-year profit per customer
Energy firms pocketed record profits from every customer during the coldest December for a century, it has emerged.

Research shows their profit margins have increased by nearly 50 per cent in the last four months alone, to the highest level for more than five years, MPs heard yesterday.

The firms say customers' rising bills are simply a result of a 25 per cent rise in wholesale prices last year. But recent studies suggest the margin between what they pay for gas and the price they charge customers, has risen by more than 200 per cent since 2008.

Yesterday, the Energy Select Committee heard from energy regulator Ofgem how last September the major firms were making a £65-a-year profit per customer. Based on a typical annual bill of £1,200, that has already risen to £97 - and is likely to climb further.

Five of Britain's 'big six' energy firms increased their prices this winter - despite the long cold spell.

The biggest supplier, British Gas, put up power prices by 7 per cent for its seven million customers in December. However, it had made a record £585million in profits for the first six months of 2010, up 98 per cent on the same period a year earlier.

And in 2009, its chief executive, Phil Bentley, took home a £1.25million pay package £200,000 more than the previous year.

Scottish Power, Scottish & Southern Energy, Npower and E.ON have also put prices up.

Only customers of EDF Energy have escaped after the French-owned firm promised to freeze prices until March 1, although City analysts warn a price rise is inevitable.

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© Press AssociationIn the money: British Gas made a record £585million in profits for the first six months of 2010, up 98 per cent on the same period a year earlier
Alistair Buchanan, who heads Ofgem, said the latest round of price rises has fuelled 'even greater concern'. He told MPs: 'We need to make sure that energy companies are not abusing their position.

'I think the consumer has become slightly jaded and cynical perhaps because of some of the behaviour we have seen from the companies.'

Ofgem launched an investigation into rising prices in November, but just weeks later, the problem has worsened significantly.

When the investigation began, the average profit margin per customer was £90. But it has already climbed to £97.

Yesterday, the regulator was criticised for failing to do enough to bring energy firms under control. Dr Fiona Cochrane, energy expert at Which?, said: 'Ofgem really needs to step up to the mark now, offer decisive solutions and fundamentally improve the energy market so it finally offers real choice for consumers.'

Tim Yeo, chairman of the Energy Select Committee, called on the energy companies to be more transparent or risk losing consumer confidence. He said: 'Ofgem need to show that they have some teeth.' The regulator said it expects to report its findings on excessive profit margins by March. It has the power to refer firms to the Competition Commission.

It can order changes to the way energy is bought and sold but this is a long process.

Some 45 per cent of a householder's bill is determined by wholesale energy prices.

However, as the big six firms generally buy the gas and electricity in advance, they generally do not pass savings or increases on to customers straight away. This might explain why increases seen last spring are only being felt by consumers now.

But Dr Cochrane added: 'With the margins so high, it's no wonder that consumers have so little trust in energy companies.'

Christine McGourty, of Energy UK, which represents the energy firms, said: 'Britain's electricity and gas companies try to keep customers bills as low as possible.

'We have one of the most competitive energy markets in the world - with among the lowest gas and electricity prices in Western Europe.'

Ofgem said: 'If we find evidence that the market is failing consumers, we won't hesitate to act.'