Energy firms urged to cut prices

The main UK energy companies are coming under pressure from the government to cut their prices in the wake of the falling cost of oil.

The price of oil has fallen dramatically in the past two months on account of reduced global demand but none of the big six suppliers has yet to pass on savings to customers.

Energy secretary Ed Miliband warned suppliers to reduce prices "as soon as possible", echoing the comments of chancellor Alistair Darling in the pre-Budget report in November.

The government has previously threatened suppliers with a windfall tax and the industry could face further scrutiny if it is seen to be charging artificially high prices during the economic downturn.

It is thought electricity prices could fall by 15% and gas by 20-25% in March but that will be of little use to businesses and customers struggling to heat premises during the cold Winter months.