MPs announced yesterday that they will be launching a full scale inquiry into the energy market.

The decision came after four of the big six energy companies increased prices last month affecting millions of households across the country. All of the companies increased prices by about 15%.

The Business, Enterprise and Regulatory Reform select committee which is made up of MPs from all parties will look at how energy companies compete and whether that competition is working well for the consumer. They will also be investigating the wholesale markets which were cited by the energy companies as a reason for their increased prices.

In January npower, EDF, British Gas and Scottish Power all increased prices pushing most households over the £1,000 a year mark for home energy. They have come under considerable criticism by the press and watchdogs alike for introducing double digit increases at the coldest time of year.

Ofgem, the industry regulator has said that it would "welcome talking to the select committee and sharing with it our analysis of the market".

Adam Scorer of Energywatch also welcomed the announcement and said that they have long voiced concerns that there are serious problems in the way the energy markets works, or rather doesn't work?.

Of the big six energy suppliers, only E.ON and Scottish and Southern Energy have yet to increase prices but industry insiders are expecting a price announcement from E.ON within a week. Scottish and Southern have said they will not change their prices until at least March.

This investigation can only benefit consumers said Florian Ritzmann of price comparison service Unravelit.com. More effective competition will mean a better energy deal for British householders. But consumers shouldn't wait for the outcome of an investigation before looking for a better deal. There are still huge savings out there, especially for those that have had their prices increased and haven't switched before?.

Is it worth switching? Energy companies are increasing prices, but some are still offering good deals, especially to customers paying by direct debit and managing their account online.