<p><br /> Britain's energy giants are to be investigated by the industry watchdog after it emerged that recent price hikes have seen suppliers' profit margins soar by 38 per cent.<br /> </p><p><br /> Ofgem announced the probe after discovering average margins on a standard dual-fuel tariff had risen to £90, compared with £65 in September.<br /> </p><p><br /> The latest inquiry comes after three of the "big six" providers - British Gas, Scottish & Southern and Scottish Power - hit households with bill hikes.<br /> </p><p><br /> Ofgem said it would look at the "facts behind the numbers" as companies claimed rising prices in the wholesale market - where suppliers buy their energy - left them with no choice but to lift bills.<br /> </p><p><br /> The probe into provider accounts has been welcomed across the board from 10 Downing Street to consumer campaigners, while energy suppliers claimed they had "nothing to hide".<br /> </p><p><br /> The inquiry is the latest in a line of investigations by the watchdog, which most recently included a probe into claims npower, Scottish Power, Scottish and Southern Energy and EDF Energy were failing to comply with new obligations to prevent mis-selling.<br /> </p><p><br /> Announcing the review, Ofgem's chief executive Alistair Buchanan said: "The energy retail market can only be fully effective if consumers have confidence that the market is transparent and easy to take part in.<br /> </p><p><br /> "We will also carry out a detailed investigation of the newly available retail accounts and the facts behind these numbers. Greater transparency in the market is good for consumers, investors and for the energy industry as a whole."<br /> </p><p><br /> Ofgem said it aimed to finish its investigation by March next year.<br /> </p>
