The Commons Public Accounts Committee has called on power companies and the energy regulator to take urgent action to protect poor households from high electricity bills.

The committee's report criticises the extra cost of prepayment meters, a situation which committee Chairman David Davis condemns as: "a sad state of affairs when the poorest members of society are actually paying more for their electricity in real terms".

The Electricity Association argues that the cost of maintaining meters is relatively high, reducing the scope for price cuts.

Public spending watchdog, the National Audit Office has also issued a report showing that poorer households are benefiting less than better-off households from competition in the electricity market. The NAO says that although many homes are benefiting, there was "scope for the benefits to be spread wider".