Today’s move by MPs to turn up the heat on Britain’s big energy companies comes at a time when the giant gas and electricity groups have never been more critical to the fate of the economy, and when the economy has rarely been more vulnerable. So it is right that the utilities should find themselves under the glare of more intense scrutiny.

Soaring energy prices are central to both of the conflicting pressures that are now threatening the economy, and which have put its stability at greater risk than at any time for more than a decade. On the one hand, surging energy costs are one of the crucial factors undermining Britain’s economic growth, which official figures on Friday confirmed had all but ground to a halt in the past three months.

Yet, even as growth falters, higher energy prices are also stoking inflation,making it virtually impossible for the Bank of England to offset this toll with interest rate cuts. Dearer energy bills sap activity in the economy by reducing the spending power of consumers and companies. Consumers, forced to dig ever deeper into their pockets for fuel bills, are left with less to spend with other businesses of all kinds. As these companies find their sales being hit, they are increasingly forced to shed staff, which drives up unemployment and threatens a vicious downward spiral in the economy.

Just as damaging, however, is the inflationary effect of near-runaway increases in energy costs.

Mervyn King, the Bank’s Governor, has made plain that the scale of gas and electricity price rises this summer will be vital in determining its next move. He has complained, too, of the uncertainty surrounding Britain’s energy markets.

There is some consolation for the rises in prices pushed through by EDF last week. By acting soon, EDF has helped to hasten the point at which inflation will hit a peak. Financial pain now may bring forward the day when the Bank can offer cheaper interest rates.

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