23 May 2006
Centrica, the company that owns British Gas, has contacted the European Commission (EC) urging it to block a merger between two French firms.
The company is concerned that if it goes ahead, the merger of Suez and Gaz de France could affect UK energy supplies. It would leave the UK dependent on a Belgium pipeline owned by the new company, which could force UK consumers to pay more, it argued.
In its letter to the EC, Centrica suggested that the combination of the French utilities could not only drive up prices, but also create a serious limit to competition.
The news comes just days after a statement from Centrica's chief executive Sir Roy Gardener, in which he suggested that the escalating price of wholesale gas may soon make British Gas's residential energy operations unprofitable.
The EU has also expressed concerns over the lack of competition in the European energy industry, noting that some firms had the ability to seriously affect the market by restricting access to certain pipelines.
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