Energy firms’ gas profit margins questioned by minister
Reports show that shares in Centrica, the owner of British Gas, fell by 3% after the energy minister questioned its dominance and suggested that it may have to be broken up.
Ed Davey said that profit margins made by the “big six” energy firms, when supplying gas, were higher than previously thought.
Mr Davey has disclosed that he wants market investigation to point out that British Gas had charged among the highest prices to domestic customers over the last three years. If it found evidence of a monopoly, this could see the company being broken up.
British Gas has 41% of the domestic gas supply market which is the largest share of any of the big six.