Ofgem has threatened to crack down on the energy giants EDF, Eon, npower and ScottishPower if an investigation finds their online tariffs are examples of illegal ‘predatory pricing’. The warning comes as British Gas is considering cutting gas prices by up to ten per cent over the next few months. The move follows sharp falls in wholesale gas costs over the past two months. Any cut by British Gas would be expected to start a price war. Talks are taking place between the Ofgem and Energy Department officials after complaints from small energy companies over big price discounts by their larger rivals.

One company, First Utility, which has only 65,000 customers, said that with such a small customer base, compared with millions for the Big Six, it could not compete. Darren Braham, chief financial officer, said: ‘The only way they can make these astonishing offers is by making a loss. This is predatory pricing and we are too...Read more here--: Energy giants warned on prices