EUROPE’S utility giants were raided yesterday by inspectors from the European Commission seeking evidence of market-rigging and abusive behaviour by dominant companies in the gas sector.

Dawn raids took place at some of Europe’s largest companies, including RWE and E.ON, which owns Ruhrgas, Germany’s biggest gas supplier. Inspectors were turning over the books yesterday at Gaz de France (GdF) and Suez, the two French utilities that announced merger plans this year.

In Austria the Commission targeted OMV, the oil and gas giant. In Hungary inspectors were downloading computer files at MVM, seeking evidence of anticompetitive behaviour in the electricity market. ENI, the Italian oil and gas multinational, was also hit by the Commission’s raiders.

Twenty premises in six countries received surprise visits, the first use by Neelie Kroes, EU Competition Commissioner, of her extensive search and seizure powers against Europe’s gas and power empires.

A Commission spokesman said the regulator was seeking evidence that would-be competitors were being shut out of the market by control of access to pipelines and storage facilities. The Commission also suspects more blatant collusion between companies. “We suspect concerted practices that amount to market sharing,” an official said.

In June last year Ms Kroes announced plans to target Europe’s energy sector with a major competition inquiry after amassing evidence showing that gas and power prices were higher than would be expected in a functioning marketplace.

Centrica, the UK group that owns the British Gas retail brand, has complained of being unable to gain access to pipelines to import gas through the Bacton-Zeebrugge Interconnector linking the UK to Belgium.

Dawn raids took place this week on Fluxys, the Belgian company operating the gas hub at Zeebrugge, and on Distrigaz, the utility dominating gas supply in Belgium. Last week the Commission began a separate anti-trust procedure against Distrigaz, a statement of objection relating to its long-term contracts with big customers.

Fluxys and Distrigaz are controlled by Suez and action by the Commission could upset Suez’s plan to merge with GdF. If the Commission’s raids lead to anti-trust proceedings, the penalties are severe, with fines of up to 10 per cent of a company’s turnover.

Sir Roy Gardner, chief executive of Centrica, yesterday said: “We welcome the increasingly tough stance from the Commission . . . If the Commission’s raids now uncover evidence of malpractice, we would expect to see stringent penalties, given the damage being done to the UK and European economies.”

The dawn raids shocked Hungarian company executives, unaccustomed to Commission powers. Antal Tombor, the chief executive of MVM’s grid operator subsidiary, said: “The procedure itself reminds me of the darkest periods in the past of the Hungarian nation.”

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