Gas-prices inquiry 'to be halted'

GERMANY'S competition watchdog has agreed to drop an investigation into how utilities set gas prices in return for concessions from RWE and other utility firms, sources yesterday claimed.

The sources said RWE would announce price cuts as of the start of 2009 as a result of the agreement. Other utilities would offer customers vouchers.

Industry sources said the RWE price cuts may be below 10 per cent. RWE declined to comment. The competition authority had already won price concessions from E.ON group subsidiaries last month in the inquiry, which involves a total of 35 companies that it suspected of overcharging.

The inquiry was launched in the spring after gas prices had risen sharply for three years, contributing to inflation.