Energy shares slump on break-up concerns

Shares in Centrica have fallen 3% in early trading after UK energy secretary Ed Davey urged regulators to look at industry profit margins.

In a letter to regulators, Davey (pictured) said profit margins on gas should come under scrutiny, adding a break-up of Centrica-owned British Gas should not be ruled out. Centrica shares fell almost 3% to 305.5p as a result, with Scottish & Southern Energy also among the FTSE's largest fallers, dropping 1.1% to £13.42. It represents the latest setback for a sector coming under increasing pressure from politicians. In September opposition leader Ed Miliband floated plans to freeze energy prices for two years in response to soaring consumer costs. The sector's struggles helped limit...