THE European Commission has put Germany on notice that it is ready to tackle anti-competitive practices that have helped push British energy bills to record levels.

At the heart of the problem is the seemingly mundane task of shipping gas from Russia.

But because German power companies such as E.On and RWE own thousands of miles of pipeline connecting the former Soviet Union with the rest of Europe, it has been difficult for British firms to secure supplies.

Commissioner Neelie Kroes may levy hefty fines if German firms do not open up their networks to foreign users. Consultants Global Insight estimate this lack of competition in Germany and other EU states will cost the UK Pounds 10.6bn next year the equivalent of Pounds 186 on the average household fuel bill.