Ed Davey suggested British Gas had charged one of the highest prices to domestic customers in the last three years. Photograph: Getty Images.
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Six questions answered on Centrica's share price fall after suggestions British Gas could be broken-up

Why is Ed Davey investigating British Gas’s profit margins?

British Gas owner, Centrica, suffered a fall in share price today after the UK energy secretary investigated its profit margins and suggested the company may have to be broken up. We answer five questions on the potential break-up of British Gas.

By how much has Centrica’s share price fallen?

The share price fell by 3 per cent today after energy minister Ed Davey questioned the company’s dominance in the market. British Gas currently has 41 per cent of the domestic gas supply market in the UK, the largest share of any of the so-called "big six".

Why is Ed Davey investigating British Gas’s profit margins?

Davey said in a letter that profit margins made by the "big six" energy suppliers when supplying gas were actually higher than previously thought. In particular, he highlighted the high profit margin of British Gas and its large market share. He added that British Gas had charged one of the highest prices to domestic customers in the last three years.

He estimated that if gas margins were similar to electricity households would save on average up to £40 a year. Davey also provided information that showed Centrica saw profit margins of 11.2 per cent for its gas business in 2012. He suggested a market investigation.

Why has Davey said British Gas may have to be broken-up?

If an investigation found evidence of a monopoly this could result in the company being broken-up. As well as asking the competition authorities to investigate the profit margins as part of an ongoing review, he has written to energy regulator Ofgem and the Competition and Markets Authority asking them to consider all possible avenues "including a break-up of any companies found to have monopoly power to the detriment of the consumer".

What else has Davey said?

Mr Davey told the BBC: "This is a significant issue for consumers out there who are struggling with their energy bills."

In his letter he says: "Analysis of the profit margins of the energy companies shows that the average profit margin for gas is around three times that of electricity.

"There is also evidence that British Gas, the company with the largest share of the gas domestic supply market, has tended to charge one of the highest prices over the past three years, and has been on average the most profitable."

What has British Gas said about Davey’s comments?

In its statement, British Gas said: "We welcome this and have complied with all the requests for data which we have received.

"The data referred to in the Secretary of State's letter has already been fully disclosed and in the public domain for a number of weeks."

What have the independent experts said?

Some have queried why this publicly available information hasn’t been investigated by Ofgem already.

However, Richard Lloyd, the executive director of the consumer rights group Which?, told the BBC the intervention was hugely significant and suggested Davey agreed with Which? that the structure of the biggest energy companies is partly to blame for the price hikes.

"It will now put huge pressure on the regulators, in a matter of weeks, to announce that they're taking the first steps towards potentially breaking up the very biggest of the big energy companies," he added.

Heidi Vella is a features writer for Nridigital.com

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Let's face it: supporting Spurs is basically a form of charity

Now, for my biggest donation yet . . .

I gazed in awe at the new stadium, the future home of Spurs, wondering where my treasures will go. It is going to be one of the architectural wonders of the modern world (football stadia division), yet at the same time it seems ancient, archaic, a Roman ruin, very much like an amphitheatre I once saw in Croatia. It’s at the stage in a new construction when you can see all the bones and none of the flesh, with huge tiers soaring up into the sky. You can’t tell if it’s going or coming, a past perfect ruin or a perfect future model.

It has been so annoying at White Hart Lane this past year or so, having to walk round walkways and under awnings and dodge fences and hoardings, losing all sense of direction. Millions of pounds were being poured into what appeared to be a hole in the ground. The new stadium will replace part of one end of the present one, which was built in 1898. It has been hard not to be unaware of what’s going on, continually asking ourselves, as we take our seats: did the earth move for you?

Now, at long last, you can see what will be there, when it emerges from the scaffolding in another year. Awesome, of course. And, har, har, it will hold more people than Arsenal’s new home by 1,000 (61,000, as opposed to the puny Emirates, with only 60,000). At each home game, I am thinking about the future, wondering how my treasures will fare: will they be happy there?

No, I don’t mean Harry Kane, Danny Rose and Kyle Walker – local as well as national treasures. Not many Prem teams these days can boast quite as many English persons in their ranks. I mean my treasures, stuff wot I have been collecting these past 50 years.

About ten years ago, I went to a shareholders’ meeting at White Hart Lane when the embryonic plans for the new stadium were being announced. I stood up when questions were called for and asked the chairman, Daniel Levy, about having a museum in the new stadium. I told him that Man United had made £1m the previous year from their museum. Surely Spurs should make room for one in the brave new mega-stadium – to show off our long and proud history, delight the fans and all those interested in football history and make a few bob.

He mumbled something – fluent enough, as he did go to Cambridge – but gave nothing away, like the PM caught at Prime Minister’s Questions with an unexpected question.

But now it is going to happen. The people who are designing the museum are coming from Manchester to look at my treasures. They asked for a list but I said, “No chance.” I must have 2,000 items of Spurs memorabilia. I could be dead by the time I finish listing them. They’ll have to see them, in the flesh, and then they’ll be free to take away whatever they might consider worth having in the new museum.

I’m awfully kind that way, partly because I have always looked on supporting Spurs as a form of charity. You don’t expect any reward. Nor could you expect a great deal of pleasure, these past few decades, and certainly not the other day at Liverpool when they were shite. But you do want to help them, poor things.

I have been downsizing since my wife died, and since we sold our Loweswater house, and I’m now clearing out some of my treasures. I’ve donated a very rare Wordsworth book to Dove Cottage, five letters from Beatrix Potter to the Armitt Library in Ambleside, and handwritten Beatles lyrics to the British Library. If Beckham and I don’t get a knighthood in the next honours list, I will be spitting.

My Spurs stuff includes programmes going back to 1910, plus recent stuff like the Opus book, that monster publication, about the size of a black cab. Limited editions cost £8,000 a copy in 2007. I got mine free, as I did the introduction and loaned them photographs. I will be glad to get rid of it. It’s blocking the light in my room.

Perhaps, depending on what they want, and they might take nothing, I will ask for a small pourboire in return. Two free tickets in the new stadium. For life. Or longer . . . 

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 16 February 2017 issue of the New Statesman, The New Times