Energy Secretary Ed Davey has criticised the major energy firms in the country for huge profit margins in supplying gas.

Scottish and Southern Energy (SSE) and the owner of Scottish Gas, Centrica saw a fall in their share prices after Davey indicated that such firms might be broken up. Mr Davey estimated that margins on gas bills were up to five times than that on electricity. Centrica shares were down 3% or 10.3p to 303.85p, while Perth-based rival SSE's shares were down 19p at 1338p

Energy secretary has asked the regulators to investigate profit margins in its investigations in the industry. He said that the analysis of profit margins of energy companies have showed that the average profit margin for gas is around three times that of electricity. Davey said that British Gas had the highest profit margins in the industry and has a market share of 41 per cent.

British Gas said the data in the secretary of state's letter "has already been disclosed and in the public domain for a number of weeks". The company also said that it will participate in the discussion on the matter in the coming future.