Barroso says may act to break up big utilities

...up big utilities, his commissioners might use their existing powers to boost competition instead.

Last month, energy ministers called for "effective unbundling" of distribution networks from the generation activities of big utilities groups.

They stopped short of endorsing Commission proposals that those companies sell off either their distribution or generation businesses.

EU leaders will discuss the ownership unbundling proposal later this week but the idea faces opposition from France, Estonia, Latvia, Slovakia and the Czech Republic.

Barroso, backing the views of Competition Commissioner Neelie Kroes, suggested that if EU leaders fail to act, the Commission could use the powers it already holds.

"We have all the competences according to the treaty in terms of competition in the internal market, so we can act even if the member states did not want to make any progress at all. We will act, this has to be very clear," Barroso told reporters.

Such antitrust action would be required only if the Commission found large utilities had abused their dominance in a national or international market.

Europe's biggest energy companies, such as E.ON , and RWE of Germany and Electricite de France , control distribution and generation of gas or electricity.