Glos has doubts on utilities lifting energy prices

BERLIN, Oct 21 (Reuters) - German Economy Minister Michael Glos said on Sunday he had doubts about the legitimacy of planned price increases by German utilities and said once again antitrust authorities would closely examine the proposal.

"Most of the power produced comes from nuclear plants that have already been depreciated or from inexpensive brown coal," Glos said in an ARD television talk show. "That raises the question: why do the prices have to be raised so high now?"

Glos said he considered the proposed price increases excessive and reiterated the cartel office would investigate.

E.ON EONG.DE, the country's largest utility, and competitor RWE (RWEG.DE) recently announced price increases.

E.ON said it planned to raise power and gas prices for its almost 8 million household customers in Germany from 2008. This followed a similar announcement by RWE.

E.ON said it planned to raise power prices at its seven regional units by as much as 9.9 percent and gas prices by as much as 8.8 percent.

The utilities have defended price increases as justified and necessary to meet the cost of generating electricity.

Increasing prices for households has become easier in Germany as utilities since July no longer have to get permission from state governments to raise tariffs.

E.ON Chief Executive Wulf Bernotat, who was also taking part in the same ARD talk show, defended the planned increases.

He blamed the increases on decisions made by political leaders. Ecology taxes, power taxes and increases in value-added taxes had made electricity more expensive, he said.