GAS industry regulator Clare Spottiswoode clashed with British Gas yesterday after the company rejected a package of tough new price controls covering its Transco pipeline subsidiary and called for a Monopolies and Mergers Commission inquiry.
Miss Spottiswoode, asked whether British Gas had "blackened her name", accused the company of conducting a campaign against her through a "huge machine" of public relations advisers.
She added that she had been told that the company had produced a psychological profile of her.
Miss Spottiswoode said a huge publicity campaign by the company had been a waste of time and effort and counter-productive.
It had not affected her judgment and would not influence the Monopolies Commission.
Miss Spottiswoode, who said three months ago she feared the company would mount a "dirty tricks" campaign against her, said the relationship between British Gas and her predecessor, Sir James McKinnon, had been "pretty vitriolic".
Claims that her proposals represented a "smash and grab" raid were characteristic of the way British Gas had behaved, she added.
British Gas strongly denied that there had been a "dirty tricks" campaign. Philip Rogerson, the company's deputy chairman, said: "This is a bit sad. It just isn't true.
"We have consciously and very carefully ensured we didn't personalise the issues. There is no animosity on our side with the regulator and the relationship has been perfectly adequate."
Mr Rogerson said it was "news to me" that the company had produced a psychological profile of the regulator .
British Gas now faces a six-month commission inquiry into proposals which Miss Spottiswoode says will reduce gas bills by around £28 a year and the company argues will cut its cash flow by £400m a year.
Mr Rogerson said the proposals were damaging to shareholder interests and not in the overall interests of gas consumers.
Miss Spottiswoode, who strongly believes the commission will support her arguments, said British Gas would be in "limbo" during the commission's investigation.
