According to a report in a German newspaper cited by AFX news, E.ON is contemplating a wide-ranging overhaul of its operations in its home market to bring down costs.

Die Welt reports that unnamed sources claim the company could merge its current seven regional sales and distribution units into a single entity, and similarly centralize its overall gas and power distribution business.

The newspaper adds that E.ON is under pressure to reduce overheads amid concerns that the country’s energy regulator could force it to cut transmission charges. This follows enforcement action launched against Vattenfall earlier in June.

As yet, however, the German regulator has made no statement regarding E.ON’s access charges, but a similar clampdown is thought highly likely, according to German industry insiders.