Europe's national energy giants are to be forced into more competition and could possibly be broken up under planned new proposals by European Commission President Jose Manuel Barroso, The Financial Times reported Tuesday.

The Financial Times cited unnamed aides of the president as saying Barroso wants to create a framework where four to five pan-European energy companies serve customers across borders, thereby carrying more clout to bargain with suppliers.

"In energy terms I can tell you that I am more convinced than ever that we need new legislation concerning regulation," Barroso told the newspaper in an interview.

The regulations would likely come in two parts -- first, the Commission would propose legislation to deal with access to energy markets, breaking the grip of companies that control both supply and distribution of energy.

"What we know is that the status quo isn't working. What we have to do is decide how we can most effectively reform the system to the benefit of business and consumers," he said.

The second part would strengthen European energy regulation by giving national regulators more independence from national governments and power companies.

"We have not yet achieved a completely coherent approach between national regulators. If you want an internal market to work in Europe in energy then you need some more muscle in terms of the regulators' effectiveness."

Barroso's team aims to submit its proposals, which may include the possibility of a European energy regulator, early next year. Any such measures would have to be approved by both EU member states and the European Parliament.