Neelie Kroes began her five-year term as new European Union competition commissioner today by issuing the EU's first veto in more than three years to block Portugal's plans to reorganise its energy industry.

She said the proposed purchase by EDP-Energias de Portugal and Eni, two European power groups, of Gas de Portugal, Portugal's state-controlled gas business, would give the two companies too much control over the country's electricity and gas markets.