TWO regional electricity companies could be targeted by a rival as part of a multi-billion pound spending spree.

PowerGen is reported to be preparing a bid for Northern Electric and Yorkshire Electricity, among others, following a major cash boost from German utility E.ON, which last week agreed a £9.5m deal for the company.

However, PowerGen is not expected to launch any bids until spring next year, when its merger with E.ON is likely to be completed.