The Government was facing increasing demands yesterday to end its ''extraordinarily damaging'' ban on the building of new gas-fired power stations.

Shadow Industry Secretary John Redwood said any proposals to extend the present six-month moratorium - in an effort to preserve the remaining deep coal mines - would send a negative message to the gas industry and overseas investors.

An extension of the temporary ban is tipped to be part of the Government's Energy Review, drawn up by Paymaster General Geoffrey Robinson.

However, the Department of Trade and Industry stressed that the Energy Review was not yet completed, dismissing suggestions of an extended ban as speculation.

The Government imposed the moratorium on gas-fired power stations during last year's coal crisis. But consumer groups have argued that any further interference would leave electricity prices artificially high.