EDF Should Sell Power to Rivals to Open Market, GDF Suez Says

By Tara Patel

April 9 (Bloomberg) -- GDF Suez SA, bidding for a bigger share of France’s power market, wants Electricite de France SA to sell more power to competitors so 30 percent of French customers can use alternative suppliers.

“EDF as the dominant operator should supply energy to all operators to allow the development of competition,” Paris-based GDF Suez said in a document distributed to reporters at a press conference.

Suppliers other than EDF should have a minimum of 30 percent of the French market by 2012, including households, small businesses and industry, the document states. The proposals would allow a transition period to further opening up the French power market, the utility said.

The French government delayed publication of a report on power rates last week because it’s working out how to implement the recommendations, people familiar with the plan have said. The report by a commission headed by Paul Champsaur recommends abolishing regulated power rates for business customers and forcing state-owned EDF to sell more electricity to rivals, the people said.

The transition period to opening the French market should allow a “liquid” wholesale power market so companies will be encouraged to build new power plants including nuclear reactors, GDF Suez said today.

EU Probes

EDF, the continent’s biggest power generator, is facing increased scrutiny from the European Commission, which recently carried out a series of antitrust raids at its Paris offices. The French government commissioned its own report to help navigate between demands that the French power market be further opened up to competition while the interests of consumers and industrial users are protected.

The utility, along with some local state providers, supplied nearly 98 percent of the French household market by volume at state-regulated prices at the end of last year, according to data published on the Web site of the French regulator, Commission de Regulation de l’Energie.

EDF says it holds 85 percent of the overall French market by volume.

New entrants have made limited inroads since France’s power and gas markets were opened to competition in July 2007. Rivals in the French market such as Direct Energie and Poweo SA say they are prevented from competing profitably against the utility, which generates 87 percent of its power using 58 nuclear plants.

To contact the reporters on this story: Tara Patel in Paris at tpatel2@bloomberg.net