EdF enters the world of competition

05 November 2009

EdF has capitalised on competitive energy markets across Europe, not least in the UK, while at the same time enjoying a dominant, competition free, environment at home in France. It looks as though the EC has finally caught up with them...

While the concept of energy market competition did seem to have passed EdF by (well in France anyway), it seems that is about to change. EdF, the French power incumbent, has unveiled reforms to its long-term power contracts. This comes in response to a European Commission probe and is EdF’s attempts to avert a fine of up to 10% of its total turnover for abuse of a dominant market position. EdF was found to have closed off access to the French power market by entering into long-term exclusive contracts for significant volumes with customers and then barring those customers from reselling power under these contracts. EdF have pledged to redraft these contracts with large industrial users allowing power suppliers to compete every year for 65% of the volumes currently contracted; volumes capped for contracts of more than one year and new contracts having a maximum duration of 5 years. Exclusivity and resale clauses will be also be stripped out. Will there now be a rush of players entering this market to compete with EdF? Probably not with current independent producers citing the market structure itself as an obstacle too!


EU  Supply 

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