Archive for March 19th, 2010
EDF may blow. The electrician was able to placate the European Commission on Wednesday announced the closing of an investigation for abuse of dominant position against the French group. The latter escapes a fine of up to 10% of its annual turnover (66.3 billion euros in 2009) by agreeing to open up the French market for electricity.
So far, Brussels accused of using the EDF length and conditions of its contracts to prevent its large industrial customers in France to turn to other suppliers of electricity. According to the European Commission, these customers would be about one thousand in France. These are companies consuming more than 7 GWh per year.
To complete the survey, EDF has made proposals in early November to unlock its long-term contracts with large industrial customers.The group pledged to open up each year 65% average volume of electricity it provides, limiting its contracts to five years and to offer its customers who want a non-exclusive contract, allowing them to provide in part from another supplier. These measures are valid for ten years, unless the market share of EDF falls below 40% for two consecutive years.
In the process, EDF has also agreed, again for a period of ten years, removing restrictions to date resale by its customers for electricity that they provide guaranteed payday loans !!!?? ?!!!???!!!.
Problems solved
After consulting with other market players, Brussels said that these proposals "would resolve the competition concerns identified.This "represents an important step towards the effective liberalization of markets of the French electricity major benefit of consumers and, by extension, the whole economy," according to the Competition Commissioner Joaquin Almunia.
Guarantees have been provided for that EDF can not circumvent its commitments. It will include submitting annual reports to Brussels and the French regulator's energy sector, the CRE. One false step, the giant electricity is exposed again to the fine.
EDF is not the first group to make concessions to avoid the record fines from Brussels.The U.S. computer giant Microsoft has already shown the way late December 2009, agreeing to provide European users with a choice of internet browser to its Windows operating system, which was previously exclusively bundled with the browser: Internet Explorer.
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