Brussels, 01/08/2008 (Agence Europe) - In a press release on 31 July, European Commissioner Neelie Kroes welcomed the proposed changes to the energy supply agreement between EDF and French industrial consortium Exeltium. These changes satisfactorily respond to the Commission's concerns over foreclosure and resale of contracts. Further concerns remain, but these fall within the compass of national legislation.
The agreement, as announced on 31 July, provides for the long-term supply of electricity by EDF to Exeltium members. These companies, which are among France's most electro-intensive, will pay a guaranteed annual price for 13 TWh (terawatt/hour) for the next 24 years. The Commission has welcomed a number of significant amendments made to the contract as originally proposed: securing an effective opt-out for the members of the consortium wishing to contract with other suppliers and the removal of the various resale restrictions from the contracts. However, the Commission press release notes that its approval of the project is “subject to certain other resale restrictions affecting the contracts which are derived from the legal and regulatory provisions being removed through amendment of those provisions by the French authorities”. This refers to the regulated transitional market adjustment tariff (known as “tartam”). This allows companies which have opted for the market rate to take advantage of certain provisions within the French electrical regime (“rentes électiques françaises”) for a period of time. An expert says that France is the only member state still to have this kind of measure, after Spain and Germany annulled similar legislation. On 11 June, French MPs voted to continue the “tartam” for a further year, much to the displeasure or EDF's non-state shareholders. The Commission concluded its press release by pointing out that an overall analysis of the foreclosure of the French electricity market is currently being carried out. (C.D./transl.rt)