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Europe Daily Bulletin No. 9809
Contents Publication in full By article 22 / 34
GENERAL NEWS / (eu) eu/competition

COMMISSION gives conditional authorisation to EDF's plans to acquire British Energy

Brussels, 22/12/2008 (Agence Europe) - On Monday 22 December, the European Commission authorised the plans of Électricité de France (EDF) to acquire British Energy (BE). This favourable Commission decision is nonetheless subject to the observation of a number of conditions. These conditions, which were put forward by the parties, answer the concerns of the Commission regarding serious problems of competition, which are as follows: - the possibility for the company deliberately to limit the production of electricity in order to raise prices; - the risk of increased electricity use internally, which would also have the effect of restricting the availability of energy on the market; - the fact that the new business would own almost all British sites which may be suitable for the construction of new nuclear power stations, as projects of this kind are currently envisaged by the British authorities; - the fact that EDF and BE own more rights of connection to the transport network than necessary, given their current and projected production capacity, which would constitute an obstacle to the entry onto the market of any possible competitors. The proposed solutions consist of: - EDF's commitment to sell its electric power station at Sutton Bridge, in the United Kingdom, and the BE power station at Eggborough; - its commitment to sell certain minimum volumes of electricity on the British wholesale market; - the commitment to sell, without conditions, a site which may be suitable for the construction of a new nuclear power station, and to leave the choice between Dungeness and Heysham (United Kingdom) up to the buyer; and the commitment to put an end to three network connection agreements of the new entity to the national grid at Hinkley Point, United Kingdom. (C.D./trans.fl)

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