Brussels, 05/01/2009 (Agence Europe) - On Monday 29 December, the European Commission confirmed it had sent a statement of objections to EDF concerning the French electricity market. The Statement of objections (an official stage in Commission inquiries regarding concerted practices and abuse of dominant position) concerns contracts sealed by EDF with large industrial customers in France. Following an ex-officio investigation, the Commission opened formal proceedings in July 2007 (EUROPE 9477).
The Commission considers that the contracts signed by EDF with large customers “may prevent customers from switching to other providers, thereby reducing competition on the market, in particular when considering the exclusive nature and duration of the contracts and the share of the market that is tied to them”. In these same contracts, resale of electricity appears to be restricted, the Commission says. Such practices may constitute infringements of the EC Treaty rules on abuse of dominant market positions (Article 82). In particular, these practices may have made it difficult for suppliers to enter and expand in the French electricity markets and may have rendered the wholesale market for electricity less liquid.
The addressee of a statement of objections may reply in writing, setting out all facts known to it which are relevant to its defence against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case. The Commission may then take a decision on whether conduct addressed in the statement of objections is compatible or not with the EC Treaty's antitrust rules on concerted practices and abuse of dominant position. Sending a statement of objections does not prejudge the final outcome of the procedure. (L.C./transl.jl)