The European Commission on December 29 turned up the heat on French power giant Electricite de France (EdF), confirming that it suspected the former monopoly of breaking EU competition rules. The European Commission has sent a “statement of objections” to the French-based company calling for clarification on the details of its contracts with industrial clients, a press release issued in Brussels said. The commission is concerned that such contracts may make it harder for industrial clients to switch to another provider and ban them from re-selling the electricity they buy, the press release said.

The EU has been investigating commercial practices at EdF since July 2007 on suspicion that the company is trying to block rival companies from selling power in France. The statement of objections is a formal step in the overall process. However, commission sources are at pains to point out that the launching of an investigation does not mean that the company involved is necessarily guilty of breaching EU rules.

On December 22 the European Commission approved the takeover of British nuclear generator British Energy by EdF as long as the companies sell off a certain number of assets. The GBP 12.5-billion deal sees EdF, the world’s largest nuclear generator, take control of eight of Britain’s 16 nuclear power plants.

However, the European Commission, which oversees the EU’s strict competition laws, decided that the takeover could give EdF too strong a hold in Britain’s power-generating market, and demanded that the company sell off certain assets first. These include one gas- and one coal-fired power station, and one of two sites earmarked for building a next-generation nuclear power plant.

EdF must also pledge to sell a minimum amount of the electricity it generates on the British wholesale market and end one of the merged company’s three supply deals with Britain’s national power grid to make sure that rivals have full access to the network.

The commission “concluded that the transaction, as modified by these commitments, would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it,” a statement released in Brussels said.