France's competition regulator has fined the electricity provider Electricité de France (EDF) and its subsidiaries 300 million euros for abusing its dominant market position for over 15 years.
The French Competition Authority found that EDF took advantage of its extensive client lists as a former public utility to try to win over millions of new customers starting in 2004, when France was opening up its energy markets under European Union directives.
As the energy market began to open, EDF was required to continue to offer a fixed electricity price, set by the authorities, but customers could look elsewhere, to dozens of companies new to the market, which were free to set their own prices.
The regulator said that EDF was looking to “maintain its market share in the electricity supply sector and to strengthen its position in the related gas supply and energy services markets."
By using "human and technical resources" unavailable to other companies, the group ended up "delaying the development of alternative suppliers".
The regulator also said EDF and several subsidiaries unfairly used marketing divisions dedicated to its fixed-rate electricity contracts in order to develop market-price offerings for gas and other energy services.
EDF agreed to a negotiated procedure for the 300 million euro fine, as it did not contest the allegations and agreed to a settlement.
The group said it “noted” the decision, and had already calculated the fine into its 2021 accounts.
The French state still owns a large share of the company, which is facing a cash crunch after the government ordered it to supply power below market prices to protect customers from price increases this winter.
To help ease the financial pain, the government said last week it would inject 2.1 billion euros into the company as part of an upcoming capital increase.
EDF said the company would not exclude inviting foreign sovereign funds into its investment programmes.
(with wires)
