EU drops anti-trust charges against France's EDF

(BRUSSELS) - European competition regulators on Wednesday dropped anti-trust charges against Electricite de France (EDF) after the French company pledged to ease its contract rules for corporate clients.

"Today's decision marks an important step towards the effective liberalisation of the French electricity markets to the benefit of large customers and, by extension, the economy as a whole," said EU Competition Commissioner Joaquin Almunia.

In a deal made legally binding on Wednesday, EDF promised to ensure that every year many large electricity users can pick rival suppliers.

The French electricity giant will also allow them to sell power on to others.

EDF has been in the sights of European regulators since July 2007 when they accused the state-controlled company of locking industrial clients into long-term contracts, possibly preventing competitors from emerging.

A year ago EU antitrust inspectors raided EDF offices in the probe that held the possibility of hefty fines.

Under terms of the deal, EDF has undertaken to ensure that an average of 65 percent of the electricity that it has contracted with large customers will return to the market every year, either because the contract ends or because customers will be able to opt-out of their contract for free.

The EDF Group will submit yearly reports to the European Commission and the French energy regulator on compliance with the commitments.

The commission said that Wednesday's decision "is part of a number of measures, aimed at addressing competition problems in French electricity markets."

The French state owns almost 85 percent of EDF, which generates most of its energy from nuclear plants.