Brussels turns up the heat on French power giant

Brussels  - The European Union's executive on Monday 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 Brussels-based body 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 commission approved the takeover by EdF of British nuclear-power generator British Energy. (dpa)

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