Électricité de France Électricité de France Type Corporation ( société anonyme ) Founded Paris , France ( 1946 ) Headquarters Paris , France Key people Marcel Paul , Founder Pierre Gadonneix , Chairman & CEO Industry Electricity generation Products Electricity Revenue EUR ( 2004 ) Employees 156 , 152 ( 2004 ) Website www.edf.com Électricité de France ( EDF ) is the main electricity generation and distribution company in France . It was founded on April 8 , 1946 as a result of the nationalization of a number of electricity producers , transporters and distributors by the Communist Minister of Industrial Production Marcel Paul . Until November 19 , 2004 it was a government corporation , but it is now a limited-liability corporation under private law ( société anonyme ) . The government plans to float 30% of its shares on the stock market by the end of 2005 , and retain 70% government ownership . EDF held a monopoly in the distribution , but not the production , of electricity in France until 1999 , when the first European Commission directive to harmonize regulation of electricity markets was implemented . EDF is one of the world 's largest producers of electricity . In 2003 , it produced 22% of the European Union 's electricity , primarily from nuclear power : nuclear : 74 . 5% hydro-electric : 16 . 2% thermal : 9 . 2% wind power and other renewable sources : 0 . 1% Its 58 active nuclear reactors ( in 2004 ) are spread out over 20 sites ( nuclear power plants ) . They are comprised of 34 900 MW reactors , 20 1300 MW reactors , and 4 1450 MW reactors , all PWRs . Major Reform ( 1996-2007 ) The opening of the electricity market The decision to open the electricity market to competition at European level : directives 96/92/CE of December 19 , 1996 and 2003/54/CE of June 26 , 2003 . Stages of the opening of the market in France are : February 19 , 1999 : 20% of the market - customers using more than 100 GWh . May 29 , 2000 : 30% of the market - customers using more than 16 GWh ( 1400 sites ) . February 10 , 2003 : 37% of the market - customers using more than 7 GWh . July 1 , 2004 : 70% of the market - companies and firms ( 1.3 million customers ) . July 1 , 2007 : complete opening . Status of EDF EDF was an EPIC ( public establishment with industrial and commercial character ) , and as such , it was subject to the `` principle of speciality '' , that is it had the right to sell electricity ; the purpose of this principle of speciality was to prevent EDF competing in an unfair way on their own markets . EDF 's modification of status , announced in March , 2004 by the French government , became effective , after the vote of the `` Loi relative au service public de l'électricité et du gaz et aux entreprises électriques et gazières '' ( law relating to the public service of electricity and gas and in the electrical and gas firms ) on August 9 , 2004 by publication in the Journal officiel of November 19 , 2004 . The transformation into a Société anonyme ( public company ) was implemented for several reasons : for one thing , EDF 's status of 'EPIC ' gave it an advantage over its rivals during the process of the opening of the electricity market , because benefiting from the limitless guarantee of the State , it could borrow at a lesser expense ; in addition , the statute of SA will enable EDF to reinforce its own capital stocks thanks to the entry of investors to the capital , and to develop products other than electricity , without being subjected to the `` principle of speciality '' . the status of Société anonyme , of which one would think that the capital will remain predominantly public ( law adds that the State must keep 70% of stock and rights to vote ) , at least until further notice , is not incompatible with the public financial year . Issues of reform The status of EPIC created a competitive advantage which became unbearable for the electricity producers in other European countries , especially since the multitude of acquisitions which EDF had accomplished in the UK , Italy and Germany . Thus , they requested that the same 'rules of the game ' apply for all . For their part , EDF needed a juridical structure allowing it to reinforce its equity capitals and to receive investors . Its requirements in equity capitals were estimated in May 2004 , between 10 and 15 billion euro . Social welfare system The specific regime of social welfare system and that of supplementary illness , cover 300 , 000 electricians and gas workers . A ratified agreement , in November 2004 , by only two labour unions , reached a deadlock and the three others opposed it . Finances For a long time , EDF suffered from very low profits for a group benefiting from such monopoly , especially since in the weakness of its results on the domestic market , were added the poor performances of its foreign subsidiaries . Nevertheless , its balance sheet is very fragile , because of its international development , of its tariff policy in France and of its quickened deterioration by its rentability . From 2001 till 2003 , EDF was forced to reduce its equity capitals due to untoward deviations of conversion in South America and its depreciated its assets in Germany , Italy and in Brazil for a €6.4 billion total . However , according to the report of the Roulet Commission , international development , although costly , must be followed , because if EDF spent €15 billion euro on acquisitions , its rivals would spend €70 billion . The commission recommends a European strategy , an international presence , but directed , and a larger drive to supply gas . The most significant problem ( in May , 2004 ) was the rocking of the balance sheet between equity capitals of €19 billion and a €24.5 billion debt ( November , 2004 ) , for which it is necessary to add : about €30 billion to regulate its commitments to retirement in electrical and gas industries ( reprocess in 55 years , more favourable rate , etc ) , which will be audited in time by the new tax payable tariff by the consumers . €6.4 billion for financial commitments in Italy and in Germany , a sum which could come to more than €10 billion , from 2005 . and a huge sum to continue constituting supplies to finance the future dismantling of the 58 nuclear power stations . A theoretical supply held concurrently by a further €28 billion was made , but it is far from being sufficient and it is used in fact to a greater extent for international development . And , as of November , 2004 , complete commitment will overtop the €35 billion euro , which seems to mean that it is not ready to cope with its retirement commitments or the dismantling of its nuclear power stations . 2002 was considered a bad year , with a small €481 million net profit. 2003 saw a small increase with a €857 million net profit . In the first quarter of 2004 , the net profit rose to about €1.5 billion ( up 50 % in comparison with the 1st quarter of 2003 ) . The tariff policy ordered by the company contract of 1997-2000 had imposed a reduction of 14% of tariffs . Today , EDF 's tariffs in France are among lowest in the world , which leaves room for manoeuvre to impose an increment of tariffs . Energy policy EDF produces its electricity primarily from nuclear power plants The choice of nuclear technology , as always , was considered peculiar for EDF. Its engineers made France the first country use electricity of nuclear origin as the dominant method of production ( 74.5 % of French production in 2003 ) . Nuclear technology produces clean electricity , but with some risks , even if they are controlled better and better . In May , 2004 , the French minister Nicolas Sarkozy reasserted , in front of the French Parliament , the primacy of a nuclear power , much to the relief of labour unions of EDF. On this opportunity , the minister had imitated the famous slogan `` We do not have oil , but we have ideas '' by declaring : `` We do not have oil , we do not have gas , we do not have coal , but we had ideas '' . Opinions on reform Local authorities In general , the local elected representatives were against the modification of the status of the government-owned firm and expressed it aloud . They fear , particularly those of rural districts , and perhaps justifiably , that after the disappearance of post offices and schools , that of the EDF/GDF , and have held talks , in summary : Electricity is a vital requirement , which should not be managed according to a market principle . EDF and Gaz de France stemmed from the Conseil National de la Résistance and complied with their mission of public service and town and country planning . Numerous examples exist , following the example of California , where the private firms of production and distribution of electricity are not the best resolution . Those to the left of the political spectrum think that the logic of markets can only drive away rises of expenses and selling prices . They also wonder about the assertion of the principle of the tariff adjustment ( a unique tariff on the whole territory and equality of users ) , because as soon as the sale of electricity becomes readily available , it is subjected to the rule of competition and taken into account the true expenses on every segment of customers . The countryside , sparsely populated , risk being the biggest losers . They also wonder about the true purpose of the government in this affair , and about the strategical will of partners deprived in the capital of EDF , whilst heavy threats ( question of retirement , dismantling of nuclear power stations ) tax the true balance sheets of the firm . The position of the former president of EDF According to François Roussely the former president of EDF , it is not possible to reconcile low prices and competition in electricity . At any rate where countries privatized electricity , it was rapidly followed by an increase in prices and a certain insecurity about energy , notably owing to speculation on electricity ( e . g . Enron ) . Distribution network The electricity network is composed of : a high and very high voltage distribution system ( 100 , 000 km of lines ) . This part of the system is managed by RTE ( transport system of electricity ) who acts as an independent administrator of infrastructure , although it stays in the lap of EDF . a low and medium voltage distribution system ( 1 , 200 , 000 km of lines ) , maintained by EDF-GDF Services , a subsidiary of Gaz de France ( French Gas ) . Before 1956 , the electricity companies of France did not use a standardised voltage . Between 1956 and 1991 , the voltage was standardized , and today the voltage is 230V on all French territory . Migration from 220 volts cost the equivalent of €70 per subscriber in the beginning , and €1 , 000 per subscriber in 1991 . Eventually , the old usage of 220 volts in France standardized itself to 230 volts , in accordance with European standard . EDF 's rivals Electrabel and Endesa Apart from the producers and foreign distributors , in France , there are some important companies , which , although their market share is weak with regard to that of EDF , are a significant competition . These are : SNET ( Société nationale d'électricité et de thermique ) : This company is the successor of depleting coal companies and primarily produce thermal electricity ( 2 , 5 TWh ) . Its capital ( 81 % ) belonged predominantly to Collieries of France and with EDF. A portion of the capital ( 30 % ) was sold to Endesa , the main Spanish electricity producer . CNR ( Compagnie nationale du Rhône ) : the capital of which is predominantly public , the company exploits 19 hydroelectric plants installed on the banks of the Rhône . Its production of 19 TWh makes it the second largest French producer with 4 % of the market . CNR signed a partnership agreement with Electrabel ( a Belgian subsidiary of SUEZ ) . SHEM ( Société hydro-électrique du Midi ) : a subsidiary of SNCF , of which it produces about 1/3 of the electricity used by SNCF. This company will probably be sold as part of a policy of refocusing of SNCF in due time . A partnership agreement was signed with Electrabel . Locally controlled or between local councils Among the other rivals of EDF , one can count a number of municipally governed companies , known under the generic term 'entreprises locales de distribution ' ( 'local businesses of distribution' ) , who are electricity producers exploiting EDF 's network . The nationalisation of electricity and gas on April 8 , 1946 , which profoundly changed the French electrical and gas organization , had however acknowledged the right of villages to keep their role in the public distribution of electricity and gas . In 1946 , certain firms , villages or groups of villages , did not accept the proposal of nationalisation and created autonomous state controls ( who held the monopoly of distribution , until 2004 , in their area ) . To note , contrary to the initial idea , local controllers of electricity , have had , since 1946 , the choice to continue to produce electricity . In fact , their production was rather marginal , except in Rhône-Alpes ; having often preferred buying the majority of the electrical power from EDF. With the recent opening of the electricity market , local controllers are considering developing , augmenting and diversifying their own production , ( e . g . Ouest Énergie , the subsidiary company of SIEDS ) and/or to diversify their sources of supply . To date , the number of local businesses of distribution is approximately 170 and holds 5% of the distribution of French electrical power in 2 , 500 villages . Created by local authorities , they serve about 3 million people and represent 7 , 000 jobs . Around thirty of them - 9 during creation in 1962 - are federated in a national entity known as ANROC . Several departments are not therefore served entirely or partly by EDF , for instance : Deux-Sèvres , supplied by SIEDS : Labour union between local councils of Electricity of Deux-Sèvres ; Vienne , supplied by SIEEDV : Labour union between local councils of Electricity and Works of the Department of Vienne ; Charente-Maritime , supplied by SDEER : Labour union of Electricity and Rural Works of the Department of Charente-Maritime ; Gironde , supplied by Gironde Electricity . However , the company was sold to EDF at the beginning of 2000 because it could not financially maintain the damage of the severe weather of December 1999 , on its network ; Alsace ; Rhône-Alpes . The EDF Group EDF 's global presence EDF is present in Europe , South America , Africa and Asia . Main partners In Europe EDF owns parts or all of the following companies : Austria : 100% ASA Holding , 100% Vero , 20% Groupe Estag Belgium : 100% Semobis France : 100% C2 , 100% C3 , 100% EDF , 100% Immob . Wagram Étoile , 100% Richemont , 100% Sapar , 100% Sofilo , 99.86% Gérance Générale Foncière , 80% Sté Investments in Austria , 74.86% Électricité de Strasbourg , 67% Dalkia Investments , 51% TIRU , 50% Cerga , 50% Edenkia , 50% Dalkia International , 50% Immob . PB6 , 50% SIIF Énergies , 34% Dalkia Hdg , Germany : 45.81% of EnBW in 2002 ( 35.38 % in 2001 ) , 100% EDF Ostalbkreis , 100% EDF Weinsberg , 50% RKI . Hungary : 95 , 56% Bert , 60 , 91% Demasz Italy : 15% Italenergiabis ( holding company of control of Edison ) but only 2 % of rights to vote by decision of the Italian government , see Negotiations between EDF and ENEL , 100% EDF Energia Italia which sells directly 2.2 TWh to Italy , 100% Fenice , 40% Finei , 30% ISE The Netherlands : 100 % Finelex , 50% Cinergy Holding Poland : 76.63% Rybnik , 66.08% Eck , 49.19% ECW , 35.42% Kogeneracja , 24.61% Zielona Gora Slovakia : 49% SSE Spain : 100% Hispaelec Sweden : 100% Skandrenkraft , 36.32% Groupe Graninge Switzerland : 50% Chatelot , 50% Emosson , 14.25% Groupe ATEL , 26.26% Motor Columbus United Kingdom : 100% EDF Energy - created after the acquisition of Seeboard by London Electricity Group in July 2002 , 100% EDF Trading , 100% EDF UK . EDF owns the British electricity company EDF Energy - a merger of London Energy , SWEB Energy and Seeboard Energy - which distributes 22% of Britain 's electricity . Its call centres are based in London , Sunderland , Hove and Exeter . In Africa : Côte d'Ivoire : 50% Azito O & M , 32.85% Azito Energie Egypt : 100% Port Saïd , 100 % Port Suez In the Americas : Argentina : 25% Edenor , 45% Sodemsa , 22.95% Edemsa Brazil : 100% Lidil , 10% Light Energy ( Light Overseas Investment - 35.29% in 2001 ) , 90% Norte Fluminense USA : 50% EnXco Mexico : 100% Central Anahuac , 100% Central Lomas del Rey , 100% Central Saltillo , 100% Controladora del Golfo , 100% Rio Bravo 4 , 51% Altamira In Asia : China : 85% Synergie , 60% Figlec ] , 19.6% Shandong Zhonghua Power Cy Vietnam : 56.25% Mecco Negotiations between EDF and ENEL In Italy , EDF holds 15% of Italenergiabis ( the holding company of control of Edison ) , but has only 2% of decision rights by proclamation of the Italian government . Negotiations had taken place in 2004 for the entrance of ENEL on the French market , with freedom to acquire quantities of electricity from EDF , and on the other hand the implementation of buying Edison . Negotiations at this point did not succeed , which forced EDF to buy back , at the beginning of 2005 , 3% of its actual partners ( Fiat , Carlo Tassara , and from banks ) for €606 million , but without recovering decision-making rights . But negotiations carry on and in February and April 2005 , EDF bought back the participation of other majority shareholders , in total , and considering the takeover bid which it will also have to throw on the minority shareholders , EDF will have to disburse more than €14 billion . EDF will then be in a grotesque situation , because detaining 100% of capital , its rights to vote will always be blocked to 2% , as long as France does not open its energy market to foreign competition . The former president of EDF , François Roussely , had bargained for ENEL a right of 4 megawatts so that the Italian firm can gain knowledge of the French market , before buying a participation in the transport system of electricity . But the new president , Pierre Gadonneix , cut short any negotiations . Also , ENEL which was interested in buying 35% of SNET , put up for sale by Collieries of France , was doubled by Gaz de France . Negotiations take place and since the end of January , the matter is at the level of the Italian and French ministries . These negotiations concern : the role of ENEL on the Fren ch market ; the opening of energy markets between France and Italy ; a French-Italian-Spanish platform of electricity networks a resolution for the participation of EDFin Ediso , via Italenergia Bis ; the abandonment of the acquisition of Gaz de France of SNET , as , according to a spokesman , `` ENEL , which plays a larger part in the energy markets of the world , has no intention of becoming a minority shareholder of EDF '' ( but it has ambition to become a competitor with EDF on French soil ) . The directorate President : Pierre Gadonneix , since September , 2004 . Statistics ( 2003 estimate ) Customers : 41.6 million customers in the world ( 35.6 million in Europe , of which 31 million are based in France ) . 2003 Turnover : €44.92 billion ( 23% from France ) - €41.82 billion in 2002 . Profit : €5.15 billion in 2002 - €6.83 billion in 2003 . Net profit : €481 million in 2002 - €857 million in 2003 . Profits before expenses : €11 billion in 2003 and a predicted €13 billion in 2004 . Net Debt : €24 billions in 2003 - €26.9 billion in 2002 and €25.8 billion in 2001 . Cashflow/debt ratio : 36% in 2002 - 33% in 2001 . The quantity of produced electrical power is about 470 TWh . Installed potency is 122.6 GWe ( 118 GWe in Europe , 101 GWe in France ) . Employees : 167 , 300 persons ( 2003 ) , among whom 110 , 000 are based in France ( 172 , 000 in 2002 and 162 , 000 in 2001 ) . EDF 's logo EDF 's old logo ( 1987–2005 ) On July 8 2005 , EDF adopted a new logo . The previous logo had not been modified much since the company 's founding , the last and only edit being made in 1987 . According to EDF , the former logo featured the tricolours of the French flag and considered it `` poorly adapted to unifying group subsidaries. '' The new logo is suggestive of a turbine and `` embodies the Group 's commercial and industrial dynamism . `` See also List of French companies Superphénix Gaz de France External link EDF website Sources ( French ) Compagnie Nationale du Rhône ( second electricity provider in France ) ( French ) Electrabel ( SUEZ ) ( French ) Ouest Énergie ( former SIEDS , Syndicat Intercommunal d'Energie des Deux-Sèvres ) ( French ) Announcement of the privitisation of EDF ( French ) The cost of privitisation of EDF ( French ) Résistances Electriques et Gazières ( French ) SUD Energy ( French ) Commission de Régulation de l'Energie ( French ) Council of European Energy Regulators ( French ) Direction Générale des Energies et des Matières Premières ( French ) Powernext ( French ) Réseau de transport d'électricité ( English ) EDF’s highly charged sale , The Economist   v · d · e   CAC 40 companies of France Accor  | AGF  | Air Liquide  | Alcatel  | Alstom  | Arcelor-Mittal  | AXA  | BNP Paribas  | Bouygues  | Capgemini  | Carrefour  | Crédit Agricole  | Dexia  | EADS  | EDF  | Essilor  | France Télécom  | Gaz de France  | Groupe Danone  | L'Oréal  | Lafarge  | Lagardère  | LVMH  | Michelin  | Pernod Ricard  | PSA Peugeot Citroën  | PPR  | Publicis  | Renault  | Saint-Gobain  | Sanofi-Aventis  | Schneider Electric  | Société Générale  | STMicroelectronics  | SUEZ  | Thomson  | Total  | VINCI  | Veolia Environnement  | Vivendi Categories : CAC 40 | Companies of France | Energy in France In other languages : Deutsch | Français | Italiano | 日本語 | Nederlands | Polski Électricité de France Corporation ( société anonyme ) Paris , France ( 1946 ) Paris , France Marcel Paul , Founder Pierre Gadonneix , Chairman & CEO Electricity generation Electricity EUR ( 2004 ) 156 , 152 ( 2004 ) www.edf.com 