ENERGY LAW - FRANCE - November, 28th 2005 French Energy Prepared by: Theresa Jordan Natalia Kalitynska Sabrina Woodward Laetitia Youssouffa

ENERGY LAW - FRANCE - November, 28th 2005 French Energy Agenda 1. Previous Situation ______ 2. European Law ___________ 3. EDF Privatization _________ 4. GDF Privatization ____ 5. Nuclear Power __________

ENERGY LAW - FRANCE - November, 28th 2005 French Legal Situation French Legal Situation State Monopolistic Situation

ENERGY LAW - FRANCE - November, 28th 2005 Energy State Monopolistic Situation 1946 French Law of Nationalization of Electricity and Gas 1946 French Law of Nationalization of Electricity and Gas Government Monopoly over French Energy: Government Monopoly over French Energy: Production, Transportation, Distribution, Importation and Exportation of Electricity & Gas Production, Transportation, Distribution, Importation and Exportation of Electricity & Gas Creating EDF-GDF Creating EDF-GDF

ENERGY LAW - FRANCE - November, 28th 2005 New French Legal Situation EU Law Intervention EU Law Intervention

ENERGY LAW - FRANCE - November, 28th 2005 EU Directives The 2003/ Directive on Common Rules of Interior Market of Electricity/Gas The 2003/ Directive on Common Rules of Interior Market of Electricity/Gas  Replacing first Directives opening EU Energy Markets – Electricity: December 19,1996 – Gas: June 22, 1998 – Gas: June 22, 1998

ENERGY LAW - FRANCE - November, 28th 2005 French EU Law Implementation Electricity Electricity –February 2000 French Law on Modernization and Development of Public Electricity Market Gas Gas –January 3, 2003 French Law on Gas and Electricity Markets and Energy Public Service

ENERGY LAW - FRANCE - November, 28th 2005 EU Liberalization Requirements Electricity Market Directive Gas Market Directive Year Market Opening % Year % %200020% % %200470% % %

ENERGY LAW - FRANCE - November, 28th 2005 EDF Privatization Electricite De France French Electricity

ENERGY LAW - FRANCE - November, 28th 2005 Changes Needed EPIC v. SA (Etablissement Public Industriel et Commecrcial v. Societe Anonyme) EPIC v. SA (Etablissement Public Industriel et Commecrcial v. Societe Anonyme) Initial Public Offering of EDF Shares Initial Public Offering of EDF Shares –sold 15% of company November 2005

ENERGY LAW - FRANCE - November, 28th 2005 Privatization Powernext Powernext –wholesale electricity exchange RTE ( French Transmission Grid Manager ) RTE ( French Transmission Grid Manager ) –third party network access

ENERGY LAW - FRANCE - November, 28th 2005 CRE (Commission of Energy Regulation) Regulation authority Regulation authority Oversees non-discriminatory access to the network Oversees non-discriminatory access to the network Monitors, authorizes, settles disputes and, if necessary, lays down sanctions as EU Law requires Monitors, authorizes, settles disputes and, if necessary, lays down sanctions as EU Law requires

ENERGY LAW - FRANCE - November, 28th 2005 Public Service 3 main purposes: 3 main purposes: –To ensure low-income households get electricity –All regions receive electricity at same rates –Obliged to purchase electricity from certain generation types Paid by all companies Paid by all companies Explicit charge to consumers Explicit charge to consumers

ENERGY LAW - FRANCE - November, 28th 2005 Competition Competitors Competitors –CNR –SNET Unbundling Unbundling

ENERGY LAW - FRANCE - November, 28th 2005 GDF Privatization Gaz De France French Gas

ENERGY LAW - FRANCE - November, 28th 2005 GDF Changed to SA status Changed to SA status IPO in June 2005 IPO in June 2005 Grid operators must offer open access Grid operators must offer open access CRE CRE Competitors Competitors –CFM –GSO

ENERGY LAW - FRANCE - November, 28th 2005 French Nuclear Power Political Debate

ENERGY LAW - FRANCE - November, 28th 2005 Nuclear Power Debates Pillar of French energy politics. Pillar of French energy politics. La Hague: Reprocessing plant from Nuclear Waste La Hague: Reprocessing plant from Nuclear Waste Renewal of the French Nuclear Plants Renewal of the French Nuclear Plants ITER(International Thermo-Nuclear Experimental Reactor). This international project under the auspices of the IAEA, in Cadarache, Fr. ITER(International Thermo-Nuclear Experimental Reactor). This international project under the auspices of the IAEA, in Cadarache, Fr.

ENERGY LAW - FRANCE - November, 28th 2005 Energy Market Opening EDF – GDF in competition on their traditional market but not ready EDF – GDF in competition on their traditional market but not ready EDF – GDF Retirement issues EDF – GDF Retirement issues =} Union power, major strikes 2007 Deadline, politically debated by French MPs 2007 Deadline, politically debated by French MPs EDF renationalized ? EDF renationalized ?

ENERGY LAW - FRANCE - November, 28th 2005 Des Questions? Any questions ? Merci de votre attention!!! Thank you for your attention! Thank you for your attention!