Reports from industry sources suggest that Enel has gained a foothold in the French market as a result of the deal struck with EDF last year.
The Financial Times has reported that Enel has gained around a 3% share of the French electricity market. Enel is to receive its power from EDF for resale on to French retail customers under an agreement signed by the two sides late in 2005.
The deal ends a long running dispute between EDF and the largest Italian utility over access to each other’s power market. A compromise allowing Enel greater access to the French market was mooted in the summer of 2005 after EDF became embroiled in a ‘put option’ wrangle with the Italian authorities over the future ownership of Italian generator Edison.
Under the terms of the latest agreement, Enel is also set to gain a 12.5% stake in the European Pressurized Reactor project to build a new generation of nuclear plant at a site in northern France, and it is also hopeful of acquiring a 35% share in the number two French power supplier Snet.