Gaz de France has spun off its natural gas distribution activities in France into a new subsidiary, Gaz reseau Distribution France, in compliance with regulations concerning competition.
Gaz reseau Distribution France (GrDF) will manage Europe’s largest natural gas distribution network of 185,000km and serve almost 9,100 municipalities representing 76% of the French population.
GrDF has been given all the assets, rights and obligations of GdF related to its distribution activities, and especially the concession agreements, which bind the utility with the municipalities.
GrDF will be responsible for the development, operation and maintenance of the networks, the capital investment strategy, the administration of concession agreements, as well as third parties’ access to the distribution network in a transparent and non-discriminatory manner.
The spin-off operation was completed on an asset transfer basis. GrDF will be a fully consolidated subsidiary of Gaz de France and the transfer of assets reportedly will have no impact on the group’s consolidated accounts.