EDF slammed by Tartam tariff pricing

The French government's implementation of regulated energy prices has hammered its state-owned champion's 2008 results and undermined market liberalisation. Roderick Bruce reports

French utility EDF has announced that it is to sell off assets and attempt to cut debt after its 2008 earnings declined 39% to EUR3.4 billion. A key factor in the decline in earnings was the increased costs associated with the Tarif Reglemente Transitoire d'Ajustement du Marche (Tartam), which cost 85% state-owned EDF EUR783 million after tax.

The French government implemented Tartam after strong lobbying from consumers who switched way from EDF's regulated prices to market-derived deregulated

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