French utility Gaz de France does not exclude investing in nuclear power to help supply its clients, a company executive said on Friday. As the countdown starts to the full opening of the European Union energy market on July 1.
Henri Ducre, business director at Gaz de France told reporters that to be a big player the former gas company had to have nuclear energy. "Regarding nuclear, we do not exclude the possibility of being an investor," Ducre said. "If you want to be a big energy company, to have a real position is to have access to nuclear energy."
But Ducre said there was no ongoing talks for GDF to invest in nuclear. Gaz de France is in talks to merge with French utility Suez, which is reported to be studying plans to build a nuclear reactor in France. At present, all of France's 58 nuclear power plants are run by power giant and former monopoly EDF.
GDF said it would make offers to supply electricity to households from July 2, matching EDF's state-subsidised tariff. "The offers will be fixed for lengths varying from one to two years," Ducre said, adding they had no short or medium term market share target. GDF will produce part of its electricity thanks to its planned and existent gas-fuelled power stations, its wind power farms as well as purchases on the wholesale market.
French energy markets have been open to business, but not retail consumers, since 2004. GDF already supplies power to 200,000 business clients. The company aims to keep all of its household gas clients but says it will focus on its clients that use gas for heating.
"This represents seven million customers out of a total of 11 million," Ducre said. Free-market offers for gas would also be fixed for periods ranging from one to three years, he said, with prices some 24 euros over the 700 euros currently paid on average yearly. "We don't expect the market opening (with) a big bang and we certainly won't provoke a big bang," Ducre said.
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