Govenrment and Business Environment Case Study

Electricite de France (EDF): The French Electricity Giant's Privatisation Woes

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Abstract:
Electricite de France (EDF) is the largest electricity provider in the world and a state-owned company of France. Over the years, EDF has enjoyed a monopoly in the electricity market of France. But the EU (European Union) directive mandated all the member countries to open their markets for outside competition. France, being a member of the EU, had to comply by the directive and deregulate some sectors including electricity. As part of the deregulation, the government has planned the privatisation of EDF. But the privatisation move has been strongly resisted by its employees, which according to them might lead to withdrawal of perks enjoyed by them. Despite the widespread unrest, the government has decided to continue with its efforts to privatise the sector and end the monopoly of EDF.

Pedagogical Objectives:

• To discuss the French government initiatives in complying with the EU directives to open the electricity industry for competition, and also in dealing with the resultant unrest among the workers, who are opposing the privatisation of EDF.

Keywords : Electricite de France (EDF),Government and Business Environment Case Study, Largest electricity company monopoly, French electricity market, Privatisation and deregulation, European Union (EU) directive, State-owned employees, French government state-owned company, Workers opposition and strikes unrest, The General Confederation of Labour (CGT), Workers Union, Trade Unions, blackout, Electricity production and distribution, Structural impediments, economic progress, Improved choice for consumers, Initial public offering (IPO), Public sector workers