Vapour rises from cooling towers at the Saint-Laurent-des-Eaux nuclear power plant, operated by Electricite de France SA (EDF), in Saint-Laurent-des-Eaux, France.
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“The Commission’s investigation confirmed that EDF received an individual, unjustified tax exemption which gave it an advantage to the detriment of its competitors, in breach of EU State aid rules”, EU Competition Commissioner Margrethe Vestager said in a statement.
That tax break gave EDF “an undue economic advantage compared with other operators on the market and so distorted competition”, the commission said in a statement.
The case, dating from 1997, has been going through the EU court and regulatory system since 2003.
Today EDF is a publically traded company that competes in electricity markets worldwide, but remains 85 percent owned by the French state.
French Economy Minister Emmanuel Macron told reporters in Paris that the EU’s decision would in no way “weaken” the finances of EDF.
In the second half 2015, this decision should lead to an increase in net financial debt of the Group of around 0.9 billion euros, EDF said.
The order to claw back the aid is the latest chapter in the EDF case, which was re-opened two years ago after the EUs top court faulted the commissions earlier handling of the probe.
The commission said the decision had been taken because Britain had shown there was a “genuine market failure” which meant that “without public support this investment could not take place”.
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The European Commission ordered France to recover 1.37 billion euros in state funds from French electric utility EDF (EDFEF.PK) after concluding the French electricity supplier had benefited from illegal tax breaks. This includes the money from the 1997 tax exemption and another €488 million of interest, the EU said Wednesday.
