GDF Suez is the third energy firm, after Germany's E.ON and RWE, to settle with the European Commission after the EU executive charged them with abusing a dominant position and restricting rivals' access to networks. European regulators have battled hard to open the energy market. EU countries reached a deal in March that will beef up regulatory power over giant utilities and protect consumers' rights.
"The remedies offered by GDF Suez provide a real opportunity for competitors to enter the French gas market and so offer energy consumers greater choice of gas supplier and more competitive prices," EU Competition Commissioner Neelie Kroes said in a statement.
"The remedies will improve structural access to French gas import infrastructure and contribute to an integrated and competitive single European energy market that can provide a secure supply of energy at affordable prices," she said. Under the settlement terms, GDF Suez will not be fined nor will it admit to any infringement of EU rules.
As part of the legally binding commitments, the company agreed to release rapidly a large share of its long-term reservations of gas import capacity into France, equal to about 10 percent of the total long-term import capacity.
It will continue to cut its share of those reservations to below 50% by 1 October 2014. GDF Suez was not ordered to sell off any assets, unlike E.ON and RWE, because doing so would not have resolved the competition problem, the Commission said.
GDF Suez shares were trading 0.7% higher at 28.82 euros by 11:01 GMT, outperforming a 0.2% gain in the DJ Stoxx utilities index.
The Commission had in July fined GDF Suez and E.ON a total 1.1 billion euros ($1.7 billion) for agreeing not to compete against each other in their respective gas markets, the first antitrust penalty for a utility in the 27-country EU.
The companies have denied any wrongdoing and said they would appeal.
(EurActiv with Reuters.)
