Product details

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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 the withdrawal of employee perks. Despite the widespread unrest, the government has decided to continue with its efforts to privatise the sector and end the monopoly of EDF. This case study enumerates the evolution and monopoly of EDF and the advantages gained by the company as a state-owned entity. The case also highlights the exclusive benefits enjoyed by EDF''s employees as ''state-owned employees'', and the impact of the EU directive on those benefits. The case also elaborates the government''s efforts towards the privatisation of EDF and the workers'' opposition to privatisation. The case provides scope for discussing the dilemma of the French government in coping with the internal unrest and implementation of the EU directives, as the deadline approaches.
Location:
Size:
USD64.0 billion (2004 sales)
Other setting(s):
2002-2005

About

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 the withdrawal of employee perks. Despite the widespread unrest, the government has decided to continue with its efforts to privatise the sector and end the monopoly of EDF. This case study enumerates the evolution and monopoly of EDF and the advantages gained by the company as a state-owned entity. The case also highlights the exclusive benefits enjoyed by EDF''s employees as ''state-owned employees'', and the impact of the EU directive on those benefits. The case also elaborates the government''s efforts towards the privatisation of EDF and the workers'' opposition to privatisation. The case provides scope for discussing the dilemma of the French government in coping with the internal unrest and implementation of the EU directives, as the deadline approaches.

Settings

Location:
Size:
USD64.0 billion (2004 sales)
Other setting(s):
2002-2005

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