The European Commission says that it has reason to believe that Electricité de France (EDF) may have abused its dominant market position to artificially inflate wholesale electricity prices.

Commission officials have confirmed that they have carried out unannounced inspections at EDF offices and intend to investigate whether the company has breached European antitrust legislation. The raids follow on from a more general energy sector competition inquiry that was concluded in early 2007.

EDF says that it is co-operating fully with the Commission’s investigation.

Separately, the Commission says it has widened an investigation into France’s regulated tariff regime, which gives EDF’s corporate customers access to below-market rates for electricity and which was recently extended to 2010. The Commission believes that the regime might constitute illegal state aid.

The European Commission says that the energy sector competition inquiry of 2007 allowed it to gain an in-depth understanding of the functioning of the electricity sector, and to draw conclusions as to where action was needed in respect of competition law. It has already taken action against other large EU energy firms – notably the German utilities – resulting in the unbundling of parts of their businesses.