The law of February 2000 introduced the gradual opening of the electricity supply market to competition, in compliance with the commitments of the European directive of 1996, which it adapted for France. The law:
defines public service duties in matters of electricity and treats their financing,
provides for the creation of an independent Transmission System Operator,
provides for the financial separation of network activities,,
creates the Commission de Régulation de l’Énergie (CRE), the French regulatory body for energy, which contributes to the proper functioning of the electricity and natural gas markets,,
provides for non-discriminatory access to the electricity network for all users.
In July 2000, EDF created an autonomous division dedicated to managing the electricity transmission network, the RTE (Réseau de Transport Électrique, French TSO).
June 2003, a 2nd European directive required the legal separation of the Transmission System Operator and the Distribution Network Operator.
The following year, in compliance with the law of August 9, 2004, which adapted this directive for France, EDF operationally separated its activities:
production and supply entered the competitive sector,
transmission and distribution remained regulated activities.
For distribution, EDF thus created:
a functionally independent management service for the distribution network, EDF Réseau Distribution (ERD),
a common operator with Gaz de France, EDF Gaz de France Distribution (EGD).
The law also called for the legal separation of the electricity Transmission System Operator (RTE).
The law of December 2006 relating to the energy sector perfected the system by:
adding to the distribution manager missions,
planning for the legal separation of distribution network managers (having more than 100,000 customers) through the transfer of distribution assets, rights and obligations to these managers,
adapting the measures that guarantee the independence of managers,
requiring the creation of a service held in common between gas and electricity subsidiaries.