UPDATE 1-EU welcomes EDF changes in electricity resale

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BRUSSELS, July 31 (Reuters) - The European Commission welcomed on Thursday a promise by Electricite de France (EDF.PA) to ease conditions for selling electricity to Exeltium, which provides power to large corporations.

The European Union executive launched formal proceedings against EDF in July, 2007 over restrictive contract conditions, which could lead to fines.

EDF has now promised to permit re-sale of electricity provided to Exeltium and to allow it the opportunity to opt out of its contract after 10 years and then at five-year intervals.

The Commission said that for the most part promised changes in the contract "will address in a satisfactory manner the particular concerns raised by the Commission with respect to this specific contract..."

The Commission said it continued to have concerns about other companies which had contracts with similar conditions.

In 2007, the Commission began formal proceedings against both EDF and Electrabel for trying to foreclose markets by placing conditions on the sale of electricity.

Exeltium is a consortium of large companies that act together to purchase power from EDF. The consortium is made up of more than three dozen companies, including such energy intensive users as Pechiney, ArcelorMittal (ISPA.AS), Arkema (AKE.PA), and Rhodia RHA.PA.

The Commisison said that whether or not the electricity would be re-sold by the companies themselves, or under the umbrella of Exeltium, was a business secret and it could not comment. (Reporting by David Lawsky, editing by Sue Thomas)