EDF supply arm wants rise in supply tariffs-report

PARIS Aug 27 (Reuters) - ERDF, the newly set up distribution network arm of EDF (EDF.PA), said on Wednesday it wanted a 15.1 percent rise in electricity distribution tariffs, ERDF's chairman said in an interview.

The rise, which would cover the 2009-2012 period, would help improve the quality of supply to households and businesses, Michel Francony, ERDF's chairman told French daily La Tribune.

"Our revenues do not allow us to respect any longer our commitments to our customers and to offer the service quality level and electricity supply expected by local authorities," Francony said.

"This is why I propose to the energy regulator (CRE) an adjustment of the tariffs, allowing for a 15.1 percent rise of our revenues in the 2008-2012 period," he said.

ERDF oversees 1.256 million kilometres of medium and low-voltage lines while French grid operator RTE, which is also 100-percent owned by EDF, manages high voltage lines.

He cited as an example of the deterioration in service, the fact that clients had not received electricity for an average of 72 minutes, against a target of 60 minutes.

"But depending on the regions this can reach up to five hours. This is unacceptable," Francony added.

ERDF, which invested 1.7 billion euros in 2007, plans to spend around 2 billion euros in 2008 to modernize its infrastructure.

It also forecasts rising expenditure in coming years as it needs to replace around 35 million electricity meters in France at a cost estimated of 6 billion euros and reinforce its power grid to cope with extreme weather at a cost of 7 billion euros. (Reporting by Muriel Boselli)