UPDATE 2-French power market needs more competition-report

*EDF rivals should access baseload output-report

*Report proposes to end regulated tariffs to industrials

*Regulated tariffs to households should be maintained-report

(Updates with EDF reaction, analyst comment)

By Muriel Boselli

PARIS, April 24 (Reuters) - A French expert committee wants more competition in France's lacklustre electricity market, where state-owned EDF (EDF.PA) operates the country's huge nuclear production capacity.

The French Finance and Ecology ministers appointed the committee in October to make proposals on the power market's organisation in a bid to encourage investment while protecting consumers' interests.

The French electricity market has been fully liberalised since July 2007 but EDF competitors such as Poweo (ALPWO.PA) or GDF Suez (GSZ.PA) are struggling to attract clients because they do not have access to baseload electricity output.

French households and businesses also benefit from low regulated prices, making it difficult for newcomers to beat EDF's state-fixed tariffs.

"The commission recommends to allocate to all suppliers a right to access baseload electricity at a regulated price, reflecting the economic conditions of the historical nuclear network at a volume which is proportional to the supplier's client portfolio on the French territory," the committee said in its report.

But the members committee said that French nuclear production should continue to be operated by a single state-owned utility.

EDF said it approved the opening of the French electricity market.

While the Champsaur report recommended the ending of regulated tariffs to industrials, it believed households should continue to benefit from state-fixed tariffs.

The European Commission has been calling for France to end its regulated tariffs to French industries for years, arguing it gives them a competitive edge.

"All suppliers should offer regulated prices (to consumers)," it said.

"This organisation will allow the development of the electricity market while securing electricity supplies and fair prices for end-consumers," the report said.

"It will allow price signals which will encourage demand control especially during peak demand periods," it added.

The government will in the next few weeks make concrete proposals, it said in a press release.

EDF shares jumped 6 percent after the report was released.

"The market is reassured, there were fears that EDF could see its tariffs frozen...," said Daniel Samana, an analyst at Exane BNP.

"EDF's competitors are benefiting from this too, E.ON and GDF Suez are up as well."

E.ON (EONGn.DE) was up 4.89 percent and GDF Suez 3.4 percent. (Additonal reporting by Benjamin Mallet and Michel Rose, Editing by Keiron Henderson)