By Forrest Crellin

PARIS (Reuters) - Bernard Fontana, France's nominee to head state nuclear company EDF, would face a daunting to-do list if he gets the job, with his most pressing task being to conclude months of tense talks with French industry over the price of long-term power supply.

A new system for French electricity sales to heavy industry takes effect next year, while the lack of progress on the issue was enough to cost current CEO Luc Remont his job, according to a government source and media reports.

EDF's pricey offers have so far attracted few companies, raising the risk that both the utility and the country's biggest companies are left buying and selling at market prices without long-term visibility.

EDF's failure to agree new, long-term contracts with businesses had become a growing source of frustration for Paris, keen to support an industry already weakened by high energy prices in recent years.

It has also stirred debate about the company's mission, with industry executives and former officials calling for it to serve a public function.

President Emmanuel Macron's office said in an unexpected announcement on Friday that it had asked Fontana, currently boss of nuclear engineering firm Framatome, to take over from Luc Remont, whose mandate expires this summer.

A day earlier, Benoit Bazin, chief executive of construction materials company Saint Gobain, had called out EDF in a media interview for its failure to fulfil its "historic partnership" with industry.

"The core issue is: Is EDF a public company that should sell at cost or is it a commercial company that should make a profit?", said Emeric de Vigan, CEO at Paris-based energy consultancy 42 Advisors.

EDF does not disclose its costs of production and declined to comment on the change of leadership.

Remont, who has run EDF since its nationalisation in 2023, said in French newspaper Le Figaro on Sunday that he was not prepared to run the company like a public authority.

TOUGH TALKS

Fontana's appointment must be approved by parliament in the coming weeks. The country's largest party, the National Rally, plans to support his nomination, its member of parliament Jean-Philippe Tanguy told reporters on Tuesday.

Industry experts and analysts say Fontana would need to lower the company's offers to conclude negotiations.

EDF's nuclear fleet produces about 70% of France's electricity. Under the new nuclear production allocation scheme (CAPN) it can sell power at a fixed price under long-term contracts to large users, who make up about 10% of the country's total demand.

With only around a quarter of the amount initially targeted by the government committed, the company recently announced it would open up its supply to companies outside France, further angering domestic industry.

"The main problems are visibility and price," said Fabrice Alexandre, a representative at industry lobby Uniden, which represents companies like Renault and Air Liquide.

Industry is willing to pay more upfront for long-term security, but it expects a lower price, he said, adding that companies want deals finalised before the summer.

Fontana will need to offer prices of around 50 euros per megawatt hour (MWh) to win over industry, said De Vigan, well below the 70 euros or more that it has been proposing.

Progress in the long-term contract negotiations is also key to moving forward with a major buildout of new reactors, added De Vigan.

"If the old fleet is competitive enough, then demand will pick up and the new fleet will be needed," he said.

(Reporting by Forrest Crellin; Additional reporting by Elizabeth Pineau, Gus Trompiz and Leigh Thomas; Editing by Dominique Patton and Hugh Lawson)