UPDATE 6-France digs in against EU energy unbundling

(Releads, adds French energy minister quote)

By Muriel Boselli

PARIS, Sept 12 (Reuters) - France joined its energy industry in urging the European Commission on Wednesday to dump its plan to separate energy production from distribution assets.

French Energy and Environment Minister Jean-Louis Borloo said in a speech to a gas conference that France opposed the plan and would put forward alternative proposals next week.

"We are in favour of the option of regulated seperation," Borloo said in a speech read by an energy ministry official.

This means former monopolies can keep ownership of their grid with the regulator ensuring equal access to grids.

Top French energy industry officials also voiced strong opposition to the European Commission plans.

"For improved competition, unbundling is not the right solution," the head of Total (TOTF.PA) gas and power, Philippe Boisseau told the conference in Paris.

The comments echoed those of the chief executives of utilities Gaz de France GAZ.PA and Suez (LYOE.PA).