MILAN, Feb 27 (Reuters) -

France's EDF is moving ahead with a possible listing or sale

of a stake in Italian unit Edison, three sources with knowledge

of the matter said, despite the regulatory uncertainty brought

about by Italy's new energy-sector decree.

In a meeting in Paris with its advisers earlier this week,

the French nuclear group dispelled doubts that an Italian decree

aimed at cutting energy bills could force EDF to shelve its

plans, the sources, who could not be named because discussions

are not public, told Reuters.

The clarification followed comments by Edison CEO Nicola

Monti that the decree could jeopardise EDF's plans for the unit.

"Unfortunately... depending on how the decree comes out, this

could also change the outlook for our business plan and even for

the possible opening of the capital to third parties," Monti had

said on February 18.

A few hours later, the government announced details of

its so-called 'decreto bollette'.

Sources had told Reuters last year that EDF's unit could be

valued up to 10 billion euros ($12 billion).

Initial estimates point to a potentially negative impact on

investment and growth prospects, particularly in Italy's

renewables sector, an EDF spokesperson said on Friday.

"Edison's teams are analysing the possible consequences. EDF

is also assessing, together with its advisers, the impact of

these various elements on the ongoing strategic review

concerning a potential minority transaction involving the share

capital of its subsidiary," the spokesperson added.

The decree includes the reimbursement of carbon dioxide

costs to gas-fired power plants, a measure that has cut

expectations on wholesale power though it still requires

approval by the European Commission.

It also cuts subsidies on certain renewables projects and

raises a corporate tax.

Uncertainty over the final regulatory framework will persist

until Brussels reviews the decree and the government converts it

into law.

EDF has been working with Intesa Sanpaolo and Lazard ( LAZ ) since

October to prepare the sale of a minority stake in Edison.

($1 = 0.8474 euros)

(Additional reporting Forrest Crellin in Paris; Editing by

Nivedita Bhattacharjee)