The Competition Authority created a shock wave in the energy debate by recommending that preparations be made for the abolition of regulated electricity sales tariffs (TRV). These prices would constitute a brake on competition and would not sufficiently encourage energy saving behavior.
Regulated prices, protection for consumers or a brake on competition?
Regulated prices, set by the State on the proposal of the Energy Regulatory Commission (CRE), today play a central role in protecting French consumers in the face of market volatility. In fact, they make it possible to smooth out variations in wholesale electricity prices, thus offering a certain stability to households.
These prices, in particular backed by the Arenh mechanism (regulated access to historic nuclear energy), limit the impact of the spectacular increases observed in recent years. Without this system, the price increase could have reached 100% in January 2023, compared to 80% thanks to the smoothing effect.
A decision under high tension
However, the Competition Authority considers that this regulation has become an obstacle to the functioning of the market. She claims that TRVs limit the diversity of offers offered by alternative suppliers and restrict investments in the sector. In his eyes, the current model guarantees neither low prices nor real stability for consumers in the long term.
In direct opposition, the CRE advocates maintaining TRVs for at least five years, emphasizing their role as a “safety net” for 20 million households. It also recalls that these prices encourage more responsible consumption via options such as off-peak hours or the “Tempo” offer, which help to balance the electricity network by reducing peaks in demand.
The debate is all the more crucial as the end of the Arenh system, scheduled for the end of 2025, will require a profound overhaul of the electricity market. In this context, the French government must decide before the end of the year and submit a report to the European Commission. The Minister of Energy, Olga Givernet, has already recognized the French's attachment to these tariffs while emphasizing the importance of taking into account the developments necessary to respond to European constraints.
