As reported by Le Figaro, Tuesday, November 19, the Competition Authority recommends in a report to “prepare the abolition” of regulated electricity sale prices, which today concern 59% of individuals and 35% of small consumers .
It is a radical proposal which directly concerns the purchasing power of the French. In a report delivered Tuesday, November 19 and relayed by Le Figarothe Competition Authority paves the way for the disappearance of regulated electricity prices and recommends to the government to “thoroughly review the organization of electricity markets“and of”prepare for deletion” of this system. Currently, 59% of individuals and 35% of small consumers use regulated prices.
“They blur the price signal which should encourage consumers to be more energy efficient and have a strong impact on competition by limiting suppliers' outlets and the diversity of offers offered to consumers.“, pointed out the body in its report, also believing that they are a “obstacle to free competition“and they do not guarantee”low price and fixed price“. She recommends the establishment of other mechanisms, such as “the designation of one or more suppliers of last resort“.
The Energy Regulatory Commission issues a radically opposing opinion
This clear-cut opinion of the Competition Authority is far from being shared by the Energy Regulatory Commission (CRE). This body advocates for the maintenance of regulated electricity prices for the next five years and also defends its calculation method which would allow the implementation of “simple price offers” et “replicable by alternative suppliers“Faced with these divergent recommendations, the government will be responsible for deciding in the coming months. It is in this sense that it must draft a report for the European Commission with a view to the disappearance, at the end of 2025, of the Arenh, a device negotiated with Brussels to allow the emergence of competition for EDF.
published on November 20 at 11:07 a.m., Quentin Marchal, 6Medias
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