An upheaval in the electricity market?
More precisely, in the context of the scheduled disappearance on December 31, 2025 of regulated access to historic nuclear electricity, the Authority recommends that the government thoroughly review the organization of electricity markets in France. For this, the entity suggests in particular “concretely prepare the elimination of TRVEs without renouncing the public policy objectives attributed to them but by allocating better targeted instruments to them.“
Why such a recommendation when the TRVE “constitute for these [les utilisateurs] a reassuring offer that protects them from short-term wholesale price variations“, as the Authority itself writes? Today, 59% of individual consumers and 35% of small consumers use it.
The explanation is as follows: “However, they do not constitute either a low price or a fixed price, and have not prevented ad hoc interventions by public authorities in the level of retail prices, which they sometimes give rise to. In addition, they blur the price signal which should encourage consumers to be more energy efficient and have a strong impact on competition.“
Concerning alternative solutions, the Competition Authority mentions “better targeted instruments, such as the designation of a supplier of last resort.“
The Energy Regulatory Commission steps up to the plate
A totally different story, however, from the Energy Regulatory Commission. Via its own report the same day, the entity encourages the government to keep the TRVE for the next five years. In particular, we can read that “TRVEs are compatible with the proper functioning of the market and the development of competition for the benefit of consumers.“
If the CRE is therefore for RTVE, it nevertheless believes that the market can still be improved, and thus proposes a series of recommendations to the government to strengthen competition. It now remains to be seen what the latter will do with these divergent opinions and what the consequences will be for this sector and consumers.
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