The increase in the prices of Energy Saving Certificates (EEC) worries energy players as the end of the fifth period (P5) and the transition to the sixth (P6) approaches. In his recent study entitled “The CEE market: succeeding in P5, preparing for P6”, Les Echos Études highlights the growing tensions in this key market in French energy policy. This mechanism, intended to reduce greenhouse gas emissions and improve energy efficiency without direct cost to the State, faces ever more ambitious objectives. This increased pressure is causing costs to soar, which is worrying market players. What are the causes of this increase? What are the impacts for those obliged and consumers? And what perspectives open up for the future?
Summary :
The fundamentals of EWCs: a system under tension
A key mechanism for the energy transition
Energy Savings Certificates (EECs) have been at the heart of French energy strategy since their creation in 2006. Designed to encourage energy efficiency, they require energy suppliers, called “obligators”, to make savings. energy via concrete actions or by purchasing certificates from other actors.
An increase in the power of objectives
Each period is marked by increasing objectives. Between the fourth period (P4) and the fifth (P5), the target jumped from 2,133 TWh cumac to 3,100 TWh cumac. That’s an increase of 45%. These ambitions reflect France's desire to respect its climate commitments while strengthening its energy independence. However, these objectives create increased pressure on the market.
Growing pressure on prices
CEE prices, key indicators of the system, reflect this dynamic. According to Les Echos Études, the average price of classic CEEs is close to €8/MWh cumaca historically high level. For precarious CEEs, which specifically target vulnerable households, the cost approaches €9/MWh cumac. However, this situation raises questions about the accessibility and durability of the system.
P6 prospects amplify pressure
This increase in CEE prices can be explained by a combination of factors. First of all, the targets set are particularly high, which puts strong pressure on the market. Then, the supply of certificates remains limited, which accentuates tensions.
Finally, the anticipation of needs for the next period (P6) pushes players to accumulate certificates, which further fuels the increase in costs. Indeed, operators are seeking to secure volumes in view of P6, where objectives could reach 1,600 TWh cumac per year, i.e. a doubling of current requirements.
The impact of the increase in CEE prices on market players
The increase in CEE prices has significant repercussions on all stakeholders.
1. The “obligated” and the consumers
Energy suppliers, the main obligated parties, directly bear the increasing cost of EECs. This burden is often passed on to end consumers via increases in energy prices. For households, and in particular those in a situation of energy povertythese increases worsen financial difficulties. For example, an increase of 1 €/MWh cumac on the CEE market can lead to a significant increase in energy bills for millions of households.
2. Delegates and specialized operators
For companies specializing in the collection and management of CEE, this price surge is an opportunity, but also a challenge. On the one hand, the valuation of the CEE collected increases, which makes their activity more profitable. On the other hand, competition is intensifying and the costs of acquiring new certificates are increasing.
Furthermore, the speculative dynamics of the CEE market fuels instability. Players seek to maximize their profits in the short term, which exacerbates price tensions. According to Les Echos Étudesthis race for accumulation is particularly marked as the end of P5 approaches.
3. Public authorities
For the authorities, the rise in CEE prices represents a dilemma. On the one hand, it reflects the effectiveness of the system, which pushes players to invest more in energy efficiency. On the other hand, it raises questions about the fairness and sustainability of the mechanism. In order to maintain a balance, regulatory adjustments may be necessary to limit excessive price fluctuations.
Perspectives for P6: what solutions to control costs?
The transition to the sixth period (P6) represents a major turning point for the CEE market. With annual objectives estimated at 1,600 TWh cumacthe challenges are multiple. Here are some ways to control the rise in CEE prices:
Better goal planning
The objectives set must be ambitious, but realistic. Thus, closer consultation between public authorities and market players could make it possible to anticipate constraints and avoid peaks of tension. For example, a schedule for reviewing objectives every two years could provide more predictability.
Technological innovation
The introduction of new technologies in actions eligible for EECs could diversify the offer and reduce implementation costs. For example, innovative insulation, smart energy renovation or even digital energy efficiency solutions could play a key role.
Strengthening transparency
To limit speculative effects, greater transparency of market data is essential. In this regard, the regular publication of available volumes, transactions and average prices could reduce uncertainties and stabilize the behavior of players.
Consumer awareness
Finally, reinforced communication with households and businesses on the advantages of CEEs and potential energy savings is crucial. By encouraging more players to participate in the system, the supply of certificates could be increased, thus helping to control costs.
