What future for State-regulated electricity sales tariffs?

Published on La Tribune, 27, November 2024 

In a report dated November 7, 2024, the French Energy Regulation Agency  recommended that the government maintain regulated tariffs for the sale of electricity. A few days later, it was the turn of the French Competition Authority to issue its report, recommending that preparations be made to abolish them. Why did these two independent administrative authorities come to such contradictory conclusions?  

TRVE and its regulation 

Regulated electricity sales tariffs (TRVE) are contracts for the supply of electricity, the price of which is set by the public authorities, on the recommendation of the Commission de Régulation de l'Energie (CRE). The CRE calculates tariffs by piling up costs (regulated access to historical nuclear electricity, cost of additional supply at market price, capacity guarantee, transmission costs, marketing costs). It proposes them to the Minister of the Economy (who will add taxes) and to the Minister of Energy. If this proposal does not meet with the government's approval, it can reject it and set the TRVE itself.  

These TRVEs apply to households and small businesses. By June 30, 2024, more than half of the 40 million consumption sites (representing a quarter of the quantities consumed) had subscribed to a TRVE contract.

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