(Boursier.com) – In a decision released Wednesday, the Council of State rejected an appeal against rising electricity rates occurred on 1 November, deemed insufficient by the anode, National Association energy retailers and competitors of EDF. “The judge found that most of the criticisms (…) were not at this stage of the litigation, doubt the legality of the tariffs,” it said in the decision. He added that the tariffs “guarantee a sufficient margin to competitors’ and do not threaten their economic situation. The condition of urgency invoked by the association therefore has no place. However, the State Council said that on the bottom, the request for cancellation will be considered later.
New tariff formula
The State Council recalls in particular with the new calculation method, “the regulated tariffs no longer need to cover the costs of EDF” contrary “to the previous legal framework.” Moreover, the mere obligation to take account of EDF’s costs, was respected, says the highest French administrative authority. To put an end to the numerous appeals, a decree revising the calculation of regulated tariffs was published on October 30th in the Official Journal. It should also help to protect the purchasing power of French households.
Mandatory Catch
In this order the State Council also decides on “catching up of the observed differences rates and EDF’s costs on the previous tariff period. ” In 2012 and 2013, the government limited the increase in prices of 2% to protect the consumers’ purchasing power, while the Energy Regulatory Commission (CRE) recommended an increase of 5.7% to cover costs of EDF. The authority notes that for the “blue” and “yellow” tariffs, these retrofits have been taken into account by the legislature in November, which is not the case for the “green” tariff (companies). For the judge, so there is “doubt on the legality” of this rate.
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