Wednesday, January 7, 2015

Electricity: the State Council decided not to suspend … – Liberation

Electricity: the State Council decided not to suspend … – Liberation

The judge of the State Council on Wednesday rejected the request of EDF’s competitors to suspend a government decree which defined the regulated tariffs for electricity sales from a new calculation method and a tariff installed afterwards.

The magistrate found that the condition of urgency invoked by the National Association of Retailers energy operators (anode, which represents EDF competitors) was not met, but the highest administrative court will rule “later” on the merits of the application for annulment brought by the anode against these new rates, she said in a statement.

Minister of Ecology and Energy, Segolene Royal, and the Minister of Economy, Emmanuel Macron, had taken 30 October 2014 a tariff decree establishing the new blue regulated tariffs (for individuals and small businesses) , yellow and green (for companies) from the new method of calculating these rates defined by decree on 28 October.

This method, called “by stacking,” plans to determine the tariff by adding the costs of the various components of the sector especially including the price of electricity on the wholesale market, and not by the sole consideration of EDF accounting costs.

In addition to the new calculation method, the new rates included a catch made necessary to cover the shortfall suffered by EDF in 2012 and 2013 due to the difference in these two years between applied rates and the costs borne by the company.

On November 1, regulated tariffs have increased by 2.5% for individuals.

Anode however considered that these new rates did not respect the principle of cost recovery EDF, which must allow alternative suppliers to compete with EDF.

If the magistrate of the State Council acknowledged that the decree “did not provide any tariff adjustment for green tariffs”, he considered, however, that “the economic and financial situation of EDF competing suppliers could not be threatened to the point that the lack of a single rate group – green tariffs – requires a suspension without waiting for the final judgment in the case” <. / p>

The president of the anode, Fabien Choné, said he was “extremely disappointed” by the decision, even if it is only an interim proceedings.

But it is above all “extremely surprised” the appreciation of the State Council on the issue of coverage of EDF’s costs.

“In the state of now applicable law, regulated tariffs no longer need to cover the costs of EDF. This is a difference with the previous legal framework, the light of which the Council of State overturned previous fares, “and the State Council said in a statement.

Yet” in Community law (European) won by French law, there is no doubt that regulated prices can not be lower than the costs, “said Mr Choné, adding that beyond the legal question” economic point of view, regulated prices that do not cover the costs (EDF) makes no sense. ”

The anode is scheduled to meet Friday to discuss any other procedures.

At the Paris Bourse, EDF recorded the largest decrease in the CAC 40 (-1.72%) on the day.

AFP

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