Wednesday, January 7, 2015

Electricity: the State Council deems necessary a tariff adjustment – Boursorama

Electricity: the State Council deems necessary a tariff adjustment – Boursorama

The administrative court said Wednesday that rate increases which EDF was entitled 2012-2013 were to be honored. For residential customers, the increase will be substantial.

Things are rarely simple in setting energy prices, let alone when it comes to catching up tariff. On Wednesday, the State Council said the rate increases that EDF was entitled 2012-2013 were to be honored. At that time, the government had trimmed on applications for EDF while the law then in effect stated that the electrician’s supply costs are fully passed on to its customers.

Of course, the method of calculation has changed since, with a new method in use since autumn 2014 (ie to “stack” with the addition of several positions – from energy, transport, commercial costs …) but this does not prevent the old rules should be strictly adhered to in the previous tariff period, said the State Council.

competition distortion

Well aware of the need for this tariff adjustment , the authorities agreed initially with a triple increase of 5% for individuals in the summer of 2013, 2014 and 2015. But in the end, only the first increase took place in August 2013. In 2014, the new Energy Minister, Segolene Royal, has decided to suspend at the last moment the programmed 5% increase. Finally, individuals were subjected to an increase of 2.5% to 1 November. At that time, the Council of State was seized by the anode, the association that brings together the alternative operators in energy.

This is not the first time that the anode up to the plate: it has already entered several times the Council of State when the rise in gas prices was insufficient to cover supply costs GDF Suez. For the anode, things are very clear. When a level of regulated energy prices is insufficient, it distorts competition to the detriment of rival incumbents

Now that the Board of State considers necessary a tariff adjustment, he will intervene in what time frame and what will it amount? This is where things get even more complicated: there is no date and “the government has a few strings to modulate the upcoming decisions on prices,” said one expert dossier. The only certainty is the increase will be substantial given that the shortfall EDF was estimated by the regulator to over a billion

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