Thursday, June 16, 2016

retroactive increase in regulated electricity tariffs’ of € 1.50 per month over 18 months “- Le Monde

Segolene Royal, Wednesday, June 15, at the  Elysee Palace, upon ratification of the climate  agreement, concluded on 12 December in Paris at  the end of COP21.

Some 28 million households and the largest electricity consumers must pay a retroactive increase in their bill. The State Council has announced, Wednesday, June 15, the cancellation of an order that limited 2.5% increase in electricity prices occurred in 2014 and which covered the period from 1 st November 2014 to 31 July 2015. It considers that these rates “had been set at a level clearly insufficient to ensure the upgrading of past tariff adjustments” . The high court gave three months for the government to issue new orders fixing this retroactive increase

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This recovery will be about “1.50 per month eighteen months “, or thirty euros on average per household, said Segolene Royal, the Minister of environment and energy Thursday morning on Europe 1. She also said the expected increase in the 1 st August for the 2016-2017 period will be “of less than 1%, maybe around 0.5%.” But since 2016, is the Energy Regulatory Commission (CRE) that returns the power to set rates once a year. The state maintains a veto, but if he refuses the increase decided by the “policeman” Energy, EDF receives no increase. And it is clear that within a year of the presidential election, the government will do everything to the limit. Even trigger a new appeal before the State Council which will decide … after the policy maturity

Read also:. Towards a retroactive increase in regulated electricity tariffs

the last appeal was filed by the national Association of energy retailer operators (anode), which includes other suppliers EDF. She judged the rise of 2.5% too low, particularly to offset insufficient increases in previous years. For the French Direct Energie, Italy’s ENI or the Belgian Lampiris, higher regulated tariffs EDF makes their own most competitive prices in the context of a liberalized energy market in July 2007. And only not the first time she grabbed the Council of State, on electricity as the gas. He had already given his favor and had directed the authorities to decide a catch over the period 2012-2013.



Investment Wall

Despite the threat of sanctions against judges of the Palais Royal, M me Royal did not hesitate, in late July 2014 to freeze simply the 5% increase promised by Jean-Marc Ayrault EDF before leaving Matignon. The Minister had made on behalf of the defense of consumer purchasing power, but said she began to study a new method of calculation. Yet it integrates wholesale prices (very depressed) and therefore warrants more than the changing rate fully covers EDF’s costs (production, transport, distribution, marketing).

L incumbent can only welcome the decision of the State Council when it is weakened by the collapse of wholesale prices, on the contrary, promotes its competitors thus providing cheap. Its CEO, Jean-Bernard Lévy, often claiming the state shareholder (85%) increase “regular and moderate” regulated rates. The former public monopoly, which needs visibility, made up hypothesis tariffs special 2.5% per year from 2016 to 2019, according to an internal document obtained by Reuters in January.

Read also: “In electricity, a good monopoly is better than a bad deal”

If Mr. Lévy calls for a rate increase, is that his group is facing a wall of unprecedented investment. It will modernize and secure the 58 nuclear reactors of its French site (€ 51 billion by 2025), finance 5 billion required for the deployment of 35 million meters ‘smart’ Linky of Enedis (ex ERDF) , invest in renewable energy (wind, solar) and energy services (Dalkia). And, above all, to strengthen overseas, including through the construction of two EPR reactors in the UK (ie 16 to 18 billion), an investment dispute within the company and M me Royal itself.

the closure of Fessenheim “to be held”

the Minister of environment and energy also came on the closing process of the Fessenheim nuclear power plant (Haut-Rhin). “The decree of Fessenheim operation stop must be taken before the end of this year (), so the process must be maintained and there is no reason that he does not “, Segolene Royal said, while EDF, the operator of the plant, wants to complete its discussions on compensation before engaging the closure of facilities.

under the law of energy transition, Fessenheim should close parallel with the entry into service of EPR Flamanville (Manche), scheduled for the end of 2018.

Read also: EDF refuses to initiate the closure of the Fessenheim nuclear power plant

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