The EU Court of Justice (ECJ) responds to the State Council, the highest authority for administrative justice in France, who has requested his opinion and remains in control of the decision: the judgment released Wednesday is not intended to settle the dispute but to provide an interpretation.
the case pits the anode, the national Association of energy retail operators and the french State, which it accuses hinder the achievement of a competitive gas market by imposing maximum tariffs for the incumbent operator GDF Suez (now Engie) to Total Energie Gaz and local distribution companies.
their very nature defies the forces of supply and demand, regulated tariffs are inconsistent with the Directive on the internal gas market, first emphasizes the ECJ.
Three principles can however justify such prices. the pursuit of a general economic interest (security of supply and territorial cohesion), proportionality and public service obligations clearly defined
These are the last two items on which the Court asked the State Council to pay particular attention. “The Court doubts that the objective of territorial cohesion can be pursued through the imposition of regulated tariffs throughout the national territory” , particularly in remote areas, she said in a statement .
An appeal filed by the anode
the permanent nature of the offending rates and the fact that the regulation is necessary either to individuals and small businesses could also s ‘be contrary to the principle of proportionality.
the Court also asked the State Council to determine if there is not discrimination that regulation only applies to some companies and not to all of the gas distribution sector.
the case dates back to July 2013. the anode, the French association of alternative energy suppliers EDF and Engie former monopolies had filed an appeal before the Council of State against a 2009 decree establishing the rules for determining the regulated gas tariffs.
“Even if the shape, the judgment of the European Court of Justice (…) may seem inclined to let persist regulated tariffs, in fact on the merits, (…) it is clear that this demonstrates that regulated gas tariffs as they exist today are illegal “, reacted Fabien Choné, president of the anode.
“We do not see how the State Council could do otherwise than declare regulated tariffs illegal gas” , he added. If the Council of State was in this sense, France should review the current regulated tariffs mechanism.
The Council of State must now schedule a public hearing before making its final decision. Invalidation of the current regulated gas prices could also impact on the regulated electricity tariffs.
The anode is not forbidden to consider an appeal on this energy, depending on the result the current procedure.
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