The Court of Auditors asks France to review the regulation of the electricity market

The Court of Auditors calls for a rapid change in the regulatory tools put in place since the liberalization of the European electricity market.

AP - Frank Augstein

Text by: RFI Follow

2 mins

The Court of Auditors publishes this Tuesday, July 5 a severe report, that AFP and Figaro have obtained, on the growing dysfunctions of the electricity market in France for ten years.

It asks the government for a rapid development, within 18 months, of the regulatory tools put in place since the liberalization of the European electricity market.

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The Court of Auditors certifies "

regular and sincere

 " the general state budget for 2021, while highlighting a sharp increase in public spending.

Expenditure, “

excluding support and recovery measures

 ” linked to the pandemic, increased by 17.6 billion compared to 2020. 

On the other hand, the Court of Auditors will publish this Tuesday a report on the electricity market in France for ten years.

And the verdict is clear: “

Neither readable nor controllable

”.

These are their conclusions after a rare evaluation of the organization of the electricity market put in place more than ten years ago to solve a complex equation: trying to comply with Brussels' requirements to introduce competition while trying to keep prices low for consumers.

Slippage of intervention devices

The report notes that the Regulated Sales Tariffs (TRV), from which 70% of households benefit, have since 2019 been “

increasingly exposed to variations in market prices

”.

However, they were designed to protect consumers. 

Another device evaluated: the Arenh.

This Regulated Access to Historic Nuclear Power system grants a reduced price until 2025 to manufacturers and EDF's competitors on a nuclear electricity quota. 

Eighteen months to evolve

This “

did not go as planned 

”, assures the Court of Auditors.

And if it estimates that over ten years, EDF was able to cover its costs, without this system, the incumbent public operator would have earned an additional 7 billion euros. 

Faced with his findings, the magistrates of rue Cambon are asking the government to change the regulatory tools within 18 months.

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  • France

  • Energies

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