In a decision of 16 January 2020, the CRE proposed an increase of 2.4%(including taxes) in the “blue” tariffs for residential and non-residential customers(3.0% excluding taxes for residential customers and 3.1% excluding taxes for non-residential customers). This proposed increase takes account of the rise in prices on the wholesale energy markets, the level of ARENH curtailments for 2020, higher selling costs including the costs of purchasing energy savings certificates, and the adjustments made to narrow the gap between costs and revenues observed on regulated electricity sales tariffs during 2019. This CRE proposal was confirmed by tariff decisions of 29 January 2020 that were published in theJournal officiel of 31 January 2020, and applied from 1 February 2020.
In a decision of 2 July 2020, in view of changes in the TURPE network access tariffs applicable from 1 August 2020 and in application of the Energy Code, the CRE proposed an increase of 1.54% including taxes (1.82% excluding taxes) in the “blue” tariffs for residential customers and 1.58% including taxes (1.81%excluding taxes) in the “blue” tariffs for non-residential customers. This CRE proposal was confirmed by a tariff decision of 29 July 2020 that was published in the Journal officiel of 31 July 2020, and applied from 1 August 2020.
In a decision of 14 January 2021, the CRE proposed an increase of 1.61%including taxes (1.93% excluding taxes) in the “blue” tariffs for residential customers and 2.61% including taxes (3.23% excluding taxes) in the “blue”tariffs for non-residential customers from 1 February 2021. This proposed increase takes particular account of the rising cost of energy supplies and capacity guarantees, the “catch-up” adjustment to cover the cost-income differential on regulated sales tariffs in 2019 and 2020, movements in selling costs associated with unpaid receivable forecasts for 2021, particularly in the context of the Covid-19 pandemic, and adjustment of selling costs for non-residential customers who are still eligible for the regulated tariffs. This CRE proposal was confirmed by tariff decisions of 28 January 2021 that were published in the Journal officiel of31 January 2021, and has applied since 1 February 2021.
The costs borne by the network operators Enedis and RTE for management of the public electricity transmission and distribution networks are covered by the“TURPE” tariffs for using the networks, as stipulated in Articles L. 341-2 and following of the French Energy Code.
These tariffs apply to users connected to the distribution and transmission networks.
The TURPE tariffs are approved by the Ministry for the Ecological Transition following reasoned proposals submitted by the CRE.
On 17 November 2016, the CRE published its decisions for the TURPE 5 Transmission (high voltage) and TURPE 5 Distribution (medium voltage and low voltage) tariffs for the period from 1 August 2017 to 31 July 2021.
On 28 June 2018, the CRE adopted a decision regarding the TURPE 5 HTA-BT (medium voltage – low voltage) tariff and the new version of that tariff from 1 August 2018, known as the “second TURPE 5 HTA-BT”. Among other things, this decision reflected implementation of the Council of State’s partial cancellation decision of 9 March 2018. This decision had no impact on the tariff preparation method, the operating expense trajectory, the principle of regulation for incentive purposes, or the regulations applicable to Linky meters.
The CRE published two decisions on the TURPE 6 Transmission (high voltage) andTURPE 6 Distribution (medium voltage – low voltage) on 21 January 2021, after the Higher Energy Council (Conseil supérieur de l’énergie) gave its approval. These tariffs will apply from 1 August 2021 to 31 July 2025.
On 6 June 2019 the CRE adopted a decision concerning the TURPE 5 tariff for the high voltage network and its revision at 1 August 2019. The tariff scale increased by an average 2.16% from 1 August 2019, comprising +1.61% for inflation and+0.55% to balance the income and expenses adjustment account (CRCP ). (1)
On 14 May 2020, the CRE adopted a decision reducing the TURPE 5 tariff for the high voltage network by -1.08% from 1 August 2020, comprising +0.92% for inflation, and -2% to balance the CRCP.
In decision n° 2021-12 of 21 January 2021, the CRE set a nominal pre-tax weighted average cost of capital (WACC) of 4.6% for the return on RTE’s asset base, compared to 6.125% for TURPE 5. The average tariff increase will be +1.09% at 1 August 2021 and an average +1.57% per year for the whole tariff period, assuming average annual inflation of 1.07% over that period. The CRE’s decision on the TURPE 6 Transmission tariff was published on 21 January 2021.
On 25 June 2019 the CRE adopted a decision concerning revision of the TURPE 5tariff for the medium and low voltage network at 1 August 2019. The tariff scale increased by an average +3.04% from 1 August 2019, comprising +1.61% for inflation, +1.45% to balance the CRCP, and -0.02% in application of the Council of State’s decision of 9 March 2018.
By a decision of 20 May 2020, the CRE adopted a +2.75% increase to the second TURPE 5 tariff for the medium and low voltage network from 1 August 2020. This increase comprises +0.92% for inflation, +1.85% to balance the CRCP, and-0.02% in application of the Council of State’s decision of 9 March 2018.
In decision n° 2021-13 of 21 January 2021, the CRE asset the margin on assets at2.5% (unchanged from the Second TURPE 5) and the additional return on regulated equity at 2.3% (compared to 4% for the Second TURPE 5, principally asa result of the lower market rates and lower corporate income tax rates). The average tariff increase will be +0.91% at 1 August 2021 and +1.39% per year for the whole tariff period, assuming average annual inflation of 1.07% over that period. The CRE’s decision on the TURPE 6 Distribution tariff was published on21 January 2021.
After Law 2017-1839 of 30 December 2017 confirmed the CRE’s competence for supplier commissioning, the CRE issued a decision on 18 January 2018 reiterating the principles adopted in its previous decision of 26 October 2017 regarding remuneration payable by distribution network operators to suppliers for the service of managing single-contract customers on their behalf.
This decision upheld the principle of identical commissions for all suppliers selling single-contract market-price offers. Only regulated electricity tariffs were to give rise to slightly lower commissions (€4.50 instead of €6.80 per point of delivery until 1 August 2019), with progressive reduction of this difference to zero by1 August 2022.
For remuneration of past customer management charges (prior to1 January 2018), the CRE’s decision set an amount it considered as a cap that canbe passed on through the TURPE tariff.
However, Law 2017-1839 of 30 December 2017 introduced a measure intended to rule out the possibility of suppliers receiving remuneration from network managers for past customer management services. On 23 December 2016, ENGIE brought an action against Enedis before the Paris Commercial Court claiming such remuneration. In the course of this litigation, ENGIE filed an application for a preliminary ruling on constitutionality concerning the arrangements introduced by the French “Hydrocarbons” law which ended the possibility of obtaining supplier commissioning for past services. These arrangements were validated by theConstitutional Council in its decision 2019-776 of 19 April 2019. The proceeding sat the Paris Commercial Court are still ongoing.
The TURPE tariff for the medium and low-voltage network is identical for every electricity network operator. It is determined on the basis of forecast expenses to be borne by Enedis, provided they correspond to an efficient network operator, and forecasts of the number of consumers connected to Enedis’ networks, their consumption, and the power level subscribed.
As this tariff cannot always cover the specific needs of certain service zones, the Electricity Equalisation Fund (FPE) exists to compensate for disparities in network operating conditions. The Energy Code requires electricity distribution costs resulting from public network operation to be shared between public distribution network operators. A normative formula for calculating the cost allocation is defined in a decree and a ministerial order and applies to all distribution network operators: in the EDF group, the entities concerned are Enedis, Électricité deStrasbourg and SEI.
(1) A mechanism to measure and offset main differences between the actual figures and the forecasts on which tariffs are based.
