In accordance with Article L. 337-4 of the French Energy Code, the CRE is responsible for sending the Ministers for the Economy and Energy its reasoned proposals for regulated sales tariffs for electricity. If no objections are made within three months, the proposals are deemed to have been approved.
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 the Journal 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 tariffsin 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 of28 January 2021 that were published in the Journal officiel of 31 January 2021, and has applied since 1 February 2021.
On 25 June 2019 the CRE adopted a decision concerning revision of the TURPE 5 tariff 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 income and expenses adjustment account 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 secondTURPE 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.
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 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 by 1 August 2022.
For remuneration of past customer management charges (prior to 1 January 2018), the CRE’s decision set an amount it considered as a cap that can be 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.
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, including SEI at EDF.
On 23 July 2020, the CRE published its decision setting the final amount of the allocation from the Electricity Equalisation Fund (Fonds de Péréquation de l’Électricité) to SEI, Électricité de Mayotte and Gérédis, the three operators that opted for assessment based on the CRE’s analysis of their accounts. SEI’s allocation amounts to €198.5 million for 2020.
The compensation mechanism for public energy service charges (compensation des Charges de Service Public de l’Energie) resulted from a reform introduced by France’s amended finance law for 2015, published in the Journal officiel on 30 December 2015. Under the legislative and regulatory framework, the public energy service charges (electricity and gas) were to be compensated via two State budget items included in France’s finance laws from 2016 onwards. The initial finance law for 2020 marked a continuation from 2019, defining the following measures for compensation of charges for 2020:
From 1 January 2018, the “basic necessity” rates for electricity and the “special solidarity” rates for gas were replaced by an energy voucher system. The cost of this system is not borne by EDF, but budgeted by the State in the “Public Energy Service” programme. EDF has borne solidarity charges for the national housing solidarity fund and services for vulnerable customers in both 2019 and 2020.
In 2020, this mechanism of compensation for public service charges was funded as follows:
