Universal Registration Document 2021

5.1.1 Regulatory changes in France

The principal regulatory changes in 2021 are presented below. Changes in 2022 are presented in note 23.

Regulated electricity sales tariffs in France – “Blue” tariffs

In accordance with Article L. 337-4 of the French Energy Code, regulated electricity sales tariffs are set by the Ministers for Energy and the Economy following proposals by the French Energy Regulatory Commission (Commission de régulation de l’énergie or CRE).

France’s Council of State ruled in decisions of 18 May and 3 October 2018 that the principle of regulated electricity sales tariffs is compatible with European Union law when such tariffs serve the general economic interest objective of guaranteeing consumers an electricity price that is more stable than market prices.

In accordance with European Directive 2019/944 of 5 June 2019 on common rules for the internal market for electricity, the French Energy and Climate law of 8 November 2019 authorises continuation of regulated sales tariffs, but they are reserved for residential or business consumers with a subscribed power level of up to 36kVA, provided they have fewer than 10 employees and their annual sales, income or balance sheet total is below €2 million.

Tariff changes

In accordance with Article L. 337-4 of the French Energy Code, the French Energy Regulatory Commission “CRE” (Commission de régulation de l’énergie) 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 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 of 31 January 2021, and has applied since 1 February 2021.

In a decision of 8 July 2021, in view of changes in the TURPE tariff from 1 August 2021 and in application of the Energy Code, the CRE proposed an increase of 0.48% including taxes (1.08% excluding taxes) in the “blue” tariffs for residential customers and 0.38% including taxes (0.84% excluding taxes) in the “blue” tariffs for non-residential customers. The CRE has proposed that this change should apply from 1 August 2021.

The proposed tariff increase results from the increase in the TURPE network access tariffs from 1 August 2021 (+0.33% on regulated sales tariffs including taxes), the increase in the remuneration received by suppliers for the service of managing customers on behalf of the network operator, which is deducted from selling costs (-0.07% on regulated sales tariffs including taxes), and a new update of the “catch-up” adjustment for amounts not covered in 2019, so that the full amount will be recovered in two years, as the CRE had announced (+0.21% on regulated sales tariffs including taxes).

Comparability between periods is thus affected by the tariff changes introduced since 1 August 2020, presented in the table below: 

“TURPE” Network access tariffs

The costs borne by the network operators Enedis and RTE for management of the public electricity distribution and transmission networks are covered, provided they are in line with the costs of an efficient network operator, 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.

Tecond TURPE 5 Distribution tariff and TURPE 5 Transmission tariff

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

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.

For transmission expenses, 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 income and expenses adjustment account (CRCP ⁽¹⁾).

(1) A mechanism to measure and offset main differences between the actual figures and the forecasts on which tariffs are based.