Article | REF: BE9751 V1

Electricity Market: Functioning and Reforms in Progress

Author: Jacques PERCEBOIS

Publication date: October 10, 2023

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2. Retail electricity prices disconnected from the structure of the French electricity mix

Since 2016, regulated sales tariffs (TRV) have been abolished for consumers whose subscribed power exceeds 36 kVA; this concerns EDF's former "green" and "yellow" tariffs. Only small domestic consumers (a little over 60% of them by early 2023 in practice) and a few professionals can still benefit from the "blue" TRV if they so wish. Otherwise, like all professionals with a subscribed power of over 36 kVA, they must sign up to market-based contracts, either with the incumbent operator (EDF or local distribution companies (ELD), régies or mixed companies) or with alternative suppliers (Engie, TotalEnergies and some forty other operators). These are often fixed-price contracts negotiated for one or two years, or contracts where the price is indexed, on a monthly or quarterly basis, to the wholesale price of electricity. The CRE is responsible for calculating the level of the "blue" TRV each...

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Retail electricity prices disconnected from the structure of the French electricity mix