Electricity transmission and distribution tariffs

The electricity industry covers the production, transmission and distribution of electricity, i.e. kilowatt-hours (kWh). Electricity is both an intermediate consumer good (kWh used in industrial processes, for example) and a final consumer good (electricity used for lighting or domestic heating). It satisfies both captive uses when there are no substitutes (lighting, for example) and non-captive uses (heating, where electricity competes with natural gas, coal, fuel oil, even wood, etc.). Electricity, like natural gas, is an energy that is distributed via a network: a physical infrastructure of high-, medium- and low-voltage lines transports and distributes the current between the place of production (dam, nuclear power station or conventional gas, oil or coal-fired power station) and the end-user appliances at the end-user's premises, whether industrial or domestic. Of course, there are special cases, such as self-consumption, where the electricity produced is used on site, but today this represents only a modest, albeit growing, share of electricity consumption. Access to electricity is now a right under French law, so electricity is both a commodity and a public service. All French residents have been connected to the grid since rural electrification was completed in the early 1960s.

Electricity was originally intended primarily for lighting purposes. It replaced the manufactured gas obtained from the distillation of coal. Other uses soon followed, in chemistry, metallurgy and transport. Electricity is an energy with promising prospects as part of the low-carbon energy transition. Electricity currently accounts for around 25% of final energy consumption in France, and its share is set to rise to 55% by 2050 with the total decarbonization of France's energy mix (according to the "Energy Futures" scenarios published by RTE). This electricity is set to increasingly replace carbon-based energies (oil, coal and gas) in various applications, including mobility. Nuclear, hydro, wind and solar power are all decarbonized energies. Electricity generated using coal, natural gas or fuel oil emits carbon, which justifies its gradual phase-out in the fight against global warming.

Electricity is a national energy in almost all countries, although this does not rule out transnational trade. France has traditionally been a net exporter of electricity, except in 2022, when it was a net importer. A country cannot depend entirely on imports for its electricity supply, given the strategic nature of this energy. This explains why the structure of electricity production is very different from one country to another, and why the cost of access to electricity can also vary according to local situations. It should also be noted that electricity cannot be stored economically on a large...