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8. Conclusion
8.1 Review of electricity pricing from a monopoly perspective
Utility rates have several functions:
generate revenue to at least cover current expenses and finance future activities, i.e. secure the company's future;
steer demand in a direction that benefits the community.
From a theoretical point of view, the probability is low that the second function, provided by selling at long-run marginal cost, is compatible with the first, provided by the accounting level. However, it is possible to ensure their coincidence by working on the pricing structure to maintain the effectiveness of the price signal. In practice, this is achieved by homothetic recalibration.
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Also in our database
Bibliography
Articles
Regulations
Main regulatory texts concerning regulated tariffs and the public electricity service
Law n° 46-628 of April 8, 1946: law on the nationalization of electricity and gas.
Law no. 49-1090 of August 2, 1949: law amending articles 8, 23, 46 and 47 of law 46-628 of April 8, 1946.
Law no. 80-531 of July 15, 1980: law on energy conservation and the use of heat.
...Directory
Direction générale de l'énergie et des matières premières (DGEMP): representative of public authorities in the field of energy; publishes reference costs for electricity production.
Commission de régulation de l'énergie (CRE) :
comments on movements in regulated electricity sales tariffs ;
information on the opening up...
Websites
French Energy Regulatory Commission http://www.cre.fr
Electricity transmission network http://www.rte-France.com
Data on the French power system: generation and consumption
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