Brussels, 11/03/2009 (Agence Europe) - On Tuesday 10 March, the European Commission extended the in-depth investigation opened in 2007 into the regulated electricity tariffs enjoyed by certain large and medium-sized companies in France. The Commission says that these artificially low tariffs appear to give an economic advantage to certain companies and distort competition in the EU single market. The investigation is being widened to look at the prolongation of the system of “return tariffs” (or “TARTAM”) until June 2010 and its extension to new beneficiaries. This system, intended as a transitional measure, has so far benefited a small group of companies that essentially comprise the country's largest electricity users. The extended investigation does not cover the regulated tariffs applicable to households and small businesses.
French electricity consumers can buy their electricity either on the free market or on the regulated market. On the regulated market, they buy the electricity at prices set by the state (“standard tariffs”). Customers who choose the free market agree an electricity supply contract at a price negotiated with the supplier of their choice and may not return to the regulated market. Since the beginning of 2007, customers who leave the regulated market can ask for a special state-administered “return tariff” (or TARTAM), below the market price. So far only a limited number of companies have benefited from the return tariff (essentially 3000 “large” electricity consumption sites, representing 10% of the “large” industrial and commercial consumption sites in France). Together, however, these few companies represent nearly 20% of electricity consumption in France. The advantage they enjoy through the “return tariff” system is financed by a tax levied on all electricity consumers (households and businesses) and a tax on electricity generated from nuclear and hydro power sources.
On 13 June 2007 the Commission opened an in-depth investigation into the “standard tariffs” and “return tariffs” applicable to companies classed as “large” and “middle-sized” electricity consumers. The investigation does not cover the tariffs applicable to households and non-business consumers or those applicable to small companies and small professional consumers in general.
Initially, companies could benefit from the “return tariff” system for two years only, from the date of application, which had to be before 1 July 2007. On 6 August 2008, France decided to extend the system until 30 June 2010 and to open it up to new beneficiaries. Since then, any company operating on the free market may once again apply to benefit from the “return tariff”. The Commission is concerned by the distortion of competition arising from a system of tariffs that are set without relation to market mechanisms and that give an advantage to large companies operating in markets open to European competition. The in-depth investigation begun in 2007, as extended, is ongoing. (O.L./transl.rt)