CRE consultation on French power network price controls

CRE consultation (21 pages in French, PDF) on electricity distribution (ERDF) and transmission (RTE) price controls from 1 January 2009. CRE has also released a draft (24 pages in French, PDF) of the price control rules that would be imposed as a result of its proposals.

The companies were seeking substantial tariff increases — up to 20 per cent (comparing a 2009-2012 average to a 2006-2007 average) according to CRE. The CRE's proposals would lead to increases of up to 10 per cent (measured on the same basis).

The CRE's proposed allowed return on capital is 7.5 per cent nominal gross of tax, compared to the companies' proposals of 7.75 per cent (RTE, subject to protection against volume risk) and 8 per cent (ERDF).

The CRE proposes to accept ERDF's plans for additional spending on quality of supply.

Responses by Monday 15 September 2008. CRE is planning to make recommendations to ministers (who make the decision) in October 2008.

For further information or advice please contact Franck Latrémolière.

Filed under CRE, Electricity, France, Price controls.

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