French electricity network price controls: first consultation
Commission de régulation de l'énergie consultation (9 pages in French, PDF) on its approach to the price control review for electricity transmission and distribution in France.
The paper reports a request by RTE (transmission) for a three-year control period with a CPI-X formula, passthrough of taxes, and an incentive scheme for transmission losses. RTE also asks for higher prices to provide a higher return on capital and cover the effect of energy price increases on transmission losses.
ERDF (distribution) is asking for a four-year price control, with higher prices to cover the effect of energy price increases on distribution losses (which ERDF has to purchase), network reinforcement and new metering technologies.
Details of the CRE's thinking to date are provided in separate papers:
- Tariff principles (15 pages in French, PDF): covers indexation issues, efficiency incentives, pass-through schemes, the application of productivity improvement projections, cost of capital, and proposals for minor changes to tariff structures.
- Quality regulation and incentives (7 pages in French, PDF): proposes a financial incentive regime based on unsupplied energy, and asks for views on the incentive rate and the treatment of exceptional events (bad weather).
Responses by Tuesday 12 March 2008.
For further information or advice please contact Franck Latrémolière.
Filed under CRE, Electricity, France, Price controls.
