Scheme to help French energy intensive users branded unfair

Advisory opinion (22 pages in French, PDF) from the French Conseil de la concurrence on a French Government proposal to establish, by law, consolidation consortia with a highly-geared financial structure which would procure long-term electricity contracts and resell the power to electricity intensive industrial users. Only customers in industries with a real risk of délocalisation (relocation) outside the EU would qualify for the scheme.

The Conseil suggests that the Government should focus on improving liquidity for long-term wholesale electricity contracts, and that the proposed scheme would contribute to that aim if it were modified so that a consortium's customers were selected by auction rather than on the basis of an assessment of different industries' exposure to relocation. The Conseil also warns of the potential State aid implications of the Government's proposal.

For further information or advice please contact Franck Latrémolière.

Filed under Conseil de la concurrence, Electricity, France.

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