Updated: Sept. 25, 2012 (Initial publication: July 8, 2011)
II-5.8: The French Electricity Regulator can legitimately use its powers to organize Diffuse Effacement, but oversteps its mandate (ultra vires) when it mandates that intermediaries remunerate the energy supplier
The technique of “effacement diffus” [diffuse effacement] is when a number of electricity consumers agree beforehand to consume less electricity at certain times (effacement), which allows other consumers to use the network at peak hours. Corporate intermediaries arrange these diffuse effacements, thereby participating in the adjustment system vital to the security of the electricity distribution network. The Commission de Régulation de l’Energie (CRE – French energy regulator) organized the system of “diffuse seffacement” even though this measure was not contained in statute. The Conseil d'Etat (French Council of State)’s Voltalis ruling, handed down on May 3, 2011, recognizes the CRE’s right to organize this system. But, it also deems that the regulator exceeded its powers by mandating that the corporate intermediaries organizing diffuse effacement remunerate the electricity provider.
Updated: Aug. 30, 2011 (Initial publication: July 11, 2011)
Thematic Report (Energy): The French Energy Regulator can legitimately use its powers to organize Diffuse Effacement, but oversteps its mandate (ultra vires) when it mandates that intermediaries remunerate the energy supplier.