In France, The "Commission de Régulation de l'Energie - CRE" (French Energy Regulatory Authority) launched a consultation on the use of public electricity network.

Context and Summary

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The regulator wants that prices for use are incentive to control costs, market integration and research. The public consultation is a method increasingly used, beyond the familiar consultation of the banking and financial place. It is indeed either to obtain the acceptance in advance of the sector consulted, either to reduce the asymmetry of information that suffers the regulator, the two objectives are often cumulative. In this case, it is added an additional.

The owner of the network is the historical operator itself. As such, it is not necessarily interested in investing in infrastructure that also benefits from its direct competitors, instead of making up the profits of its subsidiaries to invest in such foreign companies on the markets in which it is not subjected the same competition.

The regulator, opening of such competition, that is to say by out information about pricing and profits, which must, by preterition, be all oriented to to the benefit of the network, because it is for the benefit of all users, is in alliance with the objective of the public network electricity. The public consultation is open until July 20.

Brief commentary

In France, the " Commission de Régulation de l’Energie " - CRE (French Energy Regulatory Autority does not set the prices but give advice. The case of the gas prices has shown that such advice may have had a direct effect, while they are relayed by the " Conseil d’Etat" (the Council of State). In addition, they enlighten the Government and may compel EDF, the historical operator, which remains owner of the network operator, to make the necessary investments. That’s why the public consultation that the regulator has just launched is important. Indeed, the "Commission de Régulation de l’Energie " - CRE (French Energy Regulatory Autority has launched a public consultation on the terms of use of networks public electricity.