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For a fair and efficient energy transition: Time to end regulated tariffs for electricity
(EurActiv, 22 Nov 2018) Whilst wanting to protect regulated tariffs at all costs, France has committed itself to a coalition of the lowest bidders on climate issues, in particular with countries defending the coal industry, writes the ANODE.
The association ANODE (Association Nationale des Opérateurs Détaillants en Energie), founded in 2006, brings together alternative suppliers of electricity and gas in France.
In November 2016, the European Commission presented its proposal of Clean Energy Package with the aim of creating a coherent European framework to empower consumers and facilitate the energy transition.
Two years later, the Electricity Market Design Directive is being discussed in trilogues, and one crucial point could undermine the proactive and ambitious measures proposed so far: the possibility of maintaining regulated tariffs for electricity among the EU’s Member States.
And yet the Commission understood this from the beginning.
Regulated tariffs have a falsely protective image and are neither compatible with the energy transition, nor in consumers’ best interests.
Why is the focus still on maintaining regulated tariffs?
Regulated tariffs are presented by their advocates as a protection for consumers. Yet, they are still being offered to some companies. By keeping public intervention on tariffs of electricity, with a high risk of not covering real costs, Member States are sending the wrong signal regarding energy efficiency, with consumers unaware of the true costs and measures they could take to consume less, and in a better way.
Regulated tariffs prevent consumers from choosing market-based offers which may provide them with new opportunities through innovative services. Indeed, competition is the only real source of price moderation and innovation.
EurActiv, 22 Nov 2018: For a fair and efficient energy transition: Time to end regulated tariffs for electricity
