The ineluctable electricity prices rise in France [in French]


The competitive reform will inescapably breeds price rise for french consumers when regulated tariffs will be suppressed.This rise is due to the price formation mechanism in the continental market.This mechanism enables existing nuclear plants of all european generators to benefit from a scarcity rent but without any trigger for new investment because of political barriers.Without new investments, the sacrifice of french consumers will then not be followed by further price decreases. The envisioned benefit through the markets integration will not eventuated. Scarcity rents from equipements with low fuel costs will benefit to the owner of these equipements, namely the historical french operator. Our paper analyses the nuclear scarcity rent to examine different offsetting paths to reconcile french consumers with the dynamic of building a competitive european market. These reallocations sytems should be simple, really perceived as mechanisms to offset potential price rises and not hinder radically the functioning of the new markets.

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