EPRG 1036

François Lévêque

France’s new Electricity Act: a barrier against the market and the European Union

EPRG 1036  | Non-Technical Summary | PDF

Abstract: This paper undertakes an ex ante assessment of the new French Electricity Act which was adopted in November 2010. This act gives EDF’s rivals access to a portion of the electricity generated by EDF’s nuclear power plants. It is supposed to develop competition and innovation in supply whereas maintening the benefit of the nuclear rent to French consumers and incentivise investments in power generation. The paper shows this goals are unlikely to be achieved. The assessment is preceded by a description of the motivations of this new law and its detailled contents. It also discusses the potential incompatibility of the French Electricity Act with the EU law and potential windfall effect for electricity suppliers.

Keywords: electricity, nuclear power, energy regulation, ex ante assessment

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