France has defined a new price formula for electricity regulated tariffs applied by EDF to 28 million residential customers. The new price formula, expected to limit tariff increases, was planned in the "NOME" (Nouvelle organisation du marché de l'électricité) law adopted in 2010 and was scheduled to be implemented in late 2015 at the latest. Regulated tariffs will be calculated on the basis of the costs from the whole value chain, including nuclear energy production cost (so-called Arenh tariff), supply costs, EDF commercial costs, transportation costs ("Turpe" tariff calculated by the energy regulator CRE) and EDF margin; so far, the regulated tariffs were calculated on the basis of EDF's accounting costs. The CRE estimates that the residential tariff will decrease by at least 1.6%, compared to a 6.7% increase with the former formula.
However, EDF tariffs could be raised by 2.5% on 1st November 2014; the 5% increase on 1st August 2014 was cancelled, triggering protests from alternative suppliers.