France's Council of State (CoS, France's highest Administrative Court) estimates that the domestic regulated gas tariffs applied by the French utility Engie are contrary to the European law and recommended to cancel the May 2013 decree, which sets regulated gas prices.
In its latest workshop, the CoS pointed out that the May 2013 decree can be in conflict with the 2016 European Court of Justice's ruling, which stated that regulated tariffs were an obstacle to a competitive gas market. The CoS argued that there is no economic interest for regulated gas prices - offered by Engie and local historical gas distributors only - that could justify barriers to full competition in the market. The French National Association of Energy Retail Operators (Anode), which groups together alternative gas suppliers such as Direct Energie, Eni, or Lampiris that are not allowed to supply customers at regulated tariffs, took the matter to the Court.
The final decision of the Council of State is expected by the end of July 2017. If it decides to cancel the decree, it will be only a first step towards the end of regulated gas tariffs in France. If the much awaited final decision confirms that regulated gas tariffs are contrary to European law, this may open the door to a similar judgment on regulated tariffs for electricity.
Engie's threatened regulated gas tariffs currently apply to more than 5 million households while France's electricity regulated tariffs apply to more than 27 million customers.