The French government has rejected the proposed increase in regulated electricity tariffs for the summer 2013.
The energy regulator, Commission de régulation de l’énergie (CRE), had proposed to raise regulated tariffs for households by 6.8% to 9.6% (taking into account a 10-year lifetime extension for nuclear plants), to cover EDF costs. Tariffs should also increase by 3.2% in 2014 and 2015. Regulated tariffs for commercials and companies should also increase by 0%-5.8% in 2013 and by 3.4%-3.7% in 2014 and 2015.
The proposed increase in tariffs would help to cover EDF's rising costs: over the 2007-2012 period, variable production costs (wholesale fuel and electricity purchases) and fixed production costs (staff, power plant maintenance outsourcing costs) increased by an average 5.1%/year. Moreover, capital charges increased by 2.9%, while commercial costs grew by 6.3%/year. In 2012, the CRE estimated the gap between EDF's costs and regulated tariffs at €1.47bn.