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French regulator forecasts doubling in renewable surcharge by 2025

The French energy regulator (Commission de Régulation de l'Energie, CRE) estimates that the CSPE rate (renewable and social surcharge on electricity bills) should double between 2013 (€13.5/MWh) and 2025 (€30/MWh) to cover EDF's compensation deficit (gap between renewable feed-in tariffs paid to producers and regulated end-consumer tariffs). Public service charges should reach €11bn in 2025. Over the 2014-2025 period, cumulated charges are expected to reach €100bn (current euros), due to new renewable installations: 60% of these charges are directly related to the existing renewable park, with operational solar plants (at year-end 2013) contributing by €25bn to charges over the 2014-2025 period. According to the CRE, new solar installations should average 400 MW/year until 2025 to reach 10 GW. New offshore wind parks awarded through the recent tenders should also contribute to €10bn in charges until 2025; offshore wind capacity should reach 3 GW by 2025. The CSPE rate was raised to €16.5/MWh in 2014 and will increase by a maximum €3/MWh until 2017, when it will reach €25.5/MWh. It will have to reach €30/MWh in 2025 to fully cover EDF's deficit.