It’s a real kick in the anthill. On Tuesday, the French Competition Authority recommended that the government “prepare to abolish regulated electricity sales tariffs ” (TRV). Today, 59% of private customers and 35% of small professionals use them. The Autorité criticizes them for their lack of legibility, for being a “an obstacle to the free play of competition and to the potential benefits of the latter – in terms of price, innovation and investment”.. They have already been removed from the gas.

Consumers, both individuals and small businesses, have nonetheless embraced them when, in 2022, in the midst of the energy crisiselectricity prices on wholesale markets have soared, and with them the price of subscriptions. “at market prices. Exasperated by skyrocketing bills, over a million consumers swapped their contracts for TRV subscriptions, putting the brakes on the market’s transformation. A paradoxical situation, given that all residential customers benefited from the protection of the tariff shield. Since then, wholesale prices have begun to fall again, and customers are returning to market offers. As of June 30, 2024, 169,000 more customers had taken out a market offer than on March 30, 2024, according to the French Energy Regulatory Commission (CRE). “Although this figure is lower than the level observed pre-crisis and in the previous quarter (+244,000 sites), it confirms the upturn in market offers since the end of the energy price crisis.” CRE emphasizes.

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A damper on the upside… and the downside

Today, because of the way they are calculated, regulated tariffs are significantly higher than market-based prices. Regulated tariffs are established taking into account the two previous years, which cushions both upward and downward trends. In 2022 and 2023, the government also chose to limit the increase in the regulated tariffs, as it has the option of doing so. As of 1^er February 2023, the increase was limited to 15%, whereas it should have been 99% according to CRE calculations. As of 1^er February 2025, they should fall by around 9%, reflecting lower wholesale prices and higher taxes. At the same time, market prices are set to rise, due to taxes. A double movement that’s not very clear to consumers!

All the more reason for the conclusions of the French Competition Authority’s report: “In light of the scheduled disappearance of regulated access to historical nuclear electricity (Arenh) on December 31, 2025, the Authority recommends that the government carry out an in-depth review of the organization of electricity markets in France, and prepare for the abolition of TRVs.”. For the Authority, they “have not prevented ad hoc interventions by the public authorities in retail price levels (…), they blur the price signal that should encourage consumers to be more energy sober, and they weigh heavily on competition”..

“TRVs reinforce EDF’s already very important role in electricity markets and its image with consumers.”

French Competition Authority

The Autorité criticizes TRVs for limiting competition on retail markets, sending a “guiding signal”. against which all suppliers position their market offers. In fact, many contracts refer to them in more or less direct terms, for example, to promote “a guaranteed price that is always lower than the TRV”.promise “25% off the price per kWh excluding VAT compared to the TRV”.… For the competition watchdog, the TRV tariffs “reinforce EDF’s already very important role in the electricity markets and its image with consumers”.. Neither EDF nor consumers are spared: the success of TRVs “seems to stem from the market’s monopolistic past and the relative passivity of consumers”..

A reference index to replace the TRV

Faced with this litany of shortcomings, the Autorité therefore recommends preparing for their abolition, but “without abandoning the public policy objectives assigned to them”.. TRVs are notably a tool for consumer protection, but also for social and territorial cohesion. Other measures could also be implemented, such as “the designation of one or more suppliers of last resort”.. Nor is there any question of leaving consumers without a benchmark in a sector as critical as electricity. The competition watchdog recommends the introduction of a reference index calculated by the CRE – using the same method as that used today for the TRV. Offers could be indexed to this index, to reassure consumers attached to the current system.

Other, more technical systems could also be put in place, notably in so-called non-interconnected zones (ZNI, essentially islands) and in areas served by local electricity distribution companies (ELD). The latter represent around 5% of the territory, and include cities such as Strasbourg and Grenoble.