Question 8280 — energy and fuels

Summary

In October 2015, the European Commission sent a formal notice to the French authorities regarding hydroelectric concessions. It considers that the measures by which the French authorities awarded EDF and maintained for its benefit most of the hydroelectric concessions in France are incompatible with Article 106(1) of the Treaty on the Functioning of the European Union, read in conjunction with Article 102 of this treaty, in that they would enable the company to maintain or strengthen its dominant position in France on the retail electricity supply markets. The Government continues to contest the reasoning according to which the possession of hydroelectric production means mechanically leads to a breach of equality in the retail electricity supply market and the fact that it would have granted a any discriminatory advantage to EDF. The Government also highlights the major social, economic and ecological issues linked to hydroelectricity, and in particular to water management. As part of discussions with the European Commission, the Government defends a balanced application of the energy transition law, which has consolidated the concession regime and guarantees respect for public service issues. French hydroelectricity, thanks to several tools: the grouping of concessions in the same valley, the extension of certain concessions in compliance with national and European law, the obligation to take over concession employees under the same conditions and the possibility of forming mixed economy companies (SEM) during the renewal of concessions when local authorities are interested. Unlike other countries where hydroelectric installations belong to private operators, the concessionary regime allows strong control through regulations and the contract signed between the State and the concessionaire, thus guaranteeing respect for the public interest. The principle of putting expired concessions into competition arises from European and national law. The Government is preparing for this while defending certain essential principles, in particular by opposing any ban on applying for EDF and the re-competition of unexpired concessions, and by requesting the extension of the Rhône and Truyère concessions.

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• André Chassaigne · auteur

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