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ELECTR-5689; No of Pages 8 Please cite this article in press as: Leveque, F. France's New Electricity Act: A Potential Windfall Profit for Electricity Suppliers and a Potential Incompatibility with the EU LawElectr. J. (2011), doi:10.1016/ j.tej.2011.01.016 Franc¸ois Leveque is Professor of Law and Economics at Mines ParisTech, Director at the Center of Industrial Economics (Cerna), and Editor of Energypolicyblog.com. His research interests are in the areas of antitrust, intellectual property rights, and network regulation. He has published many books on energy, including recently Competitive Electricity Markets and Sustainability (2008) and Electricity Reform in Europe (2009). He has also founded Microeconomix, a Paris-based boutique specializing in economics applied to law. France's New Electricity Act: A Potential Windfall Profit for Electricity Suppliers and a Potential Incompatibility with the EU Law The NOME Act will achieve neither the aim of maintaining the benefit to consumers of France's past choice to go nuclear, nor the aim of avoiding a windfall effect. In spirit, it also disregards the principle of non- segmentation of markets and betrays the principle of free movement of goods within the European Union. Franc¸ois Leveque I n December 2010, Francepassed a law to reform the organization of electricitymarkets and prices. The new Electricity Act introduces numerous economic changes, in particular eliminating current regulated retail tariffs for business while giving Electricite de France's rivals access to a portion of the electricity generated by EdF's nuclear power plants.

  • electricity act

  • also depend

  • european

  • market offerings

  • retail tariffs

  • power generation

  • edf's nuclear power

  • challenge fairly


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ELECTR5689; No of Pages 8
Franc¸euqevéLsiois Professor of Law and Economics at Mines ParisTech, Director at the Center of Industrial Economics (Cerna), and Editor of Energypolicyblog.com. His research interests are in the areas of antitrust, intellectual property rights, and network regulation. He has published many books on energy, including recentlyCompetitive Electricity Markets and Sustainability(2008) and Electricity Reform in Europe (2009). He has also founded Microeconomix, a Parisbased boutique specializing in economics applied to law.
March 2011,Vol. 24, Issue 2
Frances New Electricity Act: A Potential Windfall Profit for Electricity Suppliers and a Potential Incompatibility with the EU Law
The NOME Act will achieve neither the aim of maintaining the benefit to consumers of Frances past choice to go nuclear, nor the aim of avoiding a windfall effect. In spirit, it also disregards the principle of non segmentation of markets and betrays the principle of free movement of goods within the European Union.
Franc¸ois Léveque
n December 2010, France I passed a law to reform the organization of electricity markets and prices. The new Electricity Act introduces numerous economic changes, in particular eliminating current regulated retail tariffs for business while giving Electricité de Frances rivals access to a portion of the electricity generated by EdFs nuclear power plants. In other words, EdFs rivals in electricity supply to final
consumers in France would be eligible to tap into electricity generated by EdFs nuclear power plants at an administered wholesale tariff and compete with EdF to supply business customers in a then free retail market. The nuclear fleet, owned by the incumbent utility, is equated with an essential facility, access to which must be opened to downstream competition, which would otherwise only be able to develop on the margins.
10406190/$see front matter#2011 Elsevier Inc. All rights reserved., doi:/10.1016/j.tej.2011.01.016
Pleasecitethisarticleinpressas:Léveque,F.FrancesNewElectricityAct:APotentialWindfallProtforElectricitySuppliersandaPotentialIncompatibilitywiththeEULawElectr.J.(2011),doi:10.1016/ j.tej.2011.01.016
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