Beware of excessive margins: the Energy Regulatory Commission (CRE) has launched proceedings against an alternative electricity supplier – which it did not name – because of suspicions of resale at high prices. “A procedure has been launched for abuse of Arenh [accès régulé à l’électricité nucléaire historique] »i.e. the mechanism by which suppliers buy cheap nuclear electricity from EDF, explained CRE on Friday 9 September, confirming information from the Parisian.
According to the newspaper, this investigation is aimed at Ohm Energie, founded in 2018 and boasting 250,000 customers. Contacted by Agence France-Presse, the supplier said “not having received any notification from CRE concerning the launch of proceedings against it”.
The independent authority, chaired by former minister Emmanuelle Wargon, suspects the operator of having bought nuclear electricity from the Arenh and resold it on the markets at a higher price. Facts contested by Ohm Energie, which claims to have “never resold a single kilowatt hour of the Arenh on the markets”according to its president, François Joubert, a former EDF engineer.
“Wear the Hat”
“Its prices after the increase remain lower than or equivalent to those of its competitors and (…) she intends to maintain them all winter without an additional increase”further backed the company. “We are trying to blame the [fournisseurs] alternatives, while the authorities have an obligation of neutrality. (…) The responsibility for the crisis is not to be found among the alternatives, but more in a catastrophic unavailability of nuclear power”said Mr. Joubert to AFP.
CRE’s investigations may lead to a referral to the Dispute Resolution and Sanctions Committee (Cordis), which may decide on any sanctions. At the end of August, CRE announced that it was strengthening its market surveillance, calling on suppliers “to behave responsibly”in the midst of soaring wholesale prices.