What reference costs should be used to regulate access price?
Comments on the methodology to regulate access to electricity produced by historic nuclear plants – by Antoine Fournier, Associate Director (TERA Consultants).
The Champsaur report assesses how to regulate access to electricity produced by French electricity incumbent, EDF. This regulated access concerns electricity produced by EDF’s historic nuclear plants and destined for other suppliers.
Granting access to these plants has been acknowledged and the current issue focuses on which reference costs to use to set access prices. The various cost evaluation methods yield different results. The chosen methodology will depend on if the consumer benefits or not from the historic nuclear plants’ competitive advantage.
The solution will uphold fair and long term competition for France’s electricity markets.