France
's
antitrust authority Thursday recommended that regulated natural gas tariffs
should be gradually phased out as the scheme is detrimental to domestic
competition and doesn't benefit French households.
The competition authority noted that as a result, competition in the French gas
distribution market doesn't seem to be working for small domestic companies and
households.
French customers often stick to the main distributors GDF Suez SA (GSZ.FR) and
Electricite de France SA (EDF.FR) as they believe regulated tariffs prevent
these companies from increasing prices, while ignoring that alternative
distributors offer lower tariffs, it said.
Furthermore, alternative distributors have gradually become reluctant to invest
to promote their offers due to the lack of visibility on the French gas
distribution market as successive French governments repeatedly moved to freeze
regulated tariffs and cap their increase, the authority also said.
The body noted that on average, French gas tariffs are higher than the European
average and higher than in the
U.K.
and
in
Germany
. Both these countries scrapped
regulated tariffs.