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.