France Will Increase Grid Fees to Fund Energy Transition

French regulated electricity tariffs are likely to raise next year as grid operators will be allowed to increase network usage fees to back the country's energy transition, according to the energy regulator CRE.

France's so-named TURPE grid charges represent approximately one third of French consumers' electricity bills, with power generation and taxes each accounting for another third. CRE declared that the more elevated fees will let distribution grid operator Enedis to introduce smart grids, while transmission grid operator RTE would be better able to back France's energy transition and the digitization of its network. Enedis and RTE are possessed by state-run power utility EDF.

Fees for the dense low- to medium-tension network operated by Enedis - which make up the majority of the grid fees - will raise by 2.71 percent on Aug. 1, 2017 and then augment in accordance with inflation over the next three years. Fees for the high-voltage network controlled by RTE will grow by 6.76 percent from August 1 and then also surge in proportion to inflation in 2018-2020. A CRE representative mentioned the higher grid fees would enhance consumers' electricity bills by around 2 percent, assuming generation costs and taxation stay at existing levels.