6. Price level
6.1 General
In addition to the economic efficiency historically sought and now legally imposed, EDF is obliged, implicitly or explicitly, to achieve a trend balance in its income statement.
However, there is no reason why revenues from marginal cost pricing should cover the company's overall expenses in any given year. This is because the construction of an income statement is based on accounting rules that differ from economic calculation rules: annual expenses (operating, depreciation and financial expenses) are a function of investments made in the past, whereas marginal costs, by definition, make it possible to cover expenses arising from additional consumption (based on costs forecast for a given horizon, and therefore on future costs). In addition, there...
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Price level
Impact of marginal cost pricing
Also in our database
Bibliography
Articles
Regulations
Main regulatory texts concerning regulated tariffs and the public electricity service
Law n° 46-628 of April 8, 1946: law on the nationalization of electricity and gas.
Law no. 49-1090 of August 2, 1949: law amending articles 8, 23, 46 and 47 of law 46-628 of April 8, 1946.
Law no. 80-531 of July 15, 1980: law on energy conservation and the use of heat.
...Directory
Direction générale de l'énergie et des matières premières (DGEMP): representative of public authorities in the field of energy; publishes reference costs for electricity production.
Commission de régulation de l'énergie (CRE) :
comments on movements in regulated electricity sales tariffs ;
information on the opening up...
Websites
French Energy Regulatory Commission http://www.cre.fr
Electricity transmission network http://www.rte-France.com
Data on the French power system: generation and consumption
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