Press review

UFE/Press review of 13/07/18

The European Commission gave its green light to the acquisition of Direct Energie by Total
On July 3rd, the European Commission validated Total’s acquisition project of Direct Energy under European competition law. The Commission considered that this acquisition would not result in a lack of competition because of the limited overlaps between the activities of those two companies. Total had announced the acquisition of 74% of Direct Energie’s shares on April 18th.
Source: Enerpresse, July 5th, 2018
The French Energy Regulator concluded that the development of electromobility will not shoot up electricity consumption
According to the conclusions of the prospective study of the Energy Regulatory Commission (CRE), the electricity consumption in France will remain stable or even fall slightly by 2035. The CRE, which wants to “light up the future”, wishes that technological progress be coupled with “attractive” tariff offers so that consumption linked to the development of electromobility can be anticipated. Between 3 million (low assumption) and 15 million of electric vehicles (optimistic assumption) will be in circulation in France in 2035, depending on the development of charging points. This last “maximalist” scenario could result in a rise of the total electricity consumption to a level that would remain stable compared to today. In addition, the CRE believes that electric cars could become “the new household appliance of consumers” thanks to batteries that would absorb surplus production and reinject it when the network is under tension.
Source: Reuters, July 4th, 2018
Tax and charges represent more than one third of the electricity bill in France
On July 13th, the newspaper Le Parisien cited a note from the Electric Industry Observatory (OIE) that analyses the “weight of each of the three main components determining the final price of electricity”. The article focuses more specifically on the tax share (VAT and public electricity service contribution, CSPE), which, unlike those of production and transmission, increases very quickly, to 35% of the total bill. Between 2012 and 2016, taxes literally skyrocketed, with an increase of more than 40% while at the same time, the production and transmission costs only increased by 2% and 5% respectively. Initially intended to develop renewable energies, apply tariff equalization and finance the energy cheque, the CSPE has increased over 650% over the past 15 years and “reached the ceiling of €22.50 per MWh billed”. The electricity sector is worried about the “sudden rise” of taxes that could undermine the competitive advantage of the electricity price in France compared to other European countries.
Source: Le Parisien, July 13th, 2018
The European Commission launched the dialogue on the EU’s strategy for long-term emissions reduction
On July 10th and 11th, the European Commission organised in Brussels a high-level conference to launch the discussion on the future EU strategy for long-term emissions reduction. This event, named “the EU’s vision for a modern, clean and competitive economy”, allowed stakeholders to share their expectations and opinions about the strategy. At this occasion, Commissioner Arias Cañete expressed his support to increasing the 2030 emissions reductions target from 40% to 45%.Following this High-Level conference, the European Commission launched on July 17th a public consultation open until October 9th so as to collect stakeholders’ contributions. The publication of the new strategy is planned for mid-November, ahead of the COP24 that will be held in Katowice in Poland from December 3rd to 14th.
Source: DG Ener, July 12th and 18th
Nicolas Hulot presented the first assessment of the climate plan
“Despite the mobilization of all actors, the decoupling of economic activities and greenhouse gas emissions is still not there” said the former environment activist. “Greenhouse gas emissions are the thermometer of our planet’s health and our ability to turn the Paris agreement into reality” he continued. The Interprofessional Technical Center for Studies of Air Pollution (CITEPA) presented important figures: CO2 emissions increased again in 2017, agricultural and forestry emissions are constant between 2013 and 2017, those of transport have increased by 1.5% in 4 years and energy production emissions also increased between 2014 and 2017 due to the use of coal powerplants.
Source: Le Monde, July 8th, 2018
Transport Intermodal Questions and Networks Working Party, Council of the EU, July 25th, Brussels
Examination of Clean Vehicles Directive.
Energy Working Party, Council of the EU, July 19th, 23rd and 26th, Brussels
Examination of EP amendments on ACER regulation (19/07) ;
Examination of EP amendments on the directive and regulation on electricity (19/07).
Environment Working Party, Council of the EU, July 24th, 25th and 26th, Brussels
Financial Services, Sustainable finance, Taxonomy Working Party, Council of the EU, July 26th, Brussels :
Examination of the proposal to establish a framework to facilitate sustainable investment.
Le Parisien du 13/07/2018

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