An unassailable position

摘要

Around 2.5 million French SME (small- and medium-sized enterprise) customers will be free to choose their electricity supplier come July of this year in the third tranche of French deregulation. However, whereas other market openings have led to competition between a number of suppliers, the choice for the French SME customer will be very limited, and rather unappealing as matters presently stand. The major switching driver in the market - price - has been undermined by regulated tariffs that are low enough to minimise margins for potential entrants to an unpalatable extent. The regulator is now considering the removal of these tariffs, be that through their definitive abolition or the alternative of a spot linked regulated tariff. However, Electricite de France (EdF) should not be unduly troubled by competition even if tariffs are removed.