“Electrical energy is just not like another, it’s a public service”

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“Electrical energy is just not  like another, it’s a public service”

Power economist, Jacques Percebois is professor emeritus on the College of Montpellier and director of the Heart for Analysis in Power Economics and Legislation (Creden). He’s the creator of quite a few books, together with Electrical transition(s)which he wrote with Jean-Pierre Hansen (Odile Jacob, 2017), and by which he already puzzled concerning the difficulties of the liberalization of the electrical energy sector that started within the Nineties.

What was the primary motivation for making a European electrical energy market?

Initially, the thought was above all to offer the patron with the bottom attainable value. The liberalization of the market ought to make it attainable to intensify commerce and produce down costs. It is a full change of path after the post-war wave of nationalizations because of the must make long-term investments.

In France, it’s the regulation of 1946, which, voted with the settlement of the Communists, particularly, generates the nationalization of 1,300 corporations and the creation of Electrical energy of France (EDF). The corporate then resembles a type of administration with a monopoly of import and export, transport, manufacturing and distribution. It was not till 1974 that the nuclear program was accelerated on the time of the oil shocks, with 58 reactors. At the moment, the French have been very glad with EDF. The corporate has score and symbolizes well-run public service.

Wasn’t the objective additionally to extend interconnections between international locations?

From the top of the Fifties, there was a starting of interconnection between the international locations, and this, so as to enable mutual assist, with a confidential spot market, day-to-day, with an hourly value, in Basel [Suisse]. It was referred to as “the Laufenburg star”, in southern Germany, which had three primary branches of electrical energy interconnection between Germany, France and Switzerland. Immediately, 30 international locations are interconnected in Europe and even past, with Norway and Turkey. This represents 520 million inhabitants.

How did the thought of ​​a big market take maintain?

A number of causes will change the state of affairs. Initially, a authorized purpose, with the reminder, within the Nineteen Eighties, by the European Fee, of the necessity to respect Article 90 of the Treaty of Rome [1957, débuts du Marché commun]which offers that electrical energy have to be thought-about a commodity and that competitors should apply to everybody.

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