France: CRE demands greater transparency from gas and electricity suppliers

The French Energy Regulatory Commission (CRE) is asking gas and electricity suppliers to comply with new transparency principles by September 30.

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Transparence dans le secteur énergétique

The French Energy Regulatory Commission (CRE) recently called on gas and electricity suppliers to commit to a set of thirteen transparency principles designed to boost consumer confidence. These new guidelines follow the energy price crisis of 2022-2023, which highlighted numerous abusive practices in the sector.
These guidelines, drawn up in consultation with the Médiateur de l’énergie, the Direction générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF), as well as consumer and supplier representatives, aim to improve the clarity of offers and provide customers with more transparent information. Among these requirements, which mark a change in France, suppliers will now have to estimate monthly payments and provide the price evolution formula before taking out a contract. In addition, the gas and electricity market should see a drop in tariffs in the second half of 2024.

Clear commitments and tight deadlines

CRE is asking some forty gas and electricity suppliers to make a “firm commitment” to these principles by September 30. After this deadline, the commission will publish the names of suppliers who have adhered to these guidelines, as well as those who have not. These measures concern contracts for residential consumers, whether they are market offers or regulated tariffs for the sale of electricity (TRVE).
During the term of the contract, suppliers will have to inform consumers of any impact on their bill in the event of price changes, and adjust payment schedules if necessary. They will also have to respect price commitments, with no modification or unilateral termination of the contract during the commitment period.

Sector reactions and outlook

The National Association of Retail Energy Operators (Anode) welcomed the initiative, affirming its commitment to consumers. However, she asked the CRE to be flexible about implementation deadlines, recognizing the challenges that these new requirements may represent for some members.
CRE Chairman Emmanuelle Wargon stressed the importance of incorporating these principles into legislation as quickly as possible. She stressed that only a law could impose these measures on all market players and guarantee greater consumer protection against the abusive practices observed during the recent energy crisis.
These new measures come after a tumultuous period in which many consumers were confronted with sudden price rises during the course of a contract, unilateral changes to contractual clauses and a blatant lack of information. The transparency principles proposed by CRE are designed to restore confidence and guarantee better consumer protection in the future.
CRE’s initiative marks a significant step towards stricter regulation and greater transparency in the energy sector. Suppliers now face a crucial choice: comply with these new directives, or risk having their reputation tarnished by the publication of their non-compliance.

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