France: Record penalty of EUR 6 million against Ohm Energie for abuse of rights

The French Energy Regulatory Commission (CRE) has announced an unprecedented sanction against Ohm Energie, imposing a fine of 6 million euros for abusive practices relating to the purchase and resale of nuclear electricity at reduced tariffs, under the Arenh (regulated access to historical nuclear electricity) mechanism. This mechanism enables alternative suppliers to buy electricity at low prices fromEDF (Électricité de France), in order to resell it at competitive rates to their customers. In addition, the Conseil d’Etat recently raised the Arenh ceiling.

Abuse of Arenh by Ohm Energie

Ohm Energie is accused of acquiring volumes of cheap electricity thanks to Arenh, in the midst of the post-Covid energy crisis and the war in Ukraine, and then selling this energy on the markets at high prices, instead of passing on these advantages to its customers. This practice was detected by CRE, which opened an investigation in September 2022. The regulator concluded that these actions constituted a flagrant abuse of the Arenh right.

CRE investigation and decisions

The CRE, which oversees the smooth operation of the electricity market and consumer protection, referred the matter to its Dispute Settlement and Sanctions Committee (CoRDiS) following this investigation. On July 11, CoRDiS decided to sanction Ohm Energie by 6 million euros, marking the largest sanction ever pronounced by this body in the electricity sector.

Reactions and implications

This decision comes at a time when the CRE has stepped up its monitoring of alternative operators, in the face of rising energy prices that have prompted many consumers to turn to alternative suppliers. CRE Chairwoman Emmanuelle Wargon stressed the importance of this increased vigilance to ensure fair market practices and protect consumers from abuse.

Background and outlook

The energy crisis of 2022, exacerbated by the post-pandemic economic recovery and the war in Ukraine, has put a strain on Europe’s electricity market, causing prices to soar. The French government then forced EDF to increase Arenh volumes to mitigate the impact on consumers. However, abusive practices by some suppliers, such as Ohm Energie, have undermined these efforts, highlighting the need for strict regulation and ongoing monitoring.

Impact on the sector

This record sanction against Ohm Energie sends a strong signal to other market operators. CRE has indicated that two other suppliers are also under investigation for similar abuses. EDF, which has won back a large number of customers during the crisis, has called on the public authorities to take a firmer line against the opportunistic behavior of certain suppliers.
CRE’s vigilance and punitive measures against abuses are essential to maintain a fair and transparent electricity market. Consumers need to be able to rely on their suppliers to respect the rules and engage in ethical business practices.