Reference: E07-CPR-08-04

Status review on end user prices regulation

ERGEG has reviewed the status of end-user price regulation for electricity and natural gas in EU27. The survey assesses the effects on market functioning of Member States' maintaining regulated energy prices. ERGEG has found that regulated end-uers prices continue to co-exist with market prices in many countries (9 for gas, 17 for electricity). More than 80% of eligible customers choose to stay on the regulated prices, indicating a serious lack of competition in the retail market in these countries. For example, in Spain and France, where eligible customers can opt to stay on regulated prices set by government, 54% of small business customers were still supplied by their local default supplier (on regulated tariffs), and in the case of France it was 89%. ERGEG considers end-user prices to be distortionary and calls on Member States to abolish them.