Electricity : the competition is increasing, but the prices do not drop

With the launch, Thursday, October 19, on the electricity market for the particular brand of e-commerce, Cdiscount (Casino group) occurs on a sector that is becoming increasingly crowded. Since September, the oil group Total and the supplier of gas cylinders for lpg Butagaz put themselves on the ranks. They all claim to provide electricity at prices lower than the regulated tariffs of sale, charged by EDF. Cdiscount says to be 15% less, Total 10 %, with an offer ” green “.

Yet, while the competition is open for ten years in the electricity sector, EDF continues to be dominated completely the market, with 84 % of the clients. And the arrival of new players has not resulted in a price drop to be significant for individuals.

Why no supplier case-t-he the price ?

The model of telecommunications is often cited as an example : in this sector, competition has lowered drastically the price of the offers. But the problem is differently to the electricity.

The tariff for the consumer is in large part frozen. One-third of the bill is devoted to the cost of transportation. Another in a series of charges, including a contribution to the subsidies for renewable energy. The last third, called the party “energy” of the price depends on the suppliers. “You can’t fight that on a third of the price ! “defended Patrick Pouyann√©, CEO of Total, who, in September, acknowledged that he would have liked to offer much lower rates for the launch of Total Spring.

And some of the services put forward by the new actors are simply legal obligations, such as the ability to break a contract at any time. Other factors which may cause prices to rise in the future : prices on the wholesale market, on which they feed suppliers, are tilted to the upside, and the tenders are expected to be affected over the medium term….

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