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Energy suppliers: not easy to see clearly

9 min reading time

Published on 20/07/06 - Updated on 17/03/22

Private consumers in France will soon be able to choose their energy provider on a competitive market. For local authorities and businesses, the liberalisation of this market was completed in July 2004. Since then, all professionals have been able to take advantage of the competition between the different suppliers to obtain the best prices for energy.

Traders and industrialists acquired a new freedom two years ago: the ability to chose their domestic energy supplier of natural gas and moreover electricity. From one day to the next, two options were made available to them with an eventual promise of saving money. They could elect to either keep their contract and its regulated prices with their age-old supplier, EDF. Or they could exercise their right to change by switching to a new contract at market price either with their usual supplier, EDF, or with an alternative supplier. The latter could be chosen from among the new arrivals that snatched up the opportunity to create their business that became available with the liberalization of the market. This market is subject to competition and cost of procurement. The price schedule is no longer State regulated and may fluctuate either down or up. Two years later, the liberalization has not had the forecasted effects on companies’ bills. And this is not a purely French phenomenon: it is European, or even worldwide wherever liberalization has been implemented. The result must nonetheless be placed in perspective with the other basic trends.Counselling is also one of the major arguments of alternative suppliers who offer an analysis of consumption. Thus, while skilfully taking advantage of the market to obtain the best price might be one source of savings, it must also be remembered that changing consumer habits lightens the bill even more, while preserving the environment at the same time. Very simple actions can make it possible to save 30% off the electricity bill. That is more than a hotelier can currently hope for if he changes supplier. These include adapting the heating in each area (rooms, restaurant, reception...), regularly cleaning lights and ventilation filters of the heating, avoiding leaving appliances in standby... all measures...

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