Gaz de France noted that the principal highlights of these rate proposals include long-term rates adopted for a four-year period from July 1, 2008, to June 30, 2012. The new rate regime sets out to review rates annually on July 1, in line with France’s rate of inflation reduced by 1.3%.
As per the new French Energy Regulatory Commission (CRE) rate regime, the methods used to calculate the regulated assets base, which amounted to E13.17 billion on January 1, 2008, will remain unchanged.
At the end of the period running from 2008 to 2012, 40% of all gains in productivity above and beyond the productivity target included in the rates schedule will be retained by GDF’s spun-off distribution business, Gaz reseau distribution France (GrDF), and the rest will be returned to the client for the subsequent rate period.
This proposal was submitted for approval by the CRE to the French government, which has launched a consultation process with stakeholders. Gaz de France and GrDF will reportedly express their own points of view during the consultation with the government. The decision will reportedly be made public in April 2008.
