This interview was conducted on June 8 2006

Energy news: next électro-intensifs come together (1) and individuals who are not yet affected by the opening of markets, SMEs are perceived as the main victims of the increase in the price of electricity (2). Why do you mean not on the subject (3)

Guillaume de Bodard: Only a limited number of large SMEs is affected by price increases. Few of our members expressed us difficulties on this point. However, we have alerted the authorities on the rise, asking that the light be made on the pricing, as energy is supposed to be much less expensive in France than elsewhere. Market prices should reflect costs or in any case be the closest possible. This is not to make the cash flows on the back of SMEs. The mechanism of energy pricing should be more transparent. To ensure that the parameters entering the determination of the cost of energy - including the wholesale market - are clearly identified and homogenized to make more transparent the market price fixing. It would be also appropriate to increase the powers of the CRE to enable him to control the formation of prices, on the model of what had been anticipated - but finally not accepted (4) - in the Bill in July 2005. It must be that, if tomorrow our members have problems, we have already begun to treat and provide solutions. We hope to limit maximum case-insensitive at the level of SMEs.

E.n.: Do that you recommend other to cope with rising

G.d.B.: We want the maintenance of prices regulated beyond July 1, 2007 and we would like especially to reversibility. It is imperative to include this principle in the Act and essential to companies having play their eligibility to return to the regulated market to benefit again from the regulated tariff. It should also be an effective comparison of offers from different providers that could be placed under the authority of an independent body such as the CRE, as SMEs who want to change the provider sometimes have difficulties to compare offers. Finally, we encourage companies to reduce their energy consumption. As prices are likely to continue to increase, they minimize their consumption through energy saving measures designed with their federations and ADEME.

E.n.: That expect "moderation commitments" announced by the Minister of industry, François Loos (5)

G.d.B.: We hope that they will be effective and that SMEs to renegotiate their contracts will see their bills decrease (6), as the fall of prices per ton of CO2 - resulting from the non-use of a portion of allocated quotas - resulted in a decrease in market prices.

E.n.: Minister also pleaded for clusters of SMEs (7)...

G.d.B.: We are generally favourable to clusters, and for several years, but on other issues such as export development, for example. The problem for energy purchases is that there should be some correlation between the consumption needs of the companies that decide to and then an agreement between them, while they do not necessarily know. Encourage these groups but, on the one hand, this will not happen day overnight. And, on the other hand, one wonders if the time and money necessary for their implementation would be offset by expected price decline. The interest of the grouping is necessarily different for very large groups that consume a lot of electricity.

E.n.: Already there from the experiences of current groupings

G.d.B.: We have no information to this effect to the CGPME - which does not mean that, on the ground, some SMEs are not thinking already. The majority of them however have difficulty to understand the subject of the opening of the markets. It is really at the beginning of a revolution. Where else inertia - many SMEs remained at regulated rates. In addition, the cost of energy for a small business is important, but is not the major cost. Energy is not the priority of business leaders. In terms of impact and cost, SMEs attention for example more waste management or other priorities - the development of markets, the management of personnel, the financial aspects, the cash flow problems, etc. Finally, it is regrettable that the communication made by the public authorities is not very clear. There is a lack of knowledge on this rather technical topic. Only energy balances proposed by ADEME and the subject of agreements with the professional federations to minimize energy consumption are beginning to be known to SMEs, but they deserve to be more.

E.n.: Could the CGPME raise clusters

G.d.B.: We may inform our members on the fact that these clustering opportunities exist, but I do not think that we will take in charge their implementation. If clusters are, it will likely be at the level of professional federations. SMEs are now in a phase of analysis and professional federations watch the subject without however taking a position. Do not move too quickly or give guidance or advice that may be economically harmful. Those that are positioned a bit fast on the opening of the markets now regret, they realize that the bride was not so beautiful that...

E.n.: What balance do you liberalization since the opening in July 2004 professionals

G.d.B.: I have the impression that most of our members are not asked to the question of the opening. We had launched a consultation just after July 2004 and the majority of them did not know that they could change the provider. Today, the energy problem is almost never addressed by our members. This does not mean that there is no problem, but for them it is not the problem. In addition, there is no communication on the subject - you do not hear anyone say: "Go ahead, the market is free!" Go for it! "Change provider!" - and some providers prefer to focus on large or medium-sized clients because it is too expensive to solicit smaller.

E.n.: Your members feel more concerned with issues of security of supply

G.d.B.: The theme is not didn't either. As the strategic choices made by the France for nuclear allow him to be a little more protected than its neighbours. However, it is a subject that should be monitored closely. And we support the development of capacity for the production of energy, including renewable sources.

1 See energies news no. 126, pp. 8-9.

2. Intentions publicly displayed by EDF closer to the price of electricity sold to the industrial market generate increases of 50 to 80 for 640 companies whose contracts expire this year. See energy news no. 124, p. 1.

3. This interview was conducted on June 8, 2006. On 20 June, the CGPME publicly worried of a "generalized energy price increase" and referred to "the regulation of prices", "the reversibility of the choice of provider" or "business combinations to ensure supplies to stable prices" as "ways of thinking" to curb the increase.

4 See box p. 9.

5. On 15 may, François Loos announced have received producers present suppliers on the French market of "commitments of moderation" for SMEs and offers "nonindexed market price increased while them on the other hand benefit (market price) declines.

6 During the debate on the energy supply of the France, on 14 June, the National Assembly, the Minister of the economy Thierry Breton said that producers had "agreed to renegotiate contracts.

7 "The SMEs and SMIs can come together to enjoy more attractive offers and negotiate contracts for long term (for a period of 5, 6 or 10 years) to obtain lower prices", said François Loos, on 15 May.

BOX .

Review the competencies of the CRE

The CGPME seeks more power for the CRE and refers to what had been "provided for in the Bill in July 2005. At the time, Industry Minister Patrick Devedjian was first, to the Assembly, rejected an amendment giving the regulator power training before prices, in the Senate, to be y declared in favor of. But the device had finally jumped in the joint mixed Committee (see energy news no. 101, p. 1, and no. 105, p. 4). The future Bill could lead to a strengthening of the powers of the CRE. Several parliamentarians claim and the Minister of the economy Thierry Breton is willing to "review all of the skills of (CRE), or even to expand if necessary" (see pages 2 and 7).