The European Commission Thursday told France to drop regulated gas tariffs for non-household customers within two months or face court action.
"State-set tariffs for non-household end-users, as provided for in the French 'Energy Code', impede new arrivals from entering the market," the EC said.
The EC said it first formally warned France that French legislation did not comply with EU rules back in 2006, and that it has had "numerous exchanges with the French authorities" since then.
Under EU internal energy market rules, there must be a time limit on regulated tariffs and such tariffs must be intended to achieve a precise goal in a proportionate way.
"Regulated prices may therefore be adopted only when they serve the general economic interest, and must be proportionate, clearly defined, transparent, non-discriminatory and verifiable," the EC said.
"The commission considers France's protection of prices for all non-household users, regardless of their size and situation, to be disproportionate," it added.
It said that the French Energy Code also fails to include a time limit for applying regulated tariffs.
If France fails to comply within two months, the EC said it may refer the case to the EU Court of Justice.
The ECJ confirmed that regulated energy tariffs must be proportionate and non-discriminatory in a 2010 ruling.
