Wood fuel pellets: the Autorité issues its opinion to the Economic Affairs Committee of the French National Assembly

The Autorité de la concurrence was asked by the Economic Affairs Committee of the French National Assembly (Assemblée nationale) for an opinion on the competitive situation in the domestic wood fuel pellet sector.

The request was made in the following context: wood pellets, used primarily by private individuals with stoves or boilers to heat their homes, have until recently seen stable and particularly attractive prices compared with other energy sources. However, prices rose sharply over the 2021/2022 period, and supply came under pressure, to the detriment of consumers. This situation can be attributed to a combination of economic factors.

To support the industry and protect consumers, the Autorité has examined, from a competition law perspective, the solutions proposed by industry players to limit the occurrence and effects of such situations in the future. The Autorité is therefore making recommendations on several measures, notably the introduction of monthly price, volume and stock indices, the strengthening of supply flexibility, and temporary measures intended to limit the effects of similar situations on consumers.

Lastly, the Autorité reminds operators of the possibility to request informal guidance, under the notice published on 27 May 2024, to assess the compliance with competition rules of certain initiatives with a sustainability objective.