The French Competition Authority has submitted its opinion to the National Assembly’s Economic Affairs Committee regarding the competitive conditions in the domestic wood-pellet heating sector, following the sharp price increases and supply shortages experienced during 2021–2022.
Wood pellets—widely used by households for stove and boiler heating—had long benefitted from stable and attractively low prices compared with other energy sources. However, demand surged rapidly in 2021 and early 2022, driven by the growing installation of pellet-based heating systems, shifts in household consumption patterns, and early purchasing behaviour by consumers. Combined with rising production costs and increased reliance on higher-priced imports, these factors created a temporary supply–demand imbalance that resulted in significant retail price spikes.
In its assessment, the Authority found that the price increases observed during this period were largely attributable to economic conditions rather than anticompetitive practices. Nonetheless, given the sector’s importance for consumers and the broader economy, the Authority evaluated several proposals put forward by market participants aimed at mitigating future supply tensions.
The Authority issued a series of recommendations, including the introduction of monthly indices for prices, volumes and stocks, provided such transparency measures are implemented with caution to avoid risks of facilitating coordination. It also examined plans to expand storage capacity, the occasional use of imports to buffer supply shortages and the development of a crisis-activation platform allowing consumers to submit requests to multiple distributors simultaneously. For each measure, the Authority outlined safeguards to prevent anticompetitive information exchanges or coordinated pricing behaviour.
The Authority also commented on potential public policy tools, such as the wood-energy voucher introduced in late 2022 and the possibility of a temporary price-freezing mechanism in crisis situations. It stressed that any such interventions must remain strictly temporary to avoid distortions of competition and unintended incentives for suppliers.
Finally, the Authority reminded market participants of its “open door” policy for companies seeking informal guidance on projects with sustainable development objectives. This process is supported by a framework document published in May 2024 and aligned with the European Commission’s horizontal guidelines on sustainability agreements.
The Authority’s opinion aims to support the long-term resilience of the wood-pellet heating market while ensuring full compliance with competition law.