88 M … • Allow the Government to adopt, by decree Better regulation of the fuel The Autorité accordingly recommends that of the French Administrative Supreme Court storage and supply monopoly the Government: (Conseil d’Etat) following an opinion of the in Corsica • adopt a new legal framework applicable Autorité, the necessary measures when Owing to the island’s geography and the to operators of storage infrastructure that wholesale markets for goods and ser- limited development of public transport, is of an "essential” nature in order to gua- vices display shortcomings, in particular Corsican households are highly dependent rantee security of supply more effectively with regard to supply, transport, storage on cars. However, despite a VAT rate seven and also to prevent an under-dimensioning or distribution. percentage points lower on the island com- of capacities from giving rise to excessively •If none of the above mechanisms succeed pared with the mainland, the fuel price diffe- frequent impositions of quotas or occur- in restoring the normal functioning of com- rential between Corsica and the mainland rence of shortages, which have negative petition in these territories, consider regu- is significant - around +6.7% for diesel and repercussions for fuel distribution players lating prices "in the sectors or areas where +5.3% for SP95. and, ultimately, for Corsican consumers; price competition is limited due either to The organisation of the fuel distribution • examine the case for implementing on the monopoly situations or persistent supply markets in Corsica is affected by specific fuel distribution markets in Corsica, if the difficulties" by decree of the French Admi- structural constraints. The Rubis group legislative and regulatory framework so per- nistrative Supreme Court (Conseil d’Etat) controls the only two fuel storage depots, mits, structural measures to remedy the after consulting the Autorité. which can therefore be regarded as essen- shortcomings observed. •Grant the Autorité the power to start exa- tial infrastructure, given the indispensable mination proceedings ex-officio of econo- nature of access to oil depots for any ope- Large-scale retailing dominated mic concentrations (mergers/acquisitions) rator wishing to operate a network of ser- by food products: revising the which are below the current controllability vice stations on the island. Fuels are sold threshold foreow-cost sellingbl thresholds set in terms of turnover, but downstream within the network of service Consumer prices are generally higher in Cor- would appear likely to give rise to subs- stations through three oil operators: Rubis sica than on the mainland (+8.7% in 2015 tantial competition concerns (building up (Vito Corse), Total Corse (Total) and Ferrandi according to INSEE), despite the very signi- dominant positions or taking control of cri- (Esso). The oligopolistic configuration of the ficantly reduced VAT rate on food products tical infrastructure). fuel distribution sector does not seem to be in Corsica. open to challenge by the entry of low-cost retailers or supermarkets. Owing to its insularity, the share of transport THE RECOMMENDATIONS costs in the effective purchase price of retailers OF THE AUTORITÉ is higher in Corsica than in mainland France. Maritime service: assess the public service needs and define the terms and conditions With a view to strengthening competitive emulation and providing users of maritime transport between Corsica and mainland France with a quality public service at a managed cost, the Autorité recommends: • that the French Telecommunications Regulation Authority (ART) be granted new advisory powers in order to assess the need for a public maritime transport service, the proportionality of the proposed organisa- tional arrangements, and the implementing arrangements envisaged by the Corsican local and regional authority; • that the authority that organises mari- time transport between Corsica and main- land France re-examines the validity of certain requirements imposed under the current PSD contracts and PSOs (in parti- cular the choice of vessels and service schedule requirements) in light of this expert assessment. I E S • I S L A N D E C O N O M I E S • I S L A N TROPER LAUNNA 0202 – erutuf evitisop erom a gniretsoF D E C O N O