Losses for the public sector, profits for the private sector! In a report published on 19 December, the French Court of Auditors (Cour des Comptes) makes a damning assessment of the privatisation of local public services throughout France. The French weekly Canard enchaîné published selected examples from Moselle, Hautes-Alpes, Hérault, Puy-de-Dôme, etc.
In Corte (Corsica), a semi-public company partly owned by the Ferrandi group won the district heating contract in 2015. A 20-year risk-free contract with prices 70% higher than the market, an internal rate of return of 12% and no competition!
In Amnéville (Moselle), the casino building owned by the local authority was sold to the Tranchant group, which runs the casino. When the contract expires in 2026, Tranchant will be in a strong position vis-à-vis its competitors: it will own the building.
Another common practice scrutinised by the Cour des Comptes? Contract amendments, almost always to the benefit of the companies. In 2010, the commune of Briançonnais (Hautes-Alpes) amended its water management contract with Suez, allowing it to adjust its tariffs. What the local authority did not expect was that, four years later, Suez would suddenly increase the bill by 37.8%! It was impossible to cancel the contract. To compensate consumers for the consequences of the ‘imprudent rider of 2010’, the local authority has so far increased its bill by 9.3 million euros.
Anne Grosperrin is Vice President of the city of Lyon, in charge of the water cycle andpresident of the Grand-Lyon Public Water Company. She commented on X: “In Lyon on the other hand, drinking water has been under public management since 1 January 2023. Two years in the service of the general interest, not private interests, and a public service model that proves its relevance and effectiveness every day!”
