The state and EDF agree on future electricity prices

While energy bill became a central concern for the French, the group Electricity of France (EDF) AND state, its sole shareholder, agreed on a fixed price for electricity produced in nuclear power plants. The latter will be established “around 70 euros per megawatt hour (MWh)” 2026 and for the period of fifteenannounced this Tuesday, November 14, by Luc Rémont, CEO of EDF, Bruno Le Maire, Minister of Economy and Agnès Pannier-Runacher, Minister of Energy Transition.

This agreement responds to a double challenge: helping EDF preserve its profitability and maintain power plants, while at the same time protecting consumers from price volatility. Subject to a review clause for six monthsit must still be subject to consultation with other energy suppliers and players in the sector.

From 2012 until the end of 2025. price of electricity are framed by a device called “Arench“. The latter ensures that EDF sells part of its electricity to competing suppliers, at a fixed price of 42 euros per MWh.

What impact on consumers?

If the new agreement appears to foresee future tariff increases, it sets, according to the Ministry of Economy, several ramparts for consumer protection. The price of nuclear electricity will be like that limited “in stages” in order not to damage households and businesses in the event of a sudden increase.

Concretely it meansin the event of a market spikeif EDF is required to exceed 70 euros, the state will take part of the “surplus” to redistribute it to consumers, in the form of bill deductions.

For now, two thresholds have been identified:

  • if the price exceeds 78 or 80 euros per MWh, the state will take 50% of the excess revenue collected by EDF
  • If the price exceeds 110 euros per MWh, the state will take 90% of the excess.

The regulated tariff was extended to VSE

“All companies that have less than ten people and less than 2 million euros in turnover will be entitled to the regulated rateregardless of their level of electricity consumption,” Bruno Le Maire announced. “Therefore there will no longer be a threshold of 36 kilovolt-amps (kVA),” he added. Until today, TPE those who consume the most energy and are supplied with a power greater than 36 kVA do not actually have access to this tariff.

However, since the beginning of the year VSEs with fewer than 10 employees have benefited from a price limited to 280 euros per MWh. But this measure ends December 31, 2023.

Quid volume produced by nuclear energy?

These numerical announcements still leave something unknown. So, none volume of nuclear energy which is charged to consumers is not defined. But that share has a huge impact on the wallet, because the lower it is, the bigger the bill…

In 2022, the electricity produced by EDF was distributed as follows:

Leave a Comment