REGULATOR WANTS EDF TO GIVE MORE NUCLEAR TO LIMIT TARIFFS
PARIS (Reuters) – The French Energy Regulatory Commission (CRE) recommends that the French government increase the volumes of nuclear electricity that EDF will have to sell to its competitors in 2023 in order to limit the rise in tariffs, announced Wednesday Jean-François Carenco, the president of the regulator.
The CRE thus recommends that the group sell 130 terawatt-hours (TWh) next year to its rivals within the framework of Arenh (regulated access to historical nuclear electricity), at a price which would be revised upwards and set at a minimum of 49 euros per megawatt-hour (MWh).
This measure would prevent EDF’s competitors from having to pay much higher prices on the wholesale markets – in a context of low availability of the French nuclear fleet and tensions over gas supplies in Europe -, which would have in electricity prices.
“It is very important (…) that we give a maximum of Arenh to be the minimum exposed to the international price”, declared Jean-François Carenco during a press conference.
“The only objective is to have an energy price that makes our businesses competitive and that does not harm social cohesion for the individual consumer,” he added.
To limit the increase in regulated electricity tariffs to 4% on February 1, the government has already raised the Arenh volumes sold this year from 100 to 120 TWh, at a price of 42 euros per MWh for 100 TWh and 46.20 euros per MWh for 20 TWh.
The CRE, which would like a decision on the Arenh before the summer to give visibility to market players, also recommends that the executive extend the reduction in the electricity tax (TICFE), effective since the 1st February, at its minimum level provided for by European law.
Long opposed to the Arenh system, which it describes as “poison”, EDF estimated in March that the increase in the volumes of nuclear electricity sold at low prices to its competitors in 2022 would cut into its profit this year. before interest, taxes, depreciation and amortization (Ebitda) of some 10 billion euros. He therefore asked the government to reconsider its decision.
The group, moreover penalized by the low availability of its power plants due to corrosion problems, had to carry out a capital increase of 3.16 billion euros at the beginning of the spring, to which the French State subscribed about 2.7 billion.
The Minister of the Economy, Bruno Le Maire, indicated on Monday that no catch-up on consumer bills would take place next year after the freezing of gas prices and the capping of those of electricity.
In the context of the war in Ukraine which is resulting in soaring energy prices, he also indicated that the executive wanted to continue to protect the French against the increase in electricity in 2023, without specifying by what means. .
(Report Benjamin Mallet, written by Matthieu Protard, edited by Jean-Michel Bélot)