EDF:Launch by the French government of a public consultation on a proposed system to protect electricity consumers from 1 January 2026
24 November 2023 - 8:55AM
EDF:Launch by the French government of a public consultation on a
proposed system to protect electricity consumers from 1 January
2026
Launch by the French government of a
public consultation on a proposed system to protect electricity
consumers from 1 January 2026
Following the press conference on 14 November
2023, the government launched a consultation on 22 November 2023,
setting out the arrangements envisaged to guarantee the protection,
stability and predictability of electricity consumers' bills in
France after the end of the ARENH on 31 December 2025.The
consultation covers the system envisaged to ensure a longer-term
electricity market providing more stable prices in line with the
cost structure of the French electricity mix, while giving EDF the
means to ensure its development and make the expected investments
necessary for the success of the energy transition.
This system is based on the deployment of the
long-term commercial policy envisaged by EDF and on economic
regulation of existing nuclear power.EDF will implement a new sales
model based on medium and long-term contracts:
- firstly, market contracts with a
4-to-5-year term: these are sales contracts, open to all market
players, for the delivery of electricity for a period of one year
at these terms. Since September, EDF has been offering electricity
for the years 2027 and 2028 in the form of auctions open to all
market players (1). The development of market liquidity at these
dates will enable suppliers who so wish to offer their customers
medium-term supply contracts;
- secondly, industrial partnership
contracts backed by nuclear power plants and "PPA" contracts backed
by renewable assets;
- finally, medium-term supply
contracts with its own customers based on market price references,
in addition to standard market offers and regulated tariffs whose
price is set by the public authorities.
To provide additional protection in the event of
high market prices, the government plans to levy a charge on
revenues (2) from EDF's existing nuclear power plants, based
on two thresholds:
- 50% of revenues in excess of an
initial threshold would be levied. This first threshold is
currently estimated at €782022/MWh and
- 90% above a second threshold set at
€1102022/MWh.
These thresholds are expressed in 2022 currency
and are indexed.
The amounts levied would be redistributed to
consumers, providing them with additional protection against
episodes of high market prices.
The text of the public consultation is available
here (in French
only):https://www.ecologie.gouv.fr/sites/default/files/Consultation_publique_NRN_vf.pdf
At the end of this public consultation, the
terms of the levy scheme will have to be translated into law.
This press release is certified. Check
its authenticity on medias.edf.com
About EDF As a major player in
energy transition, the EDF Group is an integrated energy company
active in all businesses: generation, transmission, distribution,
energy trading, energy sales and energy services. EDF group is a
world leader in low-carbon energy, having developed a diverse
production mix based mainly on nuclear and renewable energy
(including hydropower). It is also investing in new technologies to
support energy transition. EDF’s raison d’être is to build a net
zero energy future with electricity and innovative solutions and
services, to help save the planet and drive well-being and economic
development. The Group is involved in supplying energy and services
to approximately 40.3 million customers (1), of whom 30.3 million
in France (2). It generated consolidated sales of €143.5 billion in
2022.
(1) Customers are counted per delivery site. A
customer can have two delivery points: one for electricity and
another one for gas. (2) Including ÉS (Électricité de Strasbourg)
and SEI.
(1)
https://opendata.edf.fr/explore/dataset/prix-de-vente-suite-aux-encheres-rubans-d-edf-sa-pour-2027-2028/table/?sort=-tri&refine.annee_de_livraison=2027(2)
Energy revenues, including the value of the form of nuclear
generation, excluding revenues from the valuation of certificates
of capacity allocated to the nuclear fleet under the capacity
mechanism.
- PR_Post Arenh public consultation - 24.11.2023
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