The quarrel between the EDF and the state continues. This was announced by the CEO of the electricity giant on Thursday, May 12, by submitting an application. “fair relief” against the government’s decision to allocate additional volumes of cheap nuclear electricity to its competitors in order to limit the growth of bills. And this is not the first EDF rebellion in recent months against its main shareholder. Franceinfo returns to the causes of the spark.
What is this appeal?
“I have just sent a courtesy letter to the state requesting a recall” The government’s commitment to EDF to supply power to competitors at reduced prices was announced on Thursday by Jean-Bernard Levy, the group’s CEO, on the occasion of the company’s general meeting. “Both the price and the conditions of these allocations greatly infringe on us”he reasoned.
In addition to this administrative procedure, “EDF will take all measures to protect its rights that it deems useful”added a representative of the group to AFP, specifying, in particular, that the latter reserved “possibility of appeal to the competent courts”. “We take note of the decision of Jean-Bernard Levy”, Ministry of Economy reacted.
Why should EDF supply cheap electricity to its competitors?
With the market open to competition since 2010, EDF has been required to sell some of its electricity. other French energy providers at a fixed price of 42 euros per megawatt hour (MWh), at the same time prices in the wholesale markets exceed 200 euros per MWh. This mechanism is referred to as Regulated Access to Historic Nuclear Electricity (Arenh).
But since this amount of electricity at bargain prices is limited, competing EDF suppliers must also travel abroad to supply themselves. Because of rising prices in recent months, it costs them more than before. This affects the customer’s account.
Therefore, in order to contain the growth of electricity bills in France to 4% in 2022, the government forced EDF to increase by 20% the annual quota for electricity sold to competitors at a reduced price, to 120 Tera, from April.watt hours (compared to 100 TWh before) at a price of EUR 46.20 per MWh for this additional volume.
What does EDF blame for this commitment?
After the Arenh ceiling was raised, EDF warned of a drop in its financial result in 2022 of around 10 billion euros, including 8 billion associated with the measure. However, this significant financial manna is needed by EDF to “to invest in their projects to maintain their current production capacity and in the new means of production needed to meet the electricity needs of France and Europe”explained to franceinfo at the end of January Amélie Henri, a representative of the CFE-CGC Energies trade union. Other measures are also possible for trade unions, such as lowering VAT to 5.5% of the price of electricity, compared to 20% today.
For their part, the entourage of Economy Minister Bruno Le Mer reminded on Thursday that “a measure taken by the government at the beginning of the year [avait] allowed the French to avoid a 40% increase in electricity.”. lThe UFC-Que Choisir consumer association also came out in late April in support of the state’s decision, warning that “Arenh Ceiling Removal May Lead to 16% Tariff Catchup”. In order to mitigate the measure imposed on the EDF, the state It has Furthermore in March, the electrician helped out in the amount of 2.7 billion euros.
Have EDF initiated other procedures?
Before this gracious appeal, IEnergy giant workers urged to strike, January 26. The group’s unions accused the government of organizing “edf robbery” and believed he had acted solely for electoral purposes in the months leading up to the presidential election.
The unions and six hired directors of the EDF also appealed the government’s decision under summary procedure to the State Council, but did not win the case. “In the conditions of a sharp rise in prices in the wholesale electricity market, which caused significant consequences for both individuals and professionals, the judge in the panel considers that the contested measure is in these conditions of public interest”decided the establishment, 6 May.
However, this emergency decision does not mean the end of the trial: the unions and directors of the EDF have also petitioned the Council of State for an annulment, as well as the European Commission, believing that this increase in the Arenh ceiling is contrary to European law.