EDF forced to sell more electricity at low prices to its competitors – RT in French
The government will ask EDF to sell more electricity at low prices to its competitors, in order to keep its promise to limit the increase in the electricity bill of the French to 4% in 2022, despite the soaring prices.
The government, which had already reduced as much as possible the main tax on electricity, a measure insufficient to contain the surge in electricity prices, will “implement an additional measure by increasing the volume of electricity by 20 terawatt-hours (TWh). nuclear electricity sold at a reduced price by EDF to its competitors, to increase it exceptionally from 100 to 120 TWh ”, announced the Minister of the Economy Bruno Le Maire, in an interview published on the website of Parisian January 13. This measure will cost between 7.7 billion and 8.4 billion euros to EDF, estimated the member of the government.
At the end of September, Prime Minister Jean Castex announced “a tariff shield” on energy with in particular a limitation to 4% of the increase in regulated electricity tariffs in 2022.
Prices, boosted by the global economic recovery, have continued to increase since the government’s announcement, but it has therefore not gone back on its word. Since December, he has been planning to raise this Arenh ceiling (“regulated access to historic nuclear electricity”) so that suppliers have more inexpensive electricity at a fixed price, even if it means slightly increasing the price paid to EDF.
While it is currently sold at 42 euros per MWh (instead of some 250 euros on the current market) by EDF to its competitors, the government has “proposed to raise this sale price from 42 to 46.2 euros / MWh , which makes it possible to reduce the bill for EDF ”, indicated Bruno Le Maire.
The government had already reduced as much as possible the main tax on electricity, by reducing it from 22.50 euros per megawatt hour (euro / MWh) to 50 centimes, “a decision which represents a tax loss for the State of 8 billion euros, ”said Bruno Le Maire. This measure “made it possible to cover about 15 points of increase in the price of electricity”, according to the minister, very “far from the 35% to come in two weeks”.
Black Friday for EDF
On the evening of January 13, EDF suspended one of its financial forecasts, that of the ratio of net debt to gross operating surplus, which the company is no longer certain of being able to meet with this demand from government.
“The financial consequences for the EDF group cannot be determined precisely at this stage,” warned the energy company in the evening, who explained “examining the appropriate measures to strengthen its balance sheet structure and any measure likely to protect its interests ”, without specifying further.
On the morning of January 14, EDF shares fell by more than 20% on the Paris Stock Exchange.