Market regulation would hurt houses, based on the UFC-Que Choisir client affiliation.
The debate over electrical energy costs is as soon as once more inflicting sparks. The UFC-Que Choisir denounced Thursday a “Explosion of bills” electrical energy. According to his calculations, the regulated gross sales tariff (or TRV, provided completely by EDF) electrical energy has elevated by practically 50% in ten years. “An average household heated by electricity at the TRV will have seen their electricity bill drop from 1019 euros to 1522 euros between 2010 and 2020”, estimates the affiliation for the protection of customers.
This surge is much less as a result of enhance in taxes (which got here to a halt in 2017) or the liberalization of the sector than to the principles outlined by the French authorities to prepare the market, believes the UFC-Que Choisir. These had been cast each to fulfill the historic electrician EDF and to develop competitors. In the tip, they don’t absolutely fulfill anybody and drive up costs.
Access to nuclear
The affiliation cites specifically the mechanism by which EDF is compelled to promote half of its nuclear electrical energy to its opponents, known as Arenh (“Regulated access to historic nuclear energy”). EDF should subsequently promote a small third of the manufacturing of its fleet of energy vegetation to various suppliers of the Direct Energy or Eni kind, at a worth of 42 euros per megawatt hour. Tariff deemed inadequate by the historic electrician to finance the upkeep and upgrading of its fleet of energy vegetation.
However, the rationing of nuclear manufacturing put up on the market within the context of Arenh helps artificially inflate costs, based on UFC-What to Choose. Alternative suppliers are in reality compelled to finish their purchases of electrons on the wholesale market, the place costs at the moment peak at round 56 euros per megawatt hour. Worse, the extent of TRVs is itself set, partly, primarily based on these market costs. The Arenh cap consequently causes each an enhance within the costs of aggressive affords and controlled tariffs. The customers’ affiliation is subsequently asking for a “Immediate removal of the ceiling on Arenh volumes accessible by alternative suppliers, to put a stop to the current inflationary spiral”.
This answer would nonetheless push EDF a little bit extra into the disaster. The worth of the Arenh at 42 euros doesn’t permit it to amortize its nuclear fleet. If it had been to promote all of its nuclear manufacturing at this worth, it might worsen its monetary scenario. The group is already burdened with a debt of 42 billion euros.
As half of the reform of the “large EDF” (ex-Hercule plan), the topic of bitter negotiations between Paris and Brussels, EDF would profit by 2023 from a assured buy worth of 49 euros per megawatt hour for nearly -total of its nuclear manufacturing. This could be 1 euro greater than the 48 euros deemed crucial by the Energy Regulatory Commission (CRE) to cowl EDF’s prices. What to extend costs, based on the UFC-What to decide on, which requires a moratorium on this reform.
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