the agreement between EDF and the State will “result in price increases”, but “limited”, warns a minister

Long negotiations on the price of nuclear electricity produced by EDF resulted this week in a compromise between the public company and the authorities.

White smoke above the Ministry of Economy, Finance and Industrial Sovereignty. A deal was found between EDF and the State on the price of nuclear electricityas Le Figaro anticipated it a few days ago. The Minister of Industry Roland Lescure returned Tuesday morning to France Info on the main objectives of this agreement, before revealing the details during a press conference later in the morning.

The essence of these measures consists of “avoid the peaks in energy prices that we had last year», recalled Roland Lescure. Concretely, “there will be an absolute ceiling which will protect households and industrialists», he continued, before lip-confirming the amount advanced by Le Figaro at the start of the week of 70 euros per MWh. The minister recalled that this is a target price. “There are times when we will pay less, there are times when we will pay more, but this “more” will in any case be capped to avoid the peaks of last year“, he clarified.

The target price (or average price) will therefore increase by 66%, from 42 euros per MWh to approximately 70 euros per MWh. “This will result in increases in energy prices, but they will be limited. Prices will especially be less volatile than in the past», reured Roland Lescure, before recalling the surge in energy prices last year which led France to legislate.

Despite this increase, the price of nuclear electricity supplied by EDF remains below the prices charged elsewhere in Europe and around the world. The financial room for maneuver thus created should allow the public company to invest mively in its nuclear fleet to continue the energy transition. EDF’s colossal debt, which exceeds 60 billion euros, makes it difficult to achieve ambitious objectives in terms of electricity consumption in the coming years.

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