EDF ought to double nuclear electricity sales to rivals

05/12/2014 00:24 Electricity Market

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French power utility EDF must be obliged to double the share of nuclear electricity production it vends to competitors from a quarter to up to half so as to raise competition, as stated by GDF Suez's chief executive on Thursday.

Since 2011, the state-controlled EDF has to annually vend to competitors about 100 terawatt/hour of power produced by its nuclear plants, which is equivalent to a quarter of their generation, in exchange for maintaining its domination on nuclear production. The energy regulator CRE declared that in spite of the opening of France's electricity market to competition in 2007, the previous monopoly power seller still owned an 84 percent share of the electricity market in volume at the end of September. According to the CEO of GDF Suez, Gerard Mestrallet, the end of regulated electricity tariffs for firms on December 31, 2015, which only EDF can propose, should come with a doubling of the quantity of nuclear power EDF vends to rivals at the so-called ARENH tariff. The French gas market is dominated by GDF Suez, which also offers electricity contracts. CRE had previously declared that ARENH, which presently is at 42 euros per megawatt/hour and has been criticized by all industry major actors, should augment to 44 euros in 2015 and 46 in 2016. EDF desires to gradually raise to 50 euros in order to better reproduce the real cost of nuclear power generation, while EDF's smaller competitors such as Direct Energie mention it is already too elevated to permit them to rival with EDF.

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