France Proposes New Nuclear Contract Scheme

The French Senate has proposed a new contract scheme between EdF and the state to allow the nuclear operator to fix revenue at a pre-agreed level, citing inadequate protection for both the company and consumers in the previous deal, it said, according to XM.

• The contract for difference aims to set the electricity price at around €60-65/MWh compared to the targeted average by a November 2023 agreement of €70/MWh over 15 years from 2026.
  
• The previous agreement did not guarantee minimum revenues to EdF, with the implementation depending on contracts between EdF and companies, which slowed as market prices fell.
• The CfD scheme aims to set regulated tariffs resulting in an electricity supply price close to the estimated full cost of the French nuclear fleet, as stated by the Energy Regulatory Commission at €60.70/MWh between 2026 and 2030.
• This would result in "an annual saving of more than €300 for an average household compared to current prices", according to the inquiry commission's calculations.