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Subscriptions for regulated power price surged in 2017 (France)

The French energy regulator (CRE) has announced a surge in electricity supplier subscriptions for nuclear power generation in the first semester 2017 at the ARENH regulated wholesale price.



In a context of falling wholesale market prices, ARENH demands from alternative suppliers have been decreasing since 2015. The volumes requested for the first semester of 2014 and 2015 amounted to 36.8 TWh and 15.7 TWh, respectively, and even fell to no reservation in 2016. In the current context of rising wholesale market prices for electricity (fears over supply in the winter 2016-2017 due to nuclear plant unavailability in France), CRE has noted a significant increase in ARENH requests from alternative suppliers for the first semester 2017, up to 40.75 TWh.



Since the introduction of the ARENH law (Accés Régulé à l'Electricité Nucléaire Historique, 2010) that aims to reduce EDF's dominant position over electricity generation and retail, EDF has made up to 25% of its nuclear generation purchasable by alternative suppliers on the wholesale market. The ARENH price has been set by the CRE at €42/MWh since 2012. A new decree from the Ministry of Economy and the MEEM to revise the ARENH price has been pending since 2013.

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