The French government has decided to maintain the ARENH tariff at €42/MWh. A new price formula is to be implemented and the ARENH tariff was expected to be raised on 1 January 2015; however, the tariff increase will only occur on 1 July 2015. The French energy regulator CRE estimates the necessary price increase at €2/MWh in 2015.
The ARENH tariff is a regulated price set by the government after consultation and approved by the energy regulator CRE and the State council; it corresponds to the price of nuclear electricity generated by EDF, the historical electricity company, and sold to alternative suppliers. The ARENH tariff aims to cover EDF's production costs during the nuclear plants' operational life (potential 10-year extension of the amortization period) and to offer end-consumers the advantages of a low-operation cost technology whatever their supplier. The ARENH tariff was created in 2010 by the Nome law (Nouvelle Organisation du Marché de l'Electricité) and is estimated too high by EDF's competitors.