The pressure is increasing on EDF. The government will ask the company to sell more electricity at low prices to its competitors, in order to keep its promise to limit the increase in the French electricity bill to 4% in 2022, despite the soaring prices, Economy Minister Bruno Le Maire announced Thursday.
The government, which had already reduced as much as possible the main tax on electricity, a measure insufficient to contain this outbreak, will “implement an additional measure by increasing by 20 terawatt-hours (TWh) the volume of nuclear electricity sold at a reduced price. by EDF to its competitors, to increase it exceptionally from 100 to 120 TWh, ”announced the Minister in an interview published on the Parisian website.
Between 7 and 8 billion in costs for EDF
This measure will cost between 7.7 billion and 8.4 billion euros for EDF, estimated Bruno Le Maire. At the end of September, Prime Minister Jean Castex announced “a tariff shield” on energy with in particular a limitation to 4% of the increase in regulated electricity tariffs in 2022.
Prices, boosted by the global economic recovery, have continued to increase since the government’s announcement, but it has therefore not gone back on its word. Since December, he has been planning to raise this Arenh ceiling (“regulated access to historic nuclear electricity”) so that suppliers have more inexpensive electricity at a fixed price, even if it means slightly increasing the price paid to EDF.
A tax loss for the State
While it is currently sold at 42 euros per MWh (instead of some 250 euros on the current market) by EDF to its competitors, the government has “proposed to raise this sale price from 42 to 46.2 euros / MWh , which makes it possible to reduce the bill for EDF ”, indicated Bruno Le Maire.
The government had already reduced to the maximum the main tax on electricity, by reducing it from 22.50 euros per megawatt hour (euro / MWh) to 50 centimes, “a decision which represents a tax loss for the State of 8 billion euros, ”said Bruno Le Maire. This measure “made it possible to cover about 15 points of increase in the price of electricity”, according to the minister, very “far from the 35% to come in two weeks”.