The minister has already intervened to try to unblock the frozen situation between EDF and its large customers so that they can reach an agreement on the price of nuclear production allocation contracts (CAPN).
EDF and its industrial customers who are large consumers of electricity will have to “reopen” a negotiation to sign long-term supply contracts, Bruno Le Maire said on Thursday. According to the minister, the prices proposed by EDF are not “not sufficiently competitive for French industry”. “We will reopen the negotiation of contracts with EDF because the exit price is not sufficient, is not competitive enough for French industry”he declared during his presentation of the presidential party’s economic program to business representatives gathered at Medef in Paris before the early legislative elections.
“If we do not produce more carbon-free electricity in our country, our entire economic fabric – SMEs, traders, large industrial companies – will be threatened”he said in front of an audience of bosses. “We offered long-term contracts. Is the price satisfactory? No. Will it therefore be necessary to reopen negotiations with EDF? My answer is yes” he said. Bruno the Mayor has already intervened to try to unblock the frozen situation between EDF and its large customers so that they can reach an agreement on the price of nuclear production allocation contracts (CAPN). A review clause was planned for June to take stock of the subject.
“Do not foreclose the market”
Clearly, for after 2025, EDF is offering so-called electro-intensive industries (large consumers of electricity) such as the steel industry or chemicals, a preferential rate over 10 to 15 years, in exchange for taking a risk on the financing of the existing and future nuclear fleet. Since November, only four manufacturers have signed a letter of intent to this effect with EDF. Two are in carbon-free steel. These are ArcelorMittal and Gravithy in Fos sur mer. The names of the other two are not made public.
The chemicals sector complained about the proposed prices, considered too high and the hydrogen sector also considers the prices uncompetitive. Since the start of negotiations in November, EDF has allocated “around 10 terawatt hours” per year over a period of 10 to 15 years in the four announced contracts, and still has 14 TWh per year to reach the limit of 24 TWh that it has set for itself.
EDF “does not wish to foreclose the market”electro-intensive industrialists can also cover their needs with traditional supply contracts with EDF or alternative suppliers,” argues the electrician.
