Electricity prices will not soar even if they will remain high. In any case, this is the promise made by Agnès Pannier-Runacher. Questioned in the Grand Jury broadcast this Sunday, December 3, on the surge in energy prices caused by the war in Ukraine, the Minister of Energy Transition assured that the “future increases are not intended to be two digits.”
“Today, tomorrow, there will no longer be price surges such as we saw in 2022.” This, “thanks to our action at the European level and thanks to our action at the French level”, she argued. A direct reference to the two agreements concluded between the Twenty-Seven this fall. The member countries of the European Union have in fact agreed on a reform of the European electricity market in order to limit the volatility of prices on the market.
Electricity prices continue to rise in France
© / The Express
Reform of the European electricity market, agreement reached with EDF…
At the same time, work was accomplished at the national level, with the opening of discussions between the executive and Electricité de France (EDF). “Long negotiations, sometimes difficult, but which were successful,” rejoiced Bruno Le Maire. A new agreement which sets the reference price for nuclear electricity sold by the historic operator at 70 euros per MWh from 2026.
A tariff which allows “to cover in a sustainable manner all the costs of existing nuclear power, as well as future investments, in particular in the new EPR2 nuclear program” Agnès Pannier-Runacher then argued. And the Minister of the Economy congratulated himself on having “succeeded in finding a vital balance between the competitiveness of our industry, visibility and stability for households and the development of EDF”.
Price increase limited to 10%, according to Bercy
But then, how much will the increase expected for next February be? According to Agnès Pannier-Runacher, the objective of the executive, which has control over electricity prices, is to limit the increase to “10%”.
A promise which clashes with the forecasts of the president of the Energy Regulatory Commission (CRE), Emmanuelle Wargon. And for good reason, last September, the energy policeman was counting on an increase of 10 to 20% in prices at the start of 2024. Announcements brushed aside for the first time by the tenant of Bercy who had assured that an increase in regulated prices from 10% to 20% was “excluded” during the next reassessment in February.
Note that for the moment, the State still covers 37% of the French electricity bill. Protection set to be gradually reduced “during 2024” due to falling prices. “Today, we are regaining control over the price of electricity and we are taking it back with increases which are intended to follow […] our cost of electricity production, the cost of nuclear power, the cost of our entire network and which is disconnected from the cost of fossils,” defended the Minister of Energy Transition.