This is the latest scenario that has been circulating for several days. According to several sources, the government is considering regulating electricity prices, which favors the establishment of several levels. Until now, the executive and EDF have been fighting over setting a maximum limit. In the event of an increase in prices in the electricity markets, the State will use the income generated above this limit to finance aid aimed at reducing consumers’ bills.
The idea would be to set several price thresholds with progressive tax rates, following the same model as the income tax. According to a source involved in the negotiations, there would be three tranches starting at 70 euros per megawatt hour. The first when prices range between 70 and 90 euros/MWh, the second between 90 and 110 euros/MWh and the third for prices greater than 110 euros/MWh.
These levels have not yet been finalized and could still evolve. A few weeks ago the first tranche started at 65 euros/MWh. This starting price must correspond to EDF’s production cost. But its general director, Luc Rémont, declared on Wednesday morning before the Senate that the production cost was rather “close to 70 euros.”
Progressive debit rates
It also remains to determine the type of deduction associated with each section. For the first (70-90 euros/MWh), it could be 25% while a few weeks ago there was talk of a rate of 10%. For the second tranche (90-110 euros/MWh), the State would keep 75% of the income generated and up to 90% or 95% above a price of 110 euros/MWh.
When contacted, EDF and the Ministry of Economy declined to comment. But on Wednesday morning, Bruno Le Maire assured, during a speech at the Assises de l’Industrie, that this price had to be “financially sustainable for EDF, because nothing would be worse than buying social peace from industrialists with a reduced price and be “Will be forced to recapitalize EDF with French money within a few years.”
This plan would allow EDF a greater financial margin whatever the market price. “If the State set a maximum limit, EDF would limit its economic interest in producing more,” says a market observer. Bruno Le Maire indicated that an agreement with EDF was “very close, it is a matter of days.”
Source: BFM TV
