September 11, 2019 / 9:13 AM / 5 days ago

MEDIA-France discussing higher Arenh power price with EU - Le Parisien

** France is in talks with the Europen Commission to increase the Arenh power price under which state-controlled utility EDF has to sell a quarter of its nuclear output to competitors, French daily Le Parisien reported.

** The paper said the French government is proposing to increase the Arenh price to 45 euros per megawatthour from 42 in exchange for being allowed to fully nationalise EDF’s nuclear activities. EDF has long argued that the Arenh price is too low.

** The ARENH (Accès régulé à l’électricité nucléaire historique) mechanism was set up in 2010 to encourage competition and offset EDF’s monopoly on nuclear power production. It expires in 2025. EDF operates all 58 of France’s nuclear reactors that generate more than 75% of the nation’s electricity needs.

** The French government is planning a restructuring of EDF, which is 83.7% state-owned, under which its nuclear business and possibly also its hydropower and power transport activities would become 100% state-owned under an “EDF blue” legal entity. A new “EDF green” entity would hold EDF’s renewables, services and power distribution activities and remain listed on the stock market, possibly with more private minority shareholders.

** Le Parisien reports that the French government will notify the restructuring - called “Plan Hercules” - to the EU once its new energy transition law is voted in the coming weeks. It said the EU commission had opened a prenotification dossier following talks about the topic with French officials.

Note: Reuters has not verified this story and does not vouch for its accuracy

Reporting by Paris Newsroom

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