Help companies see through the “crazy prices” of energy markets. This is the objective of the new barometer published by the Energy Regulation Commission (CRE).
In this document intended for companies and local authorities (which will be updated every Tuesday on the CRE website), the regulator lists the price ranges on which it considers reasonable to commit to sign new energy supply contracts.
Prices that vary between 461 and 655 euros per MWh
Valid 24 hours – taking into account the daily price variations on the wholesale markets -, these price ranges nevertheless give an idea of the suppliers’ supply costs and their selling prices for a week, indicates the CRE.
In detail, CRE distinguishes three consumer profiles by using the color code of the old regulated tariffs (blue, green or yellow depending on the power of the meter and the size of the company) and two consumer profiles (one consumer medium and another consuming more in winter and during peak hours).
For all these customers, the “reference” tariffs defined by the regulator vary between 461 and 655 euros per megawatt hour (MWh) for basic calendar electricity supply contracts for 2023, i.e. a delivery of constant electricity over the whole next year.
Extremely high compared to historical standards, these tariffs include price peaks of the same level as those reached this summer during supply drops on the Nordstream 1 gas pipeline, ie beyond 1,000 euros per MWh.
CRE publishes price references for electricity offers excluding taxes for small and medium-sized enterprises (SMEs), which will be updated every Tuesday. Click on the picture to enlarge.
Reassure and encourage cover
“This situation reflects the current strong uncertainty about the ability of the French electricity fleet and electricity imports to meet demand during periods of high consumption next winter”, explains the CRE. In other words, the blurring of EDF’s ability to operate its nuclear power plants this winter and the ability of countries like Germany to meet the demands of the French electricity network in the heart of winter.
Highly solicited by companies fearful of committing to exorbitant energy supply prices offered by certain suppliers, CRE hopes to reassure and encourage all companies and communities to cover themselves for the year 2023.
Electricity suppliers have until November 15 to declare the volumes of nuclear electricity at the Arenh tariff requested by their customers. After this date, contracts associating a price reduction linked to cheap nuclear quotas may no longer be available. However, if no other emergency measures are taken, this means that the prices offered to SMEs and other local authorities are likely to be even higher.