Francia : March 22, 2011

The “New Organisation of the Energy Market Act” or NOME was promulgated in December 2010.  The law requires that EDF sell 25 percent of its annual nuclear generation to other French electricity suppliers with the French Government fixing the price in order to spur competition.  The price will be fixed annually by the Government based upon the recommendation of the Commission for Energy Regulation (CRE) and it will also take into consideration prevailing economic conditions.  This represents the foundation of a regulated access to EDF’s nuclear facilities by establishing the Accès Régulé au Nucléaire Historique or ARENH price (the baseload price).

The law is intended to ensure that all French suppliers can offer competitive pricing.  EDF has stated the ARENH price should be a minimum of €42 per Mwh while the CRE has said that this price should be around €37 per Mwh in order to ensure effective competition.  The Government insists that whatever the ARENH price may be, it should represent the true cost of electricity production in France rather than higher costs dictated by European references.  If there is no doubt that NOME promotes competition in line with French law, it is less clear whether it complies with European Union law.  Indeed, NOME is designed so that it is impossible for a supplier located outside of France to enjoy the same market conditions as one that is located within the country.  Additionally, while the ARENH tariff allows a supplier to purchase electricity within France and export said electricity outside the country, if this export exceeds the volume they were allocated for domestic customers, they will need to pay the difference between the ARENH and market price.

In the end, this territorial restriction may place NOME in direct contradiction with EU law thus starting a new round of arguments regarding electricity competition in France.