PARIS (Reuters) -Bruno Le Maire declared on Thursday that he wanted to reopen the negotiation of long-term contracts with EDF, whose prices do not appear to him to be sufficiently competitive for French industry.

“We have proposed long-term contracts. Is the price satisfactory? No. Will it therefore be necessary to reopen negotiations with EDF? My answer is yes”, said the Minister of the Economy during an intervention before French employers’ organizations as part of the campaign for the legislative elections.

“We want more reactors, more renewables and we will reopen the negotiation of contracts with EDF because the exit price is not sufficient and not competitive enough for French industry,” he added.

Contacted by Reuters, the public company declined to comment.

As part of an agreement concluded at the end of 2023 with the State, EDF offers electro-intensive industrialists “nuclear production allocation contracts” (CAPN) which consist of companies reserving part of the power of the nuclear fleet. in operation by being delivered according to actual production and paying a price reflecting production costs.

They also provide that customers pay EDF “head advances” which can exceed 100 million euros at the start of the contract.

According to the latest data provided by the group, at the end of May, four letters of intent (LOI) had been signed with electro-intensive manufacturers – including one with ArcelorMittal and another with GravitHy – with a view to concluding “contracts nuclear production allocation” (CAPN) from 10 to 15 years, for a total of 10 terawatt-hours (TWh) per year.

On the same date, EDF had also concluded with customers in its business market just over 1,600 four- or five-year contracts representing more than 10 TWh annually.

The two main categories of contracts constitute the basis of the new commercial policy deployed by the group to supply its customers from 2026, the first year of entry into force of a system which must succeed the current regulation known as Arenh (regulated access to historic nuclear electricity).

These contracts are essential to the implementation of an agreement concluded in November 2023 with the State which aims to protect individuals and businesses from market fluctuations, but also to allow EDF to have more visibility on its revenues. while sharing its risks and covering its costs, while it must invest massively in nuclear power.

The government had previously indicated that an initial assessment of EDF’s offers and the viability of the agreement would be carried out at the end of June.

Industrial representatives have regularly complained in recent months about the slowness of negotiations with EDF and the conditions proposed by the public electrician.

(Written by Blandine Henault, Bertrand Boucey and Benjamin Mallet)

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