The regulation of nuclear energy prices in France: from ARENH to the "corridor

Summary The ARENH (regulated access to historical nuclear energy) mechanism, which since 2011 has allowed alternative suppliers to acquire 100 TWh of nuclear electricity at the regulated price of 42 euros per MWh, is now being challenged. Alternative suppliers want to raise the ARENH ceiling to 150 TWh, while EDF is calling for the ARENH price to be raised well above its current level. In early 2020, the public authorities submitted a project for public debate that would replace the ARENH system with a price "corridor" type mechanism. All nuclear electricity would be purchased at the wholesale market price by all suppliers (including EDF) and financial compensation would be paid ex post between EDF, a nuclear producer, and alternative suppliers when the market price falls below a floor price or exceeds a ceiling price. The purpose of this article is to recall the evolution of the ARENH mechanism, to explain its criticisms and weaknesses. It is then to analyze the new mechanism proposed by the CRE, to measure its consequences for operators as well as for the final consumer.