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This text aims to “disconnect the price of European electricity from the price of fossil fuels, and in particular gas”, explained the Minister of Energy Transition on Wednesday on franceinfo.
“This is good news for the French bill”, reacts Wednesday October 18, in the morning on franceinfo, the Minister of Energy Transition Agnès Pannier-Runacher, the day after the vote of the 27 of the European Union on an agreement to reform the electricity market. This text aims to “disconnect the price of European electricity from the price of fossil fuels, and in particular gas”. “It’s a way of responding to inflation”assures the minister.
The agreement provides for long-term contracts to limit the impact of gas price volatility. When the market price is higher than the average cost of electricity production, the surplus is returned to the consumer. When it is weaker, it is the State which compensates the industrialist for the difference. With this agreement, the “price surges”as after the outbreak of the war in Ukraine, “will not be reflected on the invoice” electricity, assures the minister. “The price of gas may soar, but it will only affect a small part of the French bill.”
France managed to include nuclear power in this agreement, despite the “reluctance” Germans. Agnès Pannier-Runacher even recognizes that nuclear power is the big winner from this agreement. “Today the financing of the nuclear future as well as the financing of existing power plants and their extension is guaranteed by this agreement”, she explains. The text in fact offers more predictability to investors by making the use of contracts with a price guaranteed by the State obligatory. But Agnès Pannier-Runacher assures that renewable energy is not being put aside. “We want to invest massively in nuclear and renewable energy”defends the minister.