The Council of State confirms a measure to contain electricity bills

Europe 1 with AFP 12:09 p.m., May 06, 2022

The Council of State challenged the EDF unions on Friday and confirmed in summary proceedings the volumes of cheap additional nuclear electricity sold by the electrician to its competitors, a government measure intended to limit the rise in bills.

Several trade union federations (CGT, CFE-CGC, FO, CFDT) in particular had attacked a decree of March 11 providing for the raising of the Arenh ceiling ("Regulated access to historical nuclear electricity"), a mechanism which allows competitors EDF to buy part of its electricity production at a fixed and cheap price.

The unions accused the government, which wanted to contain the rise in bills in a context of soaring electricity prices on the markets, to organize the "spoliation of EDF".

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"In a context of a sharp rise in prices on the wholesale electricity market, causing significant repercussions for both individuals and professionals, the judge in chambers considers that the contested measure presents in these conditions a public interest", indicates the Council of State.

The group warns of a plunge in its financial result 

The judge found no evidence showing "an emergency situation for the financial interests of EDF, the employment conditions of its employees or the property interests of its employee shareholders".

"The urgency invoked by the parties is therefore not able to counterbalance the urgency relating to the public interest of the measure for consumers. For this reason, the judge in chambers rejected the request for urgent suspension of which it was seized", explains the high administrative court.

It is in order to contain, as promised, the increase in regulated electricity prices to 4% in 2022 that the government has forced EDF to increase by 20% the annual quota of electricity sold at a reduced price to its competitors, to 120 TWh. (against 100 TWh previously).

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The unions, as well as six salaried directors of EDF, contested "the legality and compliance with Community law of these measures which have serious consequences for EDF, its investment capacities and therefore the public electricity service".

Following this decision, the group had warned of a plunge in its financial result in 2022, attributing it in particular to the raising of the Arenh ceiling.

The group regularly denounces this mechanism originally supposed to encourage competition, calling it "poison" for the company.