🚨 ARENH - What order volumes for 2023?

The Commission for Energy Regulation (CRE) has just communicated this Thursday, December 1, the quantities of ARENH allocated to each alternative supplier for the year 2023, The rate of clipping and therefore the unanticipated volumes that each supplier will have to buy on the electricity market.

What is ARENH?

ARENH (Regulated Access to Historic Nuclear Energy) is a device from the NOME law. This mechanism allows the CRE to set regulated electricity sales rates. ARENH is a legal provision that requires the historical supplier EDF to sell nuclear energy to its competitors at a fixed price of €42/MWh. It is therefore a right, the ARENH law. Every alternative supplier can claim it. The total volume sold by EDF cannot exceed 100 TWh.

What volumes of ARENH are ordered for 2023?

Over the last 4 years, ARENH volumes ordered exceeded the regulatory ceiling of 100 TWh. For 2023, the ARENH demand is 148.3 TWh of electricity.

End of ARENH 2023: What are the consequences?

When all requests from alternative suppliers exceed the available regulatory threshold of 100 TWh of electricity, we then speak ofARENH clip. The capping rate for the year 2023 is 32.57% (compared to 37.6% for 2022). Be a net Lower requests compared to last year (160 TWh).

The 2023 ARENH deadline: What are the impacts on businesses' electricity bills?

In this context where ARENH demands exceed 100 TWh, the market will tighten and drive up electricity costs since suppliers are forced to source electricity purchased on wholesale markets or via local producers at price levels well above €42/MWh. The direct consequence for businesses is fatal An increase in electricity bill prices.

“Following CRE's announcement of the arenh order, I want to share 2 thoughts with you: Companies that have signed a contract with around 30% of the expected delay can be “delighted” to have only a few percent to buy at the market. An ARENH order of 148.3 TWh for 2023 against 160 TWh for 2022 is a negative sign for me. Should we see this as an acceleration of deindustrialization? Or did the details of state aid communicated too late encourage alternative suppliers, including ELDs (Local Distribution Companies), who do not have sufficient “cash” to cover future consumption or to protect themselves from potential non-payments by not making an offer despite the signed charter? ”

Emmanuel Sire, President of SirEnergies

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