🚨 The CRE publishes price references for electricity offers

Faced with the energy crisis, it is difficult to navigate and to understand the mechanism of energy prices. That is why, the Energy Regulatory Commission (CRE) published, Wednesday, October 19, 2022, references of prices for HV electricity offers for SMEs, local authorities and buyers subject to the public procurement code (such as social landlords).

SirEnergies gives you the reference prices every Tuesday:

Reference price - What are the terms and conditions?

In order to best reflect the diversity of situations, CRE will consider various cases:

• The profiles corresponding to the colors of the old regulated rates (blue, yellow, green);
• An average consumer and a “seasonal” consumer who consumes more in winter and during peak hours.

These reference prices published by CRE are calculated for an offer from a supplier:

• Lasting for1 year for delivery on the calendar year 2023 (Cal 23);
• Valid 24 hours ;
• Based on Monday's wholesale electricity prices;
• Updated all Tuesdays.

Reference price - Which businesses are affected?

These reference prices published by the CRE concern SMES And the communities territorial:

• With up to 250 employees
• And whose turnover does not exceed 50 million euros (or 43 million euros on balance sheet).

Reference price - What is the objective?

These reference prices are intended to allow SMEs and local authorities that are required to subscribe or renew an electricity supply contract in the coming weeks for 2023, to ensure that the offers of their suppliers are competitive and reflect the reality of supply costs.

Reference price - Understanding construction

ARENH Rights (Regulated Access to Historic Nuclear Energy)

To build these reference prices, the CRE assumes an award rate equal to that of last year, i.e. 62.5%, corresponding:

• To the regulatory framework in force: ceiling ofARENH at 100 TWh and looping coefficient at 0.964 ;
• At an ARENH request equal to last year's request, or 160 TWh.

Wholesale price reference

The CRE explains:

” The wholesale price underlying these prices is €543/MWh for a Base 2023 calendar product (which corresponds to a constant supply of electricity throughout the year and therefore does not represent the total cost of supplying the load curve, typically higher if the customer consumes more in winter than in summer). ”

The indicative prices published by the CRE include very high prices, in excess of €1,000/MWh, for peak hours in the winter period.

” This situation reflects the current high uncertainty about the capacity of the French electricity fleet and electricity imports to meet demand during periods of high consumption next winter. ”

🚨 The energy policeman warns of the limits of the exercise, these price references” are indicative and do not prejudge situations specific to each SME: CRE invites consumers to carefully compare, when analyzing their suppliers' offers, their specific consumption and contractual situation with the hypotheses adopted ”.