ARKANSAS, Nov 23 (Future Headlines)- Engie’s CEO, Catherine MacGregor, expressed concerns about the recent French nuclear power deal, cautioning that it could lead to increased electricity costs and potentially strengthen EDF’s dominant position. While supporting the move toward market strengthening and deregulation, Engie emphasizes the need for rigorous application of competition rules and careful monitoring to ensure fair play. The deal, setting future nuclear power reference prices at 70 euros per megawatt-hour (MWh), was reached between the French government and EDF, with Engie emphasizing the complexity and vagueness of the agreement.

The recent deal signifies a move toward market strengthening and deregulation in the French nuclear power sector. Engie expresses general support for this approach but underscores the importance of strict adherence to competition rules.

Engie raises concerns that the deal risks making electricity more expensive for consumers. The complexity of the redistribution system and the limited capacity to predict real electricity prices contribute to a lack of visibility.

Vigilance is emphasized to ensure that EDF’s producer and supplier activities are kept strictly separated. The rules of competition need to be applied rigorously to avoid strengthening EDF’s dominant position.

Engie regrets that alternative suppliers, manufacturers, and consumers received limited information before the conclusion of the deal. Stakeholders will only be able to participate in a consultation from this week, potentially hindering their ability to engage effectively.

The deal is expected to complicate the construction of offers for commercial contracts signed over several years. Engie highlights potential challenges for industrial and private consumers in understanding and navigating the new agreement. Engie describes the deal as complex and vague, requiring careful examination and monitoring. The intricacies of the agreement could create challenges in implementation and understanding for stakeholders.

The limited capacity to predict real electricity prices under the new arrangement contributes to a lack of visibility. Limited predictability could impact the ability of stakeholders to make informed decisions.

Engie notes that the deal is expected to favor the massive and rapid development of renewable energy alongside nuclear power. The promotion of renewables is seen as integral to the diversification of energy sources and the transition from fossil fuels.

Editing by Sarah White