Regula ng Access to Nuclear Power Genera on: The French Case

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Niveau: Supérieur
Regula?ng  Access  to  Nuclear  Power   Genera?on:  The  French  Case   SICEM 7th Conference Electricity Deregulation – Retrospect and Prospect Seoul, June 16, 2011 François Lévêque Mines ParisTech () 1

  •  of  total

  •  in  france

  •  the  french

  •  regulated  access

  •  2006  to

  •  and  opera

  •  power  


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Regula'ngAccesstoNuclearPower
Genera'on:TheFrenchCase

François Lévêque

Mines ParisTech

(francois.leveque@mines-paristech.fr)

SICEM 7
th
Conference
Electricity Deregulation – Retrospect and Prospect
Seoul, June 16, 2011

1

• 

• 

Introduc'on

The1
st
ofJuly,suppliersinFrancewillenjoyanaccessrighttoEDF’s
nuclearfleettosourcetheirpowerwithatariffsetbythe
government(40€/MWhin2011;42€/MWh,in2012).


Thisrecentlyintroducedregulatedaccesstonuclearpowerissupposedtolast
un'l2025
Outlineofmytalk


Contextandmo'va'onsforaregulatedaccesstonuclearpowerinFrance


Themainfeaturesoftheinstrument(i.e.,howtheaccessissupposedtowork?)


Norma'veeconomicassessment:istheregulatedaccesstoEDF’snuclearpower
economicallysound?


Posi'veexanteassessment:willtheobjec'vesoftheregulatedaccess
achieved?


Conclusion

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• 

• 

• 

Context

TheEUframework


EUpolicy:Internalmarket+securityofsupply+sustainability(i.e.,climatechange)


EUenergylaw(3packagesofDirec'vesandRegula'onstoliberalizetheenergy
markethavebeensetsince1998)+EUcompe''onlaw(mergercontroland
an'trust)
FDE–

Stateowned(83,7%equity)


Aver'callyintegratedoperatordomina'ngpowergenera'on(91%oftotal
genera'on)andsupply(94%ofcustomersand87%ofconsump'on)


Owningandopera'ng58reactors(83%oftotalelectricityproducedinFrance)
Market


10yearsafertheopeningoftheFrenchmarket,93%ofconsumers(66%of
consump'on)s'llpurchasetheirpoweratregulatedretailtariffs(setbythe
government,servedbyEDF,includingenergyandnetworks)

3

Marketsegmentsandregulatedretailtariffs

RegulatedTariffMarketsegments

ulBeYellow
Green
TaRTAM

Residen'alandprofessionals
SMEs/SMIsconsumers
Largeconsumers
MostlySMEs/SMIsandlargeconsumers

TaRTAM=transi'onalregulatedtariffformarketadjustment.Itwassetin2006toenable
companiesthathadwithdrawnfromhistoricyellowandgreentariffstoobtaincheaperpoweron
thefreemarkettobenefitagainfromtariffprotec'on.Itrepresentsabout74TWhofannual
consump'on

4

Comparisonoftrendsinsupplyandwholesaleprices,
excludingtransmission

(Current euros; source: Impact study, 2010)

Pgrriceee nc oatrrriffesponding to A8

Estimated price for base-load
customer having switched from
regulated tariff

Monthly average of the
wholesale market for 1 year
forward contracts

TaRTAM = transitional regulated tariff
for market adjustment

5

Averageregulatedtariffs

(€
2010
/MWh,taxesexcluded)

(Source:Obervatoiredesmarchésdel’électricitéetdugaz,premiertrimestre2011,CRE)

6

• • 

• 

Thenewelectricityactinanutshell

AdoptedinDecember2010asthelawonthe«New
Organiza'onofMarketsinElectricity»(Hereafer,NOME)
NOMEeliminatesTaRTAM(July2011),greenandyellow
tariffs(December2015)butitkeepsbluetariffs(un'l2025)
andintroducesa«Regulatedaccesstohistoricnuclear
power»(
AccèsRéguléàl’ElectricitéNucléaireHistorique
,
ARENHinFrench)
Moreover,theNOMEActreformsthelocalelectricitytax
andplanstointroduceacapacityobliga'onschemebefore
5102

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• • • • • • • • 

Thelegalandpolicyprocess

April2009–IssuanceofthereportofthecommissionchairedbyPaul
Champsaurtheformertelecomsregulator.Thecommissionproposesto
introducearegulatedaccesstobaseload
April2010Drafbillproposedbygovernmentwhichdetailstheregulated
accesstobaseload
November2010–Aferlengthydebatesandmanyamendmentsatthe
SenateandAssemblytheNOMElawispassed
December2010Nomina'onofnewcommissionersoftheenergy
regulatoryauthority
March2010SecondChampsaurreportonthepriceoftheregulatedaccess
(confiden'al)
April2010Issuanceofdecreesandorderscomplemen'ngtheNOMEAct
May2010–Decreeserngthetariffat40€/MWh(JulyDecember2011)and
42€/MWh(aferDecember2011)
July2010Nomeentersintoforce

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• 

• 

Theregulatedaccesstonuclear
power(ARENH)
Aquan'tyregula'on


Themaximumvolumecannotexceed100TWh


Theadministeredvolumeisallocatedtoeachsupplierupto85%oftheconsump'on
offinalconsumersitsuppliesinFrance


Theenergyregulatorycommissionisinchargeofcontrollingthequan'tydemanded
exantebyeachsupplierandconsumedexpostbytheircustomers

Apriceregula'on


Costplusregula'on(fullcosts:returnoncapital,opera'ngexpenses,maintenance,
investmentsforextendingtheperiodofopera'ngauthorisa'on,dismantlementand
wastedisposal)


Thepriceissetbythegovernmentun'l2013,thenbytheenergyregulatory
commission


Toensurethesourcingcannotbenefitconsumersabroad(e.g.,inGermany)aprice
supplementisimposedtosuppliersforanyquan'tyexanteasributedthatappears
expostinexcessvisàvistheactualconsump'onoftheirclientslocatedinFrance
(i.e.,disincen'vetouseARENHforexports)

9

• 

• 

20112015

Theini'alARENHpricehastobealignedwiththelevelofthe
energycomponentoftheTaRTAMretailtariffs


SoonaverageTaRTAMconsumerswillnotseetheirbillinfla'ng
whentheTarTAMwillbedropped
In2015,theenergycomponentoftheretailtariffshastobe
alignedwiththethenARENHpricetoensurethat


onaverageindustrialconsumerswillnotseeachangeinprice
oftheirenergypurchasewhentheyellowandgreentariffswill
bedropped


theenergypaidbyresiden'alcustomerssubscribingbluetariffs
willreflectthefullcostsofnuclearpowergeneration

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