L R AS Published on Monday 4 May 2020 - n° 320 - Categories:French companies

Falling demand for electricity affects alternative distributors

The 15% drop (according to RTE) in demand for electricity in France during containment is endangering a certain number of small energy distributors. ekWateur has just addressed the Minister for Energy Transition.

ekWateur, like its colleagues, obtains its supplies from EDF within the framework of the ARENH (Regulated Access to Historic Nuclear Electricity) scheme, which enables all French people to have access to nuclear electricity at low prices.

The drop in demand is leading to a surplus of energy that distributors cannot sell. EDF agrees to take back this unsold energy at 40% of the delivery price. The distributors would like EDF to apply the force majeure clause established by the Commission de Régulation de l'Energie (CRE). This clause, according to them, is intended to apply to EDF as well as to alternative suppliers when an event of force majeure does not allow one of the parties to perform its obligations under reasonable economic conditions. For its part, EDF considers that the criteria of force majeure are not met. However, article 10 of the framework agreement defines force majeure as "an external, irresistible and unforeseeable event making it impossible for one of the parties to perform its obligations under reasonable economic conditions", which goes well beyond what is provided for in the civil code.

We are awaiting the Minister's response, which will be of great importance for the future of alternative and independent suppliers.

Tecsol of April 28th

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