(Montel) French utility EDF is suing the state for EUR 8.3bn after the government forced it to sell an extra 20 TWh of power at a regulated price – Arenh – to rival suppliers.
In May, the Council of State rejected a demand by energy unions to suspend sales of nuclear power sold at the Arenh rate, Montel reported, with the company since claiming the sale would cost it EUR 6bn by year end.
However, in March, the government decided to sell another 20 TWh to EDF competitors at EUR 46.20/MWh for the April-December period to partially offset the impact of the soaring power prices on households and businesses.
This price was nearly 12 times below those on the wholesale market, with French front-year power last seen trading at EUR 553.50/MWh on the EEX exchange.
Despite the wrangling over Arenh, the government is planning to purchase the 16% stake in the cash-strapped company it does not already own.