France and EDF reach compromise energy prices deal

France’s government announced on Tuesday that it had reached an agreement with utility EDF in regard to future nuclear power prices.

The compromise deal would enable EDF to generate profits and would also protect consumers from energy price spikes, according to France’s Finance Minister Bruno Le Maire.

The two parties agreed on EUR 70 per megawatt hour as a reference level for power prices.

The agreement puts in place mechanisms, which would protect consumers in case energy market prices surge above EUR 110 per megawatt hour.

The deal also includes clauses, which would ensure a price guarantee for EDF.

“This deal was indispensable to guarantee the competitiveness of our industry, the visibility and stability of prices for our households, and the development of EDF,” Le Maire was quoted as saying by Reuters.

The minister also noted that the fact EDF was fully nationalized this year did not mean it could operate at a loss.