DECRYPTION – The public authorities are firing on all cylinders to lower prices. A challenge, as the markets anticipate cuts.
Europe lacks gas, France lacks electricity. After two cold winters, a serial problem with the nuclear fleet and gas supply difficulties following the war in Ukraine ended up placing France in the bright red. The price per megawatt hour for delivery in the fourth quarter (spot market) reached 744 euros per megawatt hour, ten times more than in normal times, excluding the crisis. Worse, it’s twice as expensive as in Germany.
These prices are certainly disconnected from the reality of electricity production costs. However, they send a message: all the experts and market players (traders and suppliers who partly buy electricity on the spot market) anticipate many hours of power cuts this winter.
Read alsoWhy are electricity prices soaring in France?
Admittedly, these are only wholesale prices from which households are currently protected. But, without action to the contrary from the government, they will be passed on to the prices at the start of 2023. The increase would then exceed 50%. As to…
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