French nuclear power reform could lead to higher prices, says S&P Global Ratings
February 3, 2020
New regulations for the French wholesale nuclear power market could threaten to raise electricity bills, according to S&P Global Ratings. The reform, which proposes to introduce a fixed price for nuclear production that fluctuates within a price corridor, would be a positive step towards supporting the credit quality of nuclear operator EDF. However, the move could prove controversial.
“Increasing the floor price to a sustainable economic level is politically sensitive,” said Claire Mauduit-Le Clerq, director for utilities at S&P Global Ratings. “We estimate it could increase electricity bills by 5%-10%.”
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