Energy major Total is among several power suppliers that tried to declare force majeure on buying nuclear power from EDF, sources said, as the coronavirus outbreak has pushed prices in the French electricity market far below existing contracts.
Under the so-called ARENH mechanism set up in 2011 to foster competition, EDF's rivals can buy up to 100 terawatt hours , or about a quarter of its annual nuclear output, at a fixed price of 42 euros per megawatt hour .State-controlled EDF operates France's 58 nuclear reactors that account for around 75per cent of the country's electricity needs.
Due to the fall in power consumption, wholesale prices are far from the 42 euros/MWh suppliers paid for the ARENH contract. France's baseload power contract for June delivery is trading 20.40 euros/MWh, while the contract for the third quarter was at 26.20 euros/MWh, by 0920 GMT.
Quite a shame from Total !