Economy: EDF Announces the End of the Surge in Electricity Prices in France

A significant change is looming in France, especially for industries and economic operators. According to JP Morgan analysts, a downward trend in electricity prices is becoming apparent. EDF’s forecasts suggest optimistic prospects for consumers, but also challenges for the company itself. Let’s explore these significant developments for the French economy.

A announced drop in electricity rates

What does it mean to be rich in France? Find the answers in this article. Otherwise, since the beginning of 2024, electricity prices have started a long-awaited decline.

EDF, a key player in energy in France, announced a 21% increase in its profits in the first half of the year, reaching 7 billion euros. This impressive result is mainly due to a increase in nuclear and hydraulic production.

Luc Rémont, CEO of EDF, said: “We now have visibility on prices until around the end of the decade, with a rapid decline followed by stabilization“.

A statement that brings a smile back to consumers but leaves EDF facing economic challenges. Indeed, despite planned investments in the energy transition, a sustainable price drop could impact the company’s future financial results.

Economy: The impacts of investments in the energy transition

At the same time, the French government, through Economy Minister Bruno Le Maire, announced a reduction in regulated electricity tariffs of 10 to 15% for February 2025, despite his fear of bankruptcy for France in general.

This decision follows a increase of more than 30% recorded since 2021, despite the tariff shield. EDF, with a net profit of 10 billion euros in 2023, relies on this momentum to make crucial investments for the energy transition.

The company plans to strengthen its nuclear and hydraulic capacities, while integrating more renewable energy.

Nuclear production in France has already increased by 19.4 terawatt-hours (TWh) in the first half of 2024, reaching 177.4 TWh, and the forecasts for 2025-2026 are also encouraging, ranging between 335-365 TWh.

• Increase in nuclear production: +19.4 TWh in the first half of 2024;
• Production target for 2024: 315-345 TWh;
• Production target for 2025-2026: 335-365 TWh.

As the drop in electricity prices is confirmed and investments in the energy transition multiply, France could well see its economy receive a significant boost thanks to the 2024 Paris Olympics.