The new Chairman and Chief Executive Officer of Électricité de France (EDF), Bernard Fontana, stated that electricity prices would remain “under control” in 2026, despite the introduction of a new pricing system. This mechanism, effective from January 1, will replace the scheme in place since 2011 that required the state-owned energy provider to sell part of its nuclear power output at low prices to competitors and energy-intensive industrial clients.
Towards market-aligned pricing
The new system will implement a tariff logic more closely tied to market dynamics, including a revenue cap mechanism. Beyond a certain price threshold, a portion of EDF’s profits must be redistributed to consumers. However, under current wholesale electricity market conditions, the Commission de régulation de l’énergie (CRE) has already stated that such redistribution is unlikely in 2026.
Currently, around 60% of residential customers benefit from the regulated tariff. Their bills will depend on the new mechanism as well as on the evolution of taxes and transmission fees, which are set by the state. EDF has clarified that it does not control these components, limiting its influence over the final tariff.
Concerns over consumer protection
The reform has drawn criticism, notably from consumer advocacy group UFC-Que Choisir, which warned in February about a potential significant rise in household bills. A recent parliamentary report from the National Assembly’s Economic Affairs Committee also questioned the reform’s ability to adequately protect both consumers and EDF’s revenue.
Despite these reservations, EDF confirmed it had secured 15,000 medium- and long-term electricity supply contracts with companies, 60% of which are with industrial firms. These agreements aim to provide price predictability amid volatile market conditions and increasing global competition.
Pricing visibility for businesses
“This is a real guarantee of visibility for them,” said Bernard Fontana regarding the contracts, stressing their importance for energy-intensive companies. These commitments are viewed as strategic in a sector where competitiveness heavily relies on stable energy procurement costs.
