Electricity in France is now trading at a staggering €790 per megawatt hour (MWh) in October-December 2022 futures. This is two to three times more than in neighboring countries. At the moment, prices were close to 1500 euros per MWh. For comparison, in Germany the price is 500 euros. According to Nicholas Goldberg, an energy specialist at Colombus Consulting, this huge gap indicates that the French market is about to crash. Recall that before the COVID crisis, the price was about fifty euros per megawatt-hour.

What will be the consequences?

Since April, the French government has been considering the issue of rationing electricity consumption for the most energy-intensive industries and companies. This has not happened for over 70 years. France very quickly returned to the “pre-nuclear” era, which will be a very heavy blow for French industry. It must be borne in mind that these are not short-term difficulties. The situation with a lack of electricity can persist for a very long time.