France nuclear electricity: the end of the ARENH mechanism

The ARENH mechanism, which required EDF to sell a portion of its nuclear electricity to competitors at a fixed price of 42 euros per megawatt-hour (MWh), ended on December 31, 2025. While this mechanism was designed to foster competition, its disappearance has not resulted in the expected dramatic drop in consumer prices.

According to the Commission de régulation de l’énergie (CRE), the full cost of existing nuclear power is estimated at 60.30 €/MWh for the 2026–2028 period. The recent surge in electricity bills is attributed to the high cost of electricity purchased outside of the ARENH framework, driven largely by soaring European gas prices due to supply tensions.