PARIS, July 4 (Reuters) - France's senate on Thursday recommended setting up a new contract scheme between nuclear operator EDF and the state to allow the generator to fix revenue at a pre-agreed level, saying the previous deal protects neither the company nor consumers.
The system, known as a contract for difference, looks to peg the electricity price at around 60 euros-65 euros ($64.79-70.19) a megawatt hour (MWh), versus an average electricity price targeted by a November 2023 agreement of 70 euros/MWh over 15 years from 2026.
The earlier agreement did not guarantee minimum revenues to EDF, and its implementation depended largely on the contracts between the group and its professional and industrial companies, which slowed down as market prices fell.
The Senate inquiry commission therefore recommended replacing last November's agreement with "real regulation" in the form of a CfD on the existing nuclear fleet "intended to be extended in the long term to all decarbonized power production".
The CfD scheme would construct regulated tariffs that would result in an electricity supply price close to the full cost of the French nuclear fleet, as estimated by the Energy Regulatory Commission at 60.70 euros/MWh between 2026 and 2030.
According to the inquiry commission's calculations, this would result in "an annual saving of more than 300 euros for an average household compared to current prices".
The French state and EDF last year gave up on organizing a CfD scheme for the existing fleet as they estimated that the European Commission would require a division of assets that would be similar to a dismantling of the power giant.
The publication of the Senate report comes as three major blocs vying for legislative elections have committed to different schemes to lower the price of electricity for end users.
($1 = 0.9261 euros) (Reporting by Forrest Crellin and Benjamin Mallet; Editing by Jan Harvey)
