End of ARENH: A Guide for Businesses

Understanding the Impact of the End of ARENH

The end of the Regulated Access to Incumbent Nuclear Electricity (ARENH) on December 31, 2025, marks a turning point for French companies,,. Introduced in 2011, ARENH allowed alternative suppliers to access EDF's nuclear electricity at a regulated price of €42/MWh,,. This regulation will end, exposing companies to the volatility of the electricity market,.

End of ARENH in 2026 and Exposure to Market Volatility

From 2026, companies will have to procure electricity directly from the market, where prices are likely to vary considerably depending on supply and demand, weather conditions, and geopolitical events. Negotiated contracts already indicate a price increase, ranging from €57 to €75/MWh, an increase of 35% to 80% compared to the ARENH tariff,.

Introduction of the Universal Nuclear Payment (VNU) and its Operation

The Universal Nuclear Payment (VNU) is the mechanism put in place to succeed ARENH,,,. Its objective is to redistribute EDF's revenues when market prices exceed certain thresholds,,,. The Energy Regulatory Commission (CRE) has set a pivot value of €60.94/MWh for EDF's nuclear revenues. According to the CRE, nuclear production costs are estimated at €60.3/MWh for the period 2026-2028,.

Anticipating the Potential Increase in Energy Costs

The end of ARENH and the introduction of the VNU imply a risk of increased energy costs for companies,,. Although the VNU is designed to mitigate the impact of price volatility, it may not offer sufficient protection in all situations,,. It is therefore crucial for companies to anticipate this potential increase and implement strategies to optimize their consumption and secure their supplies.

Strategy #1: Optimize Energy Efficiency

Optimizing energy efficiency is an essential strategy to reduce the impact of the end of ARENH on companies' energy costs,,,. By reducing their consumption, companies reduce their dependence on the market and protect themselves against price fluctuations.

Identify Areas for Improvement in Energy Consumption

The first step is to identify the main energy consumption items within the company. This can be done through an energy audit, which will highlight areas of waste and opportunities for improvement,. Areas to examine may include lighting, heating, ventilation, air conditioning, industrial equipment, and production processes.

Implement Concrete Actions to Reduce Consumption

Once the areas for improvement have been identified, it is important to implement concrete actions to reduce energy consumption. These actions may include:

• Replacing energy-intensive equipment with more efficient models.
• Improving building insulation.
• Optimizing heating and air conditioning systems.
• Raising employee awareness of good energy saving practices.
• Installing energy management systems to monitor and optimize consumption in real time.

Track and Measure Savings Achieved

It is essential to track and measure the energy savings achieved through the actions implemented. This allows you to verify the effectiveness of the measures taken and identify new opportunities for improvement. Energy consumption tracking tools can be used to collect and analyze data,. At Unisave, we find that companies that carefully track their energy consumption are the ones that achieve the greatest savings.

Strategy #2: Diversify Energy Sources

Diversifying energy sources is another key strategy to reduce dependence on the electricity market and secure supply,,. By exploring renewable energy options, companies can reduce their carbon footprint and benefit from more stable and predictable energy.

Explore Renewable Energy Options (Solar, Wind, Biomass)

Several renewable energy options are available to companies, including:

• Solar: Installation of photovoltaic solar panels to produce electricity.
• Wind: Installation of wind turbines to produce electricity.
• Biomass: Use of organic matter to produce heat or electricity.

Assess the Feasibility and Profitability of Each Option

Before choosing a renewable energy option, it is important to assess its feasibility and profitability based on the specific characteristics of the company. Factors such as geographic location, resource availability, installation and maintenance costs, and available financial incentives should be taken into account.

Combine Different Sources to Secure Supply

To secure the energy supply, it may be wise to combine different sources of energy, both renewable and non-renewable. This approach reduces dependence on a single source and provides greater flexibility,.

Strategy #3: Secure Prices with Long-Term Contracts

Negotiating long-term supply contracts is an effective strategy to protect against market price volatility,,. These contracts allow you to fix a price for electricity over a specified period, providing visibility and budget stability.

Negotiate Long-Term Supply Contracts with Suppliers

It is important to carefully negotiate long-term supply contracts with electricity suppliers. It is advisable to compare offers from several suppliers and to be supported by an expert to analyze the contractual clauses and ensure that they are favorable to the company,.

Analyze the Different Offers and Contractual Clauses

Contractual clauses can have a significant impact on the cost of electricity. It is important to check the clauses relating to price revision, penalties in the event of non-consumption, and the conditions for terminating the contract.

Protect Yourself Against Market Price Volatility

Long-term contracts may include mechanisms to protect against price volatility, such as indexation clauses or options to purchase electricity at a fixed price. These mechanisms limit the impact of market fluctuations on the cost of electricity.

Strategy #4: Monitor the Market and Adapt

The electricity market is constantly evolving, so it is essential for companies to stay informed of the latest trends and regulations,. Regular market monitoring makes it possible to anticipate changes and adapt one's strategy accordingly.

Stay Informed of Developments in the Electricity Market

To stay informed of developments in the electricity market, companies can subscribe to specialized newsletters, follow the publications of the CRE and RTE, and participate in events and conferences on energy. The Unisave teams ensure constant monitoring for their customers.

Adapt Your Strategy to New Regulations and Opportunities

Energy regulations are constantly evolving. It is therefore important for companies to adapt their strategy to new regulations and new opportunities, such as support schemes for renewable energies or Energy Savings Certificates (CEE).

Conduct a Regular Analysis of Energy Costs

A regular analysis of energy costs makes it possible to identify sources of waste and assess the effectiveness of the measures implemented to reduce energy consumption. This analysis can also help identify opportunities to negotiate more advantageous supply contracts.

The end of ARENH represents a challenge for French companies, but it also offers opportunities to become more efficient, more sustainable, and more competitive. By implementing the strategies presented in this article, companies can thrive in the new electricity market. Contact Unisave today to discuss your energy needs and discover how we can help you optimize your strategy.