Article | REF: BE9751 V1

Electricity Market: Functioning and Reforms in Progress

Author: Jacques PERCEBOIS

Publication date: October 10, 2023

You do not have access to this resource.
Click here to request your free trial access!

Already subscribed? Log in!


Français

3. Market contracts: opt for a fixed price or a price indexed to the wholesale market?

As already mentioned, alternative suppliers offer their customers three types of contract: 1) Contracts with a price indexed to the TRV; this mainly concerns small domestic customers; 2) Fixed-price contracts (generally for 1 or 2 years); this mainly concerns small and medium-sized professionals; 3) Variable-price contracts indexed to the wholesale price. This mainly concerns large consumers. It should be mentioned that EDF can also offer this type of contract to its professional customers or to domestic customers who have opted out of the TRV.

When alternative suppliers (apart from Engie, TotalEnergies or subsidiaries of foreign groups such as Iberdrola) do not have their own production facilities, which is often the case for small suppliers, they can source electricity from the ARENH and must buy the market complement on the spot market. To do this, they hedge...

You do not have access to this resource.

Exclusive to subscribers. 97% yet to be discovered!

You do not have access to this resource.
Click here to request your free trial access!

Already subscribed? Log in!


The Ultimate Scientific and Technical Reference

A Comprehensive Knowledge Base, with over 1,200 authors and 100 scientific advisors
+ More than 10,000 articles and 1,000 how-to sheets, over 800 new or updated articles every year
From design to prototyping, right through to industrialization, the reference for securing the development of your industrial projects

This article is included in

Energy resources and storage

This offer includes:

Knowledge Base

Updated and enriched with articles validated by our scientific committees

Services

A set of exclusive tools to complement the resources

Practical Path

Operational and didactic, to guarantee the acquisition of transversal skills

Doc & Quiz

Interactive articles with quizzes, for constructive reading

Subscribe now!

Ongoing reading
Market contracts: opt for a fixed price or a price indexed to the wholesale market?