In France, the ARENH mechanism — a tool that for over a decade ensured supplier access to electricity from nuclear power plants at a fixed price of €42/MWh — is coming to an end. Starting in 2026, France will transition to a fully market-based model, backed by transparent regulatory instruments and consumer protection measures.
At the heart of this new model lies a key component: the calculation of the full cost of nuclear generation. This will become the basis for price forecasting, taxation policies, and income redistribution.
For Ukraine — where nuclear generation plays a dominant role and is essentially represented by a single producer — France’s experience may serve as a valuable reference.
Although electricity in Ukraine is traded through the market, the issues of cost transparency and price justification remain unresolved. This is why introducing mechanisms to ensure a balanced approach between producer and consumer interests is worth considering.
Global best practices show: transparency, economic soundness, and trust in the market are fundamental to sustainable energy development.
What’s happening in France?
On December 31, 2025, the ARENH system will expire — a mechanism that, since 2011, allowed suppliers to purchase electricity from EDF’s legacy nuclear power plants at €42/MWh.
From January 1, 2026:
- Suppliers will buy electricity only from the market or rely on their own generation capacity.
- The wholesale price will become the basis for retail pricing.
What replaces ARENH? — A New Consumer Protection Mechanism
According to the 2025 Finance Law:
- Introduction of the Universal Nuclear Contribution (VNU) — a safeguard against wholesale price spikes.
- Tax on EDF’s nuclear windfall profits, triggered only if pre-defined thresholds are exceeded.
- All excess revenue will be redistributed to benefit consumers.
Role of the French Energy Regulator (CRE):
- Increased wholesale market oversight, including quarterly bulletins.
- Monitoring of market liquidity, especially for long-term contracts.
- Assessment of the actual cost of nuclear production to define taxation thresholds.
- Coordination with EDF to separate revenues by source (nuclear, RES, hydro).
Prices and Outlook:
- Forward prices for 2026–2028 remain stable — around €60/MWh.
- France is projected to have some of the lowest electricity prices in Europe, creating favorable conditions for long-term contracts.
France is sending a signal: cost transparency, fair regulation, and consumer protection can coexist in a competitive market. For Ukraine, this is not just a European reference point — it’s a strategic opportunity for deeper reform.