A) Summary table for the last two quarters
The gross sales per month are equal to the number of sites which have signed a contract within the given month (sites which have been connected or sites which have switched to another supplier). The gross sales at market prices or regulated tariffs are a relevant indicator for measuring the commercial competitiveness of the different suppliers. in terms of acquisition of new sites.
Residential sites Non residential sites
During quarter (number of sites)
2nd Quarter
Alternative suppliers’ market share within
total gross sales 11.4% 13.5% 5.5% 12.9%
Sources: DSO, TSO, Incumbent suppliers – Analysis: CRE
Technical information: gross sales data are rounded, but alternative supplier’s market are calculated from real figures.
B) Gross sales for the last semester
Decomposition of monthly gross sales
58 000
janv-11 févr-11 mars-11 avr-11 mai-11 juin-11
Incumbent suppliers
janv-11 févr-11 mars-11 avr-11 mai-11 juin-11
Incumbent suppliers
janv-11 févr-11 mars-11 avr-11 mai-11 juin-11
Incumbent suppliers Alternative suppliers
Sources: DSO, TSO, Incumbent suppliers – Analysis: CRE
Decomposition of gross sales by provider type during the 2nd quarter of 2011
91%
21%
9%
79%
Connections (total 1,199,000)
Suppliers switch (total 257,000)
Incumbent suppliers Alternative suppliers
Sources: DSO, TSO, Incumbent suppliers – Analysis: CRE
Note: During the 2nd quarter of 2011, 9% of 1,199,000 connections originated from alternative suppliers.
C) Switching rate
According to ERGEG’s definition, switching supplier is defined as "the action through which a customer changes supplier". More detailed: A switch is essentially seen as the free (by choice) movement of a customer (defined in terms of an overall relationship or the supply points and quantity of electricity or gas associated with the relationship) from one supplier to another. Switching activity is defined as the number of switches in a given period of time.
Switching and moving: When a customer moves, a switch should only be recorded if a customer switches to a supplier other than the supplier which is incumbent in the area where he/she is moving to.
Changes of tariffs: A change of tariff with the same retailer is not equivalent to a switch (this exclusion extends to: changing to a new tariff; changing from a regulated to a non-regulated tariff with the same supplier or a subsidiary of the same supplier).
Switching rate evolution for each type of contract
0,00%
0,20%
0,40%
0,60%
0,80%
1,00%
1,20%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2008 2009 2010 2011
Households Industrial sites All sites combined
Note: During the second quarter of 2011, 1% of the residential sites either:
- changed supplier
- was connected by choosing an alternative supplier
- was connected by choosing an incumbent suppliers other than the supplier which is incumbent in the area where he/she is moving to.
5. Electricity retail prices
A) Regulated tariffs costs covered by a bill as of June 30th 2011
Green A** tariff-type of client Ig*
20,7%
65,8%
1,1%
0,8%
11,7%
Yellow tariff-type of client Ib*
7,5%
3%
4,1%
41,7%
43,7%
Blue tariff type of client Dc*
5,4%
Green A** tariff-type of client Ig*
20,7%
65,8%
1,1%
0,8%
11,7%
Green A** tariff-type of client IE*
20,7%
65,7%
1,1%
0,8%
11,7%
Yellow tariff-type of client Ib*
7,5%
3%
4,1%
41,7%
43,7%
Yellow tariff-type of client IB *
7,5%
3%
4,1%
41,7%
43,7%
Blue tariff type of client Dc*
5,4% Blue tariff type of client DC*
5,4%
Green A** tariff-type of client Ig*
20,7%
65,8%
1,1%
0,8%
11,7%
Green A** tariff-type of client Ig*
20,7%
65,8%
1,1%
0,8%
11,7%
Yellow tariff-type of client Ib*
7,5%
3%
4,1%
41,7%
43,7%
Yellow tariff-type of client Ib*
7,5%
3%
4,1%
41,7%
43,7%
Blue tariff type of client Dc*
5,4% Blue tariff type of client Dc*
5,4%
Green A** tariff-type of client Ig*
20,7%
65,8%
1,1%
0,8%
11,7%
Green A** tariff-type of client IE*
20,7%
65,7%
1,1%
0,8%
11,7%
Yellow tariff-type of client Ib*
7,5%
3%
4,1%
41,7%
43,7%
Yellow tariff-type of client IB *
7,5%
3%
4,1%
41,7%
43,7%
Blue tariff type of client Dc*
5,4% Blue tariff type of client DC*
5,4%
* According to the Eurostat definitions on types of clients:
DC : Household client with consumption of 2500-5000 MWh Ib : Industrial client with consumption of 20-500 MWh Ig : Industrial client with consumption of 20 000-70 000 MWh
**Note: VAT is excluded from the costs for the yellow tariffs and green A tariffs.
B) Electricity retail regulated tariffs evolution
Evolution du tarif réglementé de vente d'électricité moyen*
en € constants 2010, hors taxes (taxes locales, CSPE, TVA)
* sur la base du portefeuille de clients EDF à fin 2009
40
15 août 1996 15 août 1998 15 août 2000 15 août 2002 15 août 2004 15 août 2006 15 août 2008 15 août 2010
€/ MWh
Tarif vert A (sites moyens et grands sites reliés au réseau de
Evolution du tarif réglementé de vente d'électricité moyen*
en € constants 2010, hors taxes (taxes locales, CSPE, TVA)
* sur la base du portefeuille de clients EDF à fin 2009
40
15 août 1996 15 août 1998 15 août 2000 15 août 2002 15 août 2004 15 août 2006 15 août 2008 15 août 2010
€/ MWh
Evolution du tarif réglementé de vente d'électricité moyen*
en € constants 2010, hors taxes (taxes locales, CSPE, TVA)
* sur la base du portefeuille de clients EDF à fin 2009
40
15 août 1996 15 août 1998 15 août 2000 15 août 2002 15 août 2004 15 août 2006 15 août 2008 15 août 2010
€/ MWh
Tarif vert A (sites moyens et grands sites reliés au réseau de
Date Blue tariffs Yellow tariffs Green tariffs
16th August 2008 + 2% + 6% + 8%
15th August 2009 * + 1,9% + 4% + 5%
15th August 2010 * + 3,2% + 4,5% + 5,5%
*Average increase taking into account the structural tariffs’ movement.
C) Evolution of a regulated tariff annual bill
The annual bill is given for an average consumer at Blue tariff Base for 6kVA power level subscribed (2 400 KWh of consumption, and for an average consumer at Blue tariff Peak/Off Peak for 9 kVA power level subscribed (8 500 KWh consumption, 54% Peak and 46% Off Peak). The bill covers the regulated tariff, the CSPE, the CTA, the local taxes and the VAT.
Evolution of an annual electricity bill for an average consumer at tariff Base 6 kVA
0 50 100 150 200 250 300 350 400
15/08/2006 15/08/2007 15/08/2008 15/08/2009 15/08/2010 01/01/2011
Evolution of an annual electricity bill for an average consumer at tarif Peak/OffPeak 9 kVA
0 200 400 600 800 1000 1200
15/08/2006 15/08/2007 15/08/2008 15/08/2009 15/08/2010 01/01/2011 Evolution of an annual electricity bill for an average consumer at
tarif Peak/OffPeak 9 kVA
0 200 400 600 800 1000 1200
15/08/2006 15/08/2007 15/08/2008 15/08/2009 15/08/2010 01/01/2011
€ TTC/an
D) Price comparison as of August 24th 2011
There are 2 types of offers that exist on the market:
- Regulated tariffs
- Market prices, either indexed to the regulated tariffs, either fixed prices independent from the regulated tariffs.
Price comparison for a 6kVA Base consumer
Comparaison for a household customer with the following characteristics :
• Power level of 6 kVA,
• Annual consumption of 2 400 KWh Base
• Based in Paris
Bill VAT included, discounts excluded. Source: Comparateur d’offres energie-info
Supplier’s logo:
Name of offer: Regulated price Price difference
to the regulated prices Regulated price Annual bill estimation 362€/year
Source: Comparateur d’offres énergie-info
- 5%
378 €/year 390 €/year
+ 7,7% Comparaison for a household customer with the
following characteristics :
• Power level of 6 kVA,
• Annual consumption of 2 400 KWh Base
• Based in Paris
Bill VAT included, discounts excluded. Source: Comparateur d’offres energie-info
Supplier’s logo:
Name of offer: Regulated price Price difference
to the regulated prices Regulated price Annual bill estimation 362€/year
Source: Comparateur d’offres énergie-info
- 5%
378 €/year 390 €/year
+ 7,7%
*Fixed price offers for the validity period of the contract and revised once the contract expired.
** Prices indexed to the regulated tariffs, except the Off Peak.
Price comparison for a 9kVA Peak/Off Peak consumer
1012 €/year 1049 €/year
**Offre
1123 €/year 1160 €/year
+ 8,8%
Comparaison for a household customer with the following characteristics:
• Powel level of 9 kVA,
• Annual consumption of 8 500 KWh Peak/OffPeak
• Based in Paris
Bill VAT included, discounts excluded Source: Comparateur d’offres énergie-info
Offre 100%
Pur jus HP/HC
Planet Elec HP/HC
*AlpEnergie prix Fixe HP/HC
Name of offer: Regulated tariffs Price difference to the
regulated tariff Regulated tariff Annual bill estimation 1066€/year
% of green energy 100 %
1012 €/year 1049 €/year
**Offre
1123 €/year 1160 €/year
+ 8,8%
Comparaison for a household customer with the following characteristics:
• Powel level of 9 kVA,
• Annual consumption of 8 500 KWh Peak/OffPeak
• Based in Paris
Bill VAT included, discounts excluded Source: Comparateur d’offres énergie-info
Offre 100%
Pur jus HP/HC
Planet Elec HP/HC
*AlpEnergie prix Fixe HP/HC
Name of offer: Regulated tariffs Price difference to the
regulated tariff Regulated tariff Annual bill estimation 1066€/year
% of green energy 100 %
1012 €/year 1049 €/year
**Offre
1123 €/year 1160 €/year
+ 8,8%
Comparaison for a household customer with the following characteristics:
• Powel level of 9 kVA,
• Annual consumption of 8 500 KWh Peak/OffPeak
• Based in Paris
Bill VAT included, discounts excluded Source: Comparateur d’offres énergie-info
Offre 100%
Pur jus HP/HC
Planet Elec HP/HC
*AlpEnergie prix Fixe HP/HC
Name of offer: Regulated tariffs Price difference to the
regulated tariff Regulated tariff Annual bill estimation 1066€/year
% of green energy 100 %
*Fixed price offers for the validity period of the contract and revised once the contract expired.
** Prices indexed to the regulated tariffs, except the Off Peak.
The wholesale electricity market
1. Introduction
A) Main steps in the French wholesale electricity market
- November 2000: CRE validated the initial version of the Balancing Responsible Entity (BR) contract
- Early 2001: first purchases of losses on the market by RTE
- May 2001: first OTC quotations published regarding the French electricity market - September 2001: first virtual power plant auctions set up by EDF (VPP)
- November 2001: launch of the Powernext Day-ahead market - June 2004: launch of the Powernext Futures market
- July 2004: first purchases of losses on the market by the distribution system operator (ERDF) - January 2006: implementation of explicit capacity auctions on interconnections (except for
Switzerland)
- November 2006: launch of the market coupling between France, Belgium and the Netherlands
- July 2007: launch of Powernext Intraday and Continuous markets
- March 2009: a sixth broker active on the French electricity wholesale market
- April 2009: Merger of Powernext and EEX - launch of EPEX Spot and EPD for futures contracts
- November 2010: Market coupling with France, Belgium, Netherlands, Luxembourg and Germany.
B) Balance of the French wholesale market
The graph below shows energy flows between the different upstream and downstream segments of the French wholesale market in the second quarter 2011. It shows flows injected and delivered as well as the transactions on the intermediated French wholesale market.
Source : RTE – data [Q1] and Q2 2011 - Analysis : CRE NB: due to rounding, numbers may not match totals
2. Wholesale market activity in France
A) Activity in the over-the-counter market (OTC)
A great part of the wholesale activity in the electricity market takes place over-the-counter (OTC), through direct transactions or through intermediaries (brokers and trading platforms). The total volume of OTC transactions is not public. CRE issues aggregated volumes on transactions through intermediaries (see: Electricity indicators).
The following graph shows block exchange nominations of companies to RTE. These numbers do not represent the volume of transactions during the period, but net physical deliveries between companies resulting from transactions in the OTC market.
Volume of net deliveries resulting from OTC transactions
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11
TWh
Sources: TSO – Analysis: CRE
Volumes of block exchange nominations resulting from OTC transactions were of 69.5 TWh in 2011 Q2, a 7% decrease compared with the previous quarter and a 15% increase compared with the same quarter last year. These volumes represented about 67% of national consumption in the second quarter 2011, against 52% in the first quarter 2011 and 55% during the same period last year.
B) Trading trends on the French intermediated market
The French intermediated market covers trading executed on organised markets and brokerage venues (intermediated OTC). Trends commented below can be observed in the section Development of trading in France of the indicators published by CRE.
Overview of trading in the second quarter 2011 Spot products
19.7 TWh were exchanged on the spot market during the 2nd quarter 2011 through around 16,620 transactions. Trading decreased compared with the previous quarter in terms of volumes (-7%) but in terms of number of trades increased significantly (+19%). Compared to 2010 in the same period, spot products increased sharply: +17% in volumes and +12% in liquidity.
The number of transactions increased most on the intraday market, parallel to a sharp increase in volumes: 0.24 TWh were traded in the second quarter of 2011 against 0.19 TWh in the previous quarter. The intraday market represents only 1% of total traded volumes on the spot.
On the day-ahead market volumes decreased compared with the previous quarter (-7%) but increased by 17% compared to 2010 in the same period. This is the result of a sharp drop in volumes traded on the exchange (-14% compared to 2011 Q1) combined to a sharp increase in volumes traded through brokers (+18%).
As a consequence, there was a decrease in the share of spot volumes traded on the exchange from 78% in 2011 Q1 to 72% in 2011 Q2.
Futures and forwards9
During the 2nd quarter 2011, 122 TWh of futures products10 were traded, a decrease of 18%
compared to the previous quarter and of 10% compared to the same period in the previous year.
Compared to the previous quarter, liquidity for these products also decreased by 11% but increased by 7% over the same period in 2010.
Almost all trading is done on brokerage venues since EPD France only represents 9% of volumes (9%
of transactions). The decline in trading was driven by a decrease on brokerage venues (-21% in terms of volume and -14% in terms of number of transactions) whilst it increased on the organised market (respectively +15% and +35%).
From one year to another, traded volumes on EPD France increased by about a third whilst on brokerage venues volumes fell by 12%. Liquidity of futures products was up 5% on the brokerage market segment and 38% on the exchange.
9 All trends described in the comments are related to futures and forwards of the “Développement du négoce en France” section of the indicators of wholesale electricity markets.
10Futures products with delivery period further than or equal to a month (monthly, quarterly or annual products).
Traded volumes by product on the French wholesale electricity markets
0 100 200 300 400 500 600 700 800
2008 2009 2010 S1 2010 S1 2011
Volumes in TWh
Intraday Day-ahead Week-end Weekly Monthly Quarterly Yearly Others 696 TWh
750 TWh
656 TWh
365 TWh 358 TWh
Q1: 197 TWh Q2: 168 TWh
Q1: 195 TWh Q2: 163 TWh
Sources: brokers, EPEX Spot France, EPD France; Analysis: CRE
Monthly products:
Liquidity in the second quarter was steady whilst traded volumes were slightly higher: 2,481 transactions monthly, representing 27.3 TWh, took place in the second quarter (respectively -1% and +7% over the quarter earlier). Trading volumes are much higher than in 2010 in the same period, as well as number of transactions (respectively +24% and +27%).
Volumes for M+1 products, that account for 65% of volumes of traded monthly products, remained steady although the number of trades increased compared to the previous quarter (6%). Trading volumes for M+2 experienced a decrease in the 2nd quarter of 2011, both in terms of volume (-14%) and liquidity (-17%), this decrease was offset by the sharp increase in M+3 products (+68% in volume and +35% in number of transactions).
Compared to the previous year, trading volumes monthly increased by 5.2 TWh: this increase is primarily due to increase of M+2 products (38%) and M+3 products (+58%) whilst trading volumes for M+1 products increased by 14%. At the same time, liquidity increased for all products: about a third for M+1 and M+3 products, and 10% for M+2 products.
Quarterly products:
Trading in quarterly products in the second quarter of 2011 decreased as a whole. Volumes amounted to 50.4 TWh through 2,518, a decreased by 9.8 TWh (16%) compared to the previous quarter but
Comparatively to the same period a year earlier, both volumes and trades also rose by 84% and 52%
respectively.
Besides the Q+2 products, Q+1 products were the most traded. With 17.3 TWh traded through 977 transactions, Q+1 products decreased compared to the previous quarter in terms of volume (-16%) and in terms of number of trades (-4%). However, these figures are higher than those observed in the same period in 2010 (+8% and +14% respectively).
Q+3 and Q+4 products amounted 6.9 TWh and 2,6 TWh in the second quarter of 2011, a decrease of 68% and 36% over the previous quarter. These volumes represent 305 and 112 traded contracts respectively, against 984 and 180 in the first quarter of 2011. Compared to 2010, trading volumes on these two products have increased sharply, 74% and 66% respectively. Liquidity increases by 93% for both products.
Yearly products:
Like the quarterly products, trading in calendar products decreased by one-third in the second quarter of 2011: 44.4 TWh were traded through 895 transactions against 64.0 TWh through 1,267 transactions in the 1st quarter of 2011. Compared to the previous year, trading volumes on these products were down 34.2 TWh (-43%), with a parallel decrease by 48% for liquidity.
Compared to the previous quarter, the decrease in trading has affected all products: volumes were down by one-quarter for Y+1 and Y+3 products and by nearly half for Y+2 products. The number of transactions followed a similar trend for Y+1 and Y+2 products whilst for Y+3 products liquidity increased slightly (+2%).
Compared to the 2nd quarter of 2010, volumes on all calendar products decreased significantly: by 25% for Y+1 products, by 74% for Y+2 products and by 58% for Y+3 products. Liquidity was down by 37%, 72% and 37% respectively.
C) Activity on organised markets and international comparison
Volumes exchanged on EPEX Spot decreased in the 2nd quarter of 2011 compared with the previous quarter: average monthly trading was 4.7 TWh, higher than in the 2nd quarter of 2010. On EPD France, average monthly volumes remained steady compared to the previous quarter (-0.4%) but remained higher than the same period in 2010 (+27%).
Average monthly volumes of transactions on organised markets in France (all maturities combined)
0 1 2 3 4 5 6
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
TWh
EPEX Spot France EPD France
Source: EPEX Spot, EPD France
French exchanges are in second position compared to other European marketplaces but remain far behind German exchanges.
Average monthly volumes of transactions on main European power exchanges (excluding obligatory or quasi-obligatory markets)
– Second quarter 2011 –
0 10 20 30 40 50 60
TWh
Futures 3,7 34,8 1,0 1,1
Day-ahead 4,7 17,9 0,9 2,9 0,8
France (EPEX Spot / EPD)
Germany (EPEX Spot / EPD)
Belgium Belpex/Endex
Netherlands APX/Endex
UK APX UK
Sources: EPEX Spot, EPD France, Belpex, Endex, APX
3. Prices on the French wholesale market and European comparison
This section covers power prices settled on European power exchanges and from specialized press for British prices. Comments on trends can be observed in the section Evolutions of electricity prices of the indicators published by CRE.
A major nuclear accident happened in Japan following an earthquake and a tsunami on Firday 11 March. German government then announced, on Monday 14 March, it suspended its previous decision to extend the lives of the country’s nuclear reactors. This decision has been confirmed on Saturday 21 Mai, putting definitively offline 7 nuclear reactors and announcing the end of nuclear energy in Germany by 2022. Depending on the market segment, this decision had various impacts on electricity prices, mainly in France and Germany.
A) Day-ahead prices
Baseload day-ahead prices on EPEX Spot averaged € 49.0/MWh and peakload prices averaged
€ 61.2/MWh during the second quarter 2011, down 8% and 3% respectively compared to the previous quarter. Prices were however higher than during the same quarter last year: +16% for baseload prices and +15% for peakload prices. Therefore the peakload/baseload ratio decreased again year on year.
Day-ahead prices on EPEX Spot – weekly averages –
0 20 40 60 80 100 120 140 160 180 200
Jan-04 Jul-04
Jan-05 Jul-05
Jan-06 Jul-06
Jan-07 Jul-07
Jan-08 Jul-08
Jan-09 Jul-09
Jan-10 Jul-10
Jan-11 Jul-11
Baseload Peakload
265 221
€/MWh
296
Sources: EPEX Spot – Analysis: CRE
There haven’t been any price spikes over the second quarter 2011.
On the German market, the Spot prices have remained steady: +2,5% for baseload prices (€ 53.6/MWh) and +1% for peakload prices (€ 62.5/MWh). But they have been much higher compared to the same period last year, baseload and peakload respectively increasing by 29% and 21%. French and German prices were exactly the same for 58% of hours for 2011 Q2, versus 72% over the previous quarter (and 51% between when the market coupling started on 9 November and end 2010).
The France-Germany price spreads have reversed and widened during the second quarter, both for baseload (€ -4.64/MWh) and for peakload (€ -1.26/MWh), in comparison to the levels observed during the first quarter 2011 (€ 1.14/MWh and € 0.91/MWh respectively); French prices remained on average slightly higher. French prices, which averaged just above on the first quarter of 2011, have become much lower than German prices during the second half. The same trend is visible facing 2010 Q2, where baseload and peakload average price spreads between France and Germany were
€ 0.70/MWh and € 1.82/MWh high.
The evolution of the spread between France and Germany was favourable to France in the second quarter of 2011. The differences between French and German prices have particularly increased during the month of June: while France and Germany baseload spread was € -2.54/MWh between March 15 and May 21, it moved to € -8,89/MWh in June 2011. However, this change is to put into perspective with a context of mild temperatures in France, and especially with a particularly good nuclear availability (see paragraph 4 below).