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)
1st Quarter 2011
4th Quarter 2010
1st Quarter 2011
4th Quarter 2010 Total gross sales, including : 982 000 1,059,000 116 000 109,000
o Incumbent suppliers 849 000 960,000 101 000 100,500
o Alternative suppliers 133 000 99,000 15 000 8,500
Alternative suppliers’ market share within
total gross sales 13.5% 9.3% 12.9% 7.8%
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
52 000 333 000
0 100 000 200 000 300 000 400 000 500 000
oct-10 nov-10 déc-10 janv-11 févr-11 mars-11
Incumbent suppliers Alternative suppliers
Sources: DSO, TSO, Incumbent suppliers – Analysis: CRE
Decomposition of gross sales by provider type during the 1st quarter of 2011
91%
81%
9%
19%
Connections (total 1,035,000)
Suppliers switch (total 63,000)
Incumbent suppliers Alternative suppliers
Sources: DSO, TSO, Incumbent suppliers – Analysis: CRE
Note: During the 1st quarter of 2011, 9% of 1,035,000 connections originated from alternative suppliers.
C) Rate of switch
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).
Rate of switch evolution for each type of contract
2008 2009 2010 2011
Residentiel sites Non residentiel sites Combined 0,00%
2008 2009 2010 2011
Residentiel sites Non residentiel sites Combined
Note: During the first quarter of 2011, 0.5% of the residential sites either:
- changed supplier
- was connected by choosing an alternative supplier
- was connected by choosing an incumbent supplier 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 May 31st 2011
Green A tariff average client (note)
13,7%
0,8%
1,1%
64,3%
20,2%
Yellow tariff average client
43,2%
41,0%
4,0%
2,9%
8,8%
Blue tariff average client 13,9%
32,0%
38,9%
2,3%
6,4%
6,4% Network (TURPE 3)
Supply CTA Local taxes CSPE, VAT included VAT, CSPE excluded
Green A tariff average client (note)
13,7%
0,8%
1,1%
64,3%
20,2%
Yellow tariff average client
43,2%
41,0%
4,0%
2,9%
8,8%
Blue tariff average client 13,9%
32,0%
38,9%
2,3%
6,4%
6,4% Network (TURPE 3)
Supply CTA Local taxes CSPE, VAT included VAT, CSPE excluded
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-août-07 15-août-08 15-août-09 15-août-10 1-janv.-11
Evolution of an annual electricity bill for an average consumer at tarif Peak/OffPeak 9 kVA
0 200 400 600 800 1000 1200
15 août 2006 15-août-07 15-août-08 15-août-09 15-août-10 1-janv.-11
€ TTC/an
€ TTC/an
D) Price comparison as of May 31st 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
*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.
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: Tarif règlementé Price difference
to the regulated prices
Regulated price
Annual bill estimation 353€/year
Source: Comparateur d’offres énergie-info
- 5%
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: Tarif règlementé Price difference
to the regulated prices
Regulated price
Annual bill estimation 353€/year
Source: Comparateur d’offres énergie-info
- 5%
Price comparison for a 9kVA Peak/Off Peak consumer
*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.
- 4,3%
994 €/year 1021 €/year
**Offre
1094 €/year 1109 €/year
+ 6,4%
Comparaison réalisée sur un client résidentiel type:
• de puissance souscrite 9 kVA,
• de consommation annuelle 8 500 KWh en HP/HC
• Based in Paris
Facture TTC estimée par an hors « promo » 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 TRV
Annual bill estimation 1037€/year
% of green energy 100 %
994 €/year 1021 €/year
**Offre
1094 €/year 1109 €/year
+ 6,4%
Comparaison réalisée sur un client résidentiel type:
• de puissance souscrite 9 kVA,
• de consommation annuelle 8 500 KWh en HP/HC
• Based in Paris
Facture TTC estimée par an hors « promo » 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 TRV
Annual bill estimation 1037€/year
% of green energy 100 %
994 €/year 1021 €/year
**Offre
1094 €/year 1109 €/year
+ 6,4%
Comparaison réalisée sur un client résidentiel type:
• de puissance souscrite 9 kVA,
• de consommation annuelle 8 500 KWh en HP/HC
• Based in Paris
Facture TTC estimée par an hors « promo » 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 TRV
Annual bill estimation 1037€/year
% of green energy 100 %
994 €/year 1021 €/year
**Offre
1094 €/year 1109 €/year
+ 6,4%
Comparaison réalisée sur un client résidentiel type:
• de puissance souscrite 9 kVA,
• de consommation annuelle 8 500 KWh en HP/HC
• Based in Paris
Facture TTC estimée par an hors « promo » 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 TRV
Annual bill estimation 1037€/year
% of green energy 100 %
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 first quarter 2011. It shows flows injected and delivered as well as the transactions on the intermediated French wholesale market.
Generation into grids (167 TWh)
Physical withdrawals from grids (167 TWh)
Imports 7 TWh Exports 20 TWh
End-user consumption 136 TWhincluding:
• customers at regulated tariffs
• customers at market prices
• self consumption Transactions on the intermediated
market: 193 TWh into grids (167 TWh)
Physical withdrawals from grids (167 TWh)
Imports 7 TWh Exports 20 TWh
End-user consumption 136 TWhincluding:
• customers at regulated tariffs
• customers at market prices
• self consumption Transactions on the intermediated
market: 193 TWh 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
TWh
Sources: TSO – Analysis: CRE
Volumes of block exchange nominations resulting from OTC transactions were of 74.7 TWh in 2011 Q1, a 2% increase compared with the previous quarter and a 11% increase compared with the same quarter last year. These volumes represented about 52% of national consumption in the first quarter 2011, similar to the previous quarter but higher than in the first quarter 2010 (44%).
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 first quarter 2011 Spot products
21.1 TWh were exchanged on the spot market during the 1st quarter 2011 through around 14,000 transactions. Trading slightly increased compared with previous quarter in volumes (+4%) but the number of trades decreased by one third. Similar changes are noted compared to the first quarter 2010: +2% in volumes and -42% in liquidity.
On the day-ahead market volumes increased by 5% compared with the previous quarter and by 3%
compared to 2010. This is the result of a strong increase in volumes traded on the exchange (+17%
compared to 2010 Q4) combined to a sharp drop in volumes traded through brokers (-23%).
As a consequence, there was an increase in the share of spot volumes traded on the exchange from 70% in 2010 Q4 to 78% in 2011 Q1.
Futures and forwards9
During the 1st quarter 2011, 150 TWh of futures products10 were traded. It means an increase by 4%
compared with the previous quarter and by 5% compared with the 1st quarter of 2010.
Almost all trading is done on brokerage venues since EPD France only represents 6% of volumes and transactions. The increase in activity on futures and forwards is due to a progression on brokerage venues (+5% in volumes and +19% in number of trades) whilst it decreased on the organised market (respectively -6% and -17%).
From one year to another, volumes traded increased by 5% (+6% on brokerage venues and -14% on EPD France) whilst liquidity slightly decreased by 2% (-2% on the brokerage market segment and -4%
on the exchange).
Traded volumes by product on the French wholesale electricity markets
0 100 200 300 400 500 600 700 800
2008 2009 2010 Q1 2010 Q1 2011
Volumes in TWh
Intraday Day-ahead Week-end Weekly Monthly Quarterly Yearly Others 696 TWh
754 TWh
656 TWh
198 TWh 196 TWh
Sources: brokers, EPEX Spot France, EPD France; Analysis: CRE
Monthly products:
Traded volumes were steady in the 1st quarter of 2011 whilst liquidity increased by 7%: 2,500
transactions on monthly products took place for 25.6 TWh. These figures are however below those in the 1st quarter 2010 (around -20% both in terms of volumes and transactins).
Volumes for M+1 products, that account for 65% of volumes of monthly products traded, remained steady although the number of trades increased compared to the previous quarter. Trade in M+2 products increased, both in terms of volumes and liquidity, whilst trade in M+3 products followed an opposite trend.
Compared to 2010 Q1, volumes of monthly products were down 6.8 TWh : this decline is mainly due to a reduction in M+1 and M+2 products (- 29% and -13%), while M+3 products were more traded (+80%). Liquidity followed a similar pattern on the various segments.
Quarterly products:
Trading in quarterly products was boosted over the 1st quarter 2011 compared with the 4th quarter 2010 (+61% in volumes and +72% in number of trades) as well as with the 1st quarter 2010 (+29%
and +34% respectively). A total of 60.5TWh were traded through 2,850 transactions.
Volumes and number of trades rose for Q+1, Q+2 and Q+3 products but dropped for Q+4 products.
The strongest increase was noticed for Q+3 products: volumes traded for those products were even higher than volumes for Q+1. 21.6 TWh to be delivered over the fourth quarter of 2011 were traded through around 1,000 transactions. These figures were multiplied by 4 compared to the previous quarter and by 2 compared to the same period last year.
Q+1 products were the second most traded with 20.8 TWh exchanged over the first quarter of 2011.
This is an increase of 10% compared to the previous quarter and of 24% compared to 2010. The number of trades (around 1,000) rose as well by respectively 16% and 23%
Trading in Q+3 products increased too with 14 TWh traded, i.e. +72% compared to the previous quarter but -10% compared to 1st quarter 2010. Liquidity rose by respectively 95% and 11% to reach 660 transactions.
Q+4 products remained the least traded with 4TWh exchanged through 180 transactions. Volumes dropped by one third compared to the previous quarter and by 20% compared to 2010.
Yearly products:
Unlike other futures products, trading in calendar products decreased by around 20% in the first quarter of 2011: 64 TWh were traded through 1,250 transactions versus 81 TWh through 1,700 transactions in the previous quarter. Volumes were however similar to those of last year at the same period along whilst liquidity dropped by 17%.
Compared with the previous quarter, the decrease in trading of calendar products was general:
volumes were down 16%, 25% and 62% for Y+1, Y+2 and Y+3 products respectively and the number of trades followed a similar pattern on the various segments.
Compared with the 1st quarter 2010, volumes were similar across calendar products. Liquidity remained steady for Y+2 and Y+3 products but dropped significantly for Y+1 products.
C) Activity on organised markets and international comparison
Volumes exchanged on EPEX Spot slightly kept increasing in the 1st quarter of 2011 compared with the previous quarter: average monthly trading was 5.4 TWh, higher than in the 1st quarter of 2010. On EPD France, average monthly volumes were up too and reached the same level as last year same quarter.
Average monthly volumes of transactions on organised markets in France (all maturities combined)
0 1 2 3 4 5 6
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 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)
– First quarter 2011 –
0 10 20 30 40 50 60 70
TWh
Futures 3,7 46,2 0,7 1,7
Day-ahead 5,4 18,7 1,1 3,1 0,9
France (EP EX Spo t /
EP D)
Germany (EP EX Spo t /
EP D)
B elgium B elpex/Endex
Netherlands A P X/Endex
UK A P X 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 it suspended its previous decision to extend the lives of the country’s nuclear reactors. The following day, German chancellor announced that 7 nuclear reactors would go off line – two of them being already off line for maintenance – removing 5.3 GW from the market. This decision had various impacts on electricity prices, depending on the market segment.
A) Day-ahead prices
Baseload day-ahead prices on EPEX Spot averaged € 53.3/MWh and peakload prices averaged € 62.8/MWh during the first quarter 2011, down 6% and 10% respectively compared to the previous quarter. Prices were however higher than in the same quarter last year: +10% for baseload prices and +6% for peakload prices. Therefore the peakload/baseload ratio decreased again.
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
Euro/MWh
Baseload Peakload
265 221
€/MWh
296
Sources: EPEX Spot – Analysis: CRE
There haven’t been any price spikes over the first quarter 2011.
On the German market, the Spot prices have remained steady: +2% for baseload prices (52.3 €/MWh) and -3% for peakload prices (61.9 €/MWh). French and German prices were exactly the same for 71%
of hours for 2011 Q1, versus 30% over the previous quarter (and 51% between when the market coupling started on 9 November and end 2010).
The France-Germany price spreads have sharply dropped compared to the previous quarter, both for baseload (€ 1.1/MWh) and for peakload (€ 0.7/MWh); French prices remained on average slightly higher.
Although spot prices remained generally unaffected by the German moratorium announced on 14
March. This change took place in a context of particularly warm weather and comfortable nuclear availability in France.
Baseload spot prices 1st February - 30 April 2011
-20 -15 -10 -5 0 5 10 15 20 25 30
01/02 08/02 15/02 22/02 01/03 08/03 15/03 22/03 29/03 05/04 12/04 19/04 26/04
€ / MWh
0 10 20 30 40 50 60 70
€ / MWh
Spread (lhs) France (rhs) Germany (rhs)
Sources: EPEX Spot – Analysis: CRE
On a general basis, prices on the other European marketplaces increased (from +1% in the UK to +6%on Nordpool). Belgian prices only, as French prices, slightly decreased (-2%).
Except with Spain and Germany, price spreads between French prices and other European prices widened over the first quarter 2011 compared to the previous quarter. Spreads were the largest with Italy and Nordpool (€ 13.5/Mwh and € 13.2/MWh respectively); French prices were on average € 6.7/MWh below Swiss prices and € 3.9/MWh below UK prices. Although Spanish prices remained below French prices, the spread shrank (€ 7.8/MWh versus € 13.9/MWh in the previous quarter).
Baseload day-ahead prices on main European exchanges – weekly averages –
0 20 40 60 80 100 120
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
Euro/MWh
NordPool Germany France FR : 126
GE : 136 FR : 137 FR : 136
€/MWh
0 20 40 60 80 100 120 140
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
Euro/MWh
UK Belgium France
UK : 151
FR : 126
FR : 137
FR : 136 UK : 135
€/MWh
0 20 40 60 80 100 120
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
Euro/MWh
Spain Italy France FR : 126 FR : 137
FR : 136
€/MWh
Sources: EPEX Spot France / Germany, Belpex, Omel, NordPool, Ipex – Analysis: CRE
Market decoupling on 27 March for 28 March
On Sunday 27 March, publication of the auction results for the day after was delayed due to a
technical incident related to the summer clock change. As it became obvious that the results would not
technical incident related to the summer clock change. As it became obvious that the results would not