EDF has mentioned a rapid and sustainable decrease in electricity prices. Good news for those who drive an electric car.
Among its many advantages, electric cars have the benefit of cost-effectiveness. To travel 100 km with a traditional model, you often have to spend over €10 on fuel. With an electric car, it will require around €3 of electricity. This cost advantage will last over time.
During the presentation of its latest financial results, EDF indeed discussed a rapid and sustainable decrease in electricity prices. However, the exact decrease was not specified. It is remembered that during the legislative campaign, Bruno Le Maire mentioned a decline of 10 to 15% in February 2025, cancelling the small increase (+1%) planned for August.
The promise of a decrease is enabled by a significant improvement in electricity production, particularly thanks to nuclear power, which has recovered after being impacted by the treatment of numerous cases of corrosion in power plants. Luc Rémont, head of EDF, stated: “We now have visibility on prices until around the end of the decade, showing after a very rapid decrease, a stabilization at a much lower level than what we had last year at the same time.”
As reported by Le Parisien, last month, forward electricity purchase contracts for 2025 were being negotiated at around €73 per MWh. It was €90 in January and €146 a year ago! The price of MWh skyrocketed with the start of the war in Ukraine in 2022.
Regulated prices have of course increased by about 30% since 2021, but it could have been worse. The government greatly limited the damage for households by implementing the tariff shield. Therefore, bills should start to decrease in 2025, which will be good news for those who recharge their electric cars at home. With cheaper electricity, plugged-in cars will strengthen their cost advantage, at a time when their purchase prices are also starting to deflate due to increased competition.
Furthermore, with an improvement in wholesale electricity prices, more attractive offers than the regulated price are returning, with the possibility of finding prices up to 20% lower.