French Power Prices Surge as EDF Prepares to Cut Nuclear Output

Views Of Electricite de France SA's Nuclear Power Plant In Bugey

Balint Porneczi/Bloomberg

French power for delivery Monday and Tuesday jumped as Electricite de France SA may cut output at four nuclear reactors amid hot weather.

EDF plans to reduce production at Bugey, Golfech, St. Alban and Tricastin reactors from Monday due to “extreme” temperatures, the company said in a filing on grid operator RTE’s website. Temperatures in the south of the nation will reach as high as 40 degrees Celsius (104 Fahrenheit) on Tuesday, according to Meteo-France.

“There will be strong and persistent heat” through Tuesday in the south of the country particularly the Rhone valley and the Canal du Midi, Meteo-France said on its website. The forecaster has issued a yellow warning for people to “be aware” during the hot weather.

Power plants will lose some efficiency and may be forced to lower output when cooling water from rivers and lakes exceeds 30 degrees, according to Vattenfall AB.

Day-ahead power jumped 25 percent, the most since July 14, to 46.30 euros ($50.21) a megawatt-hour, while electricity for delivery at 2 p.m. Paris time Monday rose as high as 99 euros, the most for that hour since December 2013, according to broker and exchange data compiled by Bloomberg.

Maximum power demand is forecast to increase 1.5 percent to 57,761 megawatts on Tuesday from Monday’s peak, according to grid data.

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