ARENH

Context


ARENH, which stands for 'Regulated Access to Incumbent Nuclear Electricity', is a right that entitles suppliers to purchase electricity from EDF at a regulated price, in volumes determined by the French energy regulator, CRE.

In order to exercise their ARENH rights, suppliers are required to sign a standard agreement with EDF, to provide a contractual framework for the sales concerned.

CRE is tasked with managing this system and calculating the rights, which it notifies to the contracting parties. Suppliers wishing to exercise their ARENH rights make an application to CRE, providing forecasts of their customers' electricity consumption. Both those detailed forecasts and the rights calculated for each supplier are known only to CRE and the supplier concerned. Payments are handled by the Caisse des Dépôts et Consignations, the French deposite and consignement office.

To avoid any windfall effects, a retrospective mechanism has been set up to offset any surplus volumes allocated, in the event that the supplier's portfolio has not developed in line with forecasts. This mechanism takes the form of a price premium for any surplus quantities of electricity allocated. It is done by CRE on an ex post basis, according to actual electricity consumption by the supplier's customers for each sub-category of consumers.

The system has been in place since July 1st 2011. It is opened to system operators, to enable them to offset their losses, from January 1st 2014.


RTE's roles and services


Upon receiving notification from CRE, RTE transfers electricity from the perimeter of the EDF Balance Responsible Entity to the perimeters of the Balance Responsible Entities designated by the suppliers activating their ARENH rights. The transfer is done in such a way that EDF has no knowledge of the quantities transferred to each Balance Responsible Entity.

Allocation process

Every year, by the end of April at the latest, and for each supplier who has acquired electricity under the ARENH arrangement, RTE calculates and sends to CRE details of the actual recorded consumption by half-hour period in France, for each sub-category of consumers over the past calendar year.

The consumption data are obtained from the metering systems of the public electricity transmission and distribution system operators.

RTE publishes all of the aggregated load curves for each BR or each PTS site, based on observed consumption.

Observed Consumption

Method of calculating observed consumption


Decree 2011-466 stipulates that "the calculation methods and modes of transmission of observed consumption implemented by the public transmission system operator are defined by CRE, based on proposals by the aforesaid TSO".

The calculation method proposed by RTE and approved by CRE on December 15th 211, serves to accurately identify consumption by each of the consumer categories, for the purposes of determining suppliers' ex post ARENH entitlements.

Contractual Arrangements


If you are a BR or DSO, you will sign a contract with RTE, based on the rules on the transmission of data for Regulated Access to Incumbent Nuclear Electricity (ARENH), established in consultation with market participants and officially approved by CRE.

Data exchanges between a DSO and RTE


The distribution system operator sends RTE aggregated load curves for each BR as detailed in the method for calculating observed consumption for ARENH.

Data exchanges between a BR and RTE


A Balance Responsible Entity whose perimeter includes end customers served by multiple suppliers, at least one of whom enjoys ARENH rights, is qualified as a multi-supplier BR. In this case, the BR must send RTE aggregated load curves for each supplier. These are detailed in the observed consumption calculation method for ARENH.

Only multi-supplier BRs are concerned by data exchanges with RTE for the ARENH arrangement.


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