Posted on Jul 13, 2020 at 6:46 p.m.Updated on Jul 13, 2020 at 8:33 p.m.
Last episode in the battle between the two French energy giants. Despite its desire to cut access to Total Direct Energie at nuclear power window regulated (Arenh) for the whole of 2020, EDF had, according to our information, to reopen the tap.
Seized by Total Direct Energie, the Commercial Court ruled in favor of the oil group. In its interim order of 1 July, the court considers that the letter of termination addressed to Total Direct Energy by EDF “does not meet the contractual validity criteria and that it must therefore be considered to be without any effect”.
EDF wants to appeal
In question: the date of suspension of the purchase commitments of Total Direct Energie. This did not take place on March 17, 2020, as the alternative supplier initially wished, but on May 23, 2020 and deliveries of nuclear electricity resumed on June 17. In other words, EDF cannot justify a suspension longer than two months necessary to terminate its contract.
In detail, the Commercial Court ordered EDF to notify the Energy Regulatory Commission (CRE), the electricity transmission manager RTE and the Caisse des Dépôts which manages the Arenh contracts, that it waives this termination. EDF was also ordered to pay 20,000 euros to Total Direct Energie. “We take note and we will appeal this decision before the Paris Court of Appeal,” argues EDF for its part.
At the origin of this conflict is the Covid-19 health crisis. In the heart of the crisis, Total Direct Energie wanted to reduce its commitments to buy nuclear electricity from EDF. In the absence of agreement with the historic supplier on this subject, Total Direct Energie has initiated an emergency procedure with the Paris Commercial Court and thus obtained the suspension of part of its purchase commitments. EDF replied and initiated the termination of its annual contract with Total Direct Energie.