Aluminum Dunkirk is the leading aluminum foundry in Europe. It is also the leading electricity consumption site in France, with 4 terawatt hours, the equivalent of the city of Marseille. Since mid-December, the company has reduced its production by 10%, precisely because of soaring electricity prices.
“In normal times, electricity represents about 28% of our costs. Today, we are almost at 80% and this can even exceed our selling prices ”, explains Guillaume de Goys, Chairman of Aluminum Dunkerque.
→ READ. The price of electricity at the highest on the wholesale market
If nothing is done, a larger part of production could even be stopped, he announced, at the Economic Social Committee (CSE) meeting in extraordinary session on Wednesday, January 5. With the key, the reduction in the number of temporary staff, even partial unemployment for the 630 employees of the site. “In 2021 alone, our electricity bill is up by 30 million euros, or three-quarters of what we usually spend on our investments”, adds Guillaume de Goys.
Market prices continue to race
Like Aluminum Dunkerque, many companies are shutting down their machines for the same reasons, even if many of them do not want to publicly state their difficulties vis-à-vis their competitors. , we point out at Uniden and Cleee, two professional organizations bringing together large and very large electricity consumers.
→ MAINTENANCE. “Faced with the rise in energy prices, manufacturers will slow down their production”
For 2022, wholesale electricity prices are set at € 250 / MWh, and even € 364 for delivery in February, levels which are linked in particular to soaring gas prices. We are very far from the 42 € / MWh of the price of Arenh, the nuclear electricity that EDF is obliged to sell to its competitors, the alternative suppliers. But there is not enough for everyone.
Variable increases
The amount of Arenh was capped this year at 100 TWh, while demand was 160 TWh. On average, manufacturers pay between two-thirds and three-quarters of their electricity supply at the Arenh price, the rest at the market price. “A breakdown which also applies to all EDF customers”, including households, underlines Julien Teddé, the co-founder of the broker Opéra Énergie.
But if the state has promised to block at 4% the increase planned in February for individuals, manufacturers are taking the increases head-on. “They vary greatly depending on the contracts signed and the hedging mechanisms that have been put in place, underlines Frank Roubanovitch, the president of the Cleee. SMEs can see their invoice be multiplied by 3, 4 or 5 or even more. “
The search for alternative solutions
This is the case, for example, for Palette 53, a sawmill located in Villaines-la-Juhel (Mayenne) which employs around thirty people. “In 2021, I paid € 90,000 for electricity. But in December, Engie, my supplier, told me that the bill would increase to € 630,000 this year, details its CEO, Yannick Chopin. This would then represent more than half of my charges, against 10% usually. “
He plans to hire an oil-fired generator to produce his own electricity over the next three months. “It’s not good for the environment, but it’s the only way I’ve found to limit damage”, he explains. According to his calculations, the use of a generator set should cost him around € 24,000 per month.
Towards raising the ceiling of the Arenh
Faced with this situation, the government is looking for a solution. “If companies have cash flow difficulties because of energy, let them contact state services in the regions, because we are finding cash flow solutions”, said Agnès Pannier-Runacher, the Minister of Industry, on BFM Business, Wednesday January 5.
The government is also considering temporarily raising the Arenh ceiling to € 130 Twh. Discussions are underway with the European Commission but also with EDF, for whom this obviously represents a shortfall since the share of electricity sold at market price will drop. The price of the Arenh could also be increased to € 46.5 / MWh. Announcements should be made very quickly.
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