EDF loses 400 million euros by speculating on the electricity market – RT en français
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It is speculation that has gone badly for EDF Trading (EDFT), the market activity subsidiary of the French energy supplier. At issue: a failed bet on an upcoming drop in electricity known as “peak winter France”.
400 million euros evaporated on the market: as revealed Le Figaro on October 29, EDF’s market activity subsidiary would have suffered a colossal loss after one of its traders speculated on an upcoming drop in electricity known as “winter peak France”, which corresponds to the energy produced and delivered between 8 a.m. and 8 p.m. Monday to Friday.
The bet in question has indeed come up against the continuous rise in energy prices, forcing the speculator to abandon his position “at the worst moment”. It would thus have been led to weaken when the prices of the megawatt hour were close to 200 euros, against 50 euros maximum at the same time a year earlier. “The position of the EDFT trader would have been made all the more untenable because of technical purchases by large companies in the sector, including … EDF France”, notes the daily.
EDF “never comments on its trading activities”
More than 80% owned by the State, the French energy supplier “never comments on its trading activities,” said an EDF spokesperson quoted by Le Figaro, which confirms for its part that the public company is indeed “better known to the general public for its nuclear reactors than for its very secret trading activity”.
“There were some really big losses in trading, but it was more than made up for by gains. The extreme volatility of the markets has put the models in difficulty, ”assured an internal source at EDF quoted by the newspaper. He reports that the trader behind the operation has been sanctioned and risks dismissal.
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