Electricity Regulation: An Accelerated Reshaping of the Post-ARENH Framework in France

End of the ARENH and introduction of the universal nuclear payment (VNU)

This week has been marked by several key milestones in the “emergence from the energy crisis” and the transition to a post-ARENH regime: the gradual introduction of the universal nuclear levy, a new capacity mechanism, adjustments to the TRVE, and the growing regulatory role of the CRE and the Competition Authority. These developments are in line with the general objectives of energy policy (security of supply, competitive prices, consumer protection, combating the greenhouse effect) as defined in Article L. 100-1 of the Energy Code and Article L. 229-1 of the Environment Code.

We will discuss in this article the end of the ARENH and the introduction of the universal nuclear payment (VNU)

Regulated access to historic nuclear electricity (ARENH) has ended on 31 December 2025 pursuant to Article L. 336-8 of the Energy Code, with suppliers required, from 1 January 2026, to source their supply from wholesale markets or via their own generation facilities. The 2025 Finance Act introduces, as a replacement, the ‘universal nuclear levy’ (VNU), a mechanism to protect consumers against extreme rises in wholesale prices.

This is based on:

• a progressive tax on revenue from the sale of historic nuclear electricity, above so-called ‘taxation’ and ‘capping’ thresholds set according to the difference between the market price and the full cost of production;
• the redistribution to consumers of the amounts collected, based on a full cost assessment every three years by the CRE.

Decree No. 2025-910 of 5 September 2025 sets out the framework for the CRE’s methodology for assessing full costs. Based on the methodological principles for calculation set out in the aforementioned Decree No. 2025-910, the CRE published its first assessment of the full costs of electricity generation from existing nuclear power stations for the period 2026–2028 in September 2025. This Authority, consulted for its opinion on the VNU, emphasizes that it offers protection against extreme price rises but appears less favorable to consumers than the ARENH and has limitations linked to its period of application; it recommends clarifying the scheme’s objectives and assessing its effects after three years. This point will be central to suppliers’ contractual strategies and the predictability of consumers’ costs.

In terms of consequences for private companies, this new strategic approach for businesses must address several key areas: the timing of the purchase, the selection of the right product, the duration of the contract, and the process of inviting tenders from suppliers. The key challenge for businesses is to secure a sustainable electricity supply. To this end, several tools exist:

• Power Purchase Agreements (PPAs) enable companies to secure a portion of their electricity volumes from producers over several years. These contracts also contribute to the decarbonization of the energy mix. However, they involve complex legal and financial arrangements.
• Pooling resources through traditional purchasing groups is also an alternative to the ARENH. More broadly, energy consumption optimization needs to be considered across the entire industrial chain.

Finally, the French Energy Code provides that a decree shall determine the method for assessing the costs incurred in the construction of nuclear power stations other than existing ones.

This valuation method was determined by Decree No. 2025-1302 of 24 December 2025.

Regarding the VNU, the Energy Code provides that a decree issued by the Council of Ministers, following the CRE’s opinion, shall determine the conditions for the application of the VNU.

The CRE’s opinion on this draft decree was published on 18 December 2025 (deliberation No. 2025-268), and the implementing decree was published in the Official Journal on 5 February 2026.