Macron says wait, Wargon invites companies to jump on the bandwagon and sign energy contracts!  - Insolence

Macron says wait, Wargon invites companies to jump on the bandwagon and sign energy contracts! – Insolence

“Soaring Energy Prices: ‘It’s Not Necessarily a Good Estimate to Wait,’ Says Emmanuelle Wargon”!

This is the title of this article in Le Figaro that includes the latest statements by the former Housing Minister Emmanuelle Wargon who was bombed (not in Ukraine) at the head of the CRE, which is the energy regulation commission.

Yes, yesterday he was a “specialist” in housing, which we all realized.

Today she is a great “specialist” in energy.

This is what she tells us.

“If you are between 400 and 500 euros per megawatt hour for a year, that is more or less the market price and there is no reason to wait (…) there you sign.”

The president of the Energy Regulatory Commission said Monday that small companies whose contracts “are coming to an end do not necessarily have to wait to sign a new offer.”

You guys should know!

“If a new contract “features an incomprehensible increase”, “don’t sign! “, the Delegate Minister for SMEs Olivia Grégoire has already crushed the management of businessmen, while President Emmanuel Macron denounced “insanity prices”.

“I don’t necessarily say, don’t sign”, I say: take a good look at the conditions (…) offered by providers, compare “but” it is not necessarily a good calculation to wait (…) for the last hour until January 1, so as not to meet in the situation of not having any contract”, estimated the president of the CRE, questioned by BFM Business about the case of SMEs. “If you are around 400 and 500 euros per megawatt hour for a year, that is more or less the market price and there is no reason to wait (…) there you sign,” added the president of the energy market police in France, inviting customers to look at “the price in absolute value rather than the increase itself”. In France, the rise in energy prices caused by the gas supply crisis in Russia is aggravated by the unavailability of part of the nuclear park, with almost half of the reactors stopped, which weakens electricity production.

According to Emmanuelle Wargon, this price increase reflects a form of risk premium on the French market that will be there until the return to service of all the reactors, in February, according to the calendar announced by EDF. “This makes the prices very high (…) very volatile, suddenly it is more difficult to understand the prices offered by suppliers,” admitted the former minister, who believes that however “many (…) are making a great effort of transparency (…) to try to protect their clients and make the best possible prices”.

So I’m going to give my opinion and it’s just an opinion uh it’s not advice it’s an opinion it’s your money guys so it’s up to you guys to decide but here’s what I think of all of this.

1/ Wargon’s opinion “touches one without moving the other” as our president Macron says quoting Chirac, so it is an authorized formula.

2/ If European governments do not do something to save SMEs and industries in the euro zone, we are all going to die in a violent, painful and brutal deindustrialization, so they should end up waking up. If they don’t wake up, we’re all “dead.” So dead for dead might as well be no contract.

3/ On a personal level, I would wait as long as possible before signing a new contract, and if necessary, I would sign one for the shortest possible duration.

In conclusion, never sign a fixed rate contract when rates are very high because they are more likely to go down than to go up. It is the same with energy prices. I am not signing a 3 year commitment with prices so high that they should go down anyway with or without government intervention as the central banks are shutting down the economy and creating a recession.

So Wargon says what he wants, but if he tells me to sign, I don’t sign and that only commits me.

Carlos Sannat

“This is a ‘presslib’ article, that is, free to reproduce in whole or in part as long as this paragraph is reproduced below. Insolentiae.com is the site where Charles Sannat expresses himself daily, offering cheeky and uncompromising analysis of economic news. Thanks for visiting my site. You can sign up for the daily newsletter for free at www.insolentiae.com. »

Source Le Figaro.fr here

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