suppliers change the rules of the game in the face of helpless HLM organizations and condominiums

Are electricity suppliers absentee subscribers? For HLM organizations currently trying to renew their contracts, the time is for doubt and concern.

The electricity supply contract for Seine-Saint-Denis Habitat, which includes 33,000 social housing units, will end on December 31, 2022. The departmental HLM organization organized three consultations in quick succession with suppliers EDF, Engie and TotalEnergies ( previously selected in a framework agreement), on 13 and then 20 October. None of the three suppliers wished to submit an offer.

On October 25, the lessor having waived all flexibility – this system which makes it possible to connect new electricity delivery points at the same price, for example in the event of delivery of new constructions at market price –, Engie and TotalEnergies responded . “But with offers at unbearable price levels for our organization and, above all, for our tenants”indicates Stéphane Troussel, the president (Socialist Party) of the departmental council of Seine-Saint-Denis.

Both providers offered an average price of 720 euros including tax per megawatt hour (MWh), compared to 169 euros for the current contract of the social landlord. “Our annual bill now stands at 4.5 million euros, it would have increased to more than 18 million euros”specifies Bertrand Prade, the general manager of Seine-Saint-Denis Habitat, who had four hours to decide, and finally declined the offer. “So we are currently without a solution. We will relaunch a consultation in a few days.”he said.

“Time is running out now”

The scenario is almost identical for Paris Habitat, which includes 125,000 social housing units, mostly in the capital, and whose electricity supply contract will expire at the end of the year. On October 18, its first consultation was declared unsuccessful, the three preselected suppliers ( once more EDF, Engie and TotalEnergies) not having responded.

“The tightness of the market is causing suppliers to limit risk taking: they no longer want fixed-price or short-term contracts, nor flexibility”, explains Cyrille Fabre, director of operations at Paris Habitat. Among them, EDF, in the process of being nationalized, is particularly cautious. “Most of the time now, EDF only submits an offer if it is already the outgoing supplier, continues Mr. Fabre. The market is so tense, with individuals returning en masse to EDF, that the latter is afraid of not having the technical capacity to make the switchovers, if demand is too high. » When questioned, the energy company told the Monde that the conditions of the calls for tenders did not suit it, in particular because the scope concerns “several sites and buildings”.

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