EDF's power traders lost €480M betting French electricity prices would stay low

EDF (Électricité de France) is France's state-owned electric utility, one of the world's largest electricity producers. Its trading subsidiary, EDF Trading, operates one of Europe's largest energy trading desks.

In the fall of 2021, EDF's long-term French power desk suffered losses of up to €480 million. The traders were 'heavy and consistent sellers' of long-term power contracts, betting that prices would remain stable or decline. When European energy prices surged dramatically due to post-pandemic demand recovery, low gas storage, and reduced French nuclear output, the positions incurred massive losses.

The loss was not publicly known until May 2023, when Bloomberg reported on a whistleblower lawsuit filed by ex-trader Rupert Parry. Parry alleged that prices on the desk were deliberately mismarked to hide the losses, and that he was fired for raising concerns. Senior trader Christophe Balleux was suspended in October 2021 and left by mutual agreement in summer 2022.

The loss was described as 'shocking' by industry observers. EDF Trading said Parry was fired for leaking confidential information. The case highlighted the risks of proprietary trading by a state-owned utility, where losses ultimately fall on French taxpayers.