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EDF Energy - Finance

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Conclusion: an attractive market<br />

• World gas prices and low demand growth are the key<br />

determinants of the current and medium term relatively<br />

low UK energy market prices<br />

• Decreasing capacity reserve margin and impact of climate<br />

change policy on generation mix provide upward price pressure<br />

• Market reform is needed to ensure smooth transition to low<br />

carbon economy and to incentivise new generation investment

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