Market prices are set by the cost of the marginal producer. That is, the person who produced that last bit of electricity needed to supply the market.
While nuclear energy hasn’t gotten any more expensive, gas and other fuels that “top off” France’s energy market have. If France only needed nuclear energy it would be completely insensitive to fluctuations in the price of other fuels. However, when you need that little bit of extra juice, you have to pay the going rate for the fuel.
Latest Answers