nuclear-news

France’s tax-payers €3bn to save debt-ridden nuclear corporation EDF

State pays €3bn to bail out EDF http://www.connexionfrance.com/france-edf-electricity-areva-nuclear-investment-bail-out-view-article.html April 24, 2016

THE GOVERNMENT has agreed to bail out struggling electricity company EDF to the tune of €3billion, months after it agreed a similar capital injection for nuclear energy giant Areva.

On Friday, EDF announced a €4billion capital investment programme, and the state – which owns an 85% stake in the company – has agreed to pay 75% of the cost.

The electricity giant has been fighting to bring its massive debts under control in the face of weak European electricity prices. It has also invested in several major projects, including a new British nuclear power plant at Hinkley Point.

The government said it would accept EDF shares as its dividend in 2016 and 2017, rather than cash. “The State reaffirms its confidence in the management of the company and all its employees for the success of EDF as part of a quality social dialogue,” argued the Ministries of Economy and Finance in a joint statement.

In return, EDF said it would aim to reduce its costs by €1billion in 2019 compared to 2015, and shave €2billion off its investment plans over the next three years. It had originally planned to make €700million in savings over three years. The group also plans to raise €10 billion by selling off gas, coal and oil interests.

April 25, 2016 - Posted by Christina Macpherson | France, politics