EDF collapses on the stock market amid difficult negotiations in Brussels.

Le Monde 25th Jan 2021, EDF collapses on the stock market amid difficult negotiations in Brussels.
The French group is engaged in a vast reorganization project, contested by the company’s unions. EDF is the largest nuclear operator in Europe and one of the main electricity producers in the world, but a few lines were enough to make its value skid on the stock market on Monday January 25.

In an article published on the BFM Business website on Monday morning, the channel said that negotiations between Paris and Brussels on one of the key points of the French nuclear reform are failing. In a few minutes, the group’s action collapsed and lost up to 18% in the afternoon to close at -15%.

A day of tumbling stopped at the last minute by an intervention from Bercy, who did everything to deny the failure of the negotiations. To understand this dark day for the company, we must return to the very subject of negotiations. For months, France has been pleading with the
European Commission for a reform of the complex system which requires EDF to resell part of its production to its competitors. Set up in 2011, this mechanism called “regulated access to historic nuclear electricity” (Arenh) forces the energy company to resell a quarter of its nuclear
production at a fixed price – this tariff is set at 42 euros per megawatt hour.

https://www.lemonde.fr/economie/article/2021/01/25/edf-s-effondre-en-bourse-sur-fond-de-negociations-difficiles-a-bruxelles_6067571_3234.html

January 26, 2021 - Posted by Christina MacPherson | business and costs, France