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President Macron’s plan for electricity price cut could cost EDF €8 billion

President Macron’s plan to avoid a politically explosive electricity price rise in France could cost EDF €8 billion, the French state-controlled energy group warned yesterday. The alert prompted a sharp sell-off in shares of EDF, which tumbled by 14.6 per cent, or €1.51, to close at €8.84 last night, as investors reacted with dismay to an order from the French government that the company must increase the amount of
cut-price electricity it sells to rivals to hold down prices for consumers.

EDF further spooked the markets by saying that it was extending the shutdowns of five nuclear reactors because of safety concerns, leading to a fresh cut to its electricity production forecasts. The group, which is leading the project to build Britain’s only new nuclear plant at Hinkley Point in Somerset, said that it was unable to calculate the exact financial consequences of the last salvo of bad news and withdrew its profit guidance for the year. It said that it would “consider appropriate measures to strengthen its balance sheet structure and any measure to protect its interests”.

 Times 15th Jan 2022

https://www.thetimes.co.uk/article/macron-energy-price-cut-will-wipe-8bn-off-revenue-at-edf-energy-vhnzrxt05

January 17, 2022 - Posted by Christina Macpherson | business and costs, France, politics