nuclear-news

EDF and French government clash over nuclear strategy

The French government and the chief executive it handpicked to run
state-owned nuclear power group EDF have clashed over strategy and
financing just as the country gears up for its biggest reactor construction
programme in decades.

The state, which recently renationalised EDF, is at
odds with boss Luc Rémont over some of his plans to try to make the group
more profitable after his appointment a year ago, people close to the
discussions said. “It’s pretty tense,” one person familiar with the
talks said. In particular, a looming overhaul of the way nuclear power
prices are regulated in France has created fractures as EDF seeks higher
prices to bring in much-needed capital, while the state wants to contain
energy costs for households and businesses as much as possible, the people
added.

“For Rémont, electricity prices need to be sufficiently high so
that the group can invest, and the government needs to have prices that are
acceptable to consumers,” another person said. At its core, the debate
around EDF is an existential one — whether its executives can and should
run the group as a normal company despite it being state-owned. EDF has net
debt of close to €65bn. The group’s finances have improved and it
returned to profit in the first half of 2023, but Rémont has outlined
annual spending needs of €25bn per year, higher than the €16bn-€17bn
it used to budget for, and which he does not want to finance with more
loans.

FT 24th Sept 2023

https://www.ft.com/content/eaee5a3d-ba76-40ba-8300-082f586574e8

September 25, 2023 - Posted by Christina Macpherson | Uncategorized