Macron Ousts EDF CEO as Tension Rises on French Power Costs

The French government said Electricite de France SA Chief Executive Officer Luc Remont is stepping down as the state-owned utility faces increasing complaints from large industrial clients over the cost of electricity.

Author of the article:, Bloomberg News, Francois de Beaupuy, https://financialpost.com/pmn/business-pmn/macron-ousts-edf-ceo-as-tension-rises-on-french-power-costs 21 Mar 25

(Bloomberg) — The French government said Electricite de France SA Chief Executive Officer Luc Remont is stepping down as the state-owned utility faces increasing complaints from large industrial clients over the cost of electricity.

President Emmanuel Macron is considering appointing Bernard Fontana, the 64-year-old senior executive vice president in charge of the company’s Industry and Services unit, as the new chairman and CEO, the president’s office said in a statement Friday. Remont, 55, has held the positions since November 2022.Article content

“The choice that the government has long supported is electricity that is abundant, clean and not too expensive, and it’s based on this choice that Bernard Fontana’s nomination has been made,” French Prime Minister Francois Bayrou said on a trip to Bourges, central France. “He’s an industrialist, which means he’s used to running teams and speeding up projects.”

Tensions between the government, EDF and major customers have been mounting over the utility’s electricity offerings. Representatives of power-hungry users, such as chemical makers, have said EDF’s new offers aren’t attractive enough, threatening their competitiveness, while rivals in the US and Asia enjoy cheaper energy. Their concerns have been exacerbated recently by sluggish economic growth, uncertainties over gas prices due to the Ukraine war, and mounting trade tensions between Europe, the US and China.

A French regulation that forces the nuclear behemoth to sell more than a quarter of its atomic output at a steep discount to current wholesale prices expires at year’s end. Meantime, the debt-laden utility said it needs to increase expenditure on nuclear projects and the power grid to help the country’s energy transition.

On Thursday, Benoit Bazin, the CEO of French glass and building materials producer Cie. de Saint-Gobain, said on BFM Business television that his company has delayed investment in France because it cannot predict energy costs from next year. Meantime, it has invested in Norway and Canada to electrify plants, and will soon do the same in Spain.

Bazin said he was “extremely shocked” by Remont’s recent decision to auction long-term power supply contracts to rival producers and suppliers, broadening offers that initially were reserved for its large electricity clients.

“EDF is a national company that has a public service mission on the competitiveness of the French industry,” the Saint-Gobain CEO said. “France won’t keep its industry, nor re-industrialization and decarbonization if we keep walking on our head.”

Shutting Sites

Earlier this week, Marc Schuller, chief operating officer of French chemical maker Arkema SA, said during a parliamentary hearing that talks with EDF over new power contracts were “advancing very slowly.

“If nothing is done, we’ll have to consider shutting down sites and stopping some activities because we wouldn’t be competitive anymore,” Schuller said.

Fontana has held a variety of management positions during his career at steelmakers ArcelorMittal SA and Aperam SA, including CEO of Swiss cement maker Holcim Ltd. Within EDF, he’s been in charge in recent years of Framatome, the unit that makes large equipment for nuclear plants.

Beyond easing tensions with large customers, the future boss of EDF will have to complete complex talks with the French and UK governments over the financing and construction of new reactors, which are key planks of these countries’ net-zero ambitions.

—With assistance from Shelby Knowles.