nuclear-news

EDF reduces stake in Sizewell C as boss sacked

25 Mar, 2025 By To s-sacked-25-03-2025/ https://www.newcivilengineer.com/latest/edf-reduces-stake-in-sizewell-c-as-boss-sacked-25-03-2025/

EDF’s ownership of Sizewell C has decreased to 16.2% and the UK government’s stake increased to 83.8%. Meanwhile, the French company’s chief executive has been axed and its financial stability has been called into question.

The UK’s flagship gigawatt-scale new nuclear projects under construction – Hinkley Point C in Somerset and Sizewell C in Suffolk – are both subject to intense scrutiny as costs rise and timelines slip.

Hinkley Point C is late and over budget, and Sizewell C is awaiting its delayed final investment decision (FID) which is scheduled to be made at the Spending Review on 11 June. The FID will reveal the final determination of who will fund the project and how. The government has already invested several billion pounds in developing it.

Hinkley Point C’s costs rose from around £25bn in 2015 to up to £34bn in 2024, and Sizewell C is projected to cost £40bn – double what it was estimated by EDF and the UK Government to cost in 2020. However, the Treasury disputes this latter figure.

EDF Sizewell C ownership stake reduced

On 24 February 2024, NCE reported that EDF was appearing to scale back its proposed ownership ambitions of Sizewell C.

EDF’s 2024 Annual results document laid out its contribution to the power plant, which is “subject to some conditions, including […] a share in ownership of the project of 10 to 19.99%, including a cap on financial exposure in value.” It also requires “a return on capital expected by EDF as an investor in line with market return for this type of assets, risk allocation profile and its investment policy.”

It is understood that the reason for selecting 19.99% rather than 20% is because a company buying 20% would have to set up a subsidiary entity to take the ownership.

Credit ratings agency Fitch Ratings announced in a ‘Rating Action Commentary’ on 21 March 2025 that the Sizewell C’s owners – the UK Government and EDF – had changed their ownership stakes.

EDF previously confirmed in its 2024 half year results that Sizewell C is owned 76.1% by the UK Government and 23.9% by EDF.

Fitch’s announcement said: “As of end-2024, the project was owned 83.8% by the UK  government and 16.2% by EDF, down from 49.4% at end-2023.”

This marks a fresh drop in EDF’s ownership by 7.7 percentage points.

The decrease comes after French public spending watchdog Cour des comptes said EDF should scale back involvement in UK nuclear projects.

Macron sacks EDF chief and funds EDF reactors

In France, where the government has political control of the entirely state-owned EDF (Électricité de France), Macron fired the company’s chief executive Luc Rémont.

The UK’s Daily Telegraph linked Rémont’s ousting to EDF’s planned electricity price hikes for French industrial customers, of which Macron had promised to “take back control”.

Adding further pressure to EDF’s leadership, French building materials company Saint-Gobain chairman and chief executive officer Benoit Bazin, speaking to French business news channel BFM Business, accused EDF of “giving the middle finger to French industry”.

It has also been reported that the French state has agreed to issue a single subsidised loan “covering at least half the construction costs of six nuclear reactors”, according to the president’s office. It is understood that the six reactors are at the pairs at Penly, Gravelines and Bugey in France.

Former energy secretary reacts to ‘extremely concerning’ developments‘.

Backbench Conservative peer Lord Howell of Guildford reacted to the news. Howell was energy secretary in Margaret Thatcher’s government which supported the construction of nuclear power plants.

He described the reduced stake in Sizewell C as “one more development in growing concern about EDF’s capacity or ability to continue with Hinkley Point C project or take a large (20%+) position in the Sizewell C proposed project.”

Reflecting on the sacking of the EDF boss, he said this is “An extremely worrying development.”

He went on to say the sacking raises “further fundamental questions about the wisdom of proceeding with the Sizewell C ‘Replica’ project of Hinkley Point C in which EDF is set to be deeply involved”

Anti-Sizewell C groups say ‘alarm bells should be ringing’

Stop Sizewell C executive director Alison Downes said: “EDF has not contributed a single penny financially to Sizewell C for well over a year now, and is under growing pressure in France, not only having lost its boss but to scale back its international commitments across the board.

“Clearly Sizewell C could not reach a Final Investment Decision without taxpayers shouldering the bulk of the project’s massive cost – a hugely controversial choice given that the Chancellor is currently scrabbling around to save as much money as possible.

“Rachel Reeves should cancel Sizewell C now and redirect those funds to the Warm Homes Plan, which would lower energy bills and create jobs in every constituency.”

Chancellor Rachel Reeves has proposed austerity measures for the welfare state, which she says are needed to fund infrastructure developments, ahead of the Spring Statement and Spending Review.

Cuts to welfare, particularly covering disability and unemployment support, are proving to be unpopular with dozens of MPs on the left of the Labour party.

A Together Against Sizewell C (TASC) spokesperson said: “Alarm bells should be ringing as the UK government stake in Sizewell C increases to 84% with only the UK taxpayer currently funding Sizewell C’s development costs.

“This begs the question, ‘Why are EDF refusing to put any further money into Sizewell C?’ EDF have decided to build no more of this reactor design in France, indicating they have no confidence in the EPR design destined for Sizewell.”

The spokesperson went on to say: “EDF are broke, as evidenced by their desperate search for cash to finish Hinkley Point C’s construction.

“This is hardly a secure basis for the UK government to continue in partnership with EDF and certainly not a good advert to encourage potential investors.”

Referencing EDF’s plans for a final stake to be as low as 10%, TASC said: “This evidences that even the developer considers the Sizewell C development to be inherently

EDF and the Department for Energy Security and Net Zero did not respond to requests for comment.

March 28, 2025 - Posted by Christina Macpherson | business and costs, France, UK