Prime Minister Elisabeth Borne declared Wednesday that the government would renationalize 100% EDF Energy Company, which is in deep debt and will be challenged to launch a nuclear program.
“I am confirming to you that the State intends to own 100% of EDF’s capital. In her general policy statement to the National Assembly, the head of government stated that this will allow EDF to increase its ability to execute ambitious and critical projects for our energy future.
The electrician is still largely public despite being opened to the public in capital at the beginning of 2005 and its IPO at end of 2005. It is owned by the State at almost 84%, employees at 1%, institutional shareholders, and individuals at 15%. However, the group is in deep debt and faces heavy financial obligations both now and in the future.
French energy company, France’s largest, has faced setbacks in construction of its new reactor model. This EPR is being installed in Flamanville, Manche. It was built more than ten years late, and has almost quadrupled in cost. It also has a corrosion problem (12 reactors out 56), and this year it had to reduce its production target severally.
EDF’s maintenance program was delayed by the Covid in May. EDF estimated that the 2022 drop in nuclear production would result in a 18.5 billion euro gross operating surplus. The government forced EDF to sell less electricity to other companies to maintain its financial position. This was done to limit the household’s electricity costs.
The group plans to launch an EPR2 program for new nuclear reactors. It will also continue to invest in solar and wind power. Ms. Borne took up the post taken by President Emmanuel Macron this winter on Wednesday.
She added that “We must have complete control over our electricity production” and announced this renationalization. We must protect our sovereignty in the face the terrible consequences of war and the immense challenges ahead. He said, “We must make decisions that others, on these very benches were able make before us at a time when the country had to also win the war for energy and production.” She added solemnly. The announcement was looming for some while.
Philippe Martinez, secretary general of CGT, stated that “there is a need to real reflection to give meaning and nationalization”. “Little to little, the EDF company was dismantled. So what is the outline for a public-energy company? What resources do we provide him with? What is the core business for a company such as EDF? He called Boursorama to explain that it is to bring back skills, to reinternalize product, and to have a cohesive company.
Elisabeth Borne did not provide any additional details at this point.
The company’s stock rose on the Paris Stock Exchange after Wednesday’s announcement.
In a market that was up 2.10%, the title cost 15.58% to 9.07 euro at 5:25 p.m. The price dropped sharply by 5% before the speech.
