(AOF) – On Friday February 3, 2023, the Council of State rendered its decision in the context of the appeal for annulment filed by EDF on August 9, 2022 against the decree and the decrees dated March 11, 12 and 25, 2022 , implementing the allocation of an additional volume of 20 TWh of electricity sold at a regulated price to suppliers from April to December 2022 (the “Device”). The Council of State rejected EDF’s appeal against the Scheme. EDF acknowledges the Council of State’s decision.
The compensation procedure initiated by EDF before the Administrative Court of Paris to obtain full compensation from the State for the damage suffered by EDF as a result of the Scheme is continuing.
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– World leader in low-carbon energy created in 1946 with 38.5 million customers worldwide and 117.3 GW of installed capacity: 60% in nuclear, 18% in hydraulics, 8% in energies renewables, 9% in gas, 3% in fuel oil and 2% in coal;
– Turnover of €84.5 billion and installed capacity of 117.3 GW: 60% in nuclear, 18% in hydraulics, 8% in renewable energies, 9% in gas, 3% in fuel oil and 2% in coal;
– “Cap 30” business model with 3 strategic axes: supporting customers towards carbon neutrality via 10 billion in revenues in services, the rank of 1st world producer of net CO2 electricity and the role of actor of the energy transition;
– Capital 83.69% owned by the State, Jean-Bernard Lévy, CEO of the 18-member board of directors, to be replaced by Luc Rémond;
– Balance sheet cleaned up in April with a net debt (rated A due to the State guarantee) of €42.3 billion, which will be reinforced between 2022 and 2024 by the disposal plan of €3 billion.
– 4 strategic plans: electric mobility – 30% market share in the supply of electricity to electric vehicles by 2023 in France, United Kingdom, Italy and Belgium-, storage -10 GW installed worldwide in 2035-, solar power – 30% of the market in France in 2035- and the Excell plan for the French nuclear industry;
– Innovation strategy dedicated to digital transformation, production processes, future electrical systems and the decarbonization of customer uses:
– R&D budget of €661 million with 756 patented innovations,
– EDF Pulse Growth fund and incubator and research partnerships (Sinclair laboratory, 5g living Lab, quantum computing, etc.);
– Environmental strategy included in the purpose of the group:
– carbon neutrality in 2050 and 50% reduction, vs 2017 of emissions in 2030,
– 99% of operating budgets dedicated to decarbonization and energy transition,
– €8.755 billion in “green and sustainable” financing and 72% of credit lines indexed on ESG indicators;
– Launch of the construction program for 6 EPR2s and studies for 8 others;
– Integrated operator, from the design and manufacture of nuclear reactors, through Framatome, 75% owned, alongside Mitsubishi (19.5%) to distribution.
– Activity framed by the NOME law (free competition between all market players and resale of a quarter of EDF’s nuclear electricity production to its competitors) and electricity prices administered in France, hence a maintenance cost network little included in the tariffs;
– Impact of the Russia-Ukraine conflict: need to relaunch nuclear electricity production requiring investment in the French fleet and capping of tariffs for individuals;
– Neutralization of the competitive advantage of nuclear power by the obligation to sell electricity to industrialists at the market price;
– Towards a renationalisation of the group but price of the future delisting by the State, ie €12 per share, contested by minority shareholders;
– After a net loss of €5.3 billion in the 1st half, 2022 objective of nuclear production at historic lows, above 280 TWh.
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Greater disparities between utilities
The World Energy Markets Observatory highlights a wide disparity in retail energy prices in Europe. Suffering from both the effect of the rise in wholesale prices and high volatility in selling prices to end consumers, the profitability of players is under pressure. While the sixteen largest European energy suppliers benefited last year from a significant increase in their turnover (+47% compared to 2020), their gross operating margin (Ebitda margin) , deteriorated from 20.2% to 19.6%. Those who had to resort to purchasing electricity on the market had to pay these additional volumes much more expensive than the level of sale prices already set and therefore saw their margins deteriorate.
Faced with the lower availability of its nuclear fleet, EDF, renationalised, should post an annual loss of 29 billion euros in 2022. Engie is doing better because it succeeded in reducing its imports of Russian gas in the first half while benefiting from high electricity prices and its increased exposure to renewable sources.