Elisabeth Borne announces that the government wishes to completely renationalize EDF

This is particularly under the “sovereignty” that Elisabeth Borne announced on Wednesday, July 6, the government’s intention to completely renationalise EDF, which is heavily in debt and challenged to launch a new nuclear program. “I confirm to you today the intention of the State to hold 100% of the capital of EDF. This development will enable EDF to strengthen its ability to carry out ambitious and essential projects as soon as possible for our energy future.”declared the Prime Minister in her declaration of general policy before the National Assembly.

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Seventeen years after the opening of its capital and its IPO at the end of 2005, the electrician remains largely public, owned by the State at nearly 84%, by the employees, who own 1%, and by institutional and individual shareholders for the remaining 15%. The group is highly indebted and faces heavy financial burdens, present and future.

The French energy company has suffered setbacks, particularly in the construction of its new reactor model, the EPR, whose installation in Flamanville (Manche) is more than ten years late and whose cost has almost quadrupled. A corrosion problem is also affecting part of its fleet (twelve reactors out of fifty-six), which has forced it to lower its production target several times this year.

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“Colossal Challenges”

In May, EDF, whose maintenance program was also postponed by the health crisis, thus estimated that the drop in its nuclear production planned for 2022 should cost it 18.5 billion euros in gross operating surplus. Its financial situation has also deteriorated with the “tariff shield”, ie the government’s decision to force it to sell more cheap electricity to its competitors, to contain the electricity bill of households and small professionals.

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It is in this context that the group intends to launch a program of new nuclear reactors, known as EPR2, while continuing to deploy in solar and wind power. “The energy transition goes through nuclear power”said Wednesday Mme Terminal, taking up the position adopted this winter by President Emmanuel Macron. “We must have full control of our electricity production and its performanceshe added to announce this renationalization. “We must ensure our sovereignty in the face of the consequences of war [en Ukraine] and the colossal challenges ahead. »

This announcement had been looming for some time. After Wednesday’s announcement, the company’s stock surged on the Paris Stock Exchange. The title took 15.58% to 9.07 euros around 5:30 p.m., in a market up 2.1%. Before the speech, the price was down sharply, by 5%.

The World with AFP

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