How to legally subsidize EDF and French nuclear power? The Directorate-General for Energy and Climate (DGEC) recently published a call for tenders for a “DGEC Legal Advice relating to the regulation of the electricity market” service. Vast subject if ever there was one. Our curiosity was heightened because a (discreet) public consultation had been launched in January on a “New economic regulation of existing nuclear power”. This consultation indeed proposed an in-depth reform of the current access mechanism to EDF’s historic nuclear production (ARENH). Global Chance responded by raising, in particular, a number of conceptual and legal “weaknesses”.
Global Chance 24th April 2020 read more »
EDF: All the lights are orange, even red. At the end of 2019, EDF’s net debt stood at 41.1 billion euros! Will the state (and therefore the taxpayers) still bail out EDF by the end of the year to avoid bankruptcy? After having already granted him 3 billion in 2017 (and also 7 billion to Orano-Areva) the financial situation of the nuclear engineer is such that it is the bérézina (in an extremely unpleasant situation). At the end of 2019, its net debt stood at 41.1 billion euros and will increase further by 10.6 billion euros by 2022. Its ratio of net debt to Ebitda expected at 2.46 could climb to 3.3 in 2020 and even 3.2 in 2021, well beyond the targets of 2.6 and 2.7 announced. The rating agencies are preparing to degrade the electrician. A further capital increase of 4 billion euros would be necessary. Nuclear costs “crazy money”.
Co-ordination Antinucleaire Sudest 29th April 2020 read more »