Paris Normally, it is taboo for the bosses of the country’s state-controlled companies to criticize politics. EDF boss Jean-Bernard Levy explained in a memo to managers of the group, which Reuters was able to see on Monday, that he had tried to convince the ministers to change course. “Having fought hard against this, this decision comes as a real shock,” he wrote. “This news shocks the company.” Now he is looking for ways to defend EDF’s interests.
The government around President Emmanuel Macron, who is currently fighting for re-election and is facing public anger over soaring electricity bills, instructed EDF last week to produce 20 percent more nuclear power. EDF should then sell this to the competition for a maximum of EUR 46.20 per megawatt hour. However, electricity currently costs almost three times as much on the open market. EDF should also only be allowed to increase electricity prices by a maximum of four percent in 2022. Without such a cap, experts had expected an increase of up to 20 percent.
EDF shares fell 25 percent after the announcement. “Together with the board of directors, we will examine suitable measures to strengthen the balance sheet and all measures to protect the interests of the group,” wrote EDF boss Levy. “At stake is our ability to secure our strategic development.” He reiterated that the government order will reduce EDF’s operating profit by around eight billion euros. The French state holds 84 percent of EDF shares.
More: France caps rise in electricity prices at four percent
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