EDF asks French government for $8.5bn over electricity rebates

The French energy company Electricite de France (EDF) has asked its main shareholder, the government of France, 8.34 billion euros (about $8.5 billion) in compensation for having to reduce the price of electricity sold due to rising inflation. reported on the company’s website.

“After a thorough legal analysis and in connection with the losses incurred,” EDF asked the Council of State of France, the country’s highest administrative body, to cancel the order to sell electricity at a discount, as well as to compensate for losses, which today are estimated at 8.34 billion Euro.

In March, the government, under the Managed Access to Nuclear Electricity (Arenh) agreement, obliged the energy company to increase its annual electricity quota from 100 TWh to 120 TWh and sell additional electricity at a regulated price of 46.2 euros per MWh, i.e. significantly below current market prices. The government considered this a necessary step in order to contain the growth of tariffs for households and small businesses at the level of 4%. As a result, the company’s profits fell, the shares then fell by almost 20%, after which the unions decided to challenge the government’s decision.

However, the government has indicated that it will not reverse its decision to sell electricity at a discount, as it pursues the interests of consumers in the face of rising energy prices, transmits Bloomberg agency.

In France, inflation continues to rise at a record high. In particular, in July, consumer prices, harmonized with EU standards, accelerated to a maximum of 6.8% compared to 6.5% in June in annual terms. The main reason for the increase in inflation is the rise in prices for energy resources (since the beginning of the year they have grown by 28.7%) and food (+6.7%).

The French government is the majority shareholder of the energy company. He now owns about 84% of the share capital of EDF. In mid-July, the French Ministry of Finance announced its intention to completely nationalize the energy company EDF in order to reduce dependence on imported electricity by buying the remaining 15.9% of shares and 60% of bonds with an option to convert them into existing or newly issued shares, and to withdraw its shares from the free market. appeals. The government offered to buy the company’s shares at 12 euros per paper, and bonds at 15.64 euros. As a result, the transaction amount should be 9.7 billion euros.

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