What will stop the fall in EDF’s accounts? Very concerned about the financial situation of the public company, the elected representatives of the central social and economic committee (CSEC) initiated an economic alert right procedure at the start of the year. Given the deterioration of the situation and the political deadlines that are looming, they rely on the group’s board of directors.
65 billion debt in sight
“Our report on the situation of EDF will be submitted to the board of directors on June 29 and the latter will have one month to respond to us”, indicates Philippe Page Le Mérour, the secretary of the CSEC of EDF. He believes that if nothing is done “EDF could not pass the course of the end of the year”. In fact, according to Citi analysts, the group’s net debt – which already peaked at 44 billion euros at the end of 2021 – could reach 65 billion euros at the end of 2022 while its revenues have collapsed.
“EDF was plunged into the red on purpose by the public authorities”, accuses Philippe Page Le Mérour, referring to the emergency measures taken by the government to limit the rise in bills, with in particular an increase in nuclear electricity quotas sold at bargain prices on the market.
Also, in their recommendations addressed to the directors of EDF, the unions plead to “suspend” the Arenh mechanism and to review the method of calculating regulated electricity tariffs as soon as possible.
“When you want to kill your dog, you say he has rabies,” again criticizes the trade unionist, who suspects the government of deliberately letting EDF’s financial situation deteriorate to facilitate “a facade nationalization project” intended in reality to “dismantle” the group.
A bill for EDF this summer
Exceptional, this economic alert right procedure had also been activated by the EDF unions in 2016, at the time of the debates on the launch of the controversial Hinkley Point construction site, very risky for the group. For the unions, this new procedure aims today to make their voices heard when the major maneuvers to nationalize EDF must begin very soon.
“I have to submit a project to accelerate the energy transition to Parliament this summer. This is a project that will allow us to accelerate on renewable energies but also on nuclear power. We are going to work on EDF’s shareholder trajectory and on the financing that we will have to provide for the new nuclear reactors, ”said the Minister for Energy Transition Agnès Pannier-Runacher on Tuesday on Europe 1.
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