EDF published this Thursday July 28th, 2022 its half-year results. They result in a loss of five billion. Here is three elements d’explication.
1. Sluggish electricity production
Nuclear, which provides two-thirds of electricity production, fell by 15% in the first half of 2022 compared to the same period in 2021. This results from the shutdown of 30 of the 56 reactors: 12 for corrosion problems, 18 for scheduled maintenance. Hence a record loss of more than 5 billion euros for EDF in the first half. It is also due to the decline in hydroelectric production. Because of the drought, the dams are less full,”
observes the economist Jacques Percebois.
2. The sale of 40% of its production to its competitors
EDF hopes to produce 300 TWh (terawatt hours) of nuclear electricity this year. But with the aim of opening up to competition, the State requires it to sell 100 of them to other electricity suppliers at €42 per MWh (megawatt hour). EDF could sell them seven times more expensive on the markets, where the MWh quotes more than 300 €. And to contain prices, the State asked EDF in January to sell 20 TWh more to its competitors for €46 per MWh. But these 20 TWh, EDF had already pre-sold them,
notes Jacques Percebois. He had to buy them back at a higher price on the markets.
3. Freezing of tariffs
The State has blocked the increase in regulated sales tariffs at 4% until the end of the year. Otherwise, they would have had to increase by 35%. This is a shortfall for EDF.
Despite everything, EDF’s turnover soared in the first half (66 billion), but not enough to generate profits. Not a good omen for the massive investments announced.
–
