EDF Hit by French Measures to Limit Electricity Prices Surge -- Update
14 Janvier 2022 - 8:01AM
Dow Jones News
By Giulia Petroni
Electricite de France SA said the French government's new
measures to curb the rise of electricity bills will have an
estimated impact of up to 8.4 billion euros ($9.62 billion) on the
company, and withdrew its earnings guidance for the year.
The French state-controlled utility said late on Thursday that
the measures' final impact on earnings will depend on the market
prices over the implementation period. It said it will consider
steps to strengthen its balance sheet and safeguard its
interests.
As part of government measures, EDF will have to increase the
volume of power it sells to competing suppliers by 20 terawatt
hours at a price of EUR46.2 per megawatt hour. In France, energy
suppliers secure nuclear power from EDF at fixed prices under what
is known as the Arenh price mechanism.
EDF also said it has cut its nuclear-output estimate for the
current year to 300 to 330TWh from the previous 330-360TWh. The
revision is due to the extension of the outage period for five of
its nuclear reactors.
EDF is set to release full-year financial results on Feb.
18.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
January 14, 2022 01:46 ET (06:46 GMT)
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