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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