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EDF Slumps by Most on Record on Hit From Price Cap

  • Government to restrict increase in power bills before election
  • Measures may cost EDF $8.8 billion at Thursday’s market prices
High tension electricity pylons on agricultural land near the Nogent nuclear power plant, operated by Electricite de France SA, in Nogent-sur-Seine, France.

High tension electricity pylons on agricultural land near the Nogent nuclear power plant, operated by Electricite de France SA, in Nogent-sur-Seine, France.

Photographer: Cyril Marcilhacy/Bloomberg
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Electricite de France SA plunged by a record as the French government confirmed plans to force it to sell more power at a steep discount to protect households from surging wholesale electricity prices.

The move could cost the state-controlled utility 7.7 billion euros ($8.8 billion) at Thursday’s market prices. EDF shares fell as much as 25% and were trading about 16% lower at 8.69 euros at 12:21 p.m. in Paris.