EDF to Take Bigger Hit From New French Rules, Sliding Output
- Utility now sees impact of more than $28 billion on earnings
- Government said to be mulling whether to nationalize company
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Electricite de France SA forecast a deeper hit to earnings from falling nuclear output and the French government’s cap on power prices for consumers, highlighting its vulnerability to Europe’s escalating energy crisis.
EDF had already warned it would be squeezed this year, with its French atomic output dropping to a three-decade low due to reactor works. The situation has been worsened by a government decision to force EDF to sell more power at a discount and to delay part of a tariff hike for customers. The utility now sees an earnings impact of more than $28 billion, 35% higher than three weeks ago.