A plan to save a billion euros for EDF?

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Source: RSE MAGAZINE

 

The French electricity giant EDF is working on a new savings plan to reduce its expenses by about one billion euros, at the request of the state. The company has to fight against the augmentation of the competition, and the fall of the market price of electricity.

Currently EDF group is working on two plans:

  • One is on the modification and the reduction of salaries
  • The other concerns the suppression of big number of employees

In fact, the state is the principal EDF’s shareholder. The giant group announced they are going to remove about 5 percent of their effectives, i.e. approximately 3,500 post. However, powerful trade unions CGT and FO declare that it’s going to be more, rather 4,200 persons dismissed.

In March, the minister of economy, declared that the state was ready to help the company by straightening their account. EDF is confronted to a market under pressure.

At present, EDF has to fight against a prevision of a big spending: The Flammanville EPR’s bill is already going to be 9 billion euros instead of 3 billion originally planned. Furthermore, 4.5 billion euros must be added for the acquisition of Areva. There is also the problem of the nuclear plant. In fact, the renovation of these buildings needs about 51 billion euros. In total, EDF has to deal with a debt of 37 billion euros.

 

Thibault HADZIAVDIC, IEJ 1bis

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