“EDF WILL NOT SUCCESS DURING THE YEAR,” CSE Central warns the group

“EDF’s debt will approach €60 billion at the end of 2022 and thus cross the crucial €50 billion threshold for rating agencies. If things don’t change, EDF will not be able to make it past the end of the year because it is in a mortal predicament,” I alerted, this Wednesday, 15 June, Philip Page Le Mirror, CGT Secretary of the EDF’s Central Social Committee (CSE). can transcend religion “If other government actions will follow the recommendations of the Anti-Corruption Commission [le régulateur, ndlr]who wants EDF to sell more electricity on the cheap, he warned.

The representative body of the employees held a press conference following the procedure for the right of economic alert, which began last January after the government forced EDF to sell 20 TWh of additional electricity at reduced prices to its competitors, within the framework of the Arena Mechanism. The goal is to limit the rise in electricity prices on the assumption that alternative suppliers will pass this supply on at a lower cost in the prices offered to end consumers.

Economic alert

The right of economic alert is a privilege granted to a CSE when it becomes aware of facts that are likely to affect the economic position of the company in a worrisome way. He can then ask management to provide him with explanations. In the case of the EDF, the Central CSE has expressed concern about the increase in Arenh’s cap, which will reduce the group by €10 billion in 2022. The Electricity Department provided some answers last February. The representative body of employees considered it unsatisfactory, and then decided to confirm the right to economic warning and appoint the accounting firm Secafi.

Continuing this procedure forced the EDF to provide access to a certain number of internal documents (such as income statements and budget projections) and to respond to interview requests from the consulting firm Secafi. This work of expertise led to deliberations that must be presented to the Board of Directors. In this case, the EDF team will meet on June 29th. The supervisory body must provide a written and reasoned response to the warnings and recommendations made in the deliberations within one month.says Philip Page Le Mirror.

In fact, the recommendations of the central CSE of the EDF were presented yesterday to the management of the EDF, on the occasion of an extraordinary session, during which the four trade union organizations of the group voted unanimously on the resolution.

Immediately comment Arenh

Concretely, the staff representative is demanding two immediate actions: Arenh’s suspension and a new method for calculating the Regulated Electricity Sales Tariff (TRVE).

“The Energy Law provides for the suspension of Arena, in the event of exceptional circumstances”union report, which sparked the European energy shock, amplified by the war in Ukraine, and the historical unavailability of the French nuclear fleet, with nearly half of the reactors closed, due to the problem of corrosion under restrictions and delays in maintenance programs linked to the health crisis.

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control inflation

According to the Central CSE of EDF, the abolition of Arenh will mechanically contribute to lowering electricity prices and thus It played a major role in controlling inflation in the country.confirms Philip Page Le Mirror.

The reason is as follows: removal of Arenh automatically removes the dam, which corresponds to the volume of Arenh not allocated to alternative suppliers, when the total demand exceeds the regulatory threshold. Thus, the latter must obtain supplies from the markets, where prices are much higher (currently around €250 per MWh, compared to €42 per MWh with Arenh). These additional costs are then billed to their customers as prices are not regulated, but also TRVE, due to the so-called “competition” principle.

According to this principle, TRVE should be calculated in such a way that competitors of the existing energy company can offer lower bids. Therefore, it is (in part) to allow competition to increase the tariff of regulated sales.

Disconnect from the European market

The second proposal of the EDF Central CSE consists of “Get out of the competition doctrine” And separate France from other European energy exchanges where price formation depends on the marginal cost of running the last power plant called up to meet demand. However, in some countries, such as Germany, the last plant that was named gas often operates, the prices of which have risen since the Russian invasion of Ukraine.

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The ERB suggests that the electricity price formation reflects the cost of the French production mix.

“The idea is to build a sales tariff regulated according to our primary production, ie nuclear and hydro, with a tariff of 60 euros per megawatt-hour. This figure consumes the work of the Court of Auditors in the latter half of 2021”, Philip Page says Le Mirror.

In this context, basic production, according to the central CSE of EDF, can make up 80% of the regulated sales tariff. It is sufficient to reduce the share of the Market Supplement from 33 to 20% in the TRVE account. This decline will make it possible to contain the impact of market prices, and reassure the social body.

“EDF has never questioned our way of working and there has been no disagreement on their part about our plan, which is not their custom.”the union argued.

Complete and permanent renationalization

The employee representation body also calls for a complete and permanent re-nationalization of EDF, and criticizes the government’s plan, which, according to it, will consist in temporarily re-nationalizing the company before selling certain activities.

“Mechanical justification does not resolve the financial position of EDF, Think Philip Page Le Mirror. Nationalization makes sense only if it maintains an integrated public company and if it can help put the company back on track by getting out of competition.”continued.

While the tone has risen in recent months between the CEO of EDF and the state shareholder who owns 84% ​​of the company’s capital, Philip Page Le Mirror, on the contrary, “It’s not the feeling of having company management on the offensive to save furniture”. “The spirit we felt is a white flag, the spirit of the end of sovereignty,” He added, while many are wondering about the early departure of Jean-Bernard Levy, whose term should normally end in May 2023.

In the past, EDF’s central CSE had already seized the right to economic preparedness when the electrician committed to financing the construction of an EPR at Hinkley Point, England. A decision that also led to the resignation of the chief financial officer at the time, Thomas Bekemal.