As part of the cap in electricity retail tariffs in France, EDF is forced to sell 120TWh (vs 100TWh previously) under the ARENH scheme. The expected impact at the EBITDA level is estimated at close to €8bn for 2022. Moreover, the extended/unexpected outage of five reactors, due to corrosion issues, has led the group to lower its output guidance to 330-330TWh (-9%) for 2022 as well. In other words, a worst-case scenario is becoming a reality.
14 Jan 2022
Profit warning, regulation and outages: EDF’s tangling again with old demons
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Profit warning, regulation and outages: EDF’s tangling again with old demons
As part of the cap in electricity retail tariffs in France, EDF is forced to sell 120TWh (vs 100TWh previously) under the ARENH scheme. The expected impact at the EBITDA level is estimated at close to €8bn for 2022. Moreover, the extended/unexpected outage of five reactors, due to corrosion issues, has led the group to lower its output guidance to 330-330TWh (-9%) for 2022 as well. In other words, a worst-case scenario is becoming a reality.