EDF aims to strike CfD deal in next three months

Thursday, February 14, 2013

EDF is aiming to complete negotiations with the UK government over new nuclear Contracts for Difference (CfDs) by the end of the first quarter of 2013, it confirmed today. The French-owned firm plans to make an investment decision on Hinkley Point C "as soon as possible" after that.

At its annual results presentation, chief executive Henri Proglio said EDF was seeking a 40-year contract for Hinkley Point C. Potential partners had come forward but nothing would be agreed until the contracts were in place and approved by Brussels.

"We are on the eve of making an investment decision," said Proglio. "Once we have the strike price and the main contractual clauses in place....we will be able to meet potential investment partners"

There had been "major progress in 2012" on Hinkley Point C, he said, and the project is "shovel ready". But he reiterated: "We will not go there without any formal guarantees of the return on our investment for the benefit of EDF and its shareholders."

EDF's UK nuclear output increased 7.5 per cent from 2011 to 60TWh in 2012.

EBITDA across the group was up 4.6 per cent to £13.93 billion (€16.08 billion), in line with targets.

EDF is issuing a dividend of €1.25 a share, meeting its commitment to keep it at least stable. However, the company declined to promise the same for the coming year, committing instead to pay out between 55 and 65 per cent of net income.

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