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28 Jul 2016

Compensation associated with the closure of the Fessenheim nuclear plant: information to the Board of Directors and details on the company calendar

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Finance
Nuclear

EDF’s CEO, Jean-Bernard Lévy, has informed the Board of Directors on the progress of discussions with the government about the draft compensation protocol associated with the closure of the Fessenheim nuclear power plant.

These discussions have already allowed to define the principles for compensation, which would be based on:

  • a fixed initial portion corresponding to the anticipated costs associated with the closure of the plant and covering the costs of retraining staff, decommissioning, the INB tax (Installation Nucléaire de Base – basic nuclear facilities) and “post-operation” costs,
  • a variable portion resulting, when appropriate, in subsequent payments to cover the shortfall for EDF. This shortfall would be determined according to market prices until 2041 and would take into account the actual volumes generated by the 900MW series nuclear plants operating during this period.

This information has also been communicated to EDF’s Works Council today, in addition to the information that it has already received. The information-consultation process involving staff representative bodies will be launched, within the statutory timescales, so that, during the Works Council meeting on 14 September, this information may be examined and allow the council to issue an opinion at the end of the procedure.

As a reminder, the closure of the Fessenheim plant results in a right to compensation, as the French Constitutional Council pointed out in its decision on 13 August 2015 when examining the constitutionality of the law on energy transition for green growth of 17 August 2015.

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