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France / Nuclear Market Reform Important for EDF’s Creditworthiness, Says S&P Global

By David Dalton
29 January 2020

Nuclear Market Reform Important for EDF’s Creditworthiness, Says S&P Global
The French government’s plans to introduce a “price corridor” for the wholesale nuclear power market are an important step in terms of state-controlled utility and nuclear operator EDF’s creditworthiness, S&P Global Ratings said.

The aim of the price corridor is to enable EDF to cover its costs while shielding consumers from volatile electricity price increases.

The government-proposed reform, set out in a consultative paper, would replace the ARENH nuclear market scheme under which EDF, which operates France’s commercial 58 nuclear reactors, is obliged to sell 100 TWh, or around a quarter of its annual nuclear output, to rivals at a fixed price of €42 per MWh.

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