New EDF Leader Steps into Peace Mediator Role: Charting the Course for Harmony
Let's Settle This: New EDF CEO, Bernard Fontana, Steps In to Tackle Industrial Tiff Over Nuclear Energy
© Chris Ratcliffe/Bloomberg/Getty Images By Xavier Martinage Published on
- Copy link Link copied
Bringing peace to the party, opening lines of communication, and forging ahead. That's the game plan of Bernard Fontana, the new big kahuna at EDF, fresh from taking the reins. His predecessor, Luc Rémont, got booted before his term was up, and now it's Fontana's turn to play peacekeeper. In a sit-down with Les Echos, relayed by BFMTV, the new boss of the French energy titan outlines his plans to hammer out new deals that respect the EDF-state agreement.
Indeed, industrialists have been feeling the heat lately, fretful about long-term contracts that might make them less competitive. As our folks have pointed out, EDF is gearing up to slap its nuclear energy up for grabs in Europe this year—a move intended to replace the Arenh and favor the industry. Naturally, this has set some nerves on edge, with the state pushing EDF to seal long-term contracts, nuclear power production allocation contracts (CAPN).
Luc Rémont, EDF's outgoing superman, chucks one last jab at "exclusive clubs" ## Savings of 34% in Prices
Remembering that EDF holds the key to France's industrial and energy independence, Bernard Fontana tells Les Echos that he's instructed his team to “ figured out a plan to loosen up the tightrope and open up talks with industrialists." The message is clear: “ We get your issues, your pain points, and we're gonna work together to sort ‘em out.”
While French folk enjoy some of the cheapest electricity in the world, the CEO points out, “ the crisis is in the rearview mirror”. With electricity prices taking a nose-dive by 34% over the past year and a half, crises, it seems, are a thing of the past. On the topic of long-term contracts, Fontana reveals that he's identified some “wiggle room” on the advance payment, risk sharing, or prices of various contract components.
Swapping Signature Bucks for Gradual Payments: Instead of asking for the full payment upfront, the idea of “smoothing things out” by spreading installments over time is on the table. As the Arenh mechanism is slated to wind down on December 31, 2025, time is running short to iron out deals. EDF eyes the summer as the deadline to sign new contracts with electro-intensive industrials, according to the seat-of-the-pants timeline Bernard Fontana painted for Les Echos. Will this be enough to soothe the worries of electro-intensive industry customers?
In summary, Bernard Fontana, the new EDF CEO, faces a herculean task in reconciling disputes with industrialists over nuclear energy contracts in Europe. To achieve this, he plans to engage in dialogue with industrial customers, make adjustments to contract terms, and demonstrate a cooperative spirit. Meanwhile, EDF must contend with the European energy landscape, balancing profitability with providing affordable electricity while navigating various regulatory policies. Fontana aims to leverage a collaborative approach, market analysis, and regulatory engagement to find a solution that satisfies both parties.
Bernard Fontana, the new EDF CEO, intends to engage in discussions with industrialists to address their concerns about long-term contracts in the nuclear energy sector, possibly through adjustments to contract terms and a cooperative approach.
In the realm of finance, Fontana is considering alternative payment structures, such as spreading installments over time, to alleviate advance payment issues and meet industry needs during the pending phaseout of the Arenh mechanism.
