France to nationalise EDF amid energy crisis and Ukraine war

theguardian.com:

France plans to nationalise the indebted French electricity firm EDF amid a broad energy crisis aggravated by Russia’s invasion of Ukraine, the French prime minister, Elisabeth Borne, has said.

The French state now holds an 84% stake in the company, one of the world’s biggest electricity producers. Shares in EDF, which has endured a series of nuclear reactor shutdowns and other problems recently, jumped on the news.

“We must have full control over our electricity production and performance,” Borne said as she laid out her government’s priorities in her first major speech to France’s parliament. “We must ensure our sovereignty in the face of the consequences of the war [in Ukraine] and the colossal challenges to come … That’s why I confirm to you the state’s intention to own 100% of EDF’s capital.”

The move comes as France and Europe scramble to find other energy sources to reduce dependence on Russian oil and gas amid fears of an energy emergency next winter.

EDF manages France’s sizeable fleet of nuclear reactors, which are facing technical and other problems. New-generation reactors are years behind schedule and billions over budget.

EDF had €84.5bn ($86bn) in revenue last year and €5.1bn in profits, and serves tens of millions of customers in France and several other countries. It was partially privatised in the early 2000s.

The rise in EDF’s share price was an apparent sign that investors expect the government to pay a premium to buy up the remaining stock. The shares hit an all-time high in 2007 but have since slid by 90%, falling even lower than the price at which the French government took EDF public in 2005 under an EU privatisation push.

France invested heavily in nuclear energy during the oil shocks of the 1970s and