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EDF sues the French Government and demands compensation of 8,340 million | Companies

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The French energy giant, Electricity of France (EDF), has filed a lawsuit against its main shareholder, the French Government, and has announced that will request compensation of 8,340 million euros. This has been assured the company in a statement published last night, in which he details that the amount corresponds to the losses that he assumed after a regulated price for electricity was implemented in March. LThe measures in question limit the increase in electricity prices to 4% this year for approximately seven out of ten French households, and forces the company to increase by 20% (with great discounts) the amount of electricity it sells to its rivals.

Following an in-depth legal analysis, and in light of the losses suffered as a result of the Decree and Orders of March 11, 12 and 25, 2022, EDF today filed a lawsuit with the Conseil d’Etat (the French supreme administrative body judicial), as well as a demand for compensation, for an amount estimated to date at 8,340 million euros, against the French State,” the company said in a statement last night.

The French Government has responded that it will defend this measure, and explained that the price of electricity would have risen by at least 35 percent if the caps were not applied. CIt should be noted that France has also begun a process to acquire the 16% of EDF that it does not yet own, with the aim of nationalizing the company in the context of inflation and the European energy crisis.

The discrepancies between the company and the Government go back, at least, to the beginning of the year. In fact, EDF had announced that it was “considering any measure to protect its interests”, following the French government’s announcement on January 13 of an additional allocation of 20 TWh of electricity, to be sold at a regulated price by 2022. Subsequently, its President indicated during its annual general meeting in May that it had presented a preliminary administrative appeal to request the revocation of the decree and the orders that limit the increases.

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