France to Nationalize Energy Giant EDF to Help It Combat Europe’s Energy Crisis
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A necessary step to manage the transition away from fossil fuels, says French government.
The French government said it plans to nationalize utility company EDF SA, saying the step is necessary to manage the transition away from fossil fuels at a time of energy crisis in Europe.
The power company, which is already 84% controlled by the state, has been absorbing billions of euros in losses since President Emmanuel Macron imposed a cap on electricity prices, forcing EDF to buy supplies at higher market prices without passing the cost on to consumers. Those losses have become heavier as Russia has cut the flow of natural gas to Europe, triggering a surge in gas and power prices.
EDF also lies at the center of Mr. Macron’s ambitious plans to develop France’s nuclear fleet as a way of cutting emissions to fight climate change.
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