Monday, March 7, 2016

These three hot issues that are costly to EDF and Areva – Le Figaro

SCAN THE ECO – De Flamanville at Hinkley Point via the Finnish Olkiluoto EPR, the setbacks have multiplied for EDF and Areva. And the bills are gone.

The controversies accumulate around EDF nuclear reactors. And invoices. After the tripling of the cost of the reactor Flamanville 3, it is the turn of the construction of two nuclear reactors in England to raise the questions. At which point the group finance director suddenly slammed the door. This is not counting on the setbacks of the Finnish EPR of Areva which weakens EDF, new owner of Areva NP, which combines the activities of construction and reactor services of the nuclear group. Back on the three cases that illustrate the dire straits of the French energy.

• Flamanville EPR 3: 3.3 to 10.5 billion euros

The construction of the Flamanville EPR accumulating setbacks since its launch in 2007. its cost, now estimated at 10.5 billion euros, more than tripled compared to the initial estimate and its commissioning was postponed to the end of 2018. It allows some observers insist on the reality of an industrial accident. According to the latest timetable issued by EDF, the finalization of the mechanical assembly of the primary circuit, the vessel is the central element, is in the first quarter of 2016, before the overall testing in the first quarter of 2017. At the originally, the EPR prototype should have come into operation in 2012.

Regardless of the amount of bills, EDF and Areva were both at Flamanville in the Authority’s crosshairs nuclear safety Authority (ASN) which had pointed ago a little less than a year, a manufacturing defect in the reactor vessel. Last December, after Areva, the reactor manufacturer, paid him his record with his approach, ASN gave its green light to the launch of new scheduled test program. “The results of the new testing program (which will last” several months “, ie) will be an essential element for the ASN decision making on the ability to cover the service and the bottom of the tank of EPR Flamanville 3 “

• Finnish Olkiluoto EPR (Finland). 3.5 to 8 billion euros

The file EPR under construction in Finland currently hampers rescue Areva and earned him to remain in the red for the fifth consecutive year in 2015. the nuclear group is engaged in talks intended to resolve a dispute with its Finnish customer TVO on the third generation reactor under construction in Olkiluoto (Finland) under the code name OL3. Both companies mutually blame each multiple blunders of the site, both on time and on soaring costs.

“EDF relies on very strong operating results”

A dispute submitted to arbitration of the Chamber of Commerce where the Finnish international calls 2.6 billion euro penalty to Areva and the french requires 3.4 billion. In late January, the Minister of Economy, Emmanuel Macron, had given months (through February) to Areva and TVO to settle their dispute. Now there are ten days, the French nuclear group announced “significant progress.” Initially, the end of construction was scheduled for 2009. Since then, the bill has exploded from 3.5 to 8 billion euros. If the two parties resulted in an agreement that would allow EDF to not assume the financial risk of the project.

• E PR Hinkey point: a £ 18 billion to the project (€ 23.2 billion)

May 2009: EDF buys British Energy for about € 16 billion, its largest acquisition in its history, making french the first electrician in the UK. Seven years later, the group chaired by Jean-Bernard Lévy has not formalized its investment decision on the project to build two EPR reactors at Hinkley Point (England).

An estimated site some 18 billion pounds (23.2 billion euros), which could jeopardize the financial situation of EDF, said the now former financial director of the group, Thomas Thornton. “Now former financial director” because the latter resigned from his post on Sunday. EDF unions have also expressed their fears about the impact of this project, conducted in partnership with China’s CGN, and requested its postponement. It must be said that in addition to Flamanville and Hinkley Point, EDF must also support the work of modernization of 58 French reactors to operate up to 60 years … he estimated at 55 billion euros. “EDF is based on very solid operating results, the shares of transformation and savings plans launched since 2015, and investments focused on energy transition and the necessary recovery of the nuclear industry,” replies Jean -Bernard Levy.


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