ENEL: end of French nuclear cooperation, out of EDF project

Cost of Flamanville too high, obtains 613 mln compensation

05 December, 10:29

(ANSAmed) - PARIS, DECEMBER 5 - Italy's power company ENEL is ending its nuclear energy cooperation with France's Electricité de France (EDF), the group announced in a statement issued after stock markets closed on Tuesday. Construction costs of the Flamanville plant were too high after growing from the 3.3 billion euros originally planned to the 8.5 billion announced two days ago by EDF. The Italian group, the country's biggest utility by market value, said it was terminating its participation in the European Pressurized Reactor (EPR) project to build a third-generation reactor in Flamanville, in north-west France, and another five power plants to be built in France.

After the termination of the accord, the two companies said in separate statements, EDF will reimburse ENEL with 613 million euros, its investment in the project plus accrued interests, but 'will recuperate the integrity of its rights on the project, including all revenues from the commercialization of electricity'.

ENEL's exit from the accord, the statements also said, ends contracts in which EDF anticipated power capacity for a total of 1200 megawatt in 2012 in connection with the EPR to be built.

The anticipation will be progressively reduced by 800 megawatts next year, and 400 the following year and in three years. ENEL's decision was due to the delays and increasing costs of EPR in Flamanville, with the last increase of 2 billion euros announced by EDF the day before yesterday. Another reason was the diminution of the company's strategic interest in the operation after plans to restore nuclear energy in Italy floundered.

However ENEL said that 'relations with EDF will continue with the spirit of reciprocal and positive cooperation which has always characterized relations between the two groups'.



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