Skip to main content

PRESS RELEASE FROM EDF GROUP - Board of Directors’ meeting held on 22 April 2016

By EDF | Posted April 22, 2016



22 April 2016


Board of Directors’ meeting held on 22 April 2016


During its meeting held on 22 April 2016, EDF’s Board of Directors reviewed the Group’s long term financial trajectory under the new adverse market price conditions.


A responsible, efficient electricity producer that champions low carbon growth, EDF Group ambitions are consistent with its CAP 2030 strategy priorities:

  • proximity to customers and local communities;
  • low carbon generation, with a balanced mix of nuclear and renewable energy;
  • international expansion.


An action plan was presented to the Board of Directors which includes:

  • Net investments (excluding Linky and excluding new developments) optimised by
  • close to €2bn in 2018 compared to 2015. Net investments should reach €10.5bn in 2018
  • A reduction in operational expenditures of at least €1bn in 2019 compared to 2015 An assets disposals plan of c. €10bn by the 2020 horizon


These measures will be included in the Group’s Medium Term Plan to be presented to the Board of Directors in December as every year.


The Board of Directors examined the need to increase the company’s equity capital:

  • EDF shared its intention to propose an option to pay the dividend related to fiscal years 2016 and 2017 in shares and to submit to the Board of Directors, by the closure date of the 2016 accounts and subject to market conditions, a capital increase project via a market operation for an amount of around €4bn.
  • The French State informed the Board of its position on the matter: it is disclosed separately.


Wholesale power prices – ranging between 25 and 28 €/MWh since the beginning of 2016 – are at an all-time low. Prices could stay at this low level in France and in Europe over the next two to three years.


In France, the end of regulated tariffs for businesses at end 2015 increases EDF’s exposure to wholesale market prices. Around 65% of EDF’s generation output in France is now exposed to market prices.


EDF announces consequently an action plan in order to enable the company, despite these adverse market conditions, to continue its strategic development within the CAP 2030 framework.



1. Investments optimisation and selectivity in accordance with the CAP 2030 strategy


Investments on the existing scope will be reduced by close to €2bn between 2015 and 2018, with the objective to reach €10.5bn by then.


Investments excluding existing scope representing close to €2bn per year are planned until 2018 in regulated activities (Linky meters whose rollout is already under way, construction of new generation units from renewable energy sources, Hinkley Point C project).


The total amount of Group investments should hence range between €12.5bn and €13.5bn per year over the next three years.


2. Reduction in operational expenditures


The Group already reduced cost by around €300m in 2015 compared to 2014 and announced, during the presentation of its annual results on 16 February 2016, a cost reduction objective of €700m in 2018 compared to 2015.


Cost reductions are strengthened and furthered. The reduction objective is reinforced to at least €1bn in 2019 compared to 2015.


3. Assets disposals plan to finance the Group’s new developments


The disposals plan initiated in 2015 to contribute to financing investments corresponding to new developments is strengthened. The Group sets an assets disposals target of around €10bn between 2015 and the 2020 horizon, including an evolution of RTE’s equity capital, thermal power generation assets outside of France and minorities stakes.


Note: these figures do not include the projected acquisition of a controlling stake in AREVA NP.


A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: generation, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 37.6 million customers, of which 27.8 million in France. The Group generated consolidated sales of €75 billion in 2015, of which 47.2% outside of France. EDF is listed on the Paris Stock Exchange


EDF Energy

EDF Energy is one of the UK’s largest energy companies and the largest producer of low-carbon electricity, producing around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to 6 million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.

EDF Energy’s safe and secure operation of its eight existing nuclear power stations at sites across the country makes it the UK’s largest generator of low carbon electricity. EDF Energy is also leading the UK's nuclear renaissance and has published plans to build four new nuclear plants, subject to the right investment framework.

These new plants could generate enough low carbon electricity for about 40% of Britain’s homes. They would make an important contribution to the UK’s future needs for clean, secure and affordable energy. The project is already creating business and job opportunities for British companies and workers.

Through Our Better Energy Ambitions, EDF Energy has developed one of the biggest environmental and social programmes of any British energy company.

In 2014 EDF Energy received seven ‘Big Ticks’ in the Business in the Community (BITC) Responsible Business Awards. In 2013 EDF Energy received the Environmental Leadership for Behavioural Change Award in the national Environment and Energy Awards and was highly commended in the first ever pan European Corporate Social Responsibility Awards scheme for its Sustainable Schools programme – the Pod.

EDF Energy is part of EDF Group, one of Europe’s largest power companies. The company employs around 14,000 people at locations across the UK.

Find out more about the UK's energy challenges and what we're doing to help us achieve Net Zero Britain. 

Related articles

First Steam Generator travelling to Combwich Wharf
May 12, 2024

New images show Hinkley Point C’s heaviest delivery yet as the first steam generator arrives

The first of Hinkley Point C’s eight 520-tonne steam generators was delivered safely to the construction site over the weekend after arriving by sea and road.
Apprentice Evie
April 18, 2024

New Skills, Better Jobs: Report Reveals the Positive Impact of Hinkley Point C

New figures published in Hinkley Point C’s 2024 Socio-Economic Impact Report reveal the power of green investment to improve the lives and prospects of people and businesses locally, across Somerset and beyond.
Somerset saltmarsh site
January 04, 2024

Hinkley Point C sets out plan to create Somerset saltmarsh

Hinkley Point C, the new nuclear power station in Somerset, is asking for views on its plans to create more than 800 acres of saltmarsh on the River Parrett.