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EDF finance chief quits ahead of Hinkley Point decision | EDF finance chief quits ahead of Hinkley Point decision |
(about 3 hours later) | |
EDF has confirmed that its finance director has quit ahead of an expected final investment decision on the £18bn Hinkley Point nuclear power plant. | EDF has confirmed that its finance director has quit ahead of an expected final investment decision on the £18bn Hinkley Point nuclear power plant. |
Thomas Piquemal stepped down because he feared the project could jeopardise EDF's financial position, according to reports. | Thomas Piquemal stepped down because he feared the project could jeopardise EDF's financial position, according to reports. |
EDF shares were trading down 7%. | |
Last month, Chris Bakken, the director of the project that could produce 7% of UK electricity by 2025, said he was leaving to pursue other opportunities. | Last month, Chris Bakken, the director of the project that could produce 7% of UK electricity by 2025, said he was leaving to pursue other opportunities. |
Jean-Bernard Levy, chairman and chief executive of EDF, said Mr Piquemal told him of the decision to leave last week and that he regretted the "haste" of Mr Piquemal's departure. | Jean-Bernard Levy, chairman and chief executive of EDF, said Mr Piquemal told him of the decision to leave last week and that he regretted the "haste" of Mr Piquemal's departure. |
The company's board is expected to finalise in April how it will fund the project after postponing the decision a number of times. | The company's board is expected to finalise in April how it will fund the project after postponing the decision a number of times. |
Mr Levy said the board was studying the investment in Hinkley Point to ascertain the best way to finance the power plant. He added that EDF aimed to announce a final investment decision "soon". | Mr Levy said the board was studying the investment in Hinkley Point to ascertain the best way to finance the power plant. He added that EDF aimed to announce a final investment decision "soon". |
EDF has provisionally appointed Xavier Girre, who joined the company last year as finance director of its French business, as the group finance chief. | EDF has provisionally appointed Xavier Girre, who joined the company last year as finance director of its French business, as the group finance chief. |
Analysis: Kamal Ahmed, BBC Economics Editor | Analysis: Kamal Ahmed, BBC Economics Editor |
At first take, it might appear the resignation of a company's finance director reveals a business in crisis. | At first take, it might appear the resignation of a company's finance director reveals a business in crisis. |
And EDF's share price fall this morning seems to bear that out. | And EDF's share price fall this morning seems to bear that out. |
But, for supporters of the building of a new £18bn nuclear power station at Hinkley Point in Somerset - the world's most expensive power project - the resignation of Thomas Piquemal looks like clearing the way for the EDF board to give the final go-ahead for the scheme. | But, for supporters of the building of a new £18bn nuclear power station at Hinkley Point in Somerset - the world's most expensive power project - the resignation of Thomas Piquemal looks like clearing the way for the EDF board to give the final go-ahead for the scheme. |
Mr Piquemal was widely reported as being a trenchant critic of the costly nuclear project. | Mr Piquemal was widely reported as being a trenchant critic of the costly nuclear project. |
His fate appears to have been sealed last week when the French government, which largely owns EDF, confirmed that it is still backing the scheme | His fate appears to have been sealed last week when the French government, which largely owns EDF, confirmed that it is still backing the scheme |
That came after the meeting between Francois Hollande and David Cameron - also an enthusiastic backer. | That came after the meeting between Francois Hollande and David Cameron - also an enthusiastic backer. |
On this occasion, political will has trumped any financial concerns. | On this occasion, political will has trumped any financial concerns. |
More from Kamal | More from Kamal |
A global surge in nuclear power investment | A global surge in nuclear power investment |
Why is China backing Hinkley Point? | Why is China backing Hinkley Point? |
How to dismantle old nuclear plants | How to dismantle old nuclear plants |
The project has been plagued by delays, but publicly the firm has insisted a decision to move forward is imminent. | The project has been plagued by delays, but publicly the firm has insisted a decision to move forward is imminent. |
In October last year, EDF agreed a deal under which China General Nuclear Power Corporation (CGN) would pay a third of the cost of the £18bn project in exchange for a 33.5% stake. | In October last year, EDF agreed a deal under which China General Nuclear Power Corporation (CGN) would pay a third of the cost of the £18bn project in exchange for a 33.5% stake. |
But according to reports, EDF is struggling to find the cash for its remaining 66.5% stake and is seeking help from the French government, which owns 84.5% of EDF. | But according to reports, EDF is struggling to find the cash for its remaining 66.5% stake and is seeking help from the French government, which owns 84.5% of EDF. |
The company is also facing opposition from French union officials, who have suggested that investment in Hinkley Point C should be delayed until 2019. | The company is also facing opposition from French union officials, who have suggested that investment in Hinkley Point C should be delayed until 2019. |
The CFE-CGC Energy union said there were problems with a similar reactor design in France that needed to be solved. | The CFE-CGC Energy union said there were problems with a similar reactor design in France that needed to be solved. |
Francois Raillot from the union which has a seat on EDF's board, said the company could sell some assets to finance Hinkley Point, but added: "It is a very bad time to do it because the price of energy is so low. | Francois Raillot from the union which has a seat on EDF's board, said the company could sell some assets to finance Hinkley Point, but added: "It is a very bad time to do it because the price of energy is so low. |
"The state, which is a shareholder, will have to give [EDF] money to do it. But another problem is that the French state has no money." | "The state, which is a shareholder, will have to give [EDF] money to do it. But another problem is that the French state has no money." |
The new Hinkley plant was originally due to open in 2017, and it has come under fire for both its cost and delays to the timetable for building. | The new Hinkley plant was originally due to open in 2017, and it has come under fire for both its cost and delays to the timetable for building. |
The government has also been criticised for guaranteeing a price of £92.50 per megawatt hour of electricity - more than twice the current cost - for the electricity Hinkley produces for 35 years. | The government has also been criticised for guaranteeing a price of £92.50 per megawatt hour of electricity - more than twice the current cost - for the electricity Hinkley produces for 35 years. |
Tony Roulstone, who is in charge of the masters programme in nuclear engineering at Cambridge University, said the departure of Mr Piquemal was "a big blow". | Tony Roulstone, who is in charge of the masters programme in nuclear engineering at Cambridge University, said the departure of Mr Piquemal was "a big blow". |
He said EDF was already facing a number of other financing issues, including a decision to buy a majority stake in Areva's nuclear reactor unit, adding: "They are committed to upgrading their existing power stations in France at a cost of €55bn over 15 years." | He said EDF was already facing a number of other financing issues, including a decision to buy a majority stake in Areva's nuclear reactor unit, adding: "They are committed to upgrading their existing power stations in France at a cost of €55bn over 15 years." |
"At a commercial level there is a way for the government to step aside but at a political level, this is part of the energy strategy," he said. | "At a commercial level there is a way for the government to step aside but at a political level, this is part of the energy strategy," he said. |