France to replace EDF boss ahead of nuclear buildout
PARIS — France is overhauling the leadership at state-owned utility EDF, as the heavily indebted company gears up to build six new nuclear reactors for the country while struggling to sign up long-term customers for its power.
Bernard Fontana, currently head of nuclear engineering group Framatome, majority owned by EDF, has been proposed as the new CEO, taking over from Luc Remont who has held the role for two years, President Emmanuel Macron’s office said on Friday.
The change still needs to be approved by parliament but is expected to take effect soon, officials said.
It comes days after the president’s office said it had agreed on a state loan for at least half the construction costs of six new reactors, clearing a key hurdle for the ambitious project first proposed by Macron in 2022.
But EDF has only completed one new reactor in France in the last 25 years, which was 12 years behind schedule and four times over budget.
Speaking to reporters on a trip in central France, Prime Minister Francois Bayrou said Fontana had experience leading teams and “accelerating construction” to steer the company as it embarked on a new phase.
“We are facing new nuclear power plant construction sites, construction sites that are expensive and on which there are a certain number of difficulties,” he said.
Framatome, run by Fontana since 2015, designs the European Pressurized Reactors that EDF plans to build over the coming decades to renew the country’s ageing nuclear fleet.
France relies on nuclear energy for about 70 percent of its power, and last year produced a record surplus for export.
Fontana will take over EDF after months of protracted and increasingly tense negotiations between the utility and industry over long-term power supply contracts, with the two sides unable to agree on terms.
EDF wants to cover the cost of maintaining its nuclear fleet and investing in new reactors while companies are demanding lower electricity prices to remain competitive.
Earlier this month, EDF said it was inviting companies in other countries to bid for its power as it struggled to win business clients at home.
Asked about his future at the company during an annual results conference last month, Remont said his mandate was due to expire this summer and it was up to the board to decide on renewing his role.
