EDF is throwing good money after bad.

During the General Assembly of EDF today, the shareholders approved a capital increase of 4 billion euros. The state committed to contribute 3 billion, with the rest funded by private investors.

Greenpeace sought a legal opinion in April which warned that the French government recapitalisation could fall foul of European competition law.

John Sauven, Greenpeace Executive Director said,”The French state is throwing good money after bad. But throwing wads of cash at the massive problems EDF faces over Hinkley will not make them disappear. EDF has lost 33 billion Euros in the last decade. It is a telling sign that even EDF’s own employees don’t think Hinkley can be built and people in the UK don’t want or need it to meet our energy needs.

“French taxpayers will have to pick up the tab of the three billion Euros spent by the state, which is 176 Euros for each household. And British consumers will have to pay through the nose to the French and Chinese companies for the power if the plant ever gets built. And UK taxpayers will be forced to foot the bill if anything goes wrong.

“This is a very risky investment for the French state, especially since neither EDF nor their nuclear suppliers, AREVA, have been able to complete the construction of a similar nuclear plant. The UK government should not rush to sign on the dotted line if EDF do make the decision to build Hinkley on Thursday. It’s too expensive at a time when the cost of reliable, home-grown renewable energy is falling steeply and can power the UK without the hazardous nuclear waste that the government still doesn’t know how to deal with.”

ENDS
Greenpeace will be available for comment prior to and after the EDF final investment decision which is expected on Thursday. Please call Kate Blagojevic for more information on 020 7801 212 959 / 020 7865 8255