The bosses of EDF and Total exchanged Thursday attacks and acerbic remarks, while the oil tanker wishes to give up the nuclear electricity which it had ordered because of the crisis of Covid-19, a litigation which will be decided by justice.
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Alternative suppliers (Engie, Total, Eni etc.) can buy a certain quantity of nuclear electricity produced by EDF in advance and at a fixed price, under a mechanism called Arenh (regulated access to energy historic nuclear). But some suppliers, including Total Direct Energie, a subsidiary of the oil and gas giant, now want to give up this pre-ordered electricity, citing a case of force majeure with the Covid-19 pandemic.
" Now that demand has gone down especially from companies and prices have gone down, they realize that: 'oh no luck we may lose money', so they tell us: ' no no finally we don't want all this electricity, beware , "said Jean-Bernard Lévy, CEO of EDF, on RTL. " To some very small resellers, we said that we were ready to make payment facilities if they had cash flow difficulties ," he continued. " There are also big (...) who seek to obtain a review of their contract in court. The courts will decide, but we believe there is no matter. "
After the failure of a procedure before the sector regulator and the Council of State, the Paris Commercial Court was seized in this case, in particular by Total.
" Baroque "
" I've heard of dividends, well it doesn't seem to be going so badly, " said Jean-Bernard Lévy, specifically asked about Total. Indeed, the oil giant will not lower its dividend, but offer its shareholders to pay it in shares. " Let them come and say to EDF: 'finally I bought a little too much electric current, you wouldn't want to take it back from me because it bothers me to make a few losses anyway', we found that a a little bit baroque, ”concluded Mr. Lévy.
Total CEO Patrick Pouyanné replied in an equally scathing manner, attacking EDF on its own practices. " Force majeure " clauses exist in contracts to offset [the] consequences of events which were not reasonably foreseeable at the time of signing the contract ", he underlined in a statement sent to AFP. . “ However, I heard a number of representatives of the State who said that the health emergency meant 'force majeure'. We are not responsible for the drop in demand for electricity in the country, "he continued, referring to the containment decided by the public authorities. Total claims to have wanted to initiate a " dialogue " with EDF to buy nuclear electricity at the agreed price, but in smaller quantities in the face of falling demand.
"To do State "
" We have no intention of abusing the situation as I have read, we are not irresponsible. In truth, by continuing to produce when it has no demand, I would like to know who is abusing the situation now? ", Again accused Mr. Pouyanné.
It is not the first time that the two French energy giants have exchanged acerbic remarks. They have become direct competitors since Total entered the French electricity market with the acquisition of the supplier Direct Energie. “ There is another EDF subsidiary which declared 'force majeure', linked to the health situation, to Total on another matter. So far, we haven't put it on the public square, nor disputed it, ”attacked Patrick Pouyanné, without giving details. “ I do not want a controversy, but obviously, what is a commercial affair becomes a state affair. It's a bit of a shame, ”he concluded.
Read also: Patrick Pouyanné: "Total knows how to cope in storms"
The government had presented in mid-January a project to reform the Arenh, to better guarantee future revenues to EDF, which regularly denounces the mechanism. But the European Commission will have to agree.
