France to Tax EDF Nuclear Output for Energy Shift to Renewables

[kristopher]

France to Tax EDF Nuclear Output for Energy Shift to Renewables
By Tara Patel - Sep 21, 2013

France will introduce a levy on nuclear energy as well as a tax on carbon emissions from fossil fuels to raise billions needed to boost renewable power and improve energy efficiency.

“All change is expensive in the short term even if it’s beneficial in the long term,” French Prime Minister Jean-Marc Ayrault said today in a speech about the environment in Paris.

The nuclear levy will be applied to Electricite de France SA’s existing atomic reactors, he said. The carbon tax will be introduced “progressively” on fossil fuels in order to earn 4 billion euros ($5.4 billion) in 2016.

President Francois Hollande, who vowed during his election campaign to reduce reliance on nuclear to half of total output by about 2025 while also keeping down consumers’ bills, hasn’t yet said how he will reconcile those aims. The country gets about three-quarters of the power it produces from EDF’s 58 nuclear reactors, more than any other nation. The energy transition will cost an estimated 20 billion euros a year, Hollande said yesterday.

“Our nuclear fleet will be asked to contribute...

http://www.bloomberg.com/news/2013-09-21/france-to-tax-edf-nuclear-output-for-energy-shift-to-renewables.html

[FBaggins]

1. France Won’t Tax EDF for Energy Shift, Minister Martin Says

The French government has no plans to introduce a new tax on Electricite de France SA as part of a plan to raise funds from nuclear energy for renewables and energy savings.

“In no way will there be a tax either on the company or its customers,” Environment Minister Philippe Martin said in an interview on RTL radio yesterday. The state, an EDF shareholder, will benefit from the amortization of nuclear reactors.

...snip...

“It won’t be a tax on the company or its clients,” Martin said. “The nuclear activity of EDF though amortizations that are already over long periods will provide sums that could be used by the state as shareholder that could be used to finance the energy transition.”

http://www.businessweek.com/news/2013-09-22/france-won-t-tax-edf-for-energy-shift-minister-martin-says

[PamW]

2. As I recall...

As I recall, the French government used to own all of EdF; but after a restructuring a few years ago, it now owns a little more than 85% of EdF.

So the French government taxing EdF is actually the French government taxing the French government. It's kind of pointless.

PamW