Paris Times

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Friday, May 09, 2025

Luc Rémont Evicted as CEO of EDF Amidst Nuclear Strategy Disputes

The departure follows disagreements with the French government over industrial support and delays in the nuclear program.
PARIS — Luc Rémont has been ousted from his position as CEO of EDF, with the French government expressing dissatisfaction over his approach to nuclear energy initiatives and ongoing delays in the construction of six new nuclear reactors.

Rémont's unexpected termination came shortly after a meeting with Eric Lombard, Minister of Economy and Finance, and was publicly announced by the Élysée, with Bernard Fontana, current head of Framatome, set to replace him.

Rémont's tenure, which began in late 2022, coincided with numerous operational challenges, including necessary repairs to several nuclear facilities due to previously unforeseen issues such as 'stress corrosion.' These challenges led to reduced output, with many reactors offline.

In 2024, however, EDF showed signs of recovery, achieving impressive production levels, contributing to the highest national electricity output since 2019.

Despite celebrating improved results in February 2025, Rémont’s vision for EDF clashed with the government’s expectations.

He had proposed a plan that involved expanding EDF's reactor constructions across Europe, aiming for profitability through higher electricity prices.

Conversely, the government sought to reconfigure EDF’s role into a cornerstone of its domestic energy and industrial strategy, particularly after reinstating full public ownership in 2023. The state sought to ensure competitive energy pricing for energy-intensive industries.

Discontent with Rémont mounted due to significant delays regarding the nuclear revival program, with constructions of six new reactors behind schedule.

Originally promised to be operational by 2038, the delay in delivering a solidity and budget estimate pushed the timeline further back, prompting government officials to express growing frustration.

Sources indicated that the government had been evaluating Rémont's performance and direction for several months.

The precipitating factor for Rémont's dismissal was reportedly a policy council meeting on nuclear energy, attended by top government officials, including President Emmanuel Macron.

They concluded that progress on the nuclear agenda was stagnant and posed risks to the program.

Following this meeting, the Élysée issued a statement indicating a closer government oversight of EDF's nuclear projects, highlighting inefficiencies in the execution of their plans.

Within the context of industrial relations, Rémont faced pressure to formulate an energy pricing plan that would support large-scale industrial consumers known as ‘électrointensifs’.

These companies, heavily reliant on affordable electricity, voiced concerns about surging energy costs, which the government deemed crucial to maintaining France’s industrial competitiveness while pursuing decarbonization goals.

A regulatory mechanism called ARENH, designed to support industrial users, was set to phase out by the end of 2023.

The discussions surrounding the post-ARENH framework were contentious, with Rémont reportedly at odds with the government's expectations on pricing strategy.

In November 2023, an ambiguous agreement was reached, yet contract negotiations with industrial consumers progressed slowly.

Advance contracts signed by EDF fell significantly short of expectations, leading to heightened scrutiny from governmental authorities.

The dissatisfaction culminated in growing public and political criticism, with industrial leaders accusing EDF management of failing to meet their obligations under the new electricity pricing framework.

As negotiations stalled, industrial stakeholders intensified pressure on the government, leading to additional complications in Rémont's continued leadership.

Bernard Fontana is set to assume his role as CEO of EDF in April, pending parliamentary approval.

His leadership will be central to realigning the company's focus on developing new nuclear reactors within France while navigating the challenging landscape of energy supply and industrial support.
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