EdF allocates RTE shares to nuclear fund

Tuesday, 4 January 2011 State-controlled Electricité de France (EdF) has allocated half of the shares in grid operator Réseau de Transport d’Electricité (RTE) to a portfolio of assets for the decommissioning of its fleet of 58 nuclear power reactors. The move - approved by EdF's board on 14 December 2010 – will improve its debt ratio, the company said. While RTE remains wholly-owned by EdF, the utility no longer holds a majority on RTE's supervisory board. Under 2006 legislation, EdF is required to build up a portfolio of dedicated assets to meet future decommissioning costs. According to EdF, the transfer of 50% of RTE shares to the fund will save the company from having to allocate €2.3 billion in cash ($3.1 billion) by 2016. The portfolio, which has been gradually built up since 2000, totalled €12.4 billion ($16.6 billion) at the end of June 2010. RTE owns and operates 100,000 kilometres of very high voltage power lines covering France and 45 cross border lines.