Electricite de France Group SA (EDFEF.PK) is close to an agreement with the U.K. government on most aspects of a deal to build new nuclear reactors, Dow Jones reported, quoting people with direct knowledge of the talks. However, the discussions are stuck on the guaranteed price for the electricity.
The guaranteed price or the strike price is the guaranteed amount that EDF will be paid for providing electricity to the U.K. The government is determined to meet its energy and climate objectives, while limiting the impact on its public finances.
The U.K. government is planning to construct new nuclear reactors to replace old ones and reduce its carbon emissions. The government has been in talks over the past two years with EDF for two to four new reactors, which the French firm will build and manage at the current site of the Hinkley Point nuclear plants.
The agreement is said to include that the contract to operate the first plant will last for 35 years, marking a concession for EDF which had initially sought to have it for at least 40 years.
The talks may last well into the autumn, the report added.
The stock fell 0.1 percent on Friday in Paris at 17.59 euros on 1.73 million shares.
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