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EDF: share up almost 10% - talks to end ARENH

(CercleFinance.com) - On Friday the EDF share was the sharpest riser in the SBF120, rising almost 10%.

Oddo considers that the consultation on the end of the regulated access to historical nuclear Energy (ARENH) has now been launched. The government is opening consultation on a new mechanism to better remunerate nuclear production, it said.

This aims to remedy the shortcoming of the ARENH and regain equilibrium. Currently set at 42 E/MWh, ARENH represents a subsidy for competition, but does not cover EDF's full costs, Oddo adds.

The broker confirms its "Buy" rating on the share, with a target price of 11.90 euros. The start of this consultation process is a very encouraging first sign for a future reform and implementation of the Hercules project this summer, it says.

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