The Elysée proposed on Thursday to appoint Luc Rémont, current head of Schneider Electric, to replace the current CEO of the electricity giant Jean-Bernard Lévy, to meet the challenge
of the revival of nuclear production.
At 53, the current head of Schneider Electric’s international operations will become the new pilot of the EDF ship, weakened by its financial situation and its failing electricity production.
The Élysée has made its choice official, on “the proposal of the Prime Minister”, specifying that Parliament will have to give its approval to this appointment.
The future CEO will replace Jean-Bernard Lévy, at the helm since 2014, soon to reach the age limit but whose early departure was announced this summer at the same time as the renationalization of EDF to 100%.
Little known to the general public, Luc Rémont presents however a “very complete” public-private profile to lead the soon to be renationalized industrial giant, underlines a source close to the file. A good connoisseur of the workings of the State, having worked in ministerial cabinets including Bercy, he has also acquired “business legitimacy”.
Emmanuel Da Cruz, FO Schneider Group union coordinator, praises “a very competent person, an engineer, recognized at Schneider Electric, benevolent towards his teams”.
With more than eight years at Schneider, first as director for France and then internationally, where he managed “dozens of industrial sites and tens of thousands of employees”, according to a source close to the case, he is now well acquainted with the French energy sector and
the world today in full upheaval.
“It is not so much the man that we will judge, it is his project,” said Amélie Henri, national secretary CFE-Unsa Energies for EDF.
For the time being, Luc Rémont will be the only captain on board, as the company’s current statutes provide for a single governance in the hands of a CEO.
But Bercy remains in favor of the idea of dissociating the functions of chairman and CEO, which was once mentioned by the Élysée.
His fixed remuneration will remain “within the framework of the law”, i.e. a maximum of 450,000 euros gross per year, according to another source close to the case.
– Colossal challenges –
Luc Rémont will face a number of colossal challenges, both financial and industrial, as France faces its worst energy crisis in decades.
Top of the pile: reviving electricity production at half-mast, due to problems with certain nuclear reactors, but also due to the drought which has weakened hydroelectric production.
Out of 56 reactors, about half are shut down due to corrosion problems or maintenance, which should bring production down to a historical low of 280 TWh by 2022.
The challenge will be to restart enough reactors to cope with peak loads.
consumption, especially in case of very cold winter.
Other more structural projects await the new EDF strongman.
In the medium and long term, the new boss will also have to manage the connection of the EPR Flamanville, which is ten years behind schedule, and huge future investments to revive nuclear power, according to the roadmap set by Emmanuel Macron in February 2022.
The executive wants to equip France with six new second-generation EPRs, with an option for eight more, while extending the life of an aging fleet beyond 50 years, to increase France’s energy security at a time when it will be increasingly necessary to do without fossil fuels. And
the government wants to press on.
These challenges are all the more complicated to face because the group’s financial situation is burdened by a colossal debt that could reach 60 billion euros by the end of 2022. A situation due to the collapse of production, aggravated by the government’s decision to make EDF sell more electricity at knock-down prices to its competitors to protect household bills.
In this context, he will have a lot to do to reassure employees and unions.
“We have big fears,” said Amélie Henri, CFE-Energie, who fears a “sale of the various activities of EDF” and the end of the “integrated model of the company” after the renationalization.
His roadmap is eagerly awaited.
