EDF denies seeking $2.6 billion for Fessenheim closure

PARIS (Reuters) - French power group EDF denied it had requested compensation from the French government over its decision to close the state-controlled energy company's Fessenheim nuclear power plant.

The comment followed an unsourced report in newspaper the Journal du Dimanche claiming EDF had asked for more 2 billion euros ($2.6 billion) to cover loss of profit from the closure as well as the cost of investments made to prolong the lifetime of the plant.

"EDF has made no request," a spokeswoman for the company told Reuters on Sunday.

President Francois Hollande, who took power in May, announced on Friday he would shut Fessenheim in Alsace, near the German border, by the end of 2016, sticking to his election pledge to halt its operations by the end of his mandate in 2017.

The facility, which went into service in 1977, is France's oldest nuclear power plant and has been a frequent focus of safety concerns since the 2011 earthquake and tsunami in Japan that triggered the Fukushima nuclear disaster.

Last week Green groups called for its early closure after a steam leak triggered a brief fire alert.

France derives 75 percent of its electricity from nuclear production, more than any other country, and the issue of its nuclear dependency has become particularly sensitive in the wake of last year's Fukushima disaster.

Hollande on Friday confirmed his campaign pledge to cut the share of nuclear power in the energy mix to 50 percent.

Meanwhile, Fessenheim has been under particular scrutiny due both to its age and its location, in an area at risk from seismic activity and flooding.

Hollande's announcement on the early closure has dealt a blow to the nuclear industry, and drawn criticism from unions which are worried about job losses.

In an interview with the Journal du Dimanche, Bernard Thibault, head of EDF's main workers' union, the CGT, called the decision "rushed" and said it had been made before the country had even started a debate on its energy transition.

The government is due to launch a six-month discussion on the issue, that will seek to reshape the way energy is produced, consumed and taxed.

(Reporting by Vicky Buffery; Editing by Anthony Barker and Hans-Juergen Peters)

Source: http://news.yahoo.com/edf-seeks-over-2-6-billion-fessenheim-plant-124543649--business.html

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