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CIVIL NUCLEAR
Italian power giant pulls out of French nuclear deal
by Staff Writers
Rome (AFP) Dec 04, 2012


Italian power giant Enel on Tuesday said it was pulling out of a deal with France's EDF to build nuclear reactors at six plants and added that it would receive 613 million euros ($802 million) in reimbursements.

Enel said in a statement that the first reactor project in Normandy in northern France had encountered "construction cost overruns and delays".

It also said there had been "a significant drop in power demand", adding that the timeframe for other nuclear investments in France was "uncertain".

A referendum in Italy last year that confirmed a moratorium on nuclear energy also "diminished the strategic relevance" of the project, it said.

The money Enel said it would receive concerns expenses already paid for its 12.5 percent stake in the project.

Enel said it would continue to operate in France in the fields of renewable energy, natural gas and power trading.

The withdrawal will come into force on December 19, Enel said.

The Italian company last month reported a third-quarter net profit of 987 million euros, a 6.2 percentage point increase from the same period in 2011.

Enel's sales rose 11 percent to 21.207 billion euros.

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