EDF to cut €4 billion debt with sale of UK electricity distribution business

French energy giant, Électricité de France (EdF) said yesterday that it is initiating a process of raising more than €4 billion by selling its electricity distribution business in the UK to reduce its net financial debt by at least €5 billion by the end of 2010.

EdF, the French state-controlled nuclear operator and Europe's biggest power generator is the largest electricity distribution network operator in the UK. It serves London, the South-East and East of England which account for 40 per cent of the UK's GDP.

EdF Energy generates around 6 per cent of the UK's electricity and supplies electricity to 7.9 million homes and businesses through its public networks.

It operates three major plants in the UK with a total capacity of 4.8GW and its network covers 29,000 km and distributes 87 TWh of electricity annually, through 48,000 km of overhead wires, 134,000 km of underground cables and 66,300 substations

It also supplies power to both the airports in London, Heathrow and Gatwick, the London's Underground and rail networks, Canary Wharf in Docklands and the Channel Tunnel linking the UK with France.

In May, EdF said it was mulling the sale of its electricity distribution business in the UK in order to cut the mountain of debt it built up due to hefty acquisitions in the US and the UK in the past nine months. (See: EDF mulls selling UK electricity distribution business)