The debt-ridden nuclear powerhouse EDF will likely incur costs of around 5 billion euros in the next year as a result of a proposed French windfall tax.

The debt-ridden nuclear powerhouse EDF will likely incur costs of around 5 billion euros ($5.20 billion) in the next year as a result of a proposed French windfall tax on energy companies' earnings during the current energy crisis in Europe, the newspaper Les Echos announced.

Les Echos said that the fee, which is a component of the 2023 budget measure being debated in parliament, would make EDF the program's single-largest contributor.

EDF, which runs numerous renewable energy installations as well as France's nuclear power reactors, declined to comment.

The fee will start accruing for nuclear and renewable energy generation at a rate of 100 euros per megawatt-hour (MWh).

The action is part of a broader European Union policy adopted this year and aims to limit profits from high energy costs to provide relief for individuals and companies struggling with inflation.

But Paris is preparing to almost decrease the threshold that decides what market prices are unreasonable, whereas the EU price ceiling consensus was established at 180 euros/MWh.

The decision would put an additional burden on EDF's finances, which are already under full nationalisation following several profit warnings this year related to issues at its nuclear reactors.

The government's bid to acquire EDF was approved by the French markets regulator AMF on Wednesday, almost two weeks later than originally anticipated. The acquisition would cost the government around 10 billion euros ($10.4 billion).

The impact of worker strikes on EDF's reactor maintenance schedule and the prolonged maintenance outages of four reactors afflicted by corrosion were cited as reasons why the company decreased its nuclear output target for 2022 on November 3.

(Sources: investing.com, reuters.com,)