Lobbyists debate responses to the nuclear power crisis

Toshiba says it would likely sell Westinghouse if that was an option ‒ but there is no prospect of a buyer. Westinghouse is, as Bloomberg noted, "too much of a mess" to sell. And since that isn't an option, Toshiba must sell profitable businesses instead to stave off bankruptcy.

Toshiba is seeking legal advice as to whether Westinghouse should file for Chapter 11 bankruptcy. But even under a Chapter 11 filing, Reuters reported, "Toshiba could still be on the hook for up to $7 billion in contingent liabilities as it has guaranteed Westinghouse's contractual commitments" for the US AP1000 reactors.

Pro-nuclear commentator Dan Yurman says that a "sense of panic is emerging globally" as Toshiba exits the reactor construction industry. He adds:

After nine years of writing about the global nuclear industry, these developments make for an unusually grim outlook. It's a very big rock hitting the pond. Toshiba's self-inflicted wounds will result in long lasting challenges to the future of the global nuclear energy industry.

The French nuclear industry is in crisis

The French nuclear industry is in its "worst situation ever", former EDF director Gérard Magnin said in November 2016. The French government is selling assets so it can prop up its heavily indebted nuclear utilities Areva and EDF.

The current taxpayer-funded rescue of the nuclear power industry may cost the French state as much as €10bn, Reuters reported in January, and in addition to its "dire financial state, Areva is beset by technical, regulatory and legal problems."

France has 58 operable reactors and just one under construction. French EPR reactors under construction in France and Finland are three times over budget ‒ the combined cost overruns for the two reactors amount to about €12.7bn.

Bloomberg noted in April 2015 that Areva's EPR export ambitions are "in tatters". Now Areva itself is in tatters and is in the process of a government-led restructure and another taxpayer-funded bailout.

On March 1, Areva posted a €665m net loss for 2016. Losses in the preceding five years exceeded €10bn. A large majority of a €5bn recapitalisation of Areva scheduled for June 2017 will come from French taxpayers.

On February 14, EDF released its financial figures for 2016: earnings fell 6.7%, revenue declined 5.1%, net income excluding non-recurring items fell 15%, and EDF's debt remained steady at €37.4bn. All that EDF chief executive Jean-Bernard Levy could offer was the hope that EDF would "hit the bottom of the cycle" in 2017 and rebound next year.

EDF plans to sell€10bn of assets by 2020 to rein in its debt, and to sack up to 7,000 staff. The French government provided EDF with €3bn in extra capital in 2016 and will contribute €3bn towards a €4bn (US$4.2bn) capital raising this year.