EDF: Return on equity
As previously discussed, Électricité de France’s adjusted return on equity has fallen drastically due to weak power prices and slowing demand.
Return on equity is authorized by regulators and is the only part of the revenue requirement that utilities (JXI) keep for themselves as profit.
EDF’s capital expenditure forecast
However, according to EDF’s management’s forecast, its capital expenditure is expected to fall by 23% through 2018, considering 2015 to be a base year.