EDF shares jumped amid news that France will pay 8 billion euros for the nationalization of the company

In the midst of Europe's worst energy crisis in a generation, France wants to return a debt-ridden utility company to full state ownership to control household electricity bills, while making huge investments to reduce the country's import dependence. 

The cost of buying a 16% stake that the government does not yet own, plus any convertible bonds placed, could reach 10 billion euros ($10 billion), Reuters reported on Monday.

Shares of EDF rose as much as 9.4% and traded 5.9% higher at 10.12 euros as of 9:11 a.m. in Paris. 

EDF's nuclear output accounted for 69% of France's electricity generation in 2021, but this year will fall to its lowest level in more than three decades and won't fully recover in 2023. This involves inspecting and repairing small cracks in key pipes at a dozen reactors, combined with regular maintenance and refueling stops at other units.

The declining reliability of EDF power plants is a growing political concern as European governments become increasingly concerned about the security of energy supply as Russian gas supplies dwindle. 

In addition to nationalizing the power generator, French Finance Minister Bruno Le Maire said last week that EDF Chairman and CEO Jean-Bernard Lévy, 67 and who took the helm in 2014, would step down.