* French PM said nuclear fleet to help fund energy overhaul
* French env min said would not mean tax on EDF, consumers
* Longer depreciation schedule for reactors to help -sources
* France wants to boost renewables, energy-saving
By Muriel Boselli, Marion Douet and Michel Rose
PARIS, Sept 27 (Reuters) - France will finance a promised shift towards greener energy with cash freed up by an accounting change at EDF's
Prime Minister Jean-Marc Ayrault said last Saturday France, the world's most nuclear-reliant country, would use some of the proceeds from its nuclear power plants, alongside a new carbon tax, to help fund the so-called energy transition - an overhaul of the country's energy policy.
But Energy Minister Philippe Martin said the following day the contribution would not be a tax on EDF or consumers, leaving analysts scratching their heads on how that could be achieved.
Sources close to the matter said that if EDF, 84-percent state-owned, had enough technical elements to justify the lifespan extension by another 10 years, it could ask the firm's auditors to extend the depreciation schedule by the same length.
The accounting change will mean higher profit available each year and more dividends for EDF's main shareholder, the French state.
"The idea is that we use part of this additional income to finance the energy transition," one source close to the matter said, adding that financial details were still being worked out.
EDF declined to comment on the prime minister's speech. It said earlier this year it aimed to pay a dividend of 1.25 euros per share for the 2012 fiscal year, which would translate in a 1.95 billion euro payout to the state.
An energy ministry spokesman was not immediately available to comment.
"I think there's a very simple idea, which is that dividends will help finance the energy transition," another source close to the government said. "On the day dividend payments get decided, the state could say EDF should pay a bit more or a bit less."
EDF's 58 nuclear power reactors are on average 27 years old, with the first reactor reaching 40 in 2018.
This extension could be modeled on a 2003 precedent, when EDF extended the depreciation schedule for nuclear reactors in its accounts to 40 years from 30 years. It cited international practices as a justification, a full six years before the nuclear watchdog ASN agreed to the actual lifespan extension of the fleet.
This does not mean however that France's ASN would grant another 10 years to the lifespan of French plants.
The government's plans may find resistance from consumers, who may prefer to see the proceeds of the lifespan extension used to cut or cap the rise of their electricity bills.
Ingo Becker, head of utilities Sector Research at Kepler Chevreux said it was very likely EDF would be granted extensions for its nuclear power reactors and that benefits would be shared with the public.
"This could probably take place via tariffs being adjusted for the benefits of extensions, so something the regulator CRE has already proposed this year," he said.
France's energy regulator recommended earlier this year that regulated residential electricity tariffs for 2013 should rise by 6.8 percent if lifespan extensions were granted. In case extensions were rejected tariffs, the CRE recommended tariffs would have to increase by 9.6 percent.
(Editing by David Evans)
((muriel.boselli@thomsonreuters.com)(+331 4949 5270)(Reuters Messaging:muriel.boselli.thomsonreuters.com@reuters.net))
Keywords: EDF DEPRECIATION/
