In a statement the company, which is currently in negotiations to take on a contract for a new multi-billion pond nuclear reactor at Hinkley Point in Somerset and also operates the UK’s eight current nuclear plants, said: “In response to a recent claim that it pays no tax, EDF Energy wishes to make clear that it pays all corporation tax due to HM Treasury, and paid £156m for 2011 and £116m for 2012.”
Claims of utilities tax avoidance, including those for EDF Energy were levelled in the House of Commons last week by Tory MP Charlie Elphicke.
He said EDF made £268.4million in interest payments to group companies, potentially avoiding £70million in tax. And German-owned Npower made £358million in interest payments, saving a potential £93million in tax, which led to the denial from the energy supplier.
The revelation of the tax payout is in comparison to £10.5bn in revenues it made on a statutory basis during 2012, as well as £972m in earnings before interest and taxes.
Shadow energy minister Tom Greatrex has already said that EDF Energy is pushing the government into “one-sided” negotiations over a deal for the Hinkley Point C project.
EDF Energy stated that this was in addition to investments of £1.1 billion in 2011 and £1.3bn in 2012 made to the company’s “existing nuclear and coal stations, new generation capacity, gas storage and in its customer supply business” and “business rates in excess of £50m every year”.
“EDF Energy is proud of its record of providing a significant contribution to the UK economy”, the statement from the company added.
The company recently backed proposals for energy suppliers to offer a single unit price for gas and electricity.
For single unit pricing to work, EDF Energy said Ofgem would need to create a central clearing house and eliminate regional cost difference, and for all the suppliers to adopt the same model to allow consumers to compare prices.