EDF Energy has blamed a sharp decline in earnings in 2021 on spiralling wholesale gas costs, unplanned nuclear outages and the continuing impact of the pandemic.
The supplier posted a loss in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA) of £21 million in 2021, compared to a £712 million profit in 2020.
In the company’s group accounts, EDF said the “extremely sharp” decrease in EBITDA resulted mainly from a 4TWh downturn in nuclear output, costing €198 million, and from a “substantial decrease in realised nuclear prices” of £12.6/MWh after lost output had to be bought back at higher market prices, costing €550 million.
Earnings before interest and tax (EBIT) plunged from a £862 million loss in 2020 to £1.7 billion loss last year.
EDF Energy, which serves around 5 million UK customers, has gained an additional 650,000 accounts last year after stepping in to take on the customers of failed retailers Green Network Energy, Utility Point, Zog Energy.
The company said the historic rise in wholesale energy prices increased costs for its customers business in 2021.
“The energy price cap meant that we were unable to pass on most rising costs and as a result our residential business was loss-making,” it said in a statement.
The retailer will provide a breakdown of how each part of its business has performed when it publishes its annual segmental accounts before the end of April.
Hinkley Point C
EDF said the Hinkley Point C nuclear power station is now beyond the halfway point in its construction, with around 52% completed. First generation from unit 1 is still scheduled for June 2026.
Progress on site during 2021 included the completion of the 2500m3 concrete table that will support the turbine of unit 1, and the successful lifting of the first steel ring section on to the reactor building of unit 2.
However, the previously identified “high probability” delays for both units 1 and 2 of 15 and 9 months respectively remain unchanged.
EDF further warned that despite steps to address Covid-19, the pandemic presents additional pressure to the schedule.
Renewables
EDF noted the entry of its renewables business into Britain’s grid-scale solar market in 2021, with investment decisions being taken on three projects and construction starting on one.
Work also got underway on building the 30 MW West Benhar onshore wind farm in North Lanarkshire.
EDF Renewables additionally added two battery storage sites to its portfolio at Kemsley and Cowley, which it said will provide “much needed flexibility” to help balance and stabilise the power grid.