EDF’s UK business has seen its EBITDA impacted to the tune of £160 million due to the financial effects of Covid-19, the company’s latest full-year group results show.
In an announcement this morning (18 February) the company reported that earnings before interest, tax, depreciation and amortisation (EBITDA) for 2020 were 3 per cent up on 2019 at £712 million, driven by higher nuclear prices and improvements in residential performance offsetting lower nuclear volumes and Covid impacts.
However EDF added that the pandemic has affected “all parts of the business”, mainly its customer division’s performance.
Lower electricity usage volumes among business customers and the increase of bad debt provision resulted in an EBITDA impact of £160 million.
Additionally the company reported a slight decrease in the number of its residential customers, from just over 5 million to 4.8 million.
That figure does not take into account the acquisition of Green Network Energy’s 360,000 customers earlier this year.
Generation
The output of EDF’s nuclear fleet declined compared to the previous year, producing 45.7TWh during 2020, 5.3TWh less than 2019.
Primarily this was a result from the outage of Hinkley Point B for a graphite inspection. Hunterston B came back to the grid in September and Dungeness B is still offline.
Output was also affected by the de-load of Sizewell B between May and September at the request of National Grid, which was fully compensated.
Hinkley Point C
Despite construction being impacted by the pandemic, the company hit 18 of the 20 milestones set for the year.
Covid however means the start of electricity generation from Unit 1 is now expected in June 2026, as opposed to the original target of the end of 2025.
Utility Week has previously reported that construction of the Somerset nuclear plant now may cost up to £23.7 billion, up from £18.1 billion, depending on whether further delays materialise.
Renewables
The construction of the 450MW Neart na Gaoithe (NnG) windfarm, located 15km off the coast of Scotland, began in August and will create new jobs and manufacturing opportunities in Scotland.
Eyemouth Harbour has been confirmed as the location for NnG’s operations and maintenance base where 50 people will be employed over the 25-year lifetime of the windfarm.
2020 also saw the completion of the 11 MW Burnfoot East onshore windfarm in Clackmannanshire, Scotland.