EDF Energy reports Hinkley C on track, but loses 200,000 electricity customers

Hinkley Point

EDF Energy, the UK’s largest producer of low-carbon electricity which employs around 2,000 people at Barnwood, Gloucester and is building the Hinkley Point C nuclear reactor, has reported its 2018 Group results.

At the end of 2018, EDF Energy had three million residential electricity accounts and 1.9 million gas accounts, a decrease of around 200,000 since the beginning of the year.

The company, which generates electricity with eight nuclear power stations, more than 30 wind farms, one gas and two coal power stations, as well as with combined heat and power plants, also installed 515,000 smart meters last year. The company has installed more than one million smart meters have been installed since the programme started.

Last October, EDF Energy announced a partnership with Nuvve Corporation to install up to 1,500 Vehicle to Grid (V2G) chargers in the UK.  V2G chargers allow electricity stored in an electric vehicle to be used in a customer’s home or business or to be sent back to the grid, providing savings on energy costs and generating additional revenues.

The company said that all key milestones were reached at Hinkley Point C in 2018 – more than 3,600 people are working on the construction site and the project is on schedule to reach ‘J-zero’ i0-  the completion of the 4,500 tonne concrete platform on which the reactor buildings sit in the summer of 2019.

380 apprentices are working on the project and the aim is to see 1,000 apprenticeships created over the course of construction. 25,000 employment opportunities will be created during construction.

Hinkley Point C continues to create significant benefits for the South-West. Contracts worth more than £1.5 billion have already been awarded in the region.

EDF Energy’s nuclear power stations delivered lower output of 59.1TWh compared with 2017 (63.9TWh) due to maintenance and inspection outages.

EDF Renewables UK (a joint venture between EDF Renewables Group, EDF’s global renewables subsidiary and EDF Energy, EDF’s UK generation business), continued to develop significant new projects and has more than 1.5GW of renewables capacity in planning or development.

A new 49MW battery storage project at West Burton B is now operational, providing frequency response services to the National Grid, and further flexibility projects are being explored.

EDF Energy’s nuclear power stations delivered lower output of 59.1TWh compared with 2017 (63.9TWh). This was due to maintenance and inspection outages the company said.

Capital expenditure across nuclear generation, coal and customers was more than £540m. Investment in New Nuclear Build (NNB) was £2.3 billion.

EBITDA (Earnings before interest, tax, depreciation and amortization) for 2018 was £691 million, a reduction of 16.5 per cent on an organic basis. The drop in earnings in 2018 was due to lower generation output and lower realised prices.

EBIT (earnings before interest and taxes) was -£172 million excluding exceptional items, the company said.

 

Horizon Nuclear Power, which also has it headquarters in Gloucester, revealed in January that it intended to suspend its UK nuclear development programme, following a decision taken by its parent company Hitachi, Ltd. Horizon is developing the Wylfa Newydd nuclear plant on Anglesey in North Wales and has a second site at Oldbury on Severn in South Gloucestershire. However, a report in New Civil Engineer in February said that construction of the proposed £20 billion Wylfa nuclear plant in North Wales were continuing as Welsh secretary Alun Cairns met Japan officials from Hitachi in Japan.