EDF Energy announces increased UK profits but global losses

Friday 17th February 2012

EDF Energy has announced an 8.5% increase in profits on its UK operations in 2011.

EDF - which stands for Electricite de France and is the French state-controlled utilities group - also announced an 8% drop in energy sales in the UK in 2011, as a consequence of the mild winter and a fall in business-to-business sales.

EDF Energy’s UK sales totalled €856billion (£7.16billion) and although sales fell, profits still went up. EDF’s pre-tax earnings increased by 8.5% to €1.91billion from a readjusted profit figure of €1.79billion in 2010.

Despite the fact it was hit by the unexpected shutdown of one of its UK nuclear plants, the increase in EDF’s profits from its UK business was assisted by sharp declines in wholesale energy prices that were not fully passed on to consumers.

However, across the whole of its business, EDF has reported a 74% drop in profit as it has been hit hard by uncertainties surrounding its Italian businesses and a sharp expansion of its US gas production concerns and expansion of US nuclear power stations.

EDF is also threatened by the European Commission with measures to loosen EDF’s near total grip of France’s electricity market. EDF has also set aside €2.9 billion (£2.2 billion) in provisions to cover further risks in its international businesses.

EDF Energy is the first of the “big six” suppliers to announce their 2011 financial results.

Ann Robinson, director of consumer policy at independent energy switching service uSwitch.com, says: "On the back of the profits announced today, we would urge EDF Energy to relieve the pressure on its UK household customers by passing on the benefits of lower wholesale prices.

“It previously cut its gas prices by 5% on the 7th of February and now is the time to go even further.”

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