Yahoo Finance EDF makes £1bn profit in UK as energy bills soar
French energy giant EDF (EDF.PA) has revealed its UK profits hit £1.12bn last year as UK households were hit with soaring electricity price hikes.
The state-backed utilities giant said profits before tax, interest and one-off items lifted to £1.12bn for 2022 in the UK, following a loss of £21m in the previous year.
EDF said this was caused by “strong operational performance” across its nuclear fleet and increased prices. The energy company said it benefited from higher electricity prices on wholesale markets in 2022 which brought it a big increase in revenues without an equivalent rise in costs.
Read more: FTSE 100: British Gas owner Centrica posts profits of £3.3bn as energy bills rise
EDF, which supplies gas and electricity to about five million UK households, is 84%-owned by the French state. It operates five nuclear power stations in the UK as well as several wind farms.
EDF complained that the UK’s cap on energy bills hit its earnings.
"EDF’s energy supply business made a loss of over £200m. In short, the cost of buying the energy for our residential customers was higher than the prices we charged under the SVT cap," the company said.
It came as the wider group plunged to €4.99bn (£4.46bn) loss as repairs impacted the group’s nuclear output for the year.
After Russia's invasion of Ukraine sent energy prices soaring, the French government required EDF to sell energy at below cost to consumers to help them pay utility bills.
Luc Rémont, chairman and chief executive officer of EDF, said: "The 2022 results were significantly affected by the decline in our electricity output, and also by exceptional regulatory measures introduced in France in difficult market conditions.
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"Despite all the challenges, EDF actively focused on service and support for all its residential and business customers and made every endeavour to ensure the best generation fleet availability for the winter period.
EDF’s results come after Centrica (CNA.L), owner of British Gas, this week revealed its operating profits hit £3.3bn last year.
High energy prices have sparked calls for firms to pay more tax as many households are being hit by high gas and electricity bills.
Watch: EDF suspends forced installation of prepayment meters after British Gas controversy
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