Fears over Suffolk’s new nuclear power station as EDF’s earnings plummet. EDF lost 200,000 customers to rival energy firms and reported earnings for its UK business tumbled 16.5% to £691m in the year to December 31, as it blamed a downturn in nuclear power generation and “lower realised net prices” for the falls. EDF is currently carrying out its second public consultation over plans to build Sizewell C – and has denied the project is in danger. Prof Neil Hyatt, professor of nuclear materials chemistry at the University of Sheffield, said the drop in EDF’s UK earnings is a cause for concern. “The deterioration in EDF’s financial position will make it more difficult to fund the construction of Sizewell C, of the order of £15bn,” he said. “Although this is significantly lower than the £20bn cost of constructing the replica Hinkley Point C plant, as a result of lessons learned and economy of scale, the high up-front capital cost poses a potential existential risk to the financial health of EDF, which must shoulder the full commercial risk.” However EDF is in discussions with the government over a financing model which could mean the project is funded by a number of different investors lessening any potential risk.
East Anglian Daily Times 15th Feb 2019 read more »
Generation at EDF’s British nuclear fleet fell 7.5 percent to 59.1 terrawatt hours mainly due to prolonged outages at four of its 15 UK reactors. These units, at its Hunterston and Dungeness B power plants, are expected to return to service in the second quarter of 2019. EDF’s group results, which also include its French nuclear business, included a forecast for 2019 core earnings of 15.3 to 16 billion euros, below analysts’ expectations for about 16 billion.
Euronews 15th Feb 2019 read more »