Energy efficiency leaves EDF counting cost

A RISE in energy efficiency led to the biggest drop in UK electricity consumption in three years for EDF, the French state-backed energy giant said yesterday.

Both domestic and commercial customers cut their electricity usage in 2017, leading to an overall drop of 1.9pc, while gas consumption fell 2.6pc as milder weather meant customers used their central heating less.

Domestic energy use has been in decline nationally since 2010, despite a growing population and consumers using an increasing number of electrical appliances.

Successive regulations in recent years, such as the phasing out of incandescent light bulbs, have forced appliance manufacturers to make their products less wasteful.

EDF’S UK earnings before interest, taxes, depreciation and amortisation (Ebitda) slumped by one third last year to €1.7bn (£1.5bn), which it said was largely due to a fall in nuclear power prices. Revenues dipped 0.8pc to €9.3bn, in part because of the weakness of sterling against the euro. EDF said: “The number of residential customer accounts declined only slightly compared to end 2016, indicating resilience in a highly competitive market.”

The company operates eight nuclear power stations in the UK, including at Hinkley Point, where it has faced criticism over delays and rising costs as it builds a new plant in partnership with the Chinese state-backed group CGN.

In November, MPS accused the Government of making “grave strategic errors” in its handling of the Hinkley Point C project.

EDF reported a 2.2pc decline in overall revenues for the year to €69.6bn, with a 16.3pc dip in Ebitda to €13.7bn. Its shares however closed up 4.6pc in Paris as it forecast a rebound in earnings this year and proposed a higher than expected dividend.