EDF posts £1.7bn profit as domestic bills increase

Energy giant EDF has announced £1.7 billion in annual profits – a 7.5% increase – just two months after hitting 3.7 million British households with a hike in bills.

But the French-owned business, which regulator Ofgem identified as the most complained about of the "big six" energy firms at the end of last year, insisted its division which supplies gas and electricity to domestic consumers had continued to make losses and was being propped up by its power-generation business.

Revenues at EDF's UK arm rose by 6.4% to 9.7 billion euros – £8.4 billion – in 2012.

EDF, which received 8,072 complaints for each 100,000 customers in the final quarter of the year, also increased its prices in a move which saw household bills rise by 10.8% on average in early December.

LANDLORDS Fixed price TENANT FIND only £275.00

Eden Lettings & Property Management Limited

View details

Print voucher

First Let at only £275.00 NO VAT. Contact the office for more details and arrange your free valuation today.

Terms: £275.00 NO VAT on first let only.

Contact: 01803 221108

Valid until: Sunday, June 23 2013

But it said profits were driven by its nuclear and coal-powered energy-generation arm, which accounts for around 95% of its UK earnings. It said this division had been offsetting losses at its UK domestic energy supply business, which fell into the red by £124 million in 2011 and, said EDF, made a loss – a figure yet to be announced– in 2012.

EDF added it re-invested £1.3billion into its services and nuclear and coal stations, up £200 million on 2011. The group is currently in talks with the UK government over investment for its nuclear reactor at Hinkley Point, which is expected to cost around £7 billion.

EDF Energy chief executive Vincent de Rivaz said: "Our financial performance last year enabled us to make significant investments in both our existing power stations and our plans for new nuclear stations in the UK."