EDF: strong increase in activity in Q1, despite a decline in nuclear power

EDF’s first-quarter revenues were up 34.6% on the same time last year, at 47.8 billion euros, boosted by higher market prices and despite the decline in its nuclear output. “The sharp increase in revenues was mainly due to higher electricity and gas sales prices, resulting from higher market prices particularly in France and the United Kingdom,” said the group, which does not provide quarterly figures on its performance.

200,000 additional residential customers for EDF

Against a backdrop of soaring energy prices, the first three months of the year also saw EDF gain more than 200,000 residential customers in France. The number of customers benefiting from the Tempo option has grown particularly strongly (+55% compared to the end of March 2022). Customers who subscribe to this service are encouraged by the tariffs not to consume during the “red” period, which is synonymous with very high voltage on the electricity network.

Conversely, EDF’s revenues suffered this quarter from the tariff shield, introduced in France to limit the increase in consumer bills, and from a drop in gas consumption. During these first three months, the group also delivered 85.2 TWh of nuclear electricity in France, 6.5 TWh less than in Q1 2022. This decrease is linked to the lower availability of the fleet, due to shutdowns imposed by the examination and repair of circuits affected by corrosion. The electrician also underlines the effects of the social movements. Last year, the electricity giant suffered a massive loss of 17.9 billion euros, increasing its debt to an equally record level of 64.5 billion euros, at the end of a dark year plagued by the setbacks of its nuclear fleet but also by its forced contribution to the tariff shield.

EDF’s schedule validated by the ASN

This week, the French Nuclear Safety Authority (ASN) approved the new schedule proposed by EDF to control welds at risk of cracking in its nuclear reactors. The black series had begun in October 2021 with the discovery of a micro-crack in one of the newest and most powerful plants, a phenomenon called “stress corrosion”. But EDF has had to revise its control program after the recent discovery of a crack, very large this time, in a pipe of a reactor in Penly (Seine-Maritime).

For this year, EDF is keeping the same estimate of nuclear production in France for 2023, at 300-330 TWh, according to its Friday release. Another upcoming deadline for the group in the process of complete renationalization is a decision by the Court of Appeal expected on Tuesday on the appeal by minority shareholders against the conditions of its purchase by the State. The State holds 95.94% of EDF’s capital.