Lack of wind dents profit at one of EDF’s biggest UK windfarms
A lack of wind has dented profit at EDF’s Dorenell Windfarm in Scotland, with turnover dropping by more than £20m in 2023, according to newly-filed documents.
Dorenell Windfarm, a 59-turbine site south of Dufftown with the capacity to power more than 106,000 UK homes, saw its turnover slump to £56m during the 12 months, down from £76.2m in 2022.
As a result its pre-tax profit also took a hit, decreasing to £23m during the 12 months from £35.2m in the year before.
EDF said this was down to slower wind speeds during the period, resulting in less energy generated and, as a result, less electricity sold.
In a statement published to Companies House, the firm said: “Revenues for the year were lower than the previous year due to lower wind volumes.
“Management are confident that wind speeds in the UK will maintain their medium term averages and therefore future results are anticipated to be in line with expectations.
“Prices during 2023 were lower due to market fluctuations but the long term Power Price Agreement and Contract for Difference in place gives management confidence that revenue will be sustained.
“Direct costs have generally remained steady and decreased slightly in line with the decrease in revenue. As a result the company has maintained profitability and a strong net asset position.”
EDF forced to repay customers
In March 2024 EDF’s Dorenell Windfarm hit headlines when it was forced to pay £5.5m into a fund setup to help vulnerable customers after Ofgem found that it had overcharged the grid.
The regulator said the company had charged “excessive prices” when it was asked to reduce its output.
Under normal circumstances, wind farms are paid for whatever electricity they produce.
However, when the grid is at capacity and unable to take on more electricity, companies are paid to switch off their turbines.
But Ofgem said it had found that some of the assumptions used by EDF were higher than necessary to recover its costs. Meanwhile its prices “did not properly reflect the financial benefits of reducing its output”.
The business told Ofgem that it thought it had complied with the rules, but accepted the regulators’ findings and paid £5.5m towards its voluntary redress fund – a scheme set up to help struggling households.
Ofgem director of enforcement Cathryn Scott said at the time: “Another win for customers through Ofgem’s robust enforcement work has been secured.
“This company has accepted its error and has agreed to make a significant payment to put it right.
“Customers – particularly those in vulnerable situations – will rightly benefit from over £5 million as a direct result.
“We hope this sends a clear message that licence breaches will simply not be tolerated.”