EDF Energy

This article is part of the Nuclear Spin project of Spinwatch.

Background

EDF Energy is a wholly owned subsidiary of EDF Group, one of the largest energy groups in Europe, which when it bought British Energy became one of the world's biggest.

EDF is a 'sustainability' partner of the London Olympic Games 2012, the Paralympics, and also sponsors the EDF Energy Cup in Rugby. It claims to be committed to sustainability and donates to regional and local green initiatives, and is a member of the UK Business Council for Sustainable Energy.

Subsidiary of world's largest nuclear operator

EDF Energy is one of the largest energy companies in the UK, employing nearly 15,000 people. It is one of over 70 subsidiaries of the EDF Group, which has almost 40 million customers worldwide, and is the world’s largest nuclear operator.

The UK is probably the most important market for EDF outside of France. It generates between 6 and 12 per cent of the UK's energy (figures vary on its webpage) from coal, gas, nuclear and wind. In 2011 sales in the UK were 8.6 billion euros, compared with 37.2 billion euros in France. It is the largest electricity supplier for London, the south-east and the south-west of England and as of August 2012 supplies energy to around 7.9 million customers (up from 5 million in 2006). It owns and manages the distribution network serving around a quarter of the UK population. It also operates coal and gas-fired plant as well as CHP plant and wind farms.

EDF owns what used to be British Energy, London Electricity (LEB), Eastern Electricity, and South East Electricity (SEEBOARD plc). In the South West (SWEB Energy) area, the distribution network is owned by Western Power Distribution, but EDF supplies customers in that area.

'Its EBITDA in 2009 was €17.4 billion. The net income (Group share) was €3.9 billion (+12.1%). R&D budget in 2007 amounted to €375 million.'

EDF’s coal, gas, nuclear and wind power generating plants include:

• British Energy's eight nuclear power stations at Torness, Hunterston B, Hartlepool, Heysham 1 &2, Hinkley Point B, Dungeness B and Sizewell B.
• Cottam coal-fired station (2,000MW) near Retford
• West Burton coal-fired station (2,000MW)
• Sutton Bridge Combined Cycle Gas Turbine station (790MW)
• Barkantine CHP Plant – Tower Hamlets.
• 62 MW offshore wind farm under construction off the coast of Redcar. The company also operates 20 onshore windfarms in north-east England.

• EDF Energy is building a new 1,300MW Combined Cycle Gas Turbine (CCGT) power station at its West Burton site, in Nottinghamshire.

EDF wants new UK reactors by 2017

Back in October 2006 EDF Energy's chief executive Vincent de Rivaz proclaimed in a speech in London that EDF Energy was moving from being "investors in waiting" to "investors in action" for new nuclear power in the UK. He told the Nuclear Energy Finance Forum that EDF had set up a UK nuclear project team which aimed to show the government it "can rely on us to deliver safe, reliable and economical new nuclear in the UK".

As investors, EDF also needed to have confidence in the government, he said. New nuclear investments would be made on time scales extending to eight parliaments or more. Given that political risk is a key factor in setting the capital cost of new nuclear, government policy and support were vital. It was essential, de Rivaz said, that the UK government’s 2007 Energy White Paper gave a clear and unambiguous statement of the need for new nuclear in the long-term energy mix in the UK.

EDF Energy began consulting on plans to build a new nuclear station at Hinkley Point in Somerset in October 2008. By the time it began the takeover of British Energy in January 2009 it was already clear that EDF Energy also wanted to build a new station at Sizewell in Suffolk.

The Health and Safety Executive (HSE), Environment Agency and Office for Civil Nuclear Security (OCNS) published new guidance in early 2007 for the assessment of new reactor designs for any new nuclear power stations that may potentially be built in the UK. EDF Energy said at that time it hoped to put in a pre-licensing application in early 2007, start pouring concrete in 2012 and open the first new reactor in 2017.

Applications from nuclear vendors interested in having their reactor designs assessed by the nuclear regulators were invited by 22nd June 2007. EDF Energy and Areva submitted the European Pressurised Water Reactor design to the process. In March 2008, the initial assessment of four nuclear power station designs was completed. No shortfalls in any of the designs were found.

The Office for Nuclear Regulation (ONR) and Environment Agency say they were on course to complete a meaningful Generic Design assessment for the two proposed reactor designs by June 2011, but this was delayed pending an evaluation of lessons from the Fukushima accident. In December 2011 the ONR issued interim approval for the UK EPR with a long list of caveats – 31 so-called GDA Issues.

NNB Generation Company

EDF bought British Energy in 2009 jointly with Centrica, with EDF Energy taking 80 per cent ownership and Centrica the rest. At the same time it set up NNB Generation Company (NNB GenCo) to build and operate two new nuclear power stations, with Centrica taking a 20 per stake in that company as well.

EDF wanted public inquiries emasculated

As early as October 2006 Rivaz said EDF was not looking for public subsidies - "just a framework which will allow us to invest in low-carbon generation and that includes nuclear". EDF Energy’s submission to the DTI on the proposed Nuclear Policy Framework highlighted “the need for a licensing and planning environment for new nuclear power stations that significantly reduces the risks associated with investment, by providing certainty in terms of timescale and cost. (emphasis added)

The submission said EDF had identified a number of issues, which should be addressed to “further reduce the risks associated with licensing and planning, and increase the certainty that investment in new nuclear will come forward”. In particular the company wanted public inquiries to be restricted to consideration of local issues, and it wanted the government to set out a clear timetable for implementation of the policy framework so that new reactors could be operational by 2017.

Rivaz also warned that Europe is facing an energy capacity crunch. By 2030, one trillion euros worth of investment in new energy capacity in Europe is needed if we are to ensure energy security.

The short-lived Infrastructure Planning Commission (IPC) was set up in October 2009, opening fully for business in March 2010. Friends of the Earth described the IPC as “an unelected, undemocratic body - the new Commissioners aren’t directly accountable to the people their decisions will affect. It’s going to be very difficult for local people to get their voices heard, especially with key documents being so technical and opportunities to attend inquiries so few. If people are unhappy with the process they’ll have to take the matter to court, which is extremely difficult and costly".

Hinkley Point C

NNB Generation Company Ltd started a formal pre-application process for the authorisation of the Hinkley Point C nuclear power station in July 2010. In December 2010 campaigners accused EDF Energy of ‘jumping the gun’ by applying for planning permission for what it called ‘preliminary works’. This involved trashing over 400 acres of woodland, cornfields and coastline, and the excavation of more than 3.2 million cubic metres of soil, sub-soil and rocks - more than was dug out to prepare the site for the 2012 London Olympic Games. EDF Energy was given the go ahead for the preliminary works in July 2011,

EDF Energy had been expected to submit its application to the Infrastructure Planning Commission (IPC) in December 2010, but in the end this wasn’t submitted until the last day of October 2011. Local people who attended the preliminary hearing of the IPC into the EDF Energy application were shocked at the limited scope of the inquiry and the attitude of the lead commissioner. When one local resident asked who would look at the dangers of nuclear power and the impact on the health of local children, she was told the point was irrelevant and her microphone was turned off.

Lobbying

EDF does a lot of lobbying. It had a part to play in the Energy White Paper and UK Energy Review 2007 and a number of select committee reports, and briefings to ministers.

Victory for the lobbyists

Those involved in a huge lobbying campaign for a new generation of nuclear power stations achieved at least a partial victory when the UK government published its energy review report in July 2006, although some in the industry said it did not go far enough.

The Chancellor of the Exchequer's brother, Andrew Brown, head of media relations at EDF Energy, will have been one of those celebrating. Brown moved to EDF from the PR company Weber Shandwick, where he had been director of media strategy. Weber Shandwick has a long history of involvement with the atomic industry. A former UK chief executive of Shandwick International, Philip Dewhurst, has also been an important figure pushing the pro-nuclear message as corporate affairs director for British Nuclear Fuels Ltd (BNFL). More recently, Mr Dewhurst has been acting as chairman of the Nuclear Industry Association (NIA). Weber Shandwick, whose senior vice chairman had been former Sun editor David Yelland, used to provide PR advice to British Nuclear Fuels, which used to manage the Sellafield site.

Weber Shandwick worked for Nexia Solutions – which was a wholly owned subsidiary of BNFL providing technology services and solutions across the full nuclear fuel cycle primarily in the UK, but with an increasing overseas market. Nexia Solutions became the foundation of a new National Nuclear Laboratory when it was launched in July 2008.

External lobbying firms

In 2011-2012 EDF's external registered lobbying firms were the PPS Group, which includes a number of other energy companies among its clients, and MHP Communications.

In August 2012, Pagefield was brought in to handle strategic comms and help strengthen EDF's case for building a controversial proposed third nuclear power reactor at Sizewell in Suffolk, UK. It won the six-figure account after a pitch process thought to have been initiated one year beforehand. According to PR Week Pagefield "is expected to play a key role in the development of EDF’s narrative around the value of a new nuclear power reactor, liaising with the public, media and stakeholders such as the Environment Agency and local authorities. Partner Wendy Blair is handling the account. Mark Gallagher will provide senior-level strategic counsel.

Brunswick Group also mentions EDF Energy as a corporate comms client; Brunswick director Aideen Lee handles the account. Weber Shandwick is retained for consumer PR.

Internal lobbyists

• Victoria MacGregor - Head of Public Affairs at EDF Energy since 2001. Before this was Marketing and Policy Manager at Independent Healthcare Association and an Account Manager at Grey Advertising.
• Paul Clark - Senior Public Affairs Manager.

Decentralised energy for London or greenwash trap?

In March 2006, Mayor of London Ken Livingstone announced that EDF Energy had been chosen to work in partnership with the London Climate Change Agency to drive forward work that will provide decentralised, more efficient energy supplies for London. EDF was the preferred bidder to set up a joint venture energy services company to develop sustainable energy schemes for London.

The company will identify and develop sites across the capital where investment in sustainable energy technology will reduce carbon dioxide emissions, by encouraging the use of combined heat and power and renewable energy. Not only could this lead to a more secure and sustainable energy supply for London, but also to reduced household bills.

CEO Vincent de Rivaz sees no contradiction in promoting Decentralised Energy and lobbying for new nuclear reactors in the UK. He says “EDF Energy believes that a diverse mix of energy is the key to security of supply for the UK in the longer term and central to the fight against climate change. Local solutions will need to play their part as part of that diverse mix”.

The partnership planned to roll out combined heat and power units across London; all new social housing developments will soon have to be nearly 60 per cent more efficient than previously.

Ken Livingstone has called on the government to abandon plans for new nuclear power stations But he told The Guardian that he sees “no contradiction with the fact that EDF also generates energy elsewhere that is not sustainable”. He says that whilst he doesn’t agree with them on nuclear power, it would be churlish of him to turn down millions of pounds of investment in the renewable energy alternatives”. Clearly concerned that Livingstone might be giving the nuclear proponents a public relations coup, The Guardian responded by pointing out that EDF had declared its interest in building 10 new nuclear plants in the UK with at least some of them likely to be built near London.

Climate balance - misleading Consumers?

In a further attempt to bolster it environmental credentials, EDF Energy has invited its customers to pay an extra 0.42p (incl VAT) per unit of electricity and 0.147p per unit of gas to be spent on carbon offsetting projects. The examples it gives are the promotion of efficient cooking stoves in Bangladesh and reforestation projects in Uganda.

The Guardian said this scheme was launched amid growing disquiet among environmentalists about carbon offsetting and just days after Scottish & Southern Energy was ordered to stop using a leaflet detailing its tree-planting carbon-offset project - a similar scheme - because it misled consumers.

Friends of the Earth says it is growing increasingly concerned about the basis of carbon-offset schemes. "If companies are genuinely concerned about climate change they should focus their attention on cutting their emissions and using clean sources of energy."

Olympic Games bid supporter

EDF Energy was also the first company to sign up as a Premier Partner of the bid to bring the Olympics to London. It said it wanted to help ensure London 2012 was the “most environmentally friendly and sustainable games ever seen”. The company:

• Provided £1million in sponsorship to London 2012
• Branded over 2,000 vans and 20 of its buildings with the London 2012 logo
• Ran a £1million Sports for Schools campaign with the London Evening Standard
• £350k provided to schools for school grounds and sports equipment through the EDF Energy Fit For Fun Awards and our staff focused Cash for Schools scheme.
• Promoted the bid through broadcast sponsorship of the Boat Race and the European Rugby Cup, 140 banners across central London, perimeter board advertising at sporting events, Getty Gallery sponsorship, press competitions.
• Encouraged participation in sport through the EDF Energy Weekend Workout in conjunction with ITV London.
• 3,400 of its staff signed up as "Olympic Ambassadors"
• Provided the London 2012 Countdown Clock "Powered by EDF Energy" in Trafalgar Square
• Promoted the bid to its customers through customer communications materials and the London 2012 logo on its envelopes.

The Way to a Man’s Heart? – Football

The Company, which only started to use the EDF Energy name across its 5 million customers in May 2006, used its sponsorship of ITV’s coverage of the FIFA World Cup in June 2006 as a way of increasing its brand recognition.

In August 2006 EDF Energy agreed a three-year deal with the Rugby Football Union and Premier Rugby Ltd to sponsor the Anglo-Welsh Cup – a period when public support for new nuclear reactors will be critical to whether or not they are built. The competition has, therefore changed its name from the Powergen Cup to the EDF Energy Cup.

Rivaz was clear that the sponsorship was to “help us build on the brand awareness” following on from the Company’s sponsorship of the ITV World Cup coverage. Sounding rather like someone building a fifth column he said the deal would help EDF build a connection with almost 2,000 amateur rugby clubs which are at the heart of their communities – a grass roots dimension which is a vital part of developing a relationship with its customers. A strategy the Company clearly believes has worked in France. EDF Group has contributed to the development of French Rugby from grassroots to the professional level, for more than three decades, and is one of the sponsors of the 2007 Rugby World Cup in France.

JD Power's survey of more than 2,500 people, however despite its support for sport, ranked EDF Energy as the gas and electricity supplier with the lowest customer satisfaction score.

People

• Vincent de Rivaz CEO
• Simone Rossi Chief Financial Officer
• Janet Hogben Chief People Officer
• Peter Hofman Chief Information Officer
• Paul Spence Director of Strategy and Corporate Affairs
• Andy Spurr Managing Director – Nuclear Generation
• Humphrey Cadoux-Hudson Managing Director – Nuclear New Build
• Martin Lawrence Managing Director – Energy Sourcing and Customer Supply

• Andrew Brown Former Director Corporate Communications
• Kaa Holmes currently Head of Media Relations at EDF Energy.
• Will Hutton Chief Executive of The Work Foundation and Chair of EDF Energy's Stakeholder Advisory Panel
• Richard Mayson, Former Director of Planning and External Affairs for Nuclear New Build, EDF Energy

• Martin Lawrence, EDF Energy, Former Managing Director, Energy Sourcing and Customer Supply
• Nigel Knee, Former Head of Nuclear Policy and Nuclear New Build, EDF Energy. Was previously part of British Energy’s strategy and business development team, focusing on the opportunity for new nuclear build.
• Bobby Dean - Account Executive from PPS Group who was seconded to Communications Team at EDF Energy for four months in July 2011 – October 2011 (4 months) to assist in the co-ordination and delivery of the Hinkley Point C Consultation Report to the Infrastructure Planning Commission.

Affiliations

• NIA Programme Management Board

Contact details, Resources, Notes

NuclearSpin Resources

• EDF
• EDF Energy and Schools
• Juliette Jowitt, Nuclear reactor reprieve puts UK energy plans in doubt, Monday 21 May 2012

Contact

• Website: