E.ON

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

This article is part of the Climate project of Spinwatch.

Background

E.ON is an international energy company, headquartered in Germany, with interests in Europe, Russia and the US.

It operates nuclear power stations in Germany and Sweden.

E.ON UK is the second largest electricity generator in the UK, and a leading energy supplier with around 8 million electricity and gas customer accounts. Through its retail business, E.ON's Energy Solutions, it supplies energy to homes as well as small-medium-enterprises and industrial customers across the country.

E.ON UK operates 10 coal, gas and oil-fired power stations which generate around 10% of the UK's electricity. It also operates up to 20 operational wind farms, an extensive biomass co-firing programme and one of the UK’s largest dedicated biomass power stations. It is building the world’s largest offshore wind farm, the London Array in the Thames Estuary. It also has 13 large-scale Combined Heat and Power plants across the UK.

E.ON and nuclear in Germany

Two of E.ON’s nuclear power stations were withdrawn from service for commercial reasons several years ago: Wuergassen closed in 1994 and Stade in November 2003.

Two more E.ON’s nuclear power stations in Germany were closed down in March 2011 following the Fukushima accident in Japan – Unterweser and Isar-1.

That leaves E.ON with operational responsibility for four nuclear reactors, which according to the German nuclear phase-out must be withdrawn from service at the latest by December 31st of the year indicated: Grafenrheinfeld (2015), Brokdorf (2021), Grohnde (2021), Isar 2 (2022).

E.ON owns 100% of Unterweser, Isar-1 and Grafenrfeinfeld, and wns 80% of Brockdorf (Vattenfall owns 20%) ; 83.3% of Grohnde (Stadtwerke Bielefeld owns 16.7%) and 75% of Isar-2 (25% owned by Stadtwerke München).

In addition E.ON has equity in the following nuclear plants: Kruemmel 50% (shutdown); Brunsbuettel 33.3% (shutdown); Gundremmingen B& C 25% (closing 2012 and 2012); Emsland 12.5% (closing 2022).

E.ON and Nuclear in Sweden

E.ON operates and has a majority stake (54.5%) in OKG which has three reactors at Oskarshamn. 29.6% of the Ringhals nuclear power plant which has four reactors, and 8.5% of the Forsmark nuclear plant which has three reactors.

E.ON and Nuclear in Finland

In June 2007, E.ON joined a consortium of 70 industrial and energy companies to establish a joint venture company – Fennovoima Oy – to construct a new nuclear power plant in Finland. In January 2009, Fennovoima submitted its application to the government for a decision-in-principle, which was granted in May 2010. In October 2011 the company chose a site on the Hanhikivi peninsula on the coast of Bothnian Bay. E.ON is the lead member of the consortium with a 34% share. The Hanhikivi 1 plant would be an EPR or Toshiba's version of the Advanced Boiling Water Reactor (ABWR). Work had been expected to start in 2012, but has now been delayed two years to 2014. (16)

E.ON and nuclear in the UK

E.ON is considering major investment in new nuclear power stations in the UK. In its submission to the Stern Review of the economics of Climate Change, dated December 2005, the company stated: 'Nuclear power: we are carrying out preliminary work on evaluating this as an investment option in the UK.' It continued: 'In the UK, there has been little or no progress in the development of a regulatory framework that makes investment in nuclear power a real option for the market to consider. We will work with Government in moving this agenda forward'

It added: 'Assuming that a nuclear design and site licensing and planning regime exists which minimises plant procurement costs, new nuclear construction can be broadly competitive and could become the preferred technology with a modest cost of carbon.'

So, in common with other energy companies, E.ON is repositioning nuclear as a green form of power.

‘Environmentally Friendly’ Nuclear Power

E.ON says nuclear power is “not only economical and reliable” but also “completely CO2-free”. It promotes nuclear as “part of a broad mix of energies which is essential in order to guarantee a secure supply of power”.

Its says: “We are convinced that nuclear energy can be used responsibly now and in the future. Along with conventional power plants, it plays a decisive role in supplying energy more safely and affordably… It is environmentally friendly and economical, and has enormous potential for further development.”

So, in common with other energy companies, E.ON is repositioning nuclear as a green form of power.

But alongside E.ON’s concern for the environment, it is applying to build the first coal-fired power-station in the UK for 20 years.

E.ON’s Teaching Packs for Schools

E.ON is engaged in “a major new programme” to produce and promote teaching packs for schools, tied into the national curriculum for 14- to 16-year-olds. One activity encourages children to debate the motion: ‘Our class believes that nuclear is the right choice to meet the UK’s energy needs in the 21st century.’ Teachers can download an ‘activity card’ to help them plan a lesson on the nuclear power debate. While the teaching pack website provides links to Greenpeace and coverage of the Chernobyl disaster, it also points students towards the nuclear industry’s lobbying body, the World Nuclear Association.

E.ON and the FA Cup - Great Brand Awareness

In Agust 2006, E.ON became the sponsor of Britain's "FA Cup" for the next four years. In addition, the company became the sponsor of the FA Women’s Cup, the FA Youth Cup as well as the FA Schools Football Development Partner.

Speaking at the launch, E.ON UK Director of Brand Strategy and Retail Communications, Helen Merrick said, “We’re delighted to be able to launch our sponsorship of The FA Cup today. The FA Cup is recognised and respected throughout the world and we are extremely proud to associate our brand with this famous competition".

On its website, E.ON explains how: "the sponsorship of The FA Cup is a major coup for the business and builds on our long standing heritage in sports involvement across the UK" which "provides E.ON with a very powerful vehicle to raise the awareness of a relatively new brand in the UK. The sponsorship will ensure our name is broadcast to millions of people in stadiums and living rooms across the UK each season".

EU Threatens Fine Over Break-in

E.ON is facing a fine of hundreds of millions of Euros after a sealed room was allegedly entered overnight during a two-day raid by European Union anti-cartel investigators, according to the Financial Times.

The FT reported that the case is part of an inquiry into anti-competitive abuses in the energy sector. Neelie Kroes, EU competition commissioner, reportedly wrote to the company saying she believes it “intentionally or at least negligently” broke an official seal fixed on the door of an office targeted by her investigators in May.

E.ON dictating government guidelines on Kingsnorth

In April 2009 leaked emails revealed that UKBCSE member E.ON was dictating government guidelines on the need for Carbon Capture and Storage (CCS) on the proposed new coal plant at Kingsnorth, Kent.

The emails show a civil servant from the Department of Business writing to E.ON asking whether they should include a condition that CCS would be in place. E.ON responded that the secretary of state "has no right to withhold approval for conventional plant" and the civil servant (Gary Mohammed) agreed immediately that he would not include CCS as a condition.

E.ON collaborating with police to stop Climate demonstrations

In April 2009 a request by the Liberal Democrats led to release of information on the relationship between E.ON, the police and the Department of Business, Enterprise and Regulatory Reform (BERR) over the Climate Camp demonstrations at Kingsnorth power station.

It was revealed that police intelligence and BERR strategies on climate protesters, including their names and whereabouts were passed to E.ON. This led to claims that policing was partisan, colluding with energy companies to quash protest.

At the same time E.ON were accused of exaggerating claims in the media about the potential threat posed by climate protests. They claimed that 300,000 homes could be affected if the demo entered the power station, when in fact operations had already been stopped by E.ON and power was available from the rest of the grid. BERR and government also attempted to coordinate their media strategies at this time.

E.ON hires private security firm Vericola

Different from corporate espionage between two private firms, cases of corporate espionage against the public are being uncovered. Arguably the very industries whose environmental and social impacts are being challenged are delegating their dirty work to private security firms. Responding to The Guardian after being exposed for employing the private security company Vericola, who was allegedly infiltrating campaign groups,

E.ON said it had hired Vericola and another security firm, Global Open, on an "ad hoc" basis as its executives wanted to know when environmentalists were going to demonstrate at or invade its power stations and other premises, as they had done in the past. The E.ON spokesman said it asked Vericola only for publicly available information and if Todd and her colleagues had obtained private information, they had done so "under their own steam". SRG and Scottish Power did not comment.

Shortly before The Guardian released the story, Indymedia published a full account of the Vericola exposure. Indymedia published the full company details, the process by which activists gathered evidence about the infiltration and photos of Rebecca Todd. The groups which had been targeted were included, as were the email addresses she and her agents used so that campaigning groups can assess whether they had been infiltrated, and to what level.

PR and lobbying

• Lexington Communications - lists E.On UK as a public affairs client up to Feb 2012
• PPS Group- lists E.ON Rampion (windpower) as a public affairs client up to Feb 2012
• Fishburn Hedges worked for E.ON in 2005.

Who runs E.ON UK?

E.ON UK's website provides a list of its senior executives:

• Dr. Wulf H. Bernotat, chairman - previously worked for Shell
• Paul Golby, chief executive - also a non executive director of AEA Technology (which was formed from the commercial arm of the United Kingdom Atomic Energy Authority) and a fellow of the Institution of Electrical Engineers.
• Graham Bartlett, chief financial officer - previously worked for Transco, British Gas, Cable & Wireless, BT and Kentucky Fried Chicken.
• Nick Horler, managing director - spent 12 years in the oil industry
• Tony Cocker, managing director of Energy Wholesale - previously worked for Bass plc and for the LEK Partnership.
• Bob Taylor, managing director of Distribution (Central Networks) - worked in the energy industry since 1985
• Jarri Sandström, human resources director - formerly worked for Vickers Marine Division and Nestle.
• Erhard Schipporeit - on Eon AG's Board
• Burckhard Bergmann - on Eon AG's Board, previous nuclear industry experience
• Fiona Stark, company secretary - lawyer

Resources

For further information, see relevant SourceWatch page E.ON