EDF Energy

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

EDF Energy is one of the largest energy companies in the UK. It is a wholly owned subsidiary of the mainly French state-owned EDF Group.

EDF Energy was an official partner and the official electricity supplier for the London Olympic Games 2012 and the Paralympics.

Subsidiary of world's largest nuclear operator

EDF Energy is one of over 70 subsidiaries of the EDF Group, which when it took control of 80 per cent of the UK nuclear generator British Energy (BE) in 2009, became the world’s largest nuclear operator. EDF operates 58 nuclear reactors in France, eight in the UK and five in the US.

The UK is probably the most important market for EDF outside of France. In 2011 sales in the UK were 8.6 billion euros, compared with 37.2 billion euros in France. EDF generates between 6 and 12 per cent of the UK's energy (figures vary on its webpage) from coal, gas, nuclear and wind. 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.

EDF also owns what used to be 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.

EDF’s coal, gas and nuclear generating plants, wind farms, and combined heat and power (CHP) plant 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 wind farms in north-east England.
• a new 1,300MW Combined Cycle Gas Turbine (CCGT) power station at its West Burton site, in Nottinghamshire.

EDF wants new UK nuclear reactors by 2017

Free fast-track nuclear power plants

As part of its submission to the UK government's 2006 energy review, EDF offered to build a new fleet of French designed nuclear power stations in Britain - at no cost to the taxpayer. The catch was that EDF wanted a system to guarantee the price of its electricity - and to fast track the planning process for any new plants. Pierre Gadonneix, the chairman and EDF Group CEO, said the company was "very willing" to play a role to make nuclear acceptable to public opinion.

Later the same year, in October, EDF Energy's chief executive Vincent de Rivaz proclaimed 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 needed to have confidence in the government, said de Rivaz. 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, he 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. Rivaz 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 to ensure energy security.

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 22 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.

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 Office for Nuclear Regulation (ONR) and Environment Agency said 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.

EDF wanted public inquiries emasculated

As early as October 2006 Rivaz had claimed 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 that 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.

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 it 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".

EDF's nuclear land-grab

In mid-2008 it emerged that EDF had been quietly buying up land next nuclear power stations, putting itself in strong position if the next generation of nuclear power stations received the go-ahead. The Financial Times reported that EDF had bought parcels of land next to Hinkley B in Somerset and Wylfa on Anglesey.

Ironically, some of the land near Hinkley was the site of a proposed wind farm. Renewable energy company Your Energy had been trying to get planning permission for nine turbines on the West Hinkley site since 2002, but faced what campaigners describe as 'continuous objections' from British Energy.

NNB Generation Company

When EDF and Centrica bought British Energy in 2009 they set up NNB Generation Company (NNB GenCo) to build and operate new nuclear power stations in the UK. Centrica owns a 20 per stake in both companies.

Hinkley Point C

In July 2010 NNB GenCo started a formal pre-application process for the authorisation of the Hinkley Point C nuclear power station. 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 played a key role in pushing for a new generation of nuclear power stations in the UK, through submissions for the Energy White Paper and UK Energy Review 2007 and a number of select committee reports, and briefings to ministers.

More recently it has appointed lobbying firms such as Pagefield and PPS Group to help it win the public over and smooth the regulatory path for its proposed new nuclear reactors at Sizewell C and Hinkley Point C. For more information see the Powerbase page EDF: Lobbying

Secondments

In February 2013, NuclearSpin.org revealed that EDF Energy had seconded two staff to the Office for Nuclear Regulation (ONR) at the Health and Safety Executive. One was interim programme manager for the ONR's programme at the Sellafield plant in Cumbria. The other was a technical assistant on the Decommissioning Fuel and Waste Programme.

Decentralised energy for London or greenwash trap?

EDF claims to be committed to sustainability and donates to regional and local green initiatives.

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 its environmental credentials, EDF Energy invites 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 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 five 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 was critical to whether or not they would be built. The competition 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 grassroots 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 was 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 in 2006.

EDF's sponsorship of the Anglo-Welsh Cup in Rugby ended in 2009.

Who runs EDF Energy?

Executive officers

• Vincent de Rivaz Chief Executive Officer
• 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, previously Chief Financial Officer
• 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
• Mr Stuart Crooks Chief Technology Officer, Nuclear Generation, EDF. Member of the ad-hoc UK government's Nuclear Research and Development Advisory Board

Non-Executive Directors

• Daniel Camus (Chairman)
• Yann Laroche
• Didier Calvez
• Gerard Menjon
• Thibaut Brac de la Perriere former Company Secretary (Resigned 02/04/2009)

Former staff

• 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
• Nuclear Development Forum - both Vincent de Rivaz and Humphrey Cadoux-­‐Hudson attended the NDF's May 2012 meeting.
• Nuclear Research and Development Advisory Board -ad-hoc UK government led group set up in 2012
• Institute for Public Policy Research (IPPR) - EDF commissioned research by IPPR published in June 2012 which claimed that 'UK investment in new nuclear could boost the UK economy by £5 billion a year, create new export markets and generate many thousands of jobs'.
• UK Business Council for Sustainable Energy
• Science Media Centre - EDF was listed as a funder in 2012

Resources, Notes

NuclearSpin resources

• EDF
• EDF Energy and Schools

External resources

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

Website

• Website:http://www.edfenergy.com/