EDF Energy

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Background

EDF was formed in 2003 when SEEBoard, London Energy and SWEB were merged.

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 generates between 6% and 12% of the UK's energy (figures vary on their webpage) from coal, gas, nuclear and wind. "Its EBITDA in 2007 was €15.2 billion. The net income (Group share) was €5.6 billion (+10.6%). R&D budget in 2007 amounted to €375 million." [1]

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 donate to regional and local green initiatives and is a member of the UK Business Council for Sustainable Energy.

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.[2]

As of 2011-2012 EDF's external lobbying firms are the PPS Group, which includes a number of other energy comp amongs its clients, and MHP Communications. [3]

Subsidiary of World's Largest Nuclear Operator

EDF Energy is one of the largest energy companies in the UK, employing over 12,000 people. It is one of over 70 subsidiaries of the EDF Group, which has over 40 million customers worldwide, [4] and is the world’s largest nuclear operator. [5]

The UK is probably the most important market for EDF outside of France. In 2004 net income from the UK was 306 million euros, compared with 1,818 million euros in France. [6] It is the largest electricity supplier for London, the south-east and the south-west of England and supplies energy to around 5.1 million customers. 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. [7]

It owns what used to be London Electricity, Eastern Electricity, and South East Electricity (Seeboard Energy). 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 generating plant include:- 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. Proposed Norfolk Offshore, wind farm, (100WM) as well as a similarly sized proposal off the coast of Redcar. The Company also operates two small onshore windfarms in North-east England.

EDF Wants New UK Reactors by 2017

CEO Vincent de Rivaz said in London on 30th October 2006 that EDF Energy is moving from being "investors in waiting" to "investors in action" for new nuclear power in the UK. De Rivaz told the Nuclear Energy Finance Forum that EDF has set up a UK nuclear project team which aims to show the government it "can rely on us to deliver safe, reliable and economical new nuclear in the UK".

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

If a stable licensing regime were to be put in place by the Nuclear Installations Inspectorate (NII) in early 2007, pre-licensing, justification and environmental assessment could be completed in just three years, followed by final licensing and consultation in another two years. Rivaz said “our aim would be the first concrete being poured in 2012, with an operating ceremony 54 months later". [8]

Rivaz says he hopes to be in a position to put in a pre-licensing application in early 2007. [9] EDF will make its application public shortly after the NII publishes guidelines on the licensing process in January. [10]

EDF Wants Public Inquiries Emasculated

Rivaz says the Company is not looking for public subsidies - "just a framework which will allow us to invest in low-carbon generation and that includes nuclear". [11] 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) [12]

The submission says EDF has identified a number of issues, which should be addressed in order 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 wants public inquiries to be restricted to consideration of local issues, and it wants the Government’s White Paper, expected in March 2007, to set out a clear timetable for implementation of the policy framework so that new reactors can 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. [13]

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, [14] although some in the industry said it did not go far enough. [15]

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 is former Sun editor David Yelland, provides PR advice to BNFL, which controls British Nuclear Group, manager of the Sellafield site.

More recently Weber Shandwick has been working for Nexia Solutions – the wholly owned subsidiary of BNFL which provides technology services and solutions across the full nuclear fuel cycle primarily in the UK, but with an increasing overseas market, and is expected to be the foundation of a new National Nuclear Laboratory. [16]

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 Energy 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”. [17]

The partnership will soon roll out combined heat and power units across London; all new social housing developments will soon have to be nearly 60% more efficient than they are now. [18]

Ken Livingstone has called on the government to abandon plans for new nuclear power stations [19] 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, 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”. [20] 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. [21]

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. [22]

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. [23]

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. The Company has said it wants to help ensure that London 2012 will be the “most environmentally friendly and sustainable games ever seen”.

  • It provided £1m of sponsorship to London 2012
  • EDF Energy branded over 2,000 vans and 20 of its buildings with the London 2012 logo
  • The Company ran a £1m 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.
  • Currently encouraging 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. [24]

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. [25]

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. [26]

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. [27]

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. [28]

Funding and finances

People

  • Vincent de Rivaz CEO
  • Andrew Brown Director Corporate Communications
  • Will Hutton Chief Executive of The Work Foundation and Chair of EDF Energy's Stakeholder Advisory Panel
  • Richard Mayson, Director of Planning and External Affairs for Nuclear New Build, EDF Energy
  • Paul Spence, Director of Strategy and Regulation, EDF Energy
  • Martin Lawrence, EDF Energy, Managing Director, Energy Sourcing and Customer Supply
  • 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. [29]

Affiliations

Contact details, Resources, Notes

Contact

  • Website:

Resources


Notes

  1. ↑ EDF, "EDF Who Owns Us", EDF Homepage. accessed 17/02/09
  2. ↑ EDF, "EDF Energy and Sustainability Performance Report 2007", EDF Homepage. accessed 17/02/09
  3. ↑ APPC Register Entry for 1 Dec 2011 to 29 Feb 2012
  4. ↑ EDF International Presence EDF Group website (accessed November, 2006).
  5. ↑ Terry Macalister, “Nuclear Sector Calls for New Agency”, Guardian, 9 October, 2006.
  6. ↑ EDF at a Glance, EDF Annual Report 2004.
  7. ↑ About Us EDF Energy Website (accessed November, 2006).
  8. ↑ Pearl Marshall, “UK's climate, energy policies encourage EDF investment”, Nucleonics Week, Vol. 47, No. 44, 2 November, 2006.
  9. ↑ Speech by Vincent de Rivaz to the Westminster Energy Forum, “Can we Make Nuclear Energy a Reality in the UK?” 16 November, 2006.
  10. ↑ Richard Orange, “EDF Plans to Lead Britain into New Nuclear Age”, The Business, 22 November, 2006.
  11. ↑ Mark Milner, “No Subsidies for Nuclear says Energy Minister”, Guardian, 11 October, 2006.
  12. ↑ EDF Energy Response to the DTI Consultation on the Policy Framework for New Nuclear Build, October, 2006.
  13. ↑ Pearl Marshall, “UK's climate, energy policies encourage EDF investment”, Nucleonics Week, Vol. 47, No. 44, 2 November, 2006.
  14. ↑ Terry Macalister, “The Powerful Business of Promoting a Nuclear Future”, The Guardian, 11 July, 2006.
  15. ↑ Terry Macalister and Patrick Wintour, “Nuclear chiefs say Plans do not go Far Enough”, The Guardian, 12 July, 2006.
  16. ↑ Nexia Solutions Press Release, “Nexia Solutions Welcomes Announcement of UK National Nuclear Laboratory”, 24 October, 2006.
  17. ↑ EDF Energy Press Release, “Mayor Announces EDF Energy as Partner to Develop Climate Change Initiatives for London”, 6 March, 2006.
  18. ↑ John Vidal, “Plane Speaking”, The Guardian, 1 November, 2006.
  19. ↑ Ken Livingstone, “Why Nuclear Power is out of the Question”, The Guardian, 19 April, 2006.
  20. ↑ Ken Livingstone, Letter to the Guardian, 18 March, 2006.
  21. ↑ John Henley, “Guardian Diary”, The Guardian, 21 March, 2006.
  22. ↑ Climate Balance, EDF Energy Website (accessed November, 2006).
  23. ↑ Miles Brignall, “EDF offers Customers Change to Join Carbon Offset Set”, The Guardian, 16 October, 2006.
  24. ↑ EDF Energy Press Release, “London Wins Bid to Host 2012 Olympic and Paralympic Games”, 6 July, 2005.
  25. ↑ EDF Energy Press Release, “New Look for Power Firm”, 19 May, 2006.
  26. ↑ Rugby Football Union Press Release, “EDF Energy to Sponsor UK’s Premier Cup Competition”, 1 August, 2006.
  27. ↑ Rugby World Cup 2007 website (accessed November, 2006).
  28. ↑ “Customer Satisfaction Drops as Fuel Prices Rise”, The Guardian, 3 November, 2006.
  29. ↑ Bobby Dean, LinkedIn, accessed 19 May 2012
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