edf energy company review 2014

Professional Studies B (2014/15)

Review of EDF Energy’s Practices and Policies

Team Number: B26

Date/Time of Submission: 30 January 2015 – 4.30pm

Team Leader (email address): [email protected]

Group Peer Assessment Table

Name of team member Average Peer Mark(A score out of 100)

1 Yi Shane Low 1002 Henry Pik Yap Sia 1003 Jared Christian Chun Liong Chau 1004 Selwyn Tze Ying Cham 100

University of Bristol Review of EDF Energy’s Practices and Policies

Glossary

A&IMS Assurance and Integrity Management System

BAME Black, Asian and Minority Ethnic

BITC Business in the community

CAP Corrective Action Programme

CR Corporate Responsibility

CSR Corporate Social Responsibility

DoT Department of Transport

EA Environmental Agency

EMS Environmental Management System

EnPC Energy Performance Contract

EPA Environmental Protection Act 1990

EPR European Pressurised Water Reactor

EY Ernst & Young LLP

FIP Fleet Implementation Plan

FIT Feed In Tariff

HH Half Hourly

HLW High Level radioactive Waste

HS&E Health, Safety and Environment

HSE Health and Safety Executive

HSWA Health and Safety at Work Act 1974

ILW Intermediate Level radioactive Waste

INPO Institute of Nuclear Power Operation

LLW Low Level radioactive Waste

NCSI National Customer Satisfaction Index

NDA Nuclear Decommissioning Authority

NHH Non-Half Hourly

Ofgem Office of Gas and Electricity Markets

ONR Office for Nuclear Regulation

REPPIR Radiation Emergency Preparedness and Public Information Regulation

RO Renewables Obligation

SAWM Sustainable Approach to Waste Management

SEPA Scottish Environment Protection Agency

SME Small-to-Medium Enterprise

SQEP Suitably Qualified and Experienced Persons

STEM Science, Technology, Engineering and Maths

TRI Total Recorded Incident

UNGC United Nations Global Compact

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Table of Contents

1.0. Executive Summary 6

2.0. Company Profile 7

2.1. Background 7

2.2. What does EDF Energy do? 7

2.3. EDF Energy Mix 7

3.0. Sustainable Development 8

3.1. Sustainable Development at EDF Energy 8

3.2. EDF Energy’s Policies 8

3.2.1. Social Policies 8

3.2.2. Environmental Policies 9

3.2.3. Economic Policies 10

3.3. Sustainability Report 11

3.3.1. Social Performance 11

3.3.2. Environmental Performance 12

3.3.3. Economic Performance 12

3.4. Performance Trend 12

3.4.1. Social 12

3.4.2. Environmental 15

3.4.3. Economic 17

3.5. Benchmark Against Similar Companies 18

3.5.1. Ofgem Market Assessment 18

3.5.2. Other Market Assessments 19

3.6. Case Study: Nuclear New Build 20

3.7. Improvement 21

3.8. Conclusion 21

4.0. Legal Responsibilities 22

4.1. Introduction 22

4.2. EDF’s legal aspects 22

4.2.1. Health, Safety & Environment & Management System 22

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4.2.2. Employment 24

4.2.3. Contracts 24

4.2.4. Product Liabilities 28

4.2.5. Professional Liabilities 28

4.2.6. Nuclear Waste Policy 29

4.2.7. Competition Law 29

4.3. Case Study: United Biscuits takes on Energy Performance Contract 29

4.4. Conclusion 30

5.0. Health, Safety and Environment Management 31

5.1. Policy Statements 32

5.2. Assurance and Integrity Management System 32

5.3. Management System Principles 32

5.4. Management Values 32

5.5. Error Reporting System – Corrective Action Programme 33

5.6. Continuous Improvement 34

5.7. Case Study 35

5.8. Training Programmes 36

5.8.1. Training Infrastructures 37

5.8.2. Programmes Accreditation 37

5.9. Radioactive Waste Management 38

5.9.1. Nuclear Waste Policy 39

5.9.2. Environmental Management System 39

5.9.3. EDF Energy’s Radioactive Waste Management 40

5.10. Management Review 41

5.10.1. Health and Safety Management Review 42

5.10.2. Environmental Management Review 42

5.11. Recommendations 42

5.12. Conclusion 42

6.0. Professional and Ethical Conduct 43

6.1. Company Policies 43

6.2. Treating Employees 44

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6.3. Corporate Social Responsibility 44

6.3.1. The Pod 45

6.3.2. Science Festivals 46

6.3.3. EDF Energy Trust 46

6.3.4. Marie Curie Cancer Care 47

6.3.5. Helping Hands 47

6.3.6. Business in the community 47

6.4. Improvements 48

6.5. Conclusion 48

7.0. Conclusion 49

8.0. References 50

9.0. Appendix 55

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1.0. Executive SummaryThe aim of this study is to perform a critical review of EDF Energy’s practices and policies.

The company is examined in terms of its sustainable development, legal compliance, health, safety & environment management and corporate social responsibility.

From the findings it can be seen that EDF Energy recognises the importance of developing sustainably. To achieve sustainable development, EDF Energy adopts a ‘divide and conquer’ approach, they launched their ‘Better Energy Ambitions’ mission, whereby the challenges in sustainable development are addressed categorically (zero harm, customers, environment, finance & ethics, nuclear and people). It is found that EDF Energy is taking the right steps towards sustainable development by implementing the right practices. For example, EDF Energy simplifies their tariffs to help their customers assess their options easily. In this study, assessment of the company’s sustainable development is done with regards to the Triple Bottom Line.

In order to continue EDF Energy’s operations and activities, ongoing compliance with the relevant laws, policies and regulations in place are essential. These include the Health and Safety at Work Act (HSWA) 1974, ISO 14001 and the Radiation Emergency Preparedness and Public Information Regulation (REPPIR). By doing so, EDF Energy will be able to display their commitment to the public, their employees, statutory bodies as well as the environment and also remain legally certified. EDF Energy offers a variety of customer contracts, fixed and flexible depending on the customer, for domestic, Small-to-Medium Enterprises (SMEs) and Large Business customers. To safeguard the organisation and its personnel, strict policies and terms have been instated so to clearly define what EDF Energy is liable and not liable for. A case study based on United Biscuits food manufacturer displays EDF Energy’s incentives and green option contract to help the client save cost and achieve its energy efficiency targets.

Health and Safety of its personnel and those affected by business operations represent one of the main priorities of EDF Energy. Assurance and Integrity Management System (A&IMS) is implemented to establish guidelines and standards for health, safety and environmental management systems for all EDF Energy’s business units. Moreover, EDF Energy introduced the Corrective Action Programme (CAP) to optimise the error reporting and correcting system to ensure a safe working environment. To increase the competency of its personnel, training programmes are provided at Barnwood. On the other hand, Total Recorded Incidents (TRI) involving personnel health and safety decreased by 47% for the year 2013 when compared to the previous three years. Conclusively, the management systems implemented by EDF Energy has performed up to the standards specified in its policies.

EDF Energy has codes for professional and ethical behaviour in compliance with the 10 principles of United Nations Global Compact to ensure they can meet the aims set. Treating the employees fairly and with respect is key to ensuring business runs efficiently. Giving back to the community is an essential part of EDF Energy’s plan to excel in their business. EDF Energy developed educational programmes such as the Pod and partnered with other organisations to hold science festivals to encourage children all over UK to have a sustainable lifestyle. This is to prepare the next generation to face sustainability challenges in the future. Trust funds have also been established to help with poverty issues in the UK.

A survey was conducted to get some public opinion on EDF Energy, the results of the survey are discussed in the appendix.

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2.0. Company Profile

Table 1: EDF Group Facts & Figures

2.1. Background EDF Energy was formed in 2003 while its parent company, EDF, was founded in 1946. They mainly deal in electricity generation, trading, transmission, distribution, supply and other energy services [3].

2.2. What does EDF Energy do?EDF Energy produces one-fifth of the UK’s electricity making it the biggest supplier by volume which serves approximately 5.5 million domestic and business customers in the UK.

EDF Energy operates two separate businesses, electricity generation business and customer supply business [1].

2.3. EDF Energy Mix

Figure 1: The EDF energy mix [71]

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Facts & Figures

Company Type SubsidiaryIndustry EnergyFounded 2003 [3]

Headquarters London, UKCEO Vincent de RivazProducts Electricity & GasNo. of Employees 15, 000 ++[2]

Parent Company Électricité de France

Figure 2: Each petal of the logo represents a different aspect of the Better Energy Ambition, the aspects are (starting from the

top petal going clockwise): zero harm, customers, environment, finance & ethics, nuclear and people.[72]


3.0. Sustainable Development

3.1. Sustainable Development at EDF EnergyTo achieve sustainable development, EDF Energy created a mission entitled ‘Better Energy Ambitions’.[4] The logo below embodies the different aspects of this mission.

The Sustainable Development Committee was established by the EDF Energy Holdings Limited Board to assist the Board in fulfilling its sustainability leadership and environmental responsibilities. The committee reviews the practices adopted in respect of any sustainability risks arising from the company’s operations.[5]

3.2. EDF Energy’s PoliciesEDF Energy emphasises on transparency in their policies. They believe by being open they can convince people they are generating sustainable energy while protecting the interests of their customers and the environment.

3.2.1. Social PoliciesIn March 2012, EDF Energy CEO Vincent de Rivaz in an open letter pledged to customers that the company will strive to deliver fair values, better service and simplified tariffs.[6]

Fair Value:-

EDF energy bills contains a breakdown of the costs each year. These costs are updated annually following publication of EDF Energy’s latest full year financial results, so customers can see where

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their money has gone towards. [6] The figure below shows how EDF customers’ energy bills are constructed:-

Figure 3: Breakdown of EDF energy bills [73]

Better Service:-

Besides a customer service hotline, EDF Energy also provides online support through live webchat.[4] EDF Energy also has an online system which allows customers to update details and pay bills online.[6] Other than that, EDF Energy has a smartphone app which allows customers to send a photo of their meter reading.[8]

EDF Energy wants to make sure that their advisers are clear to their customers. To achieve that, they randomly select calls to listen to, if they think an adviser did not explain good enough they will give the adviser extra training.[6]

EDF Energy also provides Personalised Support Service for customers who need special services. Their services include helping customers find the cheapest tariff, help customers with debt and also provide additional help to people who require it, for example provide communications in Braille or audio.[9]

Simplified Tariffs:-

EDF Energy simplified their tariffs to make it easier for customers to choose. Besides that, EDF bills are designed with customers with the aim of making it clearer and simpler. [6] On the company website, there is also an elaborate guide on interpreting EDF energy bills. [10]

3.2.2. Environmental PoliciesEDF Energy is the UK’s largest supplier of low-carbon electricity. [5] The company ambition is ‘to power society without costing the Earth’. [4]

The company has set out the following guidelines to protect the environment [5]:-

Employees must comply with all relevant environmental regulations, standards and other codes of practice.

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EDF Energy operates and maintains their assets within the bounds of permits, consents, licenses and the approved plant designs and safety margins in order to protect the environment.

EDF Energy identifies significant environmental impacts and takes action to manage these and to prevent pollution or environmental damage which may occur as a result of their business operations.

The company engages stakeholders with an interest in environmental issues to ensure their concerns and expectations are fully considered, and they will place environmental considerations at the heart of robust and transparent decision-making processes.

Reporting and Engagement:-

Each Business Unit and Corporate Steering Function provides reliable and complete environmental information to meet reporting requirements, to support legislative and regulatory compliances and to assist management with decision making.[5]

EDF Energy maintains a programme of self-assessment to evaluate performance against the expectations of the Assurance & Integrity Management System framework, against external standards and against legislative and regulatory obligations. Corrective actions are agreed with the Business Units and Corporate Steering Functions and followed up through to completion.[5]

3.2.3. Economic Policies The tariffs offered by EDF Energy are ‘Blue+Price Promise’, ‘Blue+Fixed Price’, ‘Standard Variable’ and ‘Blue+Fixed Prepay’. Details regarding these tariffs are neatly displayed on the company website, so customers can easily compare the different tariffs and make more informed choices.[11]

Tariff Price Comparison:-

An arbitrary postcode was entered into EDF Energy’s price comparison engine. It was found that tariffs with fixed energy prices are cheaper than the tariff with variable energy price.

Table 2: Price (per month) comparison of different tariffs for an arbitrary postcode

£87.06 £91.92 £99.47

This strategy adopted by EDF Energy makes financial sense. During the summer when energy is cheaper due to low demand, the company will have a surplus in cash as the customers are paying a price that is higher than the energy price. This surplus in cash allows them to not only cover losses in the winter months when customers are paying prices lower than the actual energy price, but it also allows the company to invest for higher returns to generate additional profit.

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Figure 4: Electricity and gas consumption during winter and summer periods [74]

EDF Energy Promises:-

EDF Energy has a £0 termination fee policy across all tariffs.[11] The ‘Blue Price Promise’ has a unique promise. If the customer could save at least £1 a

week elsewhere at typical use, EDF Energy will notify them about it.[12]

3.3. Sustainability Report EDF Energy reports publicly on their vision and Better Energy Ambitions. Robust data is obtained through a data control management role within EDF Energy’s Business Performance team. EDF Energy also employs external assurance providers to carry out annual checks on their data. [13] The key findings of the 2013 EDF Energy Annual Sustainability Report are summarised below.

3.3.1. Social PerformanceBetter Service:-

In August 2013, EDF Energy became the first supplier in Britain to offer fixed prices with no exit fees to small business customers whose contracts are automatically renewed.

EDF Energy launched two new innovative tariffs for Small and Medium Enterprises on top of their existing ‘Fixed for Business’ tariff, they are the ‘New Start’ and ‘Freedom for Business’ tariffs. [14]

EDF Energy also developed a product renewal service, allowing customers to go online and switch tariffs when their existing deal ends. [14]

Fairer Value:-

In 2013 EDF Energy launched their innovative Blue products. At the end of 2013 there were 2.1 million Blue product account holders. EDF Energy was the cheapest major dual fuel supplier for 49 out of 52 weeks in 2013, at

typical consumption. [14]

Simplified Tariffs:-

EDF Energy reduced the number of residential tariffs offered to just three and applied the same standing charge across all their tariffs to help their customers to compare them.

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EDF Energy also back proposals for energy suppliers to offer a single unit price for gas and electricity so customers can compare energy prices between different suppliers easily. [14]

Accolades:-

EDF Energy came second in the 2013 uSwitch Customer Satisfaction Report and they were also placed first in the same awards for “Value for Money”, “Best Deal” and “Transfer Process”.

EDF Energy was also named as ‘2013 Energy Provider of the Year’ at the Consumer Moneyfacts Awards 2014. [14]

3.3.2. Environmental PerformanceCarbon Intensity Reduction:-

In 2013 the CO2 intensity of EDF Energy’s electricity generation was 256g/kWh, this brings them closer to their goal of no more than 250g/kWh by 2020.

In 2013, EDF Energy’s nuclear power stations generated 60.5 TWh of low-carbon electricity, their best ever performance.

In total, EDF Energy’s nuclear fleet helped avoid 43 million tonnes of carbon emissions. EDF Energy’s Teeside windfarm which began operations in July 2013 generates enough

low-carbon electricity to power up to 40,000 households. The Fallago Rig windfarm which started generating in March 2013 has an annual output equivalent to the electricity consumption of around 90,000 homes.

In 2013, EDF Energy’s thermal plants produced 23.1TWh of electricity. [14]

3.3.3. Economic Performance In 2013, EDF Energy’s operating profit was £863m, this includes the impact of a one–off

charge of £190m relating to the value of EDF Energy’s gas generating assets. This means EDF Energy’s underlying profitability was 12.9% lower in 2013.

In 2013 EDF Energy paid £300m in interest payments on loans, £114m in corporation tax, and £170m to repair the deficit in their employee pension scheme. [14]

3.4. Performance Trend In this segment EDF Energy’s social, environmental and economic progress is examined in detail.

3.4.1. SocialRefer to next page.

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Table 3: EDF Energy’s social performance trend [14]

Figure 5: Variation in number of customer product accounts

2010 2011 2012 2013200000

210000

220000

230000

240000

250000

260000

270000

Electricity Priority Service Customers (No. of Customers)

Figure 6: Variation in number of electricity priority service customers

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2010 2011 2012 20135.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

6

6.1

Customer Product Accounts (Millions of Accounts)


2010 2011 2012 20130

20000

40000

60000

80000

100000

120000

140000

160000

Gas Priority Service Customers (No. of Customers)

Figure 7: Variation in number of gas priority service customers

Figure 8: EDF Energy complaints performance trend [15]

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3.4.2. EnvironmentalTable 4: EDF Energy’s environmental performance trend [14]

2010 2011 2012 20130

5

10

15

20

25

Total Carbon Footprint (In Million Tonnes)

Figure 9 - Variation of EDF Energy’s total carbon footprint

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2010 2011 2012 20130

5000

10000

15000

20000

25000

30000

35000

40000

45000

Nitrogen Oxides Emissions (Tonnes)

Figure 10: Variation of EDF Energy’s nitrogen oxides emissions

2010 2011 2012 20130

2000

4000

6000

8000

10000

12000

14000

16000

18000

Sulphur Dioxide Emissions (Tonnes)

Figure 11: Variation of EDF Energy’s sulphur dioxide emissions

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3.4.3. Economic

Table 5: EDF Energy’s financial performance trend [14]

2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Sales (Millions of Pounds)

Figure 12: EDF Energy’s sales trend

2010 2011 2012 20130

500

1000

1500

2000

2500

Earnings Before Interest, Tax, Depreciation and Amor-tisation (EBITDA) (Millions of Pounds)

Figure 13: EDF Energy’s EBITDA trend

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3.5. Benchmark Against Similar CompaniesThe UK energy market assessment is done by Office of Gas and Electricity Markets (Ofgem), an independent National Regulatory Authority.[16]

3.5.1. Ofgem Market Assessment

Figure 14: UK domestic electricity supply market share [17]

Figure 15: UK domestic gas supply market share [17]

From Figures 14 and 15, it can be seen that Centrica dominates both the domestic electricity and gas supply market in the UK with roughly 25% and 40% market share respectively. EDF Energy forms one of the big six as it has a significant portion of the market share in both electricity and gas supply, roughly 14% and 9% respectively.

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Figure 16: Complaint trends of the big six energy providers [17]

From Figure 16, it is evident that EDF Energy receives significantly more complaints than their competitors, especially during the period between 2011 and 2012. However it can be seen that in 2013 EDF Energy has made progress in complaint reduction.

3.5.2. Other Market Assessments In 2013, EDF Energy was ranked joint first in the National Customer Satisfaction Index

(NCSI).

Table 6: National Customer Satisfaction Index scores of the big six energy suppliers [14]

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In 2013 EDF Energy was in joint first position on their Trust Survey amongst the other major suppliers.

Table 7: Trust Survey scores of the big six energy suppliers [14]

3.6. Case Study: Nuclear New BuildBy the early 2020’s many of UK’s power stations will be decommissioned. To provide a secure energy supply for the future, the UK needs a diverse and balanced energy mix. EDF Energy is making an effort in generating sustainable energy for the future by planning to build two new nuclear power stations at Hinkley Point C and Sizewell C.[18]

Both new nuclear power stations will feature two state-of-the-art European Pressurised Water Reactors (EPRs) with capacity over 40% greater than some of EDF Energy's existing nuclear plants. EPRs have enhanced safety features with multiple safety systems. They are also more efficient and produce less long-lived radioactive waste compared with existing water reactors and use less uranium.[19]

Figure 17: Model of Hinkley Point C[75]

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On the 8th of October 2014 the European Commission approved agreements between EDF Group and the UK government to build Hinkley Point C[19], whereas Sizewell C is still at the community consultation stage at the moment.[20]

Figure 18: Site for Sizewell C construction [76]

3.7. ImprovementFrom the findings of Section 3.5, it can be seen that EDF Energy lags behind their competitors in terms of number of complaints. Because EDF Energy has breached complaint handling rules and failed to handle customer complaints efficiently between May 2011 and January 2012, Ofgem has slapped a £3 million fine on the company.[21]

As a response to this company embarrassment, EDF Energy appointed Ernst & Young LLP (EY) to carry out an independent review of EDF Energy’s processes for resolving and closing complaints. In their investigation, the findings of EY were:-

EDF Energy failed to direct consumers with reopened complaints to EDF Energy’s published complaints handling procedures.

EDF Energy considered reopened complaints as resolved complaints before the complaint has been demonstrably resolved.

There are times when EDF Energy attempted to rush the dealing and closure of complaints, leading to unintended consequences.

EDF Energy correspondents sometimes failed to take a promised action. There are instances where EDF Energy had opened a complaint but this had not been

communicated to the customer.[22]

EDF Energy should make the reduction of the number of complaints a priority. The staff training process needs to be reviewed and improved to ensure they can handle complaints appropriately. Besides that, EDF Energy can ensure their staff are competent in handling complaints by serving heavy penalties to those who violate EDF Energy complaint handling policies.

3.8. ConclusionEDF Energy’s commitment to sustainable development can be seen in its various approaches to fulfill their Better Energy Ambitions. Their continually improving social, environmental and financial performance statistics indicates that the company has much potential for growth, and could well be the main energy provider in the UK in the future. The already existing plans for new nuclear build are more indications to the bright future EDF Energy has.

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4.0. Legal Responsibilities4.1. IntroductionEvery company must abide by a set of rules and regulations set out by the governing body of the country that they operate in. In the case of EDF Group, whereby the company carries out international operations, it must also abide by international laws as well as those set out by the respective countries that they operate in.

There are many types of legal elements that need to be adhered to and will be discussed in greater detail in the following section of this report. The first aspect that will be looked at is the legal responsibility surrounding Health, Safety and Environment (HS&E) that also includes the management system employed, followed by employment, contracts, and finally product as well as professional liabilities.

The final part of this section will introduce a case study of EDF Energy which displays some, if not more, of the legal aspects aforementioned. A conclusion to the legal aspects of EDF Energy will also be made.

4.2. EDF’s legal aspects

4.2.1. Health, Safety & Environment & Management SystemEDF Energy places HS&E as their highest priority by ensuring their safety standards are strictly adhered to and their emergency plans are thoroughly assessed. Stated in their policy standards for H&S, EDF Energy complies fully with HS&E laws and regulations which include the Health and Safety at Work Act (HSWA) 1974, Health and Safety (Consultation with Employees) Regulations 1996, Safety Representatives and Safety Committees Regulations 1977 as well as their Company-wide Health, Safety and Environment Assurance and Integrity Management System (A&IMS) [27]. Management systems will be discussed further in Section 5.0. EDF Energy also explains their three main obligations they have [23]:

1. Moral – Moral duty to protect their members of staff as well as the public in the surrounding area.

2. Legal – Operations are carried out in accordance to the Nuclear Installations Act 1965, Ionising Radiation Regulations 1999 and the Radiation Emergency Preparedness and Public Information Regulation (REPPIR) to ensure safe operations and well-prepared emergency plan arrangements.

3. Commercial – To ensure effective business continuity by responding rapidly to emergencies or accidents that might occur.

EDF Energy bases its policy statements around HSWA 1974 as shown in the table below.

Table 8: EDF Group Health, Safety and Environment Policies [5] [27] [38] [39]

Policy Statements Legal Compliance1 Clarification that every personnel of the EDF Energy has a duty to

their own health and safety and those affected by the activities of its business activities, i.e. the communities they serve in.

HSWA 1974 Section 3(1)

2 Adopt best practicable means to manage significant environmental impacts and prevent pollution or environmental damage that may occur as a result of the companies’ business operations.

HSWA 1974 Section 5(1) / EPA 1990 – Safe Article

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and Substance3 Arrange appropriate health and safety training to employees for

them to meet the required standards of performance.HSWA 1974 Section 2(1)(a) – Safe Person

4 Make considerations and assessments of any health, safety and environmental risks resulting from EDF Energy’s activities as to ensure that no job shall be undertaken where those uncontrollable risks are present.

HSWA 1974 Section 2(2)(d) – Safe Place of Work, access and egress

5 Adopt learning and continuous improvement culture as to prevent incidents and accidents from reoccurring in the business activities through structured risk management approach and appropriate management systems.

HSWA 1974 Section 2(2)(b) – Safe Working Environment/Welfare

In any emergency, EDF Energy has set out four high priorities to protect. Firstly, the public followed by site personnel. After that, the environment and lastly the power plant [23]. EDF Energy handles and maintains a clean and healthy environment by implementing an Environmental Management System (EMS) which has been certified to the ISO 14001 standard [24]. ISO 14001 sets out a management framework aimed at minimising the environmental impacts of companies or organisations through waste reduction and recycling materials when possible [25]. The ISO 14001 framework is shown in Figure 19.

The EMS will also be built around the Environmental Policy stated in the document produced by EDF Energy

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Figure 19: ISO 14001 Cycle [25]


titled ‘EDF Energy Nuclear Generation: Our journey towards zero harm’ [4]. A policy statement, Figure 20, is also made, displaying the commitment of those who work for or with EDF Energy in reducing the production of waste materials to a minimum [27].

4.2.2. EmploymentEDF Energy has laid out its People Policy document which in essence covers the policy standards that its employees are required to follow. Priority will still be given first and foremost to the health and safety standards set for employees. EDF Energy’s People Policy touches on various principles such as employee expectations, career development of existing and new employees, structured trainings to enhance employee skills to support their role performances and proper procedure for employees leaving the company. The terms and conditions associated with employment are in the form of Collective Agreements or Personal Contracts [28].

4.2.3. ContractsEDF Energy offers a wide range of contracts for household purposes as well as business premises. Contracts offered range from fixed price contracts to flexible electricity contracts tailored to meet the specific customer needs. In recent years, EDF Energy has introduced four contracts for home customers as shown below.

Table 9: Household Tariffs [11]

Contract Type

Why this tariff?

Price Promise - If you could

save more than £1 a week

elsewhere at typical use,

we'll email you

Fixed energy prices until at least January 2017 with no nasty exit fees

Variable prices - can go up or down.

Competitive rates for any meter type and no end date or contract

renewals

It’s easier to budget and plan effectively with

fixed prices until at least 31 October 2016

Fixed Price YesFixed until 31

May 2016

YesFixed until 31 January 2017

No YesFixed until 31 October 2016

Termination Fee

£0 £0 £0 £0

Payment Type Direct DebitCash/Cheque

Direct DebitCash/Cheque

Direct DebitCash/Cheque Prepayment

Prepayment

Online Account Management

Yes Yes Yes Yes

14-day Cooling Off Period

Yes Yes Yes Yes

For businesses, EDF Energy has divided them into two categories. The first is Small-to-Medium Enterprises (SMEs) and the other is Large Businesses, i.e. businesses that have more than 50 site locations. For each category, different contract schemes are available. Considering SMEs first, three viable contractual options are available as shown in Table 10. The three different contracts offered to Large Businesses are also shown in Table 11. If for either category the customer is unsatisfied

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with the type and content of services being provided, they will also have the option of Flexible Electricity Contracts which opens the doors for more customisation and sophistication. With the help of EDF Energy, the contract will be able to be built to meet the specific needs of the customer. Figure 21 shows the framework for Flexible Electricity Contracts.

Table 10: Tariffs for new SME business customers. (Note: Features may be updated) [32]

Contract Type

Fixed for Business New Start Freedom for Business

Features -Fixed Price-Protection against price changes –Cheaper Prices

-Renewable energy option (electricity only)

-Automatically renews onto Easy -Fix at the end of the

fixed term

-Competitive prices-Low Fixed Daily

Charge-Short fixed term-Contracts agreed

from the 22nd January 2015] will

automatically renew onto Easy Fix at the end of the fixed term

-Choose another product at any time

-Variable price (with 30 days’ notice of any

changes)-No fixed end date-No notice to leave

Ideal for Price security Start-ups and movers Flexibility and clarityFuel Type Electricity and/or Gas Electricity only Electricity and/or GasFixed or Variable Prices

Fixed Fixed Variable

Early Exit Fees

Yes None None

Discounts 7% discount for paying monthly by Direct Debit

7% discount for paying monthly by

Direct Debit

7% discount for paying monthly by

Direct DebitPayment Options

Direct Debit and cash / cheque

Monthly by Direct Debit only

Direct Debit and cash / cheque

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Table 11: Tariffs for Large Businesses [33]

Contract Type Fixed + Peace of Mind

Fixed + Protect Fixed + Reflective

Cost of Electricity

Fixed duration, unlimited electricity

usage

FixedDuration, with a 20%

limit on how much your actual energy use can

vary from your forecast

Fixedduration, with a 10% limit on how much your actual energy use can vary from

your forecastCost of Delivery

Fixed Fixed Variable

Cost of Renewable

Energy Incentives

FixedRenewables

Obligation (RO) and Feed In Tariff (FIT) costs for the duration

of your contract

ProtectedRO and FIT costs for the duration of your contract, unless they rise more than 40% above our forecast

Variableover the course of your

contract as service providers confirm their

costs to us

Cost of our Service

Fixed for the duration of your contract



Meter Type Non-Half Hourly (NHH) & Half Hourly (HH)

NHH & HH HH

Contract Duration

Up to 36 Months Up to 36 Months Contracts ending before October 2016

Consumption Volume

0-50 GWhUp to £5 million per

annum

0-50 GWhUp to £5 million per

annum

10-50 GWhBetween £1 million and £5 million per annum

Electricity Reform

Electricity Market Reform Fixed

Electricity Market Reform with 40%

tolerance

Electricity Market Reform Pass-through

Blue for Businesses

With Blue, electricity backed by low-

carbon generation is exactly the same

price as our standard electricity.

With Blue, electricity backed by low-carbon

generation is exactly the same price as our

standard electricity.

With Blue, electricity backed by low-carbon

generation is exactly the same price as our standard

electricity.

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If an organisation under the Large Business category spends more than £1m a year on energy, it has the option of applying for an Energy Performance Contract (EnPC). EnPC allows EDF Energy to audit the organisations’ sites and suggest energy-efficient opportunities to help the organisation reach its energy efficiency targets [35]. A big incentive that EDF Energy offers Large Business customers is risk transfer. Such risks include performance, delivery and most importantly health and safety risks. As a result, client protection throughout the entire duration of the contract is guaranteed [36]. Risk transfer is completed according to the process shown in Figure 22.

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Figure 21: Flexible Electricity Contract Framework in just 5 key steps [34]


For any of the contracts mentioned above, EDF Energy ensures that each of these contractual schemes is in accordance to Schedule 6 of the Electricity Act 1989 and Schedule 2B of the Gas Act 1986.

4.2.4. Product LiabilitiesEDF Energy states clearly in their full terms and conditions the limit to their liability on customers. EDF Energy also has a legal duty to their customers under Part 1 of the Consumer Protection Act 1987 and failure to comply with this will result in product liability claims against EDF Energy. Strict liability conditions are imposed by EDF Energy in order to protect the organisation legally. For instance, EDF Energy will not be liable for any loss the consumer experiences if and only if EDF Energy has been found to be negligent of their responsibilities or exhibit fraudulent behaviour. As a method of risk mitigation recommended by EDF Energy, consumers are encouraged to acquire protection insurance against any non-liable losses that might occur [29].

4.2.5. Professional LiabilitiesEDF Energy provides various job opportunities for different types of professions such as engineering, sales marketing and administration. As a result of such professional diversity, it is fundamental that EDF Energy take into account the issue of professional liabilities that may be imposed on them should an accident or an unforeseen event occur. The notion of how a ‘reasonable professional under the circumstances’ may be applied [30]. Based on this test, it is possible to make a reasonable judgment to decide whether or not the professional individual has in fact breached the

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Figure 22: Effective Risk Systems, Risk Transfer and Culture [31]


signed contract, duty of care according to Tort law or their statutory duty, i.e. failure to perform to the required or expected standard [31].

4.2.6. Nuclear Waste PolicyEDF Energy nuclear waste policies are in compliance to the ISO 14001 standard, Environmental policy, UK law and UK Government policy. Ongoing certification under ISO 14001 requires that EDF Energy continue to demonstrate their current commitment through improvements and actions that will enhance its environmental performance. Amongst the practical actions taken by EDF Energy is as shown in Figure 23 [26].

4.2.7. Competition LawEDF Energy also complies fully with the Competition Act 1998 as well as Ofgem regulation. This is to ensure market competition amongst other companies of the same sector.

4.3. Case Study: United Biscuits takes on Energy Performance Contract (EnPC)United Biscuits, a British multinational food manufacturer, went into a partnership with EDF Energy in 2013 in order to achieve its energy efficiency targets. EDF Energy suggested 40 energy-saving opportunities which in practice could save up to £2.5m a year after auditing 7 of United Biscuit’s UK sites. United Biscuits produced a plan to install suggested measures and agreed upon a Performance Contract with EDF Energy. The plan is broken into 2 phases with the second phase still in progress. Phase 1 of the scheme has already been helping United Biscuits save up to £397,000 per annum [37].

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U se o f re p ro c e sse d u ra n iu m in o u r e x isti n g fl e e t o f p o w e r s ta ti o n s

R e d u c ti o n o f g e n e ra te d ra d io a c ti v e w a ste a n d sp e n t fu e l

E ff e c ti v e u se o f th e w a ste m a n a g e m e n t h ie ra rc h y

Figure 23: Practical actions taken by EDF Energy to meet its commitments towards improving environmental performance [26]

Figure 24: Comment by Paul Martin on the impact EDF Energy has had on United Biscuits so far [37]


4.4. ConclusionAs a conclusion, it can be seen that EDF Energy enforces strict policies but only so to protect the interest of the organisation as well as its personnel as handling electricity generation and supply through nuclear plants imposes much more regulations that need to be observed. This is especially true for those rules and regulations related to the health and safety of the public and site personnel.

EDF Energy has ensured that health and safety will be the highest priority and have demonstrated this through the training provided, public information, comprehensive emergency plans as well as abiding closely to the standards set out in regulations as well as company policies and A&IMS. With the systems, plans and laws in place, it is likely that EDF Energy will continue to maintain its zero harm policy in the coming future.

EDF Energy offers a large medium of contract options for its customers, be it household consumers, SME businesses or larger businesses. If fixed contracts aren’t suitable, then the customer still has the option of a flexible contract in which the customer requirements are met as best as possible. EDF Energy goes on to provide sustainable and energy efficient suggestions to Large Businesses with zero risk to the client to help them reach their energy efficiency goals through an EnPC. The result of this is improvement in the organisations’ energy efficiency as well as cost reduction every year.

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5.0. Health, Safety and Environment Management

Figure 25: Zero harm [40].

As mentioned in Section 4.2.1, EDF Energy prioritises the Health and Safety of its personnel and those around them by putting in place management systems to achieve ‘Zero Harm’ ambition, which revolves around 3 aspects as listed in Figure 25. The 5 key principles in Figure 26, as stated in the company health and safety policies, are practiced in all EDF Energy’s businesses [40].

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Figure 26: 5 Health and safety key principles [27]

5.1. Policy StatementsEDF Energy has written policies in accordance to the Health and Safety at Work Act 1974 (HSWA 1974) Section 3(3), to elaborate on its commitments towards the Health, Safety and Environment (HS&E). These policies include the Company Policy: Health & Safety, Company Policy: Environment and Health, Safety, Environment & Quality Policy respectively. Refer Section 4.2.1 for policy statements [27] [38] [41].

5.2. Assurance and Integrity Management System Assurance and Integrity Management System (A&IMS) represents a fundamental part of EDF Energy’s strategies to achieve its ‘Zero Harm’ target. This system sets the management framework, which in turn implements guidelines and standards for health, safety and environmental management systems of all EDF Energy business units. Furthermore, the framework also includes accessing and controlling risk resulted from business operations [41].

5.3. Management System PrinciplesIn agreement with Safe Working Environment commitment, EDF Energy adopts a multi-layer model to monitor performance of its internal standards and external regulations of its management systems through a set of requirements as shown in Figure 27 [26].

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5 Key Principles

Every job will be done safely, no matter how

important or urgent it is

Personal responsibility for own health &

safety and for those around us

Putting people to work carries a specific

responsibility and accountability for safety and

health

Identify, report and deal with hazards to help create

a harm free workplace

Learning from near miss to reduce the

frequency of future harm


Figure 27: EDF Energy management principles [26].

5.4. Management ValuesEDF Energy established three management values of high standards to govern the health, safety and environmental standards of its businesses: work management, equipment reliability and nuclear professionalism (refer Figure 28).

EDF Energy’s work management adopts Institute of Nuclear Power Operations' (INPO) Work Management Process Description AP-913 to maximise risk management, the efficiency of station staff and effectiveness material resources use [42] [26].

Equipment reliability focuses on eliminating risks associated with equipment which might compromise nuclear safety. Institute of Nuclear Power Operations' (INPO) Equipment Reliability Process Description AP-913 builds the foundation for the reliable equipment system, which includes the Corrective Action Programme (refer Section 5.5) [43] [26].

Nuclear professionalism aims to maximise nuclear safety margins by investigating and eliminating organisational weakness and decreasing the frequency of human errors through training programmes and implementation of human error prevention tools [26].

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Management accountability

Peer checking and self-assessment

Review and audit by company experts

Independent internal oversight from its Safety and Regulation Division

External oversight from its Nuclear Safety Committees


Figure 28: EDF plant operational management [26].

5.5. Error Reporting System – Corrective Action ProgrammeCorrective Action Programme (CAP) is based on the EDF Energy’s key principles of Health and Safety Executive (HSE) tool to identify, evaluate and control problems arising from its nuclear power operations to ensure a safe working environment. The programme reinforces prompt reporting and response, called Condition Report using computerised systems and involves various senior personnel to investigate and devise corrective actions for events which may breach nuclear safety. It is designed to protect its plant operations, personnel, nuclear safety, environment, equipment and most importantly, rectify any organisational weaknesses. Conclusively, this programme reinforces prompt reporting behaviour of personnel. Figure 29 visualises the error report system implemented in all EDF Energy’s nuclear power plants based on CAP [26].

5.6. Continuous ImprovementEDF Energy embraces and encourages a continuous improvement culture in its practices. The culture is adopted and implemented together with value option studies of activities to identify issues and emerging trends as well as ensure effective results have been delivered through reviews by

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relevant board committees. For example, in Figure 29, every Health and Safety issue is individually evaluated by the Corrective Action Review Board to make critical judgement on the performance and efficiency of response, which also represents one of the management system principles in Section 5.3 [26].

Figure 29: Error reporting system [26].

5.7. Case StudyThe previous sections explain the structure of robust systems in place at EDF Energy. Figures 30 and 31 show the Health, Safety and Environmental management of EDF Energy’s business units and corporate steering functions. The management involves adaptation of A&IMS framework, continuous improvement through self-assessments and involvement of HSE committees and Nuclear Safety Committees such as the Health and Safety Committee and Sustainable Development Committee.

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Figure 30: EDF Energy's environmental management [27].

36


Figure 31: EDF Energy's environmental management [5].

5.8. Training ProgrammesEDF Energy (refer Section 4.2.1) acknowledges that training is the key to effective management and long health of the organisation. Therefore, training is provided to all their staffs (construction, operation of power stations to transportation and delivery of radioactive waste as well as decommissioning of nuclear power stations) to ensure they are trained, i.e. Suitably Qualified and

37


Experienced Persons (SQEP), to perform their duties in a manner safe to them and those affected by their acts. To demonstrate compliance with Schedule 2 of the Nuclear Site Licences, Licence Condition 10: Training and HSWA Section 2(1)(a), EDF Energy provides training programmes and arrangements for all personnel. [39][44]

5.8.1. Training InfrastructuresA Nuclear Power Academy at Barnwood, Gloucestershire displayed EDF Energy determination to enhance their existing employees’ skills and knowledge. EDF Energy invested £3.5 million to construct the Barnwood Academy and set to train about 2,500 graduates and existing staff annually. This complements the existing training buildings and departments situated at each power stations. [45] Figure 32 lists the types of training that are provided at Barnwood Nuclear Power Academy.

Figure 32: Barnwood Nuclear Power Academy Training Programmes [46].

5.8.2. Programmes AccreditationEDF Energy’s training programmes are subjected to evaluation from EDF Energy Accreditation team, which has the responsibilities to review all of EDF’s eight nuclear power stations. Figure 33 details the accreditation process for training programmes, which are established on three principal guidelines; BEG/SPEC/TRNG/601-602. [26]

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Figure 33: EDF Energy Training Programmes Accreditation Process [26].

5.9. Radioactive Waste ManagementThe HSE, Environmental Agency (EA) and Scottish Environment Protection Agency (SEPA) define radioactive waste management as “to control and account for radioactive waste to protect human health and the environment now, but also to make sure we do not leave unnecessary burdens for future generations” [47].

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5.9.1. Nuclear Waste PolicyOne of EDF Energy’s policy statements (refer Section 4.2.1) is to strive for minimal environmental damage and ensure their protection. To act in accordance with the regulations established by HSE, EA, SEPA, DoT and NDA, EDF Energy rules safety as their overriding priority in its Nuclear Waste Policy with the following objectives [26] (refer Section 4.2.6).

The policy complies with the regulations, i.e. as reasonably practicable minimise radioactive waste production, minimise the need to generate radioactive waste, reuse or recycle materials that contribute to radioactive waste and dispose radioactive waste when no other route could be identified. [47]

5.9.2. Environmental Management System EDF Energy created SAWM and FIP (refer Table 12) to strategically manage all radioactive waste from their nuclear power stations.

Table 12: SAWM and FIP [26]

Management Programmes DescriptionSustainable Approach to Waste Management (SAWM)

1.Enhance company processes and performance through performance indicators2.Develops best available technique to define company specifications for all waste types

Fleet Implementation Plan (FIP)

Other management systems include Corporate Radioactive Waste Management Strategy and Integrated Company Practice for Environmental Compliance and Management. These systems are accredited to ISO 14001 which recognises EDF Energy’s commitment to reduce environmental impact [26].

Waste management practices, which are based on Best Available Technique, are regularly reviewed against company’s environmental framework, summarised in Figure 34. Corrective Action Programme (Section 5.5), Suitably Qualified and Experienced Persons (Section 5.8) concept, self-assessment and benching marking using SAWM and FIP are implemented throughout its environmental management systems, which also practices the continuous improvement philosophy (Section 5.6) [26].

Figure 34: EDF Energy waste management framework [26].

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5.9.3. EDF Energy’s Radioactive Waste ManagementEDF Energy manages waste associated to nuclear power generation according to the regulations (Figure 35) set by Office for Nuclear Regulation (ONR) as described in Figure 36.

Figure 35: Radioactive Waste Management [47].

Figure 36: EDF Energy's waste disposal system [26] [48].

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5.10. Management Review

2011 2012 20130.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

1.78 1.58

0.84

EDF Energy's Incident Records

Year

Total Recordable Incident Cases

(employees and contractors)

Figure 37: EDF Energy’s total recordable incident rate for the year 2011 – 2013 [14].

2011 2012 2013150

250

350

450

550

650

750

161 161 178

608

694

655

LLW and ILW Generated

LLWLinear (LLW)ILWLinear (ILW)

Year

Waste(tonnes)

Figure 38: EDF Energy radioactive waste data for the year 2011 – 2013 [24]

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5.10.1. Health and Safety Management ReviewFrom Figure 37, EDF Energy achieved a 47% decrease in the Total Recorded Incident (TRI) cases in the year 2013 when compared to the average TRI over the three years. This reduction was on track for the aims of ‘Zero Harm’, i.e. 50% reduction in Total Recordable Incident Rate by 2020 [14]. The systems put in place to govern the Health and Safety of its personnel have a positive outcome and matches to the statements of its policies. However, despite having a robust equipment reliability system (Section 5.4), Sizewell B in Suffolk, one of EDF Energy’s nuclear power stations experienced unplanned shutdown in 2008 and again in 2012 due to electrical fault in the nearby precinct [49] [50]. Nevertheless, the systems put in place have enabled prompt actions in those events due to continuous improvement philosophy and Corrective Action Programme.

5.10.2. Environmental Management Review From Figure 38, there was a steady small increasing trend in the total generated Intermediate Level radioactive Waste (ILW) and Low Level radioactive Waste (LLW) over the three years period. This was the result of the efforts to fulfil EDF Energy’s Nuclear Waste Policy as stated in Section 5.9.1. However, the trend will be expected to rise further due to new nuclear power station plans and decommissioning of nuclear power stations such as the undergoing Hinkley Point C Project, Dungeness A and Dungeness B life extension. [51]

ONR’s July 2014 inspection on EDF Energy’s radioactive waste management concluded that SAWM was of ‘high-level management’ standard on radioactive waste and environmental protection measures. Despite that, the report pointed out the certain areas requiring further improvement such as progress reviews and implementing SAWM and radioactive waste management into staff training. [52]

5.11. RecommendationsDespite that, Health and Safety as well as Environmental issues associated with nuclear power generation remains a worrying uncertainty for the public. A similar trend could be interpreted from the informal survey conducted (results tabulated in Appendix A), where 50% of the participants surveyed did not believe the nuclear industry has the sufficient potential to guarantee public’s health and safety. The public has little awareness of intensive management systems which performed up to par as the regulation requires. Hence, it would be beneficial to raise the public awareness of EDF Energy’s Health, Safety and Environmental policies and systems as to gain more favourable response from the public.

The main concern with the general world populous with the nuclear industry is the radioactive waste disposal. EDF Energy provided information for its LLW and ILW management through its websites. However, EDF Energy did not inform in their public domain regarding the management of High Level radioactive Waste (HLW) nor was there a system to overlook the future of HLW. This is due to pending Government decision on a permanent storage for HLW. Consequently, the existing HLW are stored on site. Therefore, it would be beneficial for EDF Energy to devise management of HLW to prepare for future events such as societal collapse or sea level rise.

5.12. ConclusionEDF Energy prioritises safety as stated in their policies and aims for ‘Zero Harm’ target. This ambition is realised through implementation of various management systems, which are robust and effective. Consequently, the management systems have been accredited from internal and external profession bodies for its performances.

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6.0. Professional and Ethical Conduct

6.1. Company PoliciesProfessional ethics is defined as the accepted standards of personal and business behaviours, values and guiding principles [53]. EDF Energy has set policies to meet the mission of delivering the highest standard of integrity, behaviour and business performance. EDF Energy emphasises on 3 key values, Respect, Solidarity, and Responsibility [55].

EDF Energy commits to:

Figure 39: Employers Ethics and business conduct policies [54] [55]

Employees are required to:

Figure 40: Employees ethics and business conduct policies [54] [55]

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Ensure health and safety of those affected by the activity as well as the safety of its installations and works

Protect the environment by managing risk and reducing the impact of the activity

Develop the competence of its employees, recognise and review the quality of their contributions and maintain a constructive communication

Prevent discrimination and harassment of any form in the workplace

Respect the opinions of the employees as well as other organisations without providing support to any particular one.

Fight against fraud and corruption

Listen to stakeholders and provide all information relevant

Act ethically to those around them

Guarantee the right to report concerns faced by employees in confidence

Duties of Employees

Respect individuals

Act with Integrity

Protect company's

asset

Respect Stakeholders

Be a group advocate and ambassador


EDF Group has also committed to follow the ten principles set by the United Nations Global Compact (UNGC) as shown below:

Figure 41: UNGC 10 principles [55]

6.2. Treating EmployeesEDF Energy values a multicultural team. Having people from different background provides different perspectives to allow them to gain a better understanding of their customers [56]. Their efforts with BAME (Black, Asian and Minority Ethnic) network has won the Employee Network Award at the Race for Opportunity Awards 2013 [56].

EDF Energy encourages their employees to participate in volunteering activities. Partnerships with other organisations also provides wide selection of volunteering opportunities for the employees [56].

6.3. Corporate Social Responsibility (CSR) CSR is defined as the responsibility of enterprises for their impacts on society [57]. CSR is becoming increasingly important for enterprises as it brings many benefits in terms of risk management, cost saving, access to capital, customer relationships, human resource management, and innovation capacity [57].

EDF Energy also believes that being a good neighbour is important to a good business. EDF Energy gives back to the community in which they operate by organising activities to promote education and set up trust funds to help the people in need [69].

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Human Rights 1. Businesses should support and respect the protection of internationally proclaimed human rights;

2. Make sure that they are not complicit in human right abuses.

Labour 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

4. The elimination of all forms of forced and compulsory labour

5. The effective abolition of child labour;

6. The elimination of discrimination in respect of employment and occupation.

Environment 7. Businesses should support a precautionary approach to environmental challenges.

8. Undertake initiatives to promote greater environmental responsibility.

9. Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

10. Businesses should work against corruption in all its forms, including extortion and bribery.


In an effort to promote Science, Technology, Engineering and Maths (STEM) in young generations, EDF Energy has collaborated with multiple institutes to develop programmes that would inspire school children to have higher energy awareness and to pursue a career in STEM.

6.3.1. The PodThe Pod is EDF Energy’s award winning sustainable schools programme which aims to inspire the young generation and their families to lead a more sustainable lifestyle, promote STEM, to encourage science and engineering as a career choice, and to help children understand that a low carbon, secure and affordable energy supply is vital for the future [62]. The Pod is also the largest programme of its kind in the UK [62].

The Pod is an interactive website aimed at 4 to 14 year olds for schools to utilise. Teachers, community group leaders and students are able to access the free lesson plans, practical exercises and information, all linked together [62]. The content of the websites are developed by working with key organisations like Eco-Schools England and the British Science Association [62].

Figure 43: Impact of The Pod [63].

6.3.2. Science FestivalsEDF Energy funds science festivals within the UK to promote science and engineering targeted at young students. Edinburgh International Science Festival was founded in 1989 as a charity to encourage people to discover about the world and the principles behind it. It hosts one of Europe’s largest science festival annually. EDF Energy sponsors Generation Science, a

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Business impact

40% recruits consider it to be a positive influence

schools save 10 to 20% on energy bills

generated positive media coverage since launch

Social and environment impact

educates and encourages children on sustainable

behavious

saved 61 megatonnes of CO2

46% of school engaged make considerable savings on waste,

water and carbon emissions

Figure 42: The pod [79]

Figure 44: Science Festival, Edinburgh [77]


part of the education programme to visit schools around Scotland to organise workshops and interactive shows to generate interests in science among the students and make it exciting while easier to understand [64].

Other than the Edinburgh International Science Festival, EDF Energy also has been collaborating with Cheltenham Festivals for 10 years to promote science and engineering to young students in the community. The programme has encouraged a higher percentage of students to engage in science and engineering. In turn, this has also inspired a higher percentage of students to pursue a career in science or engineering. This collaboration has also been awarded the ‘Collaborative Action’ by the Business In The Community (BITC) [14].

The science festivals encourage more than 10,000 children a year alone in the south west area of the UK. 65% of the students involved also said they are more interested in STEM as a career [65].

6.3.3. EDF Energy TrustEDF Energy Trust is a registered charity founded in 2003 to help individuals and families in need. The Trust receives funds from EDF Energy but it is governed by a Board of Trustees independent of the group. The Trust award grants via two Programmes, Individuals and Families Grants Programme, and Organisational Grant Programme [67].

Individuals and Families Grants Programme helps EDF Energy users who are struggling to manage their gas and electrical bills. The trust helps to clear debts owed to EDF Energy and other suppliers or to purchase essential energy efficient household items. The Trust aims to provide vulnerable individuals or families a solution to move forward. Applicants of the trust are also advised to seek money advice to keep them debt free going forward [67].

Organisational Grant Programme awards grants to independent advice services and education for prevention and relief of poverty. Grants awarded focuses on services relating to energy debt awareness and prevention, assisting and promoting energy efficient plans, supporting and resolving energy debt problems [67].

In 2013, the trust made over 2000 awards amounting to 1.6 million pounds and an additional 1 million pound to support customers coming off their price reassurance scheme [14].

6.3.4. Marie Curie Cancer CareIn January 2013, EDF Energy allowed their employees to take part in a vote to appoint a new charity partner and the Marie Curie Cancer Care was chosen. A 3 year partnership was launched in May 2013. EDF Energy are working with the charity to raise funds to provide free care and support to patients suffering from terminal illness. EDF Energy is also helping the charity’s hospices to improve the energy efficiency and raise awareness. This partnership

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Figure 45: Science Festival, Cheltenham [78]

Figure 46: Cancer care [80]


has gone beyond expectations by raising 182,000 pounds in first 10 months of the partnership, enough to support 14 nurses for a year [14].

6.3.5. Helping HandsHelping Hands is a company activity which allows an employee of EDF Energy to participate in volunteering activities. Employees are allowed to spend 2 working days volunteering in the community every year. Volunteering activities can be done individually or as a group to support charities, schools or community organisations to better the society in terms of education, environment and social aspects. Volunteering includes a wide range of activities like litter-picking, redecorating a hostel and creating a peace garden [14].

This kind of exposure allows employees to further help the community. They are also rewarded for their extensive involvement in volunteering. For example, Margaret Wenham was awarded the North East Employee Volunteer of the Year Award in 2014 by BITC for her outstanding contributions to the community. Other than just volunteering, she has also created opportunities by developing volunteering partnerships such as the Trussel Trust and Bridge Young Carers’ Project [68].

6.3.6. Business in the community (BITC)BITC is a business led charity to drive change, develop an integrated approach to running a responsible business, encourage action by publicly recognising those businesses that are bringing about change, and enable business to achieve more through collaboration [58].

BITC developed a self-assessment tool called Corporate Responsibility (CR) index in consultation with world business leaders which helped hundreds of companies improve progress on CSR for more than a decade. This can be used as a benchmark to measure the performance of EDF Energy in terms of its contribution back to the community with other major energy companies such as RWE npower and many more [59].

According to the CR index, EDF Energy has been awarded the platinum big tick award, the highest award, in 2012 and 2013. EDF Energy has also been nominated for the platinum big tick award in 2014 [61]. This shows EDF Energy is one of the world’s leading businesses and contributes largely back to the communities it operates in. Although EDF Energy did not win the award for responsible and sustainable business practice, they were highly commended by the European CSR Award Scheme [60]. EDF Energy has shown that they have contributed back to the community at the highest level several years in a row and it is on track to winning the platinum big tick award again in 2014 [61].

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Figure 47: Impacts of EDF ENERGY 2014 [63]

6.4. ImprovementsScience festivals are a great way to inspire the young generation and prepare them for the challenge of living sustainably. Efforts should be made such that all the schools in the UK will participate in the eco education programme. The programme should also extend to a global level to educate children from all over the world about sustainability especially in developing countries. EDF Energy Trust should extent their help to non EDF Energy customers as well to help the people in need. Helping Hands programme should promote group volunteering activities to improve relationships between the employees which key to moving forward to develop a sustainable business and to provide high quality services.

6.5. ConclusionEDF Energy has shown that it has made many contributions back to the community. They continue to make strides to improve the energy awareness of society by instilling the importance or a sustainable lifestyle into children. At least 50% of school children expressed interest in STEM by the end of the programmes introduced. By promoting STEM as a lucrative career, they have also provided the next generation of scientists and engineers which emphasises on sustainable to ensure the world is able to cope with the limited resources on earth.

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Social Impacts

cultivating next generation of STEM skilled staffreduced cost of energy resulting in 300,000 new residential product accountaddress fuel poverty through EDF Energy Trust FundCreated economic benefits through SMEs in the South West of UKmatch local unemployed people for construction of Hinkley Point C

Business Impacts

47% improvement on recodable incidentswinning a 10 year contract with Network Railincreased public opinion by building visitors centre at nuclear power station


7.0. Conclusion

Generally speaking it can be said that EDF Energy is heading in the right direction in terms of sustainable development. The initiatives of the company to fulfil its Better Energy Ambitions such as offering Personalised Support Service, implementing a £0 termination fee policy et cetera are evidences that EDF Energy takes sustainable development matters seriously. However, a major obstacle in the sustainable development of EDF Energy is the current decline in oil price. The current dip in oil price is causing energy generated via oil and gas to be cheaper than nuclear power.[70] As EDF Energy’s main source of energy is nuclear, this will have a significant impact on them if the oil price decline persists.

EDF Energy in general shows full compliance with all the imposed laws and regulations. Based on the legal case study done by EDF Energy, it can be seen that they are making a positive difference for companies and businesses who take up the Energy Performance Contract. From a legal perspective, EDF Energy has proven to be an exemplary organisation that upholds its commitments and responsibilities. EDF Energy should continue to adhere to the required legislations and policies to maintain a high standard of health and safety, commitment and duties.

Over the decades, Health, Safety and Environment has been gaining more importance. Strict requirements need to be implemented in all industries, particularly the controversial nuclear industry. EDF Energy has developed management systems which embraces the culture of continuous improvement and participation. This is the highlight of the management systems because it contributes to ensuring a safe working environment and environmental protection. The decreasing TRI and controlled radioactive waste production shows that EDF Energy has performed up to expectations of themselves and the regulators.

Employees are the heartbeat of a company and must be respected and treated fairly, and EDF Energy has done that. They have also made an effort to improve the society they work in and have also won corporate responsibility awards consistently. They set an example for other companies to follow in their footsteps. EDF Energy also protects the interests of the countries they operate. An equal or higher amount of effort should be made to maintain their contributions towards the community.

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8.0. References

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http://www.theguardian.com/business/2014/nov/28/crude-facts-why-the-plunging-price-oil-not-all-good-news


9.0 Appendix

Writers Note:

This section contains data of the survey conducted from 10th of December 2014 to 29th of January 2015. The following responses were collected from 46 participants that consisting of UK university students under various disciplines of study (Social Sciences, Engineering, Science, Law and others). The survey forms were distributed via social media.

We acknowledge that the data from the survey are inconclusive and have bias factors, a quarter of the participants are from the United Kingdom (Figure A1), 63% of the participants were studying a degree in engineering (Figure A2) and survey responses are inadequate to represent the general populace. Despite such contradicting factors, our focuses are on interpreting the opinion of the future generation.

The following interpretation of data are based on neutral and non-biased judgements of EDF Energy’s practices.

Data:

Are you a permanent resident of the UK?

Figure A48

What is your field of study?

Figure A49

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Agree Disagree Indecisive

No of votes 18 7 5

1

3

5

7

9

11

13

15

17

19

Do you agree that nuclear is the future of power generation?

Responses from engineering students

Figure A3

63% of the participants are engineering students. One interesting trend noted from the responses of the engineering students were that 40% of the engineering students do not see nuclear power as a viable energy source of the future, despite the fact that engineering students are likely to be more knowledgeable about sustainable development and would think that nuclear power present potential benefits compared to other power generation methods such as oil, natural gas or renewables, we were taken aback by this percentage. This is an indication that EDF Energy which controls 8 nuclear power stations and monopolises much of the UK’s nuclear power generation, is not doing enough to give the public, particularly the future generation, assurance with regards to their health and safety as well as sustainability as indicated in Figure A3.

57


Yes No Not sure

No of votes 8 23 15

2.5

7.5

12.5

17.5

22.5

Do you think nuclear power plants are disaster proof in the UK?

Responses from 46 Participants

Figure A4

The authors of this review are interested to find out whether public opinion on nuclear power reliability was affected by the 2011 Fukushima nuclear meltdown, and hence the question ‘do you think nuclear power plants are disaster proof in the UK?’ was posted in the survey. Looking at Figure A4, it can be seen that 50% of the participants feel that UK nuclear power plants are not disaster proof (despite the fact that UK does not have major natural disasters such as earthquakes to trigger a nuclear meltdown), 17% of the participants think otherwise and the rest are unsure. The general negative perception of the safety of nuclear power stations may well be caused by the recent Fukushima mishap. This highlights the work nuclear power generators such as EDF Energy has to do to convince the public they can manage their nuclear power stations safely.

However, having said that, Globescan, commissioned by BBC News, conducted a survey with 23,231 participants to gather their opinions on building new nuclear reactors in UK. The results were 33% supporting the building of new nuclear power stations in 2005 and 37% supporting in 2011. It is worth noting that even though the latter survey was conducted after the 2011 Fukushima disaster the numbers supporting new nuclear power actually increased. This shows that the sample surveyed does not necessarily represent the whole populace of students.

Richard Black. (2011). Available at: <http://www.bbc.co.uk/news/science-environment-15864806>. [Accessed 29 January 2015]

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