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British Energy becomes part of EDF Group - 5 Jan 2009

On 5 January 2009, British Energy became part of the EDF Group.  This update explains what this is deal means for business customers of British Energy and EDF Energy, and how we are approaching integrating the two companies.

We believe this integration is excellent news for all UK major business customers, and particularly for large energy users.  This merger creates a strong company in the UK which will play a key role in ensuring the country has secure, affordable and clean energy supplies.

Answering our energy challenges
As many existing power stations come to the end of their lives over the next ten years, significant investment in power generation in the UK is urgently required to ensure there will be enough supply to keep the lights on.  It is important that the type of generation technologies that are invested in also help the UK meet its carbon reduction targets and provide affordable energy for homes and businesses.

We believe that meeting this challenge can only be achieved through investment in a diverse generation mix which must include nuclear as well as gas, clean coal and renewables.  A greater focus on energy efficiency is also required.

EDF’s purchase of British Energy will pave the way for the largest ever direct investment by a single company into the UK power sector.  This will help secure affordable energy supplies for the country and create significant employment opportunities.

The integration in practice
British Energy and EDF Energy have significant energy supply operations providing solutions to businesses and the public sector. Rather than overlap, these operations complement each other well. British Energy customers generally have a small number of sites at which they use energy very intensively whereas EDF Energy customers typically use lower amounts of energy over a greater number of sites. Both British Energy and EDF Energy have a good track record in delivering excellent service to these different customers.

As we integrate the two operations, we will look to retain the best aspects of British Energy and EDF Energy to benefit our customers and we will seek to offer a wider range of products and services. During this process we will continue to focus on providing excellent service to all of our customers.

Questions
If you are an EDF Energy or British Energy customer and have any concerns or issues you would like to discuss, please do not hesitate to contact your normal account management team.

VAT rate changes December 2008

The VAT rate from 1 December 2008 will be applied to electricity and gas bills for businesses. EDF Energy customers do not need to take any action as EDF Energy will apply the new rate automatically. You can download our fact sheet on what this means for electricity and gas bills.

How to cut energy costs

With energy costs reaching record highs, many more businesses are looking for ways to save money on their energy bills. This new fact sheet contains our top five tips about how buy, pay for and use energy in ways that will reduce your costs.

This forms part of a series of fact sheets available on our website that explain a number of issues affecting energy buying for businesses.

Its all part of our drive to help you with energy. Cutting costs is easier when you know how.

Rising energy prices explained - July 2008

Many businesses face higher electricity and gas prices as the wholesale cost of these commodities return to near record levels. Those businesses that understand the issues around the changing cost of energy, and then how to adjust their energy purchasing, are better equipped to manage the impact on their budgets.

Rising energy prices explained is a new fact sheet in which we explain the main reasons behind the rising wholesale cost of energy this year, and how this affects the price of electricity and gas for businesses.

This forms part of a series of factsheets available on our website that explain a number of issues affecting energy buying for businesses.

It’s all part of our drive to help you with energy.

Change to gas deemed T&Cs

Our gas deemed Terms and Conditions have been amended, with effect from 18^th June 2008.

The new deemed scheme states the fact that London Energy plc changed its name to EDF Energy Customers plc (“EDF Energy”).  This new deemed scheme replaces the previous scheme, dated 1 November 2003 (see clause 8.1).

The revised Gas Deemed Contract Scheme is available here (under the Terms and conditions tab).  

The Carbon Reduction Commitment

A new Government programme to tackle Climate Change

What is the Carbon Reduction Commitment?

The Government is implementing a new scheme, called the Carbon Reduction Commitment (CRC), to help reduce carbon emissions in a wide range of business and public sector organisations. We’re preparing now for the scheme to start in 2010.

Organisations included in the CRC will be part of a mandatory emissions trading scheme which will limit the overall carbon dioxide emissions caused by energy use from around 5000 large organisations – which contribute almost 10% of the entire UK economy’s emissions.

The scheme will be an important part of the national effort to reduce the UK’s total carbon footprint, and will save at least 1.4 million tonnes of carbon per year by 2020.

Will this affect my organisation?

If your organisation, including any parent company and subsidiaries, spends more than £500,000 a year on electricity, you are likely to be included in the scheme. In general, if you spend less than this, you are likely to be exempt.

What should I do?

If you think you may be included in the scheme, you can get more information on eligibility and the detail of the scheme online at: www.defra.gov.uk/carbonreduction 

We will be providing further information, and consulting affected organisations about the scheme, during 2008. Register your details with us at: crc@edfenergy.com and we’ll keep you up to date with new information and direct you to additional online documentation on the scheme. You’ll also have the chance to share your views on the scheme with us.

In the meantime, read this fact sheet which briefly explains the scheme at a high level. 

What will happen next?

Once the consultation is complete in 2008 we will start the process of identifying those organisations who will be included in the scheme.

Early in 2009 all organisations who have a mandatory half hourly electricity meter in Great Britain or a 70 kVA electricity meter in Northern Ireland will be contacted and asked to provide further information on their electricity use during 2008.

Climate change levy update: Government changes to CCL rates 2008/9

More about CCL changes

If you have any questions about this change, please contact HM Revenue & Customs:
0845 010 9000
www.hmrc.gov.uk

Addressing climate change

CCL is a government-imposed levy designed to encourage businesses to be more energy efficient to reduce greenhouse gas emissions. It was introduced in 2001 to ensure the UK’s environmental targets are met following the 1997 Kyoto Protocol. Electricity and gas suppliers collect the levy on behalf of the government.

CCL rates rise

On the 1st April each year, the CCL rates are increased in line with inflation to further encourage UK businesses to reduce their carbon emissions. The new rates for the 2008-2009 charging period are listed in the table above.

Do I need to do anything?

No. We will update the CCL rates on our systems and pass through the correct charges on your invoices.

What are my options for avoiding ccl charges?

1 - Apply for CCL Exemption.

You may be eligible for CCL Exemption. We must receive a CCL Exemption Certificate for each of your qualifying sites at least 14 calendar days before your earliest supply start date. Please note that HM Revenue & Customs will not allow us to backdate any CCL exemptions.

2 - Purchase a levy-exempt electricity contract.

If you have signed a renewable electricity contract you will be exempt from the levy for the energy consumed on the sites covered by the contract. Find out more under the “Your Energy” section; click on Energy from Sustainable Sources.

Helping you cut your carbon emissions

Save energy cuts your organisation’s carbon emissions and its energy costs too. We provide a range of services to help you save energy:

Energy Efficiency Toolkit – a free, multi-media resource pack crammed with relevant advice and customisable materials to enable anyone to achieve energy savings in the workplace

Energy View – our online energy monitoring tool