Stakeholder Dialogue

Effective communication is essential if we are to understand the needs of our stakeholders.

We engage in two-way communication with our stakeholders in a number of ways, which are described below, and the results of the engagement have a practical influence on our business activities.

During 2005, we will undertake an extensive series of stakeholder engagement exercises, engaging on a more structured basis with a wider range of stakeholders than we have in the past.

Employees

At a company level, we undertake an annual staff satisfaction survey, and pulse surveys are conducted quarterly. Action plans are developed as a result of these surveys to address key issues raised.

2005 sees the launch of Face2Face, a new initiative designed to enhance two-way communication with staff. Face2Face provides managers with key messages to relay to staff and offers staff the chance to give feedback to management.

Customers

As a customer-facing business, it is vital that we listen to our customers on an ongoing basis. We undertake extensive qualitative an quantitative research into what our existing and potential customers want from us. During 2004 this included:

• Customer satisfaction surveys – quantitative research investigating customer commitment
• Live customer forums – to gather views on subjects such as internet billing, Nectar and wind farms.
• Back to the Floor – senior managers went back to the floor to better understand customer needs.
• Loss analysis – we examine why past customers left us and what we could do differently.
• energywatch complaints – we analyse the customer complaints handled by energywatch (the consumer watchdog).

Our neighbours

We endeavour to engage proactively with our neighbours on an ongoing basis and when planning infrastructure developments. An example of this policy is our involvement with the Swan Sanctuary at Egham in Surrey. We have involved ourselves with the sanctuary because our overhead lines can potentially fatally harm swans flying into them. Working with the Swan Sanctuary, we have set up a system to record all reports of swans striking lines. These reports will help identify flight patterns and remedial action, which could include replacing the most-at-risk sections with underground cables. We have also donated a new veterinary ambulance to the Swan Sanctuary.

NGOs and civil society

NGOs, pressure groups and charities represent an important stakeholder group for EDF Energy as increasingly they come to act as the mouthpiece for civil society. Our engagement with these groups has, to date, been variable. Some organisations, such as energywatch, which acts as a voice for energy consumers, are an additional interface between EDF Energy and our customers. Other organisations, such as pressure groups, we engage with on an ad hoc basis. We will communicate with both groups in a structured way in 2005 through our stakeholder engagement programme.

Government

During 2004 we met with both MPs and civil servants.

We talked mainly with MPs on whose constituents our operations impact, as well as those interested in energy policy issues. We aim to:

• ensure that MPs have a good understanding of EDF Energy
• inform them how we can help them help their constituents, for example following power cuts

Our dialogue with MPs also helps us in the development of new products and services.

We also engage with civil servants, principally those within DTI and Defra.

Regulators

Our business is regulated by Ofgem, which is a key stakeholder as the Regulator's decisions can fundamentally affect the way we do business. We therefore maintain close relationships with Ofgem.

During 2004 our most significant engagement with Ofgem came through the DPCR negotiations, which concluded at the end of the year.