EDF Energy and Morrisons Agree £1 Million Energy Saving Guarantee
New customer-supplier deal brings increased integrated partnership
EDF Energy and Morrisons today announced a new three year customer-supplier agreement which includes a £1 million energy saving guarantee each year for the supermarket chain. The deal comprises an innovative bundled contract, which brings together energy procurement and energy services expertise under one agreement.
The announcement signals a deepening of the relationship between EDF Energy, the largest producer of low-carbon electricity and largest supplier of electricity to businesses in the UK, and Morrisons, the UK’s fourth largest supermarket chain and leader in fresh produce. The agreement also incentivises EDF Energy to achieve energy savings beyond the £1 million energy saving guarantee.
Sid Cox, Director of B2B at EDF Energy, said: “Morrisons has been an energy supply customer of ours since 2004 and we are delighted this innovative contract includes more of our energy saving expertise. Morrisons operates in an intensely competitive sector and an energy strategy that looks further than managing the price of energy is even more essential in the current economic climate.”
“EDF Energy guaranteeing the first £1 million of Morrisons’ energy savings underlines our confidence in delivering energy management projects that make a real difference to our customer’s bottom line. Our energy services team will work hand in hand with the Morrisons Property and Development Department on project delivery with an aim of saving at least £3.5m during 2011 through new energy saving initiatives.”
“As Morrisons’ energy team already has an ongoing energy management programme, this is about more than implementing common sense measures. Our in-house energy services team and our parent group’s ongoing investment in research and development means we have innovative thinking and solutions to bring to Morrisons.”
The integrated partnership will see EDF Energy and Morrisons work together in three strategic areas to help meet the supermarket chain’s energy targets:
• Smart procurement: EDF Energy and Morrisons will work together to ensure the supermarket procures energy intelligently to manage the volatility of the wholesale energy markets.
• Energy saving technology solutions: EDF Energy will provide energy engineering and project delivery expertise to support Morrisons’ efforts to upgrade equipment in existing stores to make them more energy efficient and ensure the design of new stores is carried out with energy efficiency given a high priority.
• Investment in staff energy efficiency awareness: A new staff engagement campaign to save at least £2 million worth of energy by the end of 2011 will be designed in partnership with EDF Energy as part of the agreement.
EDF Energy has developed a robust measurement and reporting scheme to provide each of the 448 stores with a meaningful budget and weekly updates on their progress towards achieving the company’s target.
Each Morrisons store has an energy champion from the store’s management team to drive the energy efficiency activities. They are to be supported by colleagues from the shop floor who will help deliver the savings with assistance from EDF Energy and Morrisons Energy Team.
Terry Hartwell, Morrisons Group Property Director, said:
“With a network of 448 stores and rising, electricity costs represent a significant overhead for Morrisons. This agreement offers a guaranteed £1million saving from projects and aims to save at least a further £3.5million during 2011 with more cost savings to be investigated, all of which helps us to ultimately keep prices low for customers.
“EDF Energy has rapidly developed a bespoke energy awareness programme for staff that integrates into our company culture and procedures and has a robust measurement methodology. It makes sound commercial sense for us to work with EDF Energy and we are very confident that this collaborative approach will deliver great results for Morrisons.”
The agreement will further build the momentum of Morrisons’ carbon reduction achievements, which aim to reduce total operational footprint by 30% by 2020.
Notes to editors:
1. EDF Energy was named as one of the market leaders in the provision of energy services to businesses, according to the Green Quadrant: Sustainable Power Utilities report published in March 2011 by the independent analyst firm Verdantix. The analysis suggests that EDF Energy is in the leading group of firms best positioned to provide sustainable energy supply and services to UK plc.
The Verdantix report, Green Quadrant® Sustainable Power Utilities, is based on in-depth interviews with an independent panel of 15 senior decision-makers across 8 industries with responsibility for selecting power utilities. Verdantix also carried out a 37 point questionnaire and interviews with practice leaders from participating utilities firms. The report found that the companies leading the market for sustainable power utilities had strong capabilities across sustainable services, a willingness to innovate, and mature organizational sustainability programmes.
2. Sustainability is at the heart of EDF Energy, demonstrated by our industry-leading Sustainability Commitments, and underpins why, as an energy supplier, we look to help our customers to use less energy. We are able to verify the energy savings we identify using the International Performance Measurement and Verification Protocol (IPMVP), meaning our business customers are able to place great trust in the energy savings we promise and help them to deliver.
The International Performance Measurement and Verification Protocol (IPMVP) is the widely referenced framework for ‘measuring’ energy or water savings. It is especially used in energy performance contracts where savings must be reported to a client and may form the basis of a payment to an ESCO.
A primary purpose of IPMVP is to publish current good measurement and verification (M&V) practice, as reassurance for the public about savings reports. IPMVP is freely available at www.evo-world.org.
With 2 of the UK’s 6 Certified Measurement and Verification Professionals (CMVPs) in its Energy Services team, EDF Energy is one of only 3 organisations in the UK qualified to measure and validate energy savings using IPMVP