Universal Registration Document 2021

1. The group, its strategy and activities

1.4.5.1.1 EDF in the UK strategy and sustainability

EDF in the UK contributes to EDF group’s greenhouse gas emissions reduction targets and carbon intensity trajectory. Its Sustainable Business Roadmap explains the progress and plans of the business to help Britain achieve Net Zero and meet wider sustainability objectives. During the year of the COP26 climate conference in Glasgow, EDF in the UK has campaigned both externally and internally with employees to increase awareness of Net Zero and its stakes.

Recent energy price increases, driven by global gas prices, are strongly impacting the UK operating environment. Whilst creating affordability challenges for customers and significant financial pressures on energy suppliers, the crisis has also triggered an unprecedented level of supplier exits from Britain’s energy retail market. Following the cessation of trading by Green Network Energy, Utility Point and Zog, EDF stepped in to take on their combined 590,000 residential customers through Ofgem’s supplier of last resort process. The price levels have further highlighted the need for investment in low-carbon electricity and technology to end UK’s reliance on fossil fuel imports, and the value of reliable, resilient suppliers such as EDF.

In its Customer business, EDF Energy serves 3.7 million British homes and businesses as well as the public sector, delivering industry-leading customer service (EDF has maintained a “Great” rating on Trustpilot and is rated 3rd out of 22 energy suppliers by Citizens Advice based on July-September 2021 data, and 2nd of the large suppliers, as defined by Ofgem). EDF Energy supports British households, businesses and the public sector achieve Net Zero, in areas including electric mobility, low-carbon heating, flexibility services and smart meters combined with data services.

EDF Energy is working toward delivering on its regulatory obligations as a leader on energy efficiency installations through the energy company obligation (ECO) scheme and through a cost-efficient roll-out of smart meters to homes and small businesses, as part of the national programme. In 2021, EDF Energy has installed a further 452k smart meters.

The pandemic, combined with the default tariff cap on the residential GB market, the 2021 energy crisis and a fiercely competitive environment, shows that cost efficiency and an effective, resilient operating model remain key priorities. To evolve its offering and build further on its industry-leading customer service, EDF has announced a commercial partnership with Kraken Technologies to migrate its 3.7 million residential and SME customers onto their market-leading EnTech platform, starting in 2023 with an 18-month timeline to complete the project. The adaptable platform also allows EDF to meet its customers’ future energy requirements – whether they are switching to an electric car or installing a heat pump for

In electricity generation, EDF’s key priority is to sustain safe, reliable and commercially viable operations. This includes supporting security of supply through the West Burton A coal power station, which has UK capacity agreements until September 2022 when the station will stop generating, two years ahead of the UK Government’s deadline to phase out coal.

EDF Energy is already decommissioning the Cottam coal power station that closed in 2019, exploring sustainable decommissioning and deconstruction approaches such as circular economy principles. A key element of a just and low-carbon transition is also workforce support on which EDF has been working closely with trade unions.

In August 2021, EDF completed the sale of the West Burton B CCGT power plant (1,332MW) alongside a 49MW battery on the same site.

EDF’s UK fleet of existing nuclear power stations, accountable for supplying around 15-20% of the country’s power since the mid-1970s, is in a period of much anticipated change. Since its acquisition of the UK nuclear fleet in 2009, EDF has invested £6 billion and in addition, generated over 30% more low carbon electricity than originally anticipated.

EDF Energy has taken the decisions to move Dungeness B into the defueling phase from June 2021, Hunterston B into defueling by January 2022 and Hinkley Point B by July 2022. The remaining four AGR nuclear power stations are currently due to close by 2028. EDF is responsible for defueling all seven AGR power stations over the next 10+ years under an agreement with UK Government signed in June 2021.

EDF is committed to ensuring nuclear excellence and doing what it can to preserve technical skills and capabilities during this transition period for the nuclear industry.

In partnership with China General Nuclear Corporation (CGN), EDF is building two new nuclear units (3.2GW capacity in total) at Hinkley Point in Somerset, based on the EPR technology. EDF Energy is also leading the development of plans for a similar 3.2GW EPR project at Sizewell in Suffolk, with active support from the UK Government and discussions ongoing regarding the funding of the project (see 1.4.5.1.2.5 “Nuclear New Build business”). As a part of its plans, EDF Energy is also exploring models using nuclear to produce hydrogen and heat.

(1) EDF working to help deliver Government’s “10 point plan” for green recovery (EDF contribue à la mise en œuvre du « plan en 10 points » du gouvernement pour une « révolution industrielle verte ») https://www.edfenergy.com/about/green-recovery.