EDF Energy serves 3.7 million British homes and businesses. It is the largest supplier of businesses and the public sector in Great Britain (GB) and has been recognised as an industry leader for residential customer service by Citizens Advice (1). In addition to the supply of electricity and gas, EDF Energy supports its customers in Net Zero focused areas including electric mobility, low-carbon heating, micro generation, renewable power purchase agreements (PPAs), flexibility services and smart meters combined with data services.
A resilient and efficient operating model remains a key priority, ensuring EDF Energy will also help meet customers’ future energy requirements – whether they are switching to an electric car or a heat pump for instance. To this end, EDF Energy is preparing to migrate its 3.6 million residential and SME customers onto Kraken Technologies’ market-leading EnTech platform, starting in 2023.
Improving the energy efficiency of UK building stock and decarbonising heat are key contributors to the UK achieving Net Zero and reducing fossil fuel dependency. EDF Energy is working towards delivering on its regulatory obligations. It is a leader in energy efficiency installations through the Energy Company Obligation (ECO) scheme and is committed to the roll-out of smart meters to homes and small businesses, as part of the national programme.
In May 2022, EDF Energy agreed a partnership with CB Heating, a heat pump installer, to offer an end-to-end service for customers and support the decarbonisation of heating in the UK. EDF Energy, CB Heating and Daikin have partnered to create a new training academy opened in November, set to train 4,000 heat pump installers a year to help the UK hit its target of 600,000 heat pumps by 2028.
Recent energy price increases, driven by global gas prices, are strongly impacting the UK operating and competitive environment. Wider inflationary pressures have created affordability challenges for customers. This has triggered unprecedented interventions by the UK Government with the introduction of additional taxes on generators and financial support for residential and business customers. EDF Energy has played its part in delivering these Government funded schemes designed to address the significant affordability challenge its customers face alongside EDF Energy funded support for struggling customers.
In November 2022 the UK Government announced further details on this tax mechanism on infra-marginal rents, the ‘Electricity Generator Levy’ (EGL). The EGL places a 45% tax on electricity generation income above £75/MWh generated between 1 January 2023 and 31 March 2028 and will apply to both EDF’s operating UK nuclear assets as well as certain older renewable generators that are subsidised under the Renewable Obligation scheme.
The price levels seen in 2022 have further highlighted the need for continued investment in low-carbon electricity and technology to reduce the UK’s reliance on fossil fuels, and the value of reliable, resilient suppliers such as EDF Energy.
In electricity generation, EDF Energy’s key priority is to sustain safe, reliable and commercially viable operations. This includes supporting UK security of supply
through the West Burton A coal power station, which was due to close in September 2022 but following a request from the UK Government, West Burton A has been made available to National Grid ESO for 6 months until 31 March 2023 as an emergency service. The site has been chosen by the UK Government to host the UK’s first prototype fusion energy power plant, supporting EDF Energy’s commitment to a just transition for the workforce and communities connected to coal.
Since its acquisition of the UK nuclear fleet in 2009, EDF Energy has invested £7 billion. Through sustained investment and careful stewardship all the AGR stations have operated beyond their original 25-30 year design lives.
EDF Energy has decided to extend the end of generation for Heysham 1 and Hartlepool to 31 March 2026 with a +/-1 year proviso (2). Further work is underway to assess a 20 year life extension to Sizewell B, to continue the provision of 3% of GBs electricity demand till 2055.
EDF Energy moved Dungeness B into the defueling phase from June 2021, and Hunterston B and Hinkley Point B in January 2022 and August 2022 respectively. The remaining four AGR nuclear power stations are currently due to close by 2028. EDF Energy is responsible for defueling all seven AGR power stations over the next 10+ years under an agreement with the UK Government signed in June 2021.
EDF Energy’s UK fleet of existing nuclear power stations has been accountable for supplying around 15-20% of the country’s power since the mid-1970s. Nuclear generation output in 2022 was 43.6TWh vs 41.7TWh in 2021 despite Hunterston B and Hinkley Point B having been moved onto defueling phase.
UK Government support for nuclear has been confirmed through the ambition to increase nuclear capacity to 24GW by 2050 and launch of the “Great British Nuclear” vehicle with EDF Energy supporting this work. In partnership with CGN(3),EDF Energy is building two new nuclear units (3.2GW capacity in total) at Hinkley Point in Somerset, based on the EPR technology. The halfway point in construction of Hinkley Point C, Britain’s single biggest action against climate change, was passed in 2022. As well as major milestones on site, the plant’s 57km connection to the National Grid is complete and the target of 1,000 apprenticeships achieved.
There are plans for a similar 3.2GW EPR project at Sizewell in Suffolk, reaching its biggest milestone to date with the UK Government’s decision to invest c£700m in the project. The funding will support the project’s continued development towards a Final Investment Decision. This announcement follows approval of the Development Consent Order in July 2022 and the introduction of new financing legislation for nuclear projects in March 2022. It also led CGN to exit the project.
EDF Energy is also exploring models using nuclear to produce hydrogen and heat.
In addition, investigations are underway, with funding support from the UK Government, to assess Hartlepool as a site for high temperature gas reactors.
EDF Energy is committed to delivering nuclear excellence and working to preserve technical skills and capabilities during this transition period for the nuclear industry.
(1) Scores for April to June 2022.
(2) See EDF Energy’s press release of 9 March 2023 “EDF confirms plans to keep turbines turning at Heysham 1 and Hartlepool power stations”.
(3) China General Nuclear Corporation.
