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Professional Studies B (2014/15)

Review of EDF Energys Practices and Policies

Team Number: B26


Date/Time of Submission: 30 January 2015 4.30pm
Team Leader (email address): yl12331@my.bristol.ac.uk
Group Peer Assessment Table
Name of team member
1 Yi Shane Low
2 Henry Pik Yap Sia
3 Jared Christian Chun Liong Chau
4 Selwyn Tze Ying Cham

Average Peer Mark


(A score out of 100)
100
100
100
100

University of Bristol

Review of EDF Energys Practices and Policies

Glossary
A&IMS
BAME
BITC
CAP
CR
CSR
DoT
EA
EMS
EnPC
EPA
EPR
EY
FIP
FIT
HH
HLW
HS&E
HSE
HSWA
ILW
INPO
LLW
NCSI
NDA
NHH
Ofgem
ONR
REPPIR
RO
SAWM
SEPA
SME
SQEP
STEM
TRI
UNGC

Assurance and Integrity Management System


Black, Asian and Minority Ethnic
Business in the community
Corrective Action Programme
Corporate Responsibility
Corporate Social Responsibility
Department of Transport
Environmental Agency
Environmental Management System
Energy Performance Contract
Environmental Protection Act 1990
European Pressurised Water Reactor
Ernst & Young LLP
Fleet Implementation Plan
Feed In Tariff
Half Hourly
High Level radioactive Waste
Health, Safety and Environment
Health and Safety Executive
Health and Safety at Work Act 1974
Intermediate Level radioactive Waste
Institute of Nuclear Power Operation
Low Level radioactive Waste
National Customer Satisfaction Index
Nuclear Decommissioning Authority
Non-Half Hourly
Office of Gas and Electricity Markets
Office for Nuclear Regulation
Radiation Emergency Preparedness and Public Information Regulation
Renewables Obligation
Sustainable Approach to Waste Management
Scottish Environment Protection Agency
Small-to-Medium Enterprise
Suitably Qualified and Experienced Persons
Science, Technology, Engineering and Maths
Total Recorded Incident
United Nations Global Compact

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Review of EDF Energys Practices and Policies

Table of Contents
1.0. Executive Summary

2.0. Company Profile

2.1. Background

2.2. What does EDF Energy do?

2.3. EDF Energy Mix

3.0. Sustainable Development

3.1. Sustainable Development at EDF Energy

3.2. EDF Energys Policies

3.2.1. Social Policies

3.2.2. Environmental Policies

3.2.3. Economic Policies

10

3.3. Sustainability Report

11

3.3.1. Social Performance

11

3.3.2. Environmental Performance

12

3.3.3. Economic Performance

12

3.4. Performance Trend

12

3.4.1. Social

12

3.4.2. Environmental

15

3.4.3. Economic

17

3.5. Benchmark Against Similar Companies

18

3.5.1. Ofgem Market Assessment

18

3.5.2. Other Market Assessments

19

3.6. Case Study: Nuclear New Build

20

3.7. Improvement

21

3.8. Conclusion

21

4.0. Legal Responsibilities

22

4.1. Introduction

22

4.2. EDFs legal aspects

22

4.2.1. Health, Safety & Environment & Management System


3

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4.2.2. Employment

24

4.2.3. Contracts

24

4.2.4. Product Liabilities

28

4.2.5. Professional Liabilities

28

4.2.6. Nuclear Waste Policy

29

4.2.7. Competition Law

29

4.3. Case Study: United Biscuits takes on Energy Performance Contract

29

4.4. Conclusion

30

5.0. Health, Safety and Environment Management

31

5.1. Policy Statements

32

5.2. Assurance and Integrity Management System

32

5.3. Management System Principles

32

5.4. Management Values

32

5.5. Error Reporting System Corrective Action Programme

33

5.6. Continuous Improvement

34

5.7. Case Study

35

5.8. Training Programmes

36

5.8.1. Training Infrastructures

37

5.8.2. Programmes Accreditation

37

5.9. Radioactive Waste Management

38

5.9.1. Nuclear Waste Policy

39

5.9.2. Environmental Management System

39

5.9.3. EDF Energys Radioactive Waste Management

40

5.10. Management Review

41

5.10.1. Health and Safety Management Review

42

5.10.2. Environmental Management Review

42

5.11. Recommendations

42

5.12. Conclusion

42

6.0. Professional and Ethical Conduct

43

6.1. Company Policies

43

6.2. Treating Employees

44

6.3. Corporate Social Responsibility

44
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6.3.1. The Pod

45

6.3.2. Science Festivals

46

6.3.3. EDF Energy Trust

46

6.3.4. Marie Curie Cancer Care

47

6.3.5. Helping Hands

47

6.3.6. Business in the community

47

6.4. Improvements

48

6.5. Conclusion

48

7.0. Conclusion

49

8.0. References

50

9.0. Appendix

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1.0.

Review of EDF Energys Practices and Policies

Executive Summary

The aim of this study is to perform a critical review of EDF Energys practices and policies.
The company is examined in terms of its sustainable development, legal compliance, health, safety
& environment management and corporate social responsibility.
From the findings it can be seen that EDF Energy recognises the importance of developing
sustainably. To achieve sustainable development, EDF Energy adopts a divide and conquer
approach, they launched their Better Energy Ambitions mission, whereby the challenges in
sustainable development are addressed categorically (zero harm, customers, environment, finance &
ethics, nuclear and people). It is found that EDF Energy is taking the right steps towards sustainable
development by implementing the right practices. For example, EDF Energy simplifies their tariffs
to help their customers assess their options easily. In this study, assessment of the companys
sustainable development is done with regards to the Triple Bottom Line.
In order to continue EDF Energys operations and activities, ongoing compliance with the
relevant laws, policies and regulations in place are essential. These include the Health and Safety at
Work Act (HSWA) 1974, ISO 14001 and the Radiation Emergency Preparedness and Public
Information Regulation (REPPIR). By doing so, EDF Energy will be able to display their
commitment to the public, their employees, statutory bodies as well as the environment and also
remain legally certified. EDF Energy offers a variety of customer contracts, fixed and flexible
depending on the customer, for domestic, Small-to-Medium Enterprises (SMEs) and Large Business
customers. To safeguard the organisation and its personnel, strict policies and terms have been
instated so to clearly define what EDF Energy is liable and not liable for. A case study based on
United Biscuits food manufacturer displays EDF Energys incentives and green option contract to
help the client save cost and achieve its energy efficiency targets.
Health and Safety of its personnel and those affected by business operations represent one of
the main priorities of EDF Energy. Assurance and Integrity Management System (A&IMS) is
implemented to establish guidelines and standards for health, safety and environmental management
systems for all EDF Energys business units. Moreover, EDF Energy introduced the Corrective
Action Programme (CAP) to optimise the error reporting and correcting system to ensure a safe
working environment. To increase the competency of its personnel, training programmes are
provided at Barnwood. On the other hand, Total Recorded Incidents (TRI) involving personnel
health and safety decreased by 47% for the year 2013 when compared to the previous three years.
Conclusively, the management systems implemented by EDF Energy has performed up to the
standards specified in its policies.
EDF Energy has codes for professional and ethical behaviour in compliance with the 10
principles of United Nations Global Compact to ensure they can meet the aims set. Treating the
employees fairly and with respect is key to ensuring business runs efficiently. Giving back to the
community is an essential part of EDF Energys plan to excel in their business. EDF Energy
developed educational programmes such as the Pod and partnered with other organisations to hold
science festivals to encourage children all over UK to have a sustainable lifestyle. This is to prepare
the next generation to face sustainability challenges in the future. Trust funds have also been
established to help with poverty issues in the UK.
A survey was conducted to get some public opinion on EDF Energy, the results of the survey
are discussed in the appendix.
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2.0.

Company

Review of EDF Energys Practices and Policies

Facts & Figures

Table 1: EDF Group Facts

Profile
& Figures

Company Type
Industry
Founded
Headquarters
CEO
Products
No. of Employees
Parent Company

Subsidiary
Energy
2003 [3]
London, UK
Vincent de Rivaz
Electricity & Gas
15, 000 ++[2]
lectricit de France

2.1. Background
EDF Energy was formed in 2003 while its parent company, EDF, was founded in 1946. They
mainly deal in electricity generation, trading, transmission, distribution, supply and other energy
services [3].
2.2. What does EDF Energy do?
EDF Energy produces one-fifth of the UKs electricity making it the biggest supplier by volume
which serves approximately 5.5 million domestic and business customers in the UK.
EDF Energy operates two separate businesses, electricity generation business and customer supply
business [1].
2.3. EDF Energy Mix

Figure 1: The EDF energy mix [71]


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3.0. Sustainable Development


3.1. Sustainable Development at EDF Energy
To achieve sustainable development, EDF Energy created a mission entitled Better Energy
Ambitions.[4] The logo below embodies the different aspects of this mission.

Figure 2: Each petal of the logo represents a different aspect of


the Better Energy Ambition, the aspects are (starting from the top
petal going clockwise): zero harm, customers, environment,
finance & ethics, nuclear and people.[72]

The Sustainable Development Committee was established by the EDF Energy Holdings Limited
Board to assist the Board in fulfilling its sustainability leadership and environmental
responsibilities. The committee reviews the practices adopted in respect of any sustainability risks
arising from the companys operations.[5]

3.2. EDF Energys Policies


EDF Energy emphasises on transparency in their policies. They believe by being open they can
convince people they are generating sustainable energy while protecting the interests of their
customers and the environment.

3.2.1. Social Policies


In March 2012, EDF Energy CEO Vincent de Rivaz in an open letter pledged to customers that the
company will strive to deliver fair values, better service and simplified tariffs.[6]
Fair Value:EDF energy bills contains a breakdown of the costs each year. These costs are updated annually
following publication of EDF Energys latest full year financial results, so customers can see where
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Review of EDF Energys Practices and Policies

their money has gone towards.


constructed:-

[6]

The figure below shows how EDF customers energy bills are

Figure 3: Breakdown of EDF energy bills [73]

Better Service:Besides a customer service hotline, EDF Energy also provides online support through live webchat.
[4]
EDF Energy also has an online system which allows customers to update details and pay bills
online.[6] Other than that, EDF Energy has a smartphone app which allows customers to send a
photo of their meter reading.[8]
EDF Energy wants to make sure that their advisers are clear to their customers. To achieve that,
they randomly select calls to listen to, if they think an adviser did not explain good enough they will
give the adviser extra training.[6]
EDF Energy also provides Personalised Support Service for customers who need special services.
Their services include helping customers find the cheapest tariff, help customers with debt and also
provide additional help to people who require it, for example provide communications in Braille or
audio.[9]
Simplified Tariffs:EDF Energy simplified their tariffs to make it easier for customers to choose. Besides that, EDF
bills are designed with customers with the aim of making it clearer and simpler. [6] On the company
website, there is also an elaborate guide on interpreting EDF energy bills. [10]

3.2.2. Environmental Policies


EDF Energy is the UKs largest supplier of low-carbon electricity. [5] The company ambition is to
power society without costing the Earth. [4]
The company has set out the following guidelines to protect the environment [5]:

Employees must comply with all relevant environmental regulations, standards and other
codes of practice.
EDF Energy operates and maintains their assets within the bounds of permits, consents,
licenses and the approved plant designs and safety margins in order to protect the
environment.
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EDF Energy identifies significant environmental impacts and takes action to manage these
and to prevent pollution or environmental damage which may occur as a result of their
business operations.
The company engages stakeholders with an interest in environmental issues to ensure their
concerns and expectations are fully considered, and they will place environmental
considerations at the heart of robust and transparent decision-making processes.

Reporting and Engagement:

Each Business Unit and Corporate Steering Function provides reliable and complete
environmental information to meet reporting requirements, to support legislative and
regulatory compliances and to assist management with decision making.[5]
EDF Energy maintains a programme of self-assessment to evaluate performance against the
expectations of the Assurance & Integrity Management System framework, against external
standards and against legislative and regulatory obligations. Corrective actions are agreed
with the Business Units and Corporate Steering Functions and followed up through to
completion.[5]

3.2.3. Economic Policies


The tariffs offered by EDF Energy are Blue+Price Promise, Blue+Fixed Price, Standard
Variable and Blue+Fixed Prepay. Details regarding these tariffs are neatly displayed on the
company website, so customers can easily compare the different tariffs and make more informed
choices.[11]
Tariff Price Comparison:An arbitrary postcode was entered into EDF Energys price comparison engine. It was found that
tariffs with fixed energy prices are cheaper than the tariff with variable energy price.
Table 2: Price (per month) comparison of different tariffs for an arbitrary postcode

87.06

91.92

99.47

This strategy adopted by EDF Energy makes financial sense. During the summer when energy is
cheaper due to low demand, the company will have a surplus in cash as the customers are paying a
price that is higher than the energy price. This surplus in cash allows them to not only cover losses
in the winter months when customers are paying prices lower than the actual energy price, but it
also allows the company to invest for higher returns to generate additional profit.

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Figure 4: Electricity and gas consumption during winter and summer periods [74]

EDF Energy Promises:

EDF Energy has a 0 termination fee policy across all tariffs.[11]


The Blue Price Promise has a unique promise. If the customer could save at least 1 a
week elsewhere at typical use, EDF Energy will notify them about it.[12]

3.3. Sustainability Report


EDF Energy reports publicly on their vision and Better Energy Ambitions. Robust data is obtained
through a data control management role within EDF Energys Business Performance team. EDF
Energy also employs external assurance providers to carry out annual checks on their data. [13] The
key findings of the 2013 EDF Energy Annual Sustainability Report are summarised below.

3.3.1. Social Performance


Better Service:

In August 2013, EDF Energy became the first supplier in Britain to offer fixed prices with
no exit fees to small business customers whose contracts are automatically renewed.
EDF Energy launched two new innovative tariffs for Small and Medium Enterprises on top
of their existing Fixed for Business tariff, they are the New Start and Freedom for
Business tariffs. [14]
EDF Energy also developed a product renewal service, allowing customers to go online and
switch tariffs when their existing deal ends. [14]

Fairer Value:

In 2013 EDF Energy launched their innovative Blue products.


At the end of 2013 there were 2.1 million Blue product account holders.
EDF Energy was the cheapest major dual fuel supplier for 49 out of 52 weeks in 2013, at
typical consumption. [14]

Simplified Tariffs:

EDF Energy reduced the number of residential tariffs offered to just three and applied the
same standing charge across all their tariffs to help their customers to compare them.
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EDF Energy also back proposals for energy suppliers to offer a single unit price for gas and
electricity so customers can compare energy prices between different suppliers easily. [14]

Accolades:

EDF Energy came second in the 2013 uSwitch Customer Satisfaction Report and they were
also placed first in the same awards for Value for Money, Best Deal and Transfer
Process.
EDF Energy was also named as 2013 Energy Provider of the Year at the Consumer
Moneyfacts Awards 2014. [14]

3.3.2. Environmental Performance


Carbon Intensity Reduction:

In 2013 the CO2 intensity of EDF Energys electricity generation was 256g/kWh, this brings
them closer to their goal of no more than 250g/kWh by 2020.
In 2013, EDF Energys nuclear power stations generated 60.5 TWh of low-carbon
electricity, their best ever performance.
In total, EDF Energys nuclear fleet helped avoid 43 million tonnes of carbon emissions.
EDF Energys Teeside windfarm which began operations in July 2013 generates enough
low-carbon electricity to power up to 40,000 households. The Fallago Rig windfarm which
started generating in March 2013 has an annual output equivalent to the electricity
consumption of around 90,000 homes.
In 2013, EDF Energys thermal plants produced 23.1TWh of electricity. [14]

3.3.3. Economic Performance


In 2013, EDF Energys operating profit was 863m, this includes the impact of a oneoff
charge of 190m relating to the value of EDF Energys gas generating assets. This means
EDF Energys underlying profitability was 12.9% lower in 2013.
In 2013 EDF Energy paid 300m in interest payments on loans, 114m in corporation tax,
and 170m to repair the deficit in their employee pension scheme. [14]
3.4. Performance Trend
In this segment EDF Energys social, environmental and economic progress is examined in detail.

3.4.1. Social
Refer to next page.

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Table 3: EDF Energys social performance trend [14]

Customer Product Accounts (Millions of Accounts)


6.1
6
5.9
5.8
5.7
5.6
5.5
5.4
5.3
5.2

2010

2011

2012

2013

Figure 5: Variation in number of customer product accounts

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Electricity Priority Service Customers


(No. of Customers)
270000
260000
250000
240000
230000
220000
210000
200000

2010

2011

2012

2013

Figure 6: Variation in number of electricity priority service customers

Gas Priority Service Customers


(No. of Customers)
160000
140000
120000
100000
80000
60000
40000
20000
0

2010

2011

2012

2013

Figure 7: Variation in number of gas priority service customers

Figure 8: EDF Energy complaints performance trend [15]


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3.4.2. Environmental
Table 4: EDF Energys environmental performance trend [14]

Total Carbon Footprint (In Million Tonnes)


25
20
15
10
5
0

2010

2011

2012

2013

Figure 9 - Variation of EDF Energys total carbon footprint

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Nitrogen Oxides Emissions (Tonnes)


45000
40000
35000
30000
25000
20000
15000
10000
5000
0

2010

2011

2012

2013

Figure 10: Variation of EDF Energys nitrogen oxides emissions

Sulphur Dioxide Emissions (Tonnes)


18000
16000
14000
12000
10000
8000
6000
4000
2000
0

2010

2011

2012

Figure 11: Variation of EDF Energys sulphur dioxide emissions

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Review of EDF Energys Practices and Policies

3.4.3. Economic
Table 5: EDF Energys financial performance trend [14]

Sales (Millions of Pounds)


10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

2010

2011

2012

Figure 12: EDF Energys sales trend

17

2013

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Review of EDF Energys Practices and Policies

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) (Millions of Pounds)
2500

2000

1500

1000

500

2010

2011

2012

2013

Figure 13: EDF Energys EBITDA trend

3.5. Benchmark Against Similar Companies


The UK energy market assessment is done by Office of Gas and Electricity Markets (Ofgem), an
independent National Regulatory Authority.[16]

3.5.1. Ofgem Market Assessment

Figure 14: UK domestic electricity supply market share [17]

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Figure 15: UK domestic gas supply market share [17]

From Figures 14 and 15, it can be seen that Centrica dominates both the domestic electricity and gas
supply market in the UK with roughly 25% and 40% market share respectively. EDF Energy forms
one of the big six as it has a significant portion of the market share in both electricity and gas
supply, roughly 14% and 9% respectively.

Figure 16: Complaint trends of the big six energy providers [17]

From Figure 16, it is evident that EDF Energy receives significantly more complaints than their
competitors, especially during the period between 2011 and 2012. However it can be seen that in
2013 EDF Energy has made progress in complaint reduction.
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3.5.2. Other Market Assessments


In 2013, EDF Energy was ranked joint first in the National Customer Satisfaction Index
(NCSI).
Table 6: National Customer Satisfaction Index scores of the big six energy suppliers [14]

In 2013 EDF Energy was in joint first position on their Trust Survey amongst the other
major suppliers.
Table 7: Trust Survey scores of the big six energy suppliers [14]

3.6. Case Study: Nuclear New Build


By the early 2020s many of UKs power stations will be decommissioned. To provide a secure
energy supply for the future, the UK needs a diverse and balanced energy mix. EDF Energy is
making an effort in generating sustainable energy for the future by planning to build two new
nuclear power stations at Hinkley Point C and Sizewell C.[18]
Both new nuclear power stations will feature two state-of-the-art European Pressurised Water
Reactors (EPRs) with capacity over 40% greater than some of EDF Energy's existing nuclear plants.
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EPRs have enhanced safety features with multiple safety systems. They are also more efficient and
produce less long-lived radioactive waste compared with existing water reactors and use less
uranium.[19]

Figure 17: Model of Hinkley Point C[75]

On the 8th of October 2014 the European Commission approved agreements between EDF Group
and the UK government to build Hinkley Point C [19], whereas Sizewell C is still at the community
consultation stage at the moment.[20]

Figure 18: Site for Sizewell C construction [76]

3.7. Improvement
From the findings of Section 3.5, it can be seen that EDF Energy lags behind their competitors in
terms of number of complaints. Because EDF Energy has breached complaint handling rules and
failed to handle customer complaints efficiently between May 2011 and January 2012, Ofgem has
slapped a 3 million fine on the company.[21]
As a response to this company embarrassment, EDF Energy appointed Ernst & Young LLP (EY) to
carry out an independent review of EDF Energys processes for resolving and closing complaints.
In their investigation, the findings of EY were:21

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EDF Energy failed to direct consumers with reopened complaints to EDF Energys
published complaints handling procedures.
EDF Energy considered reopened complaints as resolved complaints before the complaint
has been demonstrably resolved.
There are times when EDF Energy attempted to rush the dealing and closure of complaints,
leading to unintended consequences.
EDF Energy correspondents sometimes failed to take a promised action.
There are instances where EDF Energy had opened a complaint but this had not been
communicated to the customer.[22]

EDF Energy should make the reduction of the number of complaints a priority. The staff training
process needs to be reviewed and improved to ensure they can handle complaints appropriately.
Besides that, EDF Energy can ensure their staff are competent in handling complaints by serving
heavy penalties to those who violate EDF Energy complaint handling policies.
3.8. Conclusion
EDF Energys commitment to sustainable development can be seen in its various approaches to
fulfill their Better Energy Ambitions. Their continually improving social, environmental and
financial performance statistics indicates that the company has much potential for growth, and could
well be the main energy provider in the UK in the future. The already existing plans for new nuclear
build are more indications to the bright future EDF Energy has.

4.0. Legal Responsibilities


4.1. Introduction
Every company must abide by a set of rules and regulations set out by the governing body of the
country that they operate in. In the case of EDF Group, whereby the company carries out
international operations, it must also abide by international laws as well as those set out by the
respective countries that they operate in.
There are many types of legal elements that need to be adhered to and will be discussed in greater
detail in the following section of this report. The first aspect that will be looked at is the legal
responsibility surrounding Health, Safety and Environment (HS&E) that also includes the
management system employed, followed by employment, contracts, and finally product as well as
professional liabilities.
The final part of this section will introduce a case study of EDF Energy which displays some, if not
more, of the legal aspects aforementioned. A conclusion to the legal aspects of EDF Energy will
also be made.

4.2. EDFs legal aspects


4.2.1. Health, Safety & Environment & Management System
EDF Energy places HS&E as their highest priority by ensuring their safety standards are strictly
adhered to and their emergency plans are thoroughly assessed. Stated in their policy standards for
H&S, EDF Energy complies fully with HS&E laws and regulations which include the Health and
Safety at Work Act (HSWA) 1974, Health and Safety (Consultation with Employees) Regulations
1996, Safety Representatives and Safety Committees Regulations 1977 as well as their Companywide Health, Safety and Environment Assurance and Integrity Management System (A&IMS) [27].
Management systems will be discussed further in Section 5.0. EDF Energy also explains their three
main obligations they have [23]:
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1. Moral Moral duty to protect their members of staff as well as the public in the surrounding
area.
2. Legal Operations are carried out in accordance to the Nuclear Installations Act 1965,
Ionising Radiation Regulations 1999 and the Radiation Emergency Preparedness and Public
Information Regulation (REPPIR) to ensure safe operations and well-prepared emergency
plan arrangements.
3. Commercial To ensure effective business continuity by responding rapidly to emergencies
or accidents that might occur.
EDF Energy bases its policy statements around HSWA 1974 as shown in the table below.
Table 8: EDF Group Health, Safety and Environment Policies [5] [27] [38] [39]

Policy Statements
Legal Compliance
1 Clarification that every personnel of the EDF Energy has a duty to HSWA 1974 Section 3(1)
their own health and safety and those affected by the activities of
its business activities, i.e. the communities they serve in.
2 Adopt best practicable means to manage significant environmental HSWA 1974 Section 5(1)
impacts and prevent pollution or environmental damage that may /
occur as a result of the companies business operations.
EPA 1990 Safe Article
and Substance
3 Arrange appropriate health and safety training to employees for HSWA 1974 Section 2(1)
them to meet the required standards of performance.
(a) Safe Person
4 Make considerations and assessments of any health, safety and HSWA 1974 Section 2(2)
environmental risks resulting from EDF Energys activities as to (d) Safe Place of Work,
ensure that no job shall be undertaken where those uncontrollable access and egress
risks are present.
5 Adopt learning and continuous improvement culture as to prevent HSWA 1974 Section 2(2)
incidents and accidents from reoccurring in the business activities (b) Safe Working
through structured risk management approach and appropriate Environment/Welfare
management systems.
In any emergency, EDF Energy has set out four high priorities to protect. Firstly, the public
followed by site personnel. After that, the environment and lastly the power plant [23]. EDF Energy
handles and maintains a clean and healthy environment by implementing an Environmental
Management System (EMS) which has been certified to the ISO 14001 standard [24]. ISO 14001 sets
out a management framework aimed at minimising the environmental impacts of companies or
organisations through waste reduction and recycling materials when possible [25]. The ISO 14001
framework is shown in Figure 19.

23

Figure 19: ISO 14001 Cycle [25]

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Review of EDF Energys Practices and Policies

The EMS will also be built around the


Environmental Policy stated in the
document produced by EDF Energy
titled EDF Energy Nuclear Generation:
Our journey towards zero harm [4]. A
policy statement, Figure 20, is also made,
displaying the commitment of those who
work for or with EDF Energy in reducing
[27]
the production of waste materials to a minimum [27]. Figure 20: Policy Statement for the environment
4.2.2. Employment
EDF Energy has laid out its People Policy document which in essence covers the policy standards
that its employees are required to follow. Priority will still be given first and foremost to the health
and safety standards set for employees. EDF Energys People Policy touches on various principles
such as employee expectations, career development of existing and new employees, structured
trainings to enhance employee skills to support their role performances and proper procedure for
employees leaving the company. The terms and conditions associated with employment are in the
form of Collective Agreements or Personal Contracts [28].
4.2.3. Contracts
EDF Energy offers a wide range of contracts for household purposes as well as business premises.
Contracts offered range from fixed price contracts to flexible electricity contracts tailored to meet
the specific customer needs. In recent years, EDF Energy has introduced four contracts for home
customers as shown below.
Table 9: Household Tariffs [11]
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Contract Type

Why this
tariff?

Fixed Price

Termination
Fee
Payment Type

Online
Account
Management
14-day Cooling
Off Period

Price Promise If you could


save more than
1 a week
elsewhere at
typical use,
we'll email you
Yes
Fixed until 31
May 2016
0

Fixed energy
prices until at
least January
2017 with no
nasty exit fees

Variable prices - can


go up or down.
Competitive rates for
any meter type and no
end date or contract
renewals

Its easier to
budget and plan
effectively with
fixed prices
until at least 31
October 2016

Yes
Fixed until 31
January 2017
0

No

Yes
Fixed until 31
October 2016
0

Direct Debit
Cash/Cheque

Direct Debit
Cash/Cheque

Prepayment

Yes

Yes

Direct Debit
Cash/Cheque
Prepayment
Yes

Yes

Yes

Yes

Yes

Yes

For businesses, EDF Energy has divided them into two categories. The first is Small-to-Medium
Enterprises (SMEs) and the other is Large Businesses, i.e. businesses that have more than 50 site
locations. For each category, different contract schemes are available. Considering SMEs first, three
viable contractual options are available as shown in Table 10. The three different contracts offered
to Large Businesses are also shown in Table 11. If for either category the customer is unsatisfied
with the type and content of services being provided, they will also have the option of Flexible
Electricity Contracts which opens the doors for more customisation and sophistication. With the
help of EDF Energy, the contract will be able to be built to meet the specific needs of the customer.
Figure 21 shows the framework for Flexible Electricity Contracts.
Table 10: Tariffs for new SME business customers. (Note: Features may be updated) [32]

Contract
Type
Features

Fixed for Business


-Fixed Price
-Protection against price
changes Cheaper Prices
-Renewable energy option
(electricity only)
-Automatically renews onto
Easy -Fix at the end of the
fixed term

New Start
-Competitive prices
-Low Fixed Daily
Charge
-Short fixed term
-Contracts agreed
from the 22nd January
2015] will
automatically renew
onto Easy Fix at the
end of the fixed term
25

Freedom for
Business
-Choose another
product at any time
-Variable price (with
30 days notice of any
changes)
-No fixed end date
-No notice to leave

University of Bristol

Ideal for
Fuel Type
Fixed or
Variable
Prices
Early Exit
Fees
Discounts

Payment
Options

Review of EDF Energys Practices and Policies

Price security
Electricity and/or Gas
Fixed

Start-ups and movers


Electricity only
Fixed

Flexibility and clarity


Electricity and/or Gas
Variable

Yes

None

None

7% discount for paying


monthly by Direct Debit

7% discount for
paying monthly by
Direct Debit
Monthly by Direct
Debit only

7% discount for
paying monthly by
Direct Debit
Direct Debit and
cash / cheque

Direct Debit and cash /


cheque

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Table 11: Tariffs for Large Businesses [33]

Contract Type
Cost of
Electricity

Cost of
Delivery
Cost of
Renewable
Energy
Incentives

Cost of our
Service
Meter Type

Contract
Duration
Consumption
Volume
Electricity
Reform
Blue for
Businesses

Fixed + Peace of
Mind
Fixed duration,
unlimited electricity
usage

Fixed

Fixed + Protect

Fixed + Reflective

Fixed
Duration, with a 20%
limit on how much your
actual energy use can
vary from your forecast
Fixed

Fixed
duration, with a 10% limit
on how much your actual
energy use can vary from
your forecast
Variable

Fixed
Protected
Renewables
RO and FIT costs for
Obligation (RO) and
the duration of your
Feed In Tariff (FIT)
contract, unless they
costs for the duration
rise more than 40%
of your contract
above our forecast
Fixed for the duration Fixed for the duration of
of your contract
your contract
Non-Half Hourly
NHH & HH
(NHH) & Half
Hourly (HH)
Up to 36 Months
Up to 36 Months
0-50 GWh
Up to 5 million per
annum
Electricity Market
Reform Fixed
With Blue, electricity
backed by lowcarbon generation is
exactly the same
price as our standard
electricity.

0-50 GWh
Up to 5 million per
annum

Variable
over the course of your
contract as service
providers confirm their
costs to us
Fixed for the duration of
your contract
HH

Contracts ending before


October 2016
10-50 GWh
Between 1 million and
5 million per annum

Electricity Market
Electricity Market Reform
Reform with 40%
Pass-through
tolerance
With Blue, electricity
With Blue, electricity
backed by low-carbon
backed by low-carbon
generation is exactly the generation is exactly the
same price as our
same price as our standard
standard electricity.
electricity.

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Figure 21: Flexible Electricity Contract Framework in just 5 key steps [34]

If an organisation under the Large Business category spends more than 1m a year on energy, it has
the option of applying for an Energy Performance Contract (EnPC). EnPC allows EDF Energy to
audit the organisations sites and suggest energy-efficient opportunities to help the organisation
reach its energy efficiency targets [35]. A big incentive that EDF Energy offers Large Business
customers is risk transfer. Such risks include performance, delivery and most importantly health and
safety risks. As a result, client protection throughout the entire duration of the contract is guaranteed
[36]
. Risk transfer is completed according to the process shown in Figure 22.

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Figure 22: Effective Risk Systems, Risk Transfer and Culture [31]

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For any of the contracts mentioned above, EDF Energy ensures that each of these contractual
schemes is in accordance to Schedule 6 of the Electricity Act 1989 and Schedule 2B of the Gas Act
1986.

4.2.4. Product Liabilities


EDF Energy states clearly in their full terms and conditions the limit to their liability on customers.
EDF Energy also has a legal duty to their customers under Part 1 of the Consumer Protection Act
1987 and failure to comply with this will result in product liability claims against EDF Energy.
Strict liability conditions are imposed by EDF Energy in order to protect the organisation legally.
For instance, EDF Energy will not be liable for any loss the consumer experiences if and only if
EDF Energy has been found to be negligent of their responsibilities or exhibit fraudulent behaviour.
As a method of risk mitigation recommended by EDF Energy, consumers are encouraged to acquire
protection insurance against any non-liable losses that might occur [29].

4.2.5. Professional Liabilities


EDF Energy provides various job opportunities for different types of professions such as
engineering, sales marketing and administration. As a result of such professional diversity, it is
fundamental that EDF Energy take into account the issue of professional liabilities that may be
imposed on them should an accident or an unforeseen event occur. The notion of how a reasonable
professional under the circumstances may be applied [30]. Based on this test, it is possible to make a
reasonable judgment to decide whether or not the professional individual has in fact breached the
signed contract, duty of care according to Tort law or their statutory duty, i.e. failure to perform to
the required or expected standard [31].
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4.2.6. Nuclear Waste Policy


EDF Energy nuclear waste policies
are in compliance to the ISO 14001
standard, Environmental policy, UK
law and UK Government policy.
Ongoing certification under ISO
14001 requires that EDF Energy
continue to demonstrate their current
commitment through improvements
and actions that will enhance its
environmental performance. Amongst
the practical actions taken by EDF
Energy is as shown in Figure 23 [26].

Review of EDF Energys Practices and Policies

Use of reprocessed uranium in


our existing fleet of power
stations
Reduction of generated
radioactive waste and spent
fuel
Effective use of the waste
management hierarchy

Figure 23: Practical actions taken by EDF Energy to meet its


commitments towards improving environmental performance [26]

4.2.7. Competition Law


EDF Energy also complies fully with the Competition Act 1998 as well as Ofgem regulation. This is
to ensure market competition amongst other companies of the same sector.

4.3. Case Study: United Biscuits takes on Energy Performance Contract (EnPC)
United Biscuits, a British multinational food manufacturer, went into a partnership with EDF
Energy in 2013 in order to achieve its energy efficiency targets. EDF Energy suggested 40 energysaving opportunities which in practice could save up to 2.5m a year after auditing 7 of United
Biscuits UK sites. United Biscuits produced a plan to install suggested measures and agreed upon a
Performance Contract with EDF Energy. The plan is broken into 2 phases with the second phase
still in progress. Phase 1 of the scheme has already been helping United Biscuits save up to
397,000 per annum [37].

Figure 24: Comment by Paul Martin on the impact EDF Energy


has had on United Biscuits so far [37]

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4.4. Conclusion
As a conclusion, it can be seen that EDF Energy enforces strict policies but only so to protect the
interest of the organisation as well as its personnel as handling electricity generation and supply
through nuclear plants imposes much more regulations that need to be observed. This is especially
true for those rules and regulations related to the health and safety of the public and site personnel.
EDF Energy has ensured that health and safety will be the highest priority and have demonstrated
this through the training provided, public information, comprehensive emergency plans as well as
abiding closely to the standards set out in regulations as well as company policies and A&IMS.
With the systems, plans and laws in place, it is likely that EDF Energy will continue to maintain its
zero harm policy in the coming future.
EDF Energy offers a large medium of contract options for its customers, be it household consumers,
SME businesses or larger businesses. If fixed contracts arent suitable, then the customer still has
the option of a flexible contract in which the customer requirements are met as best as possible.
EDF Energy goes on to provide sustainable and energy efficient suggestions to Large Businesses
with zero risk to the client to help them reach their energy efficiency goals through an EnPC. The
result of this is improvement in the organisations energy efficiency as well as cost reduction every
year.

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5.0. Health, Safety and Environment Management

Figure 25: Zero harm [40].

As mentioned in Section 4.2.1, EDF Energy prioritises the Health and Safety of its personnel and
those around them by putting in place management systems to achieve Zero Harm ambition,
which revolves around 3 aspects as listed in Figure 25. The 5 key principles in Figure 26, as stated
in the company health and safety policies, are practiced in all EDF Energys businesses [40].

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Every job will be done


safely, no matter how
important or urgent it is
Learning from near
miss to reduce the
frequency of future
harm

Personal responsibility
for own health &
safety and for those
around us

5 Key Principles

Putting people to work


carries a specific
responsibility and
accountability for safety and
health

Identify, report and deal


with hazards to help create
a harm free workplace

Figure 26: 5 Health and safety key principles [27]

5.1. Policy Statements


EDF Energy has written policies in accordance to the Health and Safety at Work Act 1974 (HSWA
1974) Section 3(3), to elaborate on its commitments towards the Health, Safety and Environment
(HS&E). These policies include the Company Policy: Health & Safety, Company Policy:
Environment and Health, Safety, Environment & Quality Policy respectively. Refer Section 4.2.1
for policy statements [27] [38] [41].

5.2. Assurance and Integrity Management System


Assurance and Integrity Management System (A&IMS) represents a fundamental part of EDF
Energys strategies to achieve its Zero Harm target. This system sets the management framework,
which in turn implements guidelines and standards for health, safety and environmental
management systems of all EDF Energy business units. Furthermore, the framework also includes
accessing and controlling risk resulted from business operations [41].

5.3. Management System Principles


In agreement with Safe Working Environment commitment, EDF Energy adopts a multi-layer
model to monitor performance of its internal standards and external regulations of its management
systems through a set of requirements as shown in Figure 27 [26].

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Management accountability

Peer checking and self-assessment

Review and audit by company experts

Independent internal oversight from its Safety


and Regulation Division
External oversight from its Nuclear Safety
Committees
Figure 27: EDF Energy management principles [26].

5.4. Management Values


EDF Energy established three management values of high standards to govern the health, safety and
environmental standards of its businesses: work management, equipment reliability and nuclear
professionalism (refer Figure 28).
EDF Energys work management adopts Institute of Nuclear Power Operations' (INPO) Work
Management Process Description AP-913 to maximise risk management, the efficiency of station
staff and effectiveness material resources use [42] [26].
Equipment reliability focuses on eliminating risks associated with equipment which might
compromise nuclear safety. Institute of Nuclear Power Operations' (INPO) Equipment Reliability
Process Description AP-913 builds the foundation for the reliable equipment system, which
includes the Corrective Action Programme (refer Section 5.5) [43] [26].
Nuclear professionalism aims to maximise nuclear safety margins by investigating and eliminating
organisational weakness and decreasing the frequency of human errors through training
programmes and implementation of human error prevention tools [26].

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Figure 28: EDF plant operational management [26].


5.5. Error Reporting System Corrective Action Programme
Corrective Action Programme (CAP) is based on the EDF Energys key principles of Health and
Safety Executive (HSE) tool to identify, evaluate and control problems arising from its nuclear
power operations to ensure a safe working environment. The programme reinforces prompt
reporting and response, called Condition Report using computerised systems and involves various
senior personnel to investigate and devise corrective actions for events which may breach nuclear
safety. It is designed to protect its plant operations, personnel, nuclear safety, environment,
equipment and most importantly, rectify any organisational weaknesses. Conclusively, this
programme reinforces prompt reporting behaviour of personnel. Figure 29 visualises the error
report system implemented in all EDF Energys nuclear power plants based on CAP [26].
5.6. Continuous Improvement
EDF Energy embraces and encourages a continuous improvement culture in its practices. The
culture is adopted and implemented together with value option studies of activities to identify issues
and emerging trends as well as ensure effective results have been delivered through reviews by
relevant board committees. For example, in Figure 29, every Health and Safety issue is individually
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evaluated by the Corrective Action Review Board to make critical judgement on the performance
and efficiency of response, which also represents one of the management system principles in
Section 5.3 [26].

Figure 29: Error reporting system [26].

5.7. Case Study


The previous sections explain the structure of robust systems in place at EDF Energy. Figures 30
and 31 show the Health, Safety and Environmental management of EDF Energys business units
and corporate steering functions. The management involves adaptation of A&IMS framework,
continuous improvement through self-assessments and involvement of HSE committees and
Nuclear Safety Committees such as the Health and Safety Committee and Sustainable Development
Committee.

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Figure 30: EDF Energy's environmental management [27].

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Figure 31: EDF Energy's environmental management [5].

5.8. Training Programmes


EDF Energy (refer Section 4.2.1) acknowledges that training is the key to effective management
and long health of the organisation. Therefore, training is provided to all their staffs (construction,
operation of power stations to transportation and delivery of radioactive waste as well as
decommissioning of nuclear power stations) to ensure they are trained, i.e. Suitably Qualified and
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Experienced Persons (SQEP), to perform their duties in a manner safe to them and those affected by
their acts. To demonstrate compliance with Schedule 2 of the Nuclear Site Licences, Licence
Condition 10: Training and HSWA Section 2(1)(a), EDF Energy provides training programmes and
arrangements for all personnel. [39][44]
5.8.1. Training Infrastructures
A Nuclear Power Academy at Barnwood, Gloucestershire displayed EDF Energy determination to
enhance their existing employees skills and knowledge. EDF Energy invested 3.5 million to
construct the Barnwood Academy and set to train about 2,500 graduates and existing staff annually.
This complements the existing training buildings and departments situated at each power stations.
[45]
Figure 32 lists the types of training that are provided at Barnwood Nuclear Power Academy.

Figure 32: Barnwood Nuclear Power Academy Training Programmes [46].

5.8.2. Programmes Accreditation


EDF Energys training programmes are subjected to evaluation from EDF Energy Accreditation
team, which has the responsibilities to review all of EDFs eight nuclear power stations. Figure 33
details the accreditation process for training programmes, which are established on three principal
guidelines; BEG/SPEC/TRNG/601-602. [26]

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Figure 33: EDF Energy Training Programmes Accreditation Process [26].

5.9. Radioactive Waste Management


The HSE, Environmental Agency (EA) and Scottish Environment Protection Agency (SEPA) define
radioactive waste management as to control and account for radioactive waste to protect human
health and the environment now, but also to make sure we do not leave unnecessary burdens for
future generations [47].

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5.9.1. Nuclear Waste Policy


One of EDF Energys policy statements (refer Section 4.2.1) is to strive for minimal environmental
damage and ensure their protection. To act in accordance with the regulations established by HSE,
EA, SEPA, DoT and NDA, EDF Energy rules safety as their overriding priority in its Nuclear Waste
Policy with the following objectives [26] (refer Section 4.2.6).
The policy complies with the regulations, i.e. as reasonably practicable minimise radioactive waste
production, minimise the need to generate radioactive waste, reuse or recycle materials that
contribute to radioactive waste and dispose radioactive waste when no other route could be
identified. [47]
5.9.2. Environmental Management System
EDF Energy created SAWM and FIP (refer Table 12) to strategically manage all radioactive waste
from their nuclear power stations.
Table 12: SAWM and FIP [26]

Management Programmes
Sustainable Approach to
Waste Management (SAWM)
Fleet Implementation Plan
(FIP)

Description
1.Enhance company processes and performance through
performance indicators
2.Develops best available technique to define company
specifications for all waste types

Other management systems include Corporate Radioactive Waste Management Strategy and
Integrated Company Practice for Environmental Compliance and Management. These systems are
accredited to ISO 14001 which recognises EDF Energys commitment to reduce environmental
impact [26].
Waste management practices, which are based on Best Available Technique, are regularly reviewed
against companys environmental framework, summarised in Figure 34. Corrective Action
Programme (Section 5.5), Suitably Qualified and Experienced Persons (Section 5.8) concept, selfassessment and benching marking using SAWM and FIP are implemented throughout its
environmental management systems, which also practices the continuous improvement philosophy
(Section 5.6) [26].

Figure 34: EDF Energy waste management framework [26].


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5.9.3. EDF Energys Radioactive Waste Management


EDF Energy manages waste associated to nuclear power generation according to the regulations
(Figure 35) set by Office for Nuclear Regulation (ONR) as described in Figure 36.

Figure 35: Radioactive Waste Management [47].

Figure 36: EDF Energy's waste disposal system [26] [48].

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5.10. Management Review

EDF Energy's Incident Records


1.9
1.7
1.78

1.58

1.5
1.3

Total Recordable Incident Cases (employees and contractors)

1.1
0.9 0.84
0.7
0.5

2013
2011

Year
Figure 37: EDF Energys total recordable incident rate for the year 2011 2013 [14].

LLW and ILW Generated


750

694

655

650

Waste
(tonnes)

550
608
450
350
250
161

161

178

150
2011

2012

2013

LLW
Linear (LLW)
ILW
Linear (ILW)

Year
Figure 38: EDF Energy radioactive waste data for the year 2011 2013 [24]

5.10.1. Health and Safety Management Review


From Figure 37, EDF Energy achieved a 47% decrease in the Total Recorded Incident (TRI) cases
in the year 2013 when compared to the average TRI over the three years. This reduction was on
track for the aims of Zero Harm, i.e. 50% reduction in Total Recordable Incident Rate by 2020 [14].
The systems put in place to govern the Health and Safety of its personnel have a positive outcome
and matches to the statements of its policies. However, despite having a robust equipment reliability
system (Section 5.4), Sizewell B in Suffolk, one of EDF Energys nuclear power stations
experienced unplanned shutdown in 2008 and again in 2012 due to electrical fault in the nearby
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precinct [49] [50]. Nevertheless, the systems put in place have enabled prompt actions in those events
due to continuous improvement philosophy and Corrective Action Programme.
5.10.2. Environmental Management Review
From Figure 38, there was a steady small increasing trend in the total generated Intermediate Level
radioactive Waste (ILW) and Low Level radioactive Waste (LLW) over the three years period. This
was the result of the efforts to fulfil EDF Energys Nuclear Waste Policy as stated in Section 5.9.1.
However, the trend will be expected to rise further due to new nuclear power station plans and
decommissioning of nuclear power stations such as the undergoing Hinkley Point C Project,
Dungeness A and Dungeness B life extension. [51]
ONRs July 2014 inspection on EDF Energys radioactive waste management concluded that
SAWM was of high-level management standard on radioactive waste and environmental
protection measures. Despite that, the report pointed out the certain areas requiring further
improvement such as progress reviews and implementing SAWM and radioactive waste
management into staff training. [52]
5.11. Recommendations
Despite that, Health and Safety as well as Environmental issues associated with nuclear power
generation remains a worrying uncertainty for the public. A similar trend could be interpreted from
the informal survey conducted (results tabulated in Appendix A), where 50% of the participants
surveyed did not believe the nuclear industry has the sufficient potential to guarantee publics health
and safety. The public has little awareness of intensive management systems which performed up to
par as the regulation requires. Hence, it would be beneficial to raise the public awareness of EDF
Energys Health, Safety and Environmental policies and systems as to gain more favourable
response from the public.
The main concern with the general world populous with the nuclear industry is the radioactive
waste disposal. EDF Energy provided information for its LLW and ILW management through its
websites. However, EDF Energy did not inform in their public domain regarding the management
of High Level radioactive Waste (HLW) nor was there a system to overlook the future of HLW. This
is due to pending Government decision on a permanent storage for HLW. Consequently, the existing
HLW are stored on site. Therefore, it would be beneficial for EDF Energy to devise management of
HLW to prepare for future events such as societal collapse or sea level rise.

5.12. Conclusion
EDF Energy prioritises safety as stated in their policies and aims for Zero Harm target. This
ambition is realised through implementation of various management systems, which are robust and
effective. Consequently, the management systems have been accredited from internal and external
profession bodies for its performances.

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6.0. Professional and Ethical Conduct


6.1. Company Policies
Professional ethics is defined as the accepted standards of personal and business behaviours, values
and guiding principles [53]. EDF Energy has set policies to meet the mission of delivering the highest
standard of integrity, behaviour and business performance. EDF Energy emphasises on 3 key
values, Respect, Solidarity, and Responsibility [55].
EDF Energy commits to:
Ensure health and safety of those affected by the activity as well as the safety of its
installations and works
Protect the environment by managing risk and reducing the impact of the activity
Develop the competence of its employees, recognise and review the quality of their
contributions and maintain a constructive communication
Prevent discrimination and harassment of any form in the workplace
Respect the opinions of the employees as well as other organisations without providing
support to any particular one.
Fight against fraud and corruption
Listen to stakeholders and provide all information relevant
Act ethically to those around them
Guarantee the right to report concerns faced by employees in confidence
Figure 39: Employers Ethics and business conduct policies [54] [55]

Employees are required to:

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Respect
individuals

Be a group
advocate and
ambassador

Act with
Integrity
Duties of
Employees

Protect
company's
asset

Respect
Stakeholders

Figure 40: Employees ethics and business conduct policies [54] [55]

EDF Group has also committed to follow the ten principles set by the United Nations Global
Compact (UNGC) as shown below:
Human Rights

1. Businesses should support and respect the protection of


internationally proclaimed human rights;
2. Make sure that they are not complicit in human right abuses.

Labour

3. Businesses should uphold the freedom of association and the


effective recognition of the right to collective bargaining;
4. The elimination of all forms of forced and compulsory labour
5. The effective abolition of child labour;
6. The elimination of discrimination in respect of employment and
occupation.

Environment

7. Businesses should support a precautionary approach to


environmental challenges.
8. Undertake initiatives to promote greater environmental
responsibility.
9. Encourage the development and diffusion of environmentally
friendly technologies.

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10. Businesses should work against corruption in all its forms,


including extortion and bribery.

Figure 41: UNGC 10 principles [55]

6.2. Treating Employees


EDF Energy values a multicultural team. Having people from different background provides
different perspectives to allow them to gain a better understanding of their customers [56]. Their
efforts with BAME (Black, Asian and Minority Ethnic) network has won the Employee Network
Award at the Race for Opportunity Awards 2013 [56].
EDF Energy encourages their employees to participate in volunteering activities. Partnerships with
other organisations also provides wide selection of volunteering opportunities for the employees [56].

6.3. Corporate Social Responsibility (CSR)


CSR is defined as the responsibility of enterprises for their impacts on society [57]. CSR is becoming
increasingly important for enterprises as it brings many benefits in terms of risk management, cost
saving, access to capital, customer relationships, human resource management, and innovation
capacity [57].
EDF Energy also believes that being a good neighbour is important to a good business. EDF Energy
gives back to the community in which they operate by organising activities to promote education
and set up trust funds to help the people in need [69].
In an effort to promote Science, Technology, Engineering and Maths (STEM) in young generations,
EDF Energy has collaborated with multiple institutes to develop programmes that would inspire
school children to have higher energy awareness and to pursue a career in STEM.
6.3.1. The Pod
The Pod is EDF Energys
award winning sustainable
schools programme which
aims to inspire the young
generation and their families
to lead a more sustainable
lifestyle, promote STEM, to
encourage
science
and
engineering as a career
choice, and to help children
understand that a low carbon,
Figure 42: The pod [79]
[62]
secure and affordable energy supply is vital for the future . The Pod is also the largest programme
of its kind in the UK [62].
The Pod is an interactive website aimed at 4 to 14 year olds for schools to utilise. Teachers,
community group leaders and students are able to access the free lesson plans, practical exercises
and information, all linked together [62]. The content of the websites are developed by working with
key organisations like Eco-Schools England and the British Science Association [62].

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40% recruits consider it to be a


positive influence

educates and encourages


children on sustainable
behavious

Business impact
schools save 10 to 20% on
energy bills

Social and environment impact


saved 61 megatonnes of CO2

46% of school engaged make


considerable savings on waste,
water and carbon emissions

generated positive media


coverage since launch

Figure 43: Impact of The Pod [63].

6.3.2. Science Festivals


EDF Energy funds science festivals within the UK to
promote science and engineering targeted at young
students. Edinburgh International Science Festival
was founded in 1989 as a charity to encourage people
to discover about the world and the principles behind
it. It hosts one of Europes largest science festival
annually. EDF Energy sponsors Generation Science, a
part of the education programme to visit schools
around Scotland to organise workshops and
interactive shows to generate interests in science
[77]
among the students and make it exciting while easier to Figure 44: Science Festival, Edinburgh
understand [64].
Other than the Edinburgh International Science Festival, EDF Energy
also has been collaborating with Cheltenham Festivals for 10 years to
promote science and engineering to young students in the
community. The programme has encouraged a higher percentage of
students to engage in science and engineering. In turn, this has also
inspired a higher percentage of students to pursue a career in science
or engineering. This collaboration has also been awarded the
Collaborative Action by the Business In The Community (BITC)
[14]
.
The science festivals encourage more than 10,000 children a year
alone in the south west area of the UK. 65% of the students involved
also said they are more interested in STEM as a career [65].

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Figure 45: Science Festival, Cheltenham [78]

6.3.3. EDF Energy Trust


EDF Energy Trust is a registered charity founded in 2003 to help individuals and families in need.
The Trust receives funds from EDF Energy but it is governed by a Board of Trustees independent of
the group. The Trust award grants via two Programmes, Individuals and Families Grants
Programme, and Organisational Grant Programme [67].
Individuals and Families Grants Programme helps EDF Energy users who are struggling to manage
their gas and electrical bills. The trust helps to clear debts owed to EDF Energy and other suppliers
or to purchase essential energy efficient household items. The Trust aims to provide vulnerable
individuals or families a solution to move forward. Applicants of the trust are also advised to seek
money advice to keep them debt free going forward [67].
Organisational Grant Programme awards grants to independent advice services and education for
prevention and relief of poverty. Grants awarded focuses on services relating to energy debt
awareness and prevention, assisting and promoting energy efficient plans, supporting and resolving
energy debt problems [67].
In 2013, the trust made over 2000 awards amounting to 1.6 million pounds and an additional 1
million pound to support customers coming off their price reassurance scheme [14].
6.3.4. Marie Curie Cancer Care
In January 2013, EDF Energy allowed their employees to take part
in a vote to appoint a new charity partner and the Marie Curie
Cancer Care was chosen. A 3 year partnership was launched in May
2013. EDF Energy are working with the charity to raise funds to
provide free care and support to patients suffering from terminal
illness. EDF Energy is also helping the charitys hospices to
improve the
energy efficiency and
Figure 46: Cancer care [80]
raise
awareness. This partnership has gone beyond
expectations by raising 182,000 pounds in first 10 months of the partnership, enough to support 14
nurses for a year [14].

6.3.5. Helping Hands


Helping Hands is a company activity which allows an employee of EDF Energy to participate in
volunteering activities. Employees are allowed to spend 2 working days volunteering in the
community every year. Volunteering activities can be done individually or as a group to support
charities, schools or community organisations to better the society in terms of education,
environment and social aspects. Volunteering includes a wide range of activities like litter-picking,
redecorating a hostel and creating a peace garden [14].
This kind of exposure allows employees to further help the community. They are also rewarded for
their extensive involvement in volunteering. For example, Margaret Wenham was awarded the
North East Employee Volunteer of the Year Award in 2014 by BITC for her outstanding
contributions to the community. Other than just volunteering, she has also created opportunities by
developing volunteering partnerships such as the Trussel Trust and Bridge Young Carers Project [68].

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6.3.6. Business in the community (BITC)


BITC is a business led charity to drive change, develop an integrated approach to running a
responsible business, encourage action by publicly recognising those businesses that are bringing
about change, and enable business to achieve more through collaboration [58].
BITC developed a self-assessment tool called Corporate Responsibility (CR) index in consultation
with world business leaders which helped hundreds of companies improve progress on CSR for
more than a decade. This can be used as a benchmark to measure the performance of EDF Energy in
terms of its contribution back to the community with other major energy companies such as RWE
npower and many more [59].
According to the CR index, EDF Energy has been awarded the platinum big tick award, the highest
award, in 2012 and 2013. EDF Energy has also been nominated for the platinum big tick award in
2014 [61]. This shows EDF Energy is one of the worlds leading businesses and contributes largely
back to the communities it operates in. Although EDF Energy did not win the award for responsible
and sustainable business practice, they were highly commended by the European CSR Award
Scheme [60]. EDF Energy has shown that they have contributed back to the community at the highest
level several years in a row and it is on track to winning the platinum big tick award again in 2014
[61]
.

Social Impacts

Business Impacts

cultivating next generation of


STEM skilled staff
reduced cost of energy resulting in
300,000 new residential product
account
address fuel poverty through EDF
Energy Trust Fund
Created economic benefits through
SMEs in the South West of UK
match local unemployed people for
construction of Hinkley Point C

47% improvement on recodable


incidents
winning a 10 year contract with
Network Rail
increased public opinion by
building visitors centre at nuclear
power station

Figure 47: Impacts of EDF ENERGY 2014 [63]

6.4. Improvements
Science festivals are a great way to inspire the young generation and prepare them for the challenge
of living sustainably. Efforts should be made such that all the schools in the UK will participate in
the eco education programme. The programme should also extend to a global level to educate
children from all over the world about sustainability especially in developing countries. EDF
Energy Trust should extent their help to non EDF Energy customers as well to help the people in
need. Helping Hands programme should promote group volunteering activities to improve
relationships between the employees which key to moving forward to develop a sustainable
business and to provide high quality services.

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6.5. Conclusion
EDF Energy has shown that it has made many contributions back to the community. They continue
to make strides to improve the energy awareness of society by instilling the importance or a
sustainable lifestyle into children. At least 50% of school children expressed interest in STEM by
the end of the programmes introduced. By promoting STEM as a lucrative career, they have also
provided the next generation of scientists and engineers which emphasises on sustainable to ensure
the world is able to cope with the limited resources on earth.

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7.0. Conclusion
Generally speaking it can be said that EDF Energy is heading in the right direction in terms
of sustainable development. The initiatives of the company to fulfil its Better Energy Ambitions
such as offering Personalised Support Service, implementing a 0 termination fee policy et cetera
are evidences that EDF Energy takes sustainable development matters seriously. However, a major
obstacle in the sustainable development of EDF Energy is the current decline in oil price. The
current dip in oil price is causing energy generated via oil and gas to be cheaper than nuclear power.
[70]
As EDF Energys main source of energy is nuclear, this will have a significant impact on them if
the oil price decline persists.
EDF Energy in general shows full compliance with all the imposed laws and regulations.
Based on the legal case study done by EDF Energy, it can be seen that they are making a positive
difference for companies and businesses who take up the Energy Performance Contract. From a
legal perspective, EDF Energy has proven to be an exemplary organisation that upholds its
commitments and responsibilities. EDF Energy should continue to adhere to the required
legislations and policies to maintain a high standard of health and safety, commitment and duties.
Over the decades, Health, Safety and Environment has been gaining more importance. Strict
requirements need to be implemented in all industries, particularly the controversial nuclear
industry. EDF Energy has developed management systems which embraces the culture of
continuous improvement and participation. This is the highlight of the management systems
because it contributes to ensuring a safe working environment and environmental protection. The
decreasing TRI and controlled radioactive waste production shows that EDF Energy has performed
up to expectations of themselves and the regulators.
Employees are the heartbeat of a company and must be respected and treated fairly, and
EDF Energy has done that. They have also made an effort to improve the society they work in and
have also won corporate responsibility awards consistently. They set an example for other
companies to follow in their footsteps. EDF Energy also protects the interests of the countries they
operate. An equal or higher amount of effort should be made to maintain their contributions towards
the community.

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49. EADT24. Sizewell B: Nuclear plant back up and running after shut down. Available at:
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<http://www.edfenergy.com/news/edf-energy-and-times-cheltenham-science-festivalwin-award-%E2%80%98collaborative-action%E2%80%99-south-west>. [Accessed 25
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79. Image source:
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pg>
80. Image source: <http://charitable-bonds.allia.org.uk/wpcontent/Cimy_User_Extra_Fields/Marie%20Curie%20Cancer%20Care//header.jpg>

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9.0 Appendix
Writers Note:
This section contains data of the survey conducted from 10 th of December 2014 to 29th of January
2015. The following responses were collected from 46 participants that consisting of UK university
students under various disciplines of study (Social Sciences, Engineering, Science, Law and others).
The survey forms were distributed via social media.
We acknowledge that the data from the survey are inconclusive and have bias factors, a quarter of
the participants are from the United Kingdom (Figure A1), 63% of the participants were studying a
degree in engineering (Figure A2) and survey responses are inadequate to represent the general
populace. Despite such contradicting factors, our focuses are on interpreting the opinion of the
future generation.
The following interpretation of data are based on neutral and non-biased judgements of EDF
Energys practices.
Data:
Are you a permanent resident of the UK?

Figure A48

What is your field of study?

Figure A49

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Do you agree that nuclear is the future of power generation?


Responses from engineering students
20
18
16
14
12
10
8
6
4
2
0

Agree

Disagree

Indecisive

Figure A3

63% of the participants are engineering students. One interesting trend noted from the responses of
the engineering students were that 40% of the engineering students do not see nuclear power as a
viable energy source of the future, despite the fact that engineering students are likely to be more
knowledgeable about sustainable development and would think that nuclear power present potential
benefits compared to other power generation methods such as oil, natural gas or renewables, we
were taken aback by this percentage. This is an indication that EDF Energy which controls 8
nuclear power stations and monopolises much of the UKs nuclear power generation, is not doing
enough to give the public, particularly the future generation, assurance with regards to their health
and safety as well as sustainability as indicated in Figure A3.

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Do you think nuclear power plants are disaster proof in the UK?
Responses from 46 Participants
25

20

15

10

Yes

No

Not sure

Figure A4

The authors of this review are interested to find out whether public opinion on nuclear power
reliability was affected by the 2011 Fukushima nuclear meltdown, and hence the question do you
think nuclear power plants are disaster proof in the UK? was posted in the survey. Looking at
Figure A4, it can be seen that 50% of the participants feel that UK nuclear power plants are not
disaster proof (despite the fact that UK does not have major natural disasters such as earthquakes to
trigger a nuclear meltdown), 17% of the participants think otherwise and the rest are unsure. The
general negative perception of the safety of nuclear power stations may well be caused by the recent
Fukushima mishap. This highlights the work nuclear power generators such as
EDF Energy has
to do to convince the public they can manage their nuclear power stations safely.
However, having said that, Globescan, commissioned by BBC News, conducted a survey with
23,231 participants to gather their opinions on building new nuclear reactors in UK. The results
were 33% supporting the building of new nuclear power stations in 2005 and 37% supporting in
2011. It is worth noting that even though the latter survey was conducted after the 2011 Fukushima
disaster the numbers supporting new nuclear power actually increased. This shows that the sample
surveyed does not necessarily represent the whole populace of students.
Richard Black. (2011). Available at: <http://www.bbc.co.uk/news/science-environment-15864806>.
[Accessed 29 January 2015]

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