THE GREEN ENERGY LEAGUE TABLE
BACKGROUND REPORT
INTRODUCTION
In September 1998, upon the introduction of competition into the domestic electricity market, Friends
of the Earth (FOE) published a consumer guide to buying green energy. This included a league
table of companies operating in this market at the time, comprising mainly the Regional Electricity
Companies (RECs), but also Centrica (formerly British Gas) and the Renewable Energy Company.
This Background Report explains how this league table was formulated. Contact details for all
companies surveyed are given at the end of this report.
The bulk of the research was conducted by the Ethical Consumer Research Association (ECRA) on
behalf of FOE. Some additional research on investment in renewable energy capacity by the RECs
was carried out by FOE. Scores were awarded by ECRA in consultation with FOE.
Information Sources
Information on policies, targets and investment was obtained largely from the companies
themselves, via a detailed questionnaire, phone research and the companies' own reports.
Information on company group performance and criticisms levelled against the company relating to
the environment was obtained from: the US ethical investment research group - Council on
Economic Priorities; the US Environmental Protection Agency public access databases; the
Ethical Consumer Research Association Corporate Critic database; newspaper searches; and
EIRIS - the UK ethical investment research group, plus its US partner the Investor Responsibility
Research Centre.
Information was gathered between March and July 1998. It was correct at time of going to press
(Aug 1998), but it should be noted that the electricity sector is undergoing considerable change, with
new companies emerging onto the market, takeovers and mergers. This is likely to continue as
competition is widened. Some information in this report may therefore become out of date.
Criteria and Priorities
The preparation of the league table has been a complex process, since deciding on the weighting
given to different activities requires choosing a set of priorities. The overall results show that some
companies are good in some areas and poor in others. The core priority throughout has been to
help consumers reward those companies which show the greatest awareness of their responsibilities
to address global climate change and which demonstrate a commitment through their actions. This
is reflected in the final ranking, where Eastern Electricity leads the Regional Electricity Companies
because it has a quantified target on developing renewable energy and Combined Heat and Power,
because it has a specific policy on climate change, acknowledging the need to transform its
business in response to this threat, and because it has already started to offer its own customers
the chance to support renewable energy, through the launch of its green tariff.
The research was complicated by the fact that there are now many different types of company
involved in the electricity sector. All RECs buy electricity from the 'pool' but some own their own
power stations and generate power into the pool as well. Some companies are owned by US
multinationals whilst others are not. We have attempted to take this into account throughout the
research when rating the companies. See the individual sections below for further details.
Categories
The rest of this report attempts to explain how decisions were made in each of the different
categories and provides information on which these decisions were based, with an explanation of
source, scoring, any weighting that we decided to apply and the final ranking. We have provided
a league table for each of the four categories, as follows:
Section 1: Renewable Energy
Section 2: Energy Efficiency
Section 3: Environmental Policy and Reporting
Section 4: Parent Company Performance
Companies were then awarded points in these four league tables to produce the overall league table
below:
1 The Renewable Energy Company; 2 Northern Ireland Electricity; 3 Since going to print East Midlands has been taken over by
Powergen and some information is therefore out of date; South Western Electricity
Scoring & Rating
For the league tables within each of the sections, and for the final overall league table above, scores
were calculated by giving each company 3 points for a 'Very Good' rating, 2 points for a 'Good'
rating, 1 point for an 'Average' rating, 0 points for a 'Poor' rating and subtracting a point for a 'Very
Poor' rating. We have given an 'Average' rating when a category is not applicable to a company.
Section 1: Renewable Energy
This section considered the company's attitude to renewable energy and we looked at:
i. their investment in renewable energy generating capacity.
ii. whether the company had a target for increasing the amount of electricity it generated or
sourced from renewable energy projects.
iii. whether they operated, or plan to operate, a green energy tariff
iv. how amenable the company was to independent renewable energy generating companies
using their electricity distribution system
The league table for this section was as follows:
Score Rating
RECo 11 Very Good
Eastern 7 Very Good
SWEB 4 Good
Manweb 3 Average
Norweb 3 Average
Scottish P 3 Average
Midlands 2 Average
Scottish H 2 Average
Yorkshire 2 Average
Centrica 1 Poor
East Mids 1 Poor
London 1 Poor
Northern 1 Poor
NIE 1 Poor
Southern 1 Poor
Swalec 1 Poor
Seeboard 0 Poor
Details of how this league table was compiled is given in Table 1 at the end of this Section (p. 6).
Scores were awarded under each of the different categories as follows:
(i) Investment in Generating Capacity
Information on renewable energy capacity owned, or part-owned, by the RECs was obtained through
telephone conversations with the companies themselves. Details of the projects are available on
request.
We considered only those projects built under Non-Fossil Fuel Obligation (NFFO) since 1990 (which
is when renewable energy schemes began to be built following privatisation of the electricity
industry), since some companies like Scottish Hydro simply inherited large scale hydro plants at
privatisation. Because the nature of the companies varies (eg some such as Eastern have a lot of
generating capacity, while some have very little and are mainly distributors), we did not award points
on the basis of how many MW of renewable energy capacity they had, but rather gave credit for
having made any investment at all in renewable energy schemes. It is our opinion that regardless
of the nature, size or location of the company, any REC can invest in renewable energy projects in
any part of the country if it is so inclined. Indeed, because embedded generation (ie plant that
plugs straight into the local distribution network) can reduce transmission costs, building small-scale
renewables plant can benefit the REC financially and in terms of security of supply.
The scale of investment by Regional Electricity Companies both in terms of actual capacity and as
a percentage of their overall generating capacity has generally been poor, considering the size of
the renewable energy resource in the UK. We therefore awarded an 'Average' rating if they had
invested in renewables since 1990, and a 'Poor' if they had not. The exception was the Renewable
Energy Company, which has invested in renewable energy projects itself as well as sourcing its
power from other renewable energy companies. Since the electricity it produces or buys is purely
renewable, the Renewable Energy Company was awarded a 'Very Good' rating in this category.
NB: Waste to Energy
Waste to energy plants are criticised for their air emissions which often contain potentially
hazardous compounds such as dioxins and because burning rubbish is seen to be an inferior
substitute for effective demand-side management and recycling. Municipal waste-to-energy
incinerators have therefore NOT been treated as renewable energy projects for the purpose of this
research and credit has not been given if a company has invested in such projects.
(ii) Targets
This information was obtained from the company through the questionnaire. We asked whether the
company had a target for the development of renewable energy, either in terms of its own
generation or through dedicated supply contracts. Companies scored 'Poor' for no target at all,
'Average' if they had a target but it was not quantified and 'Good' if they had a quantified target. The
Renewable Energy Company was awarded a 'Very Good' in this category as it invests exclusively
in renewable energy and it aims to increase development according to market demand.
(iii) Green Tariffs
Information as to whether the company currently operates or plans to operate a green tariff was
supplied by the company through the questionnaire. We did not award points on the quality of the
tariffs as not enough information was available on the kinds of tariffs planned. We simply awarded
a 'Good' if they had an operational tariff, an 'Average' if they had one planned or under review and
a 'Poor' if they had no tariff operating or planned, or if they gave no reply to this question. We
awarded a 'Very Good' rating if they had an operational green energy tariff available to all their
customers and did not charge a premium for this.
Weighting: We decided to give extra credit for the operation of a Green Energy Tariff, as we
believe this to be an important way forward for the electricity industry. It shows an early and positive
response to growing customer demand for green energy and empowers individuals to take action
against climate change. We therefore awarded an extra point to the three companies who have
operatonal tariffs.
Further details on the range of tariffs on offer:
Information on the various green tariff schemes being offered by the RECs is given below.
Information on planned schemes was limited, and we have quoted information given by the
companies in their questionnaire. Further details should be available direct from the company.
Eastern Electricity - 'EcoPower'
With this scheme consumers can choose a 5% supplement with EcoPower or a 10% supplement
with EcoPower Plus - 'an additional £13 or £26 in an average domestic bill of £260' [1]. With this
scheme customers will not be buying green energy as such, but making a charitable donation to
the development of community renewable energy projects that meet Friends of the Earth good
practice guidelines. Eastern will match the money raised pound for pound up to £500,000 per year,
with the money going into an independent trust. The charity board of trustees has one Eastern
representative and others 'from environmental bodies and customers' , including Friends of the
Earth [1]. EcoPower also offers a 5% discount on customers paying by direct debit - thereby
allowing customers to contribute to the lower tariff with no cost increase [2]. Eastern has not yet
announced how it will sell the renewable energy it will generate itself to meet its own target of 10%
renewable energy generation by 2010.
SWEB - 'Green Electron'
This scheme, still described as a 'pilot trial' in February 1998, intends to charge a supplement to
subscribers - 'for the typical domestic customer who consumes £300 of electricity per year, the
premium would be £3.50 per month' [3]. SWEB pledges to 'match the demand for green electricity
with an equivalent amount [purchased] from renewable generators' [4]. The amount contracted by
SWEB on behalf of its Green Electron customers 'will be audited and verified by an independent
organisation'. This means you are in effect 'buying' energy generated from renewables, rather than
paying a donation to fund future development. It is likely that renewable generation companies
which have previously received support through the Non-Fossil Fuel Obligation (a levy ultimately
paid by electricity consumers through their fuel bills) but whose contracts have run out, will be selling
their power to the Green Electron scheme, but it is not clear whether Green Electron will develop
additional new renewable energy capacity.
Planned schemes:
Midlands Electricity - this 'would include schemes previously funded by NFFO. Also to consider
wind, hydro and solar. Possibly to include CHP, biomass, waste-to-energy and methane gas
schemes'.
Northern Electric - 'A levy to support small scale community-based projects, primarily wind turbines,
to be launched within 12 months'.
Northern Ireland Electricity - This is 'to be finalised. It will include wind, hydro, biomass and biogas'.
Scottish Power/Manweb - Will 'support small scale hydro schemes and windfarms, not existing
NFFO projects'. It is likely that this scheme will be similar to Eastern's, whereby a customer will not
actually be buying green electrcity but paying a voluntary premium to fund future development of
new projects. They plan to support this by paying around 80% of the cost themselves.
Scottish Hydro-electric - is planning to sell a green tariff at no extra cost to the customer. The power
will be 100% renewable (to be confirmed).
iv) the RECs' attitude to independent renewable energy generating companies using their
distribution system.
After discussion with contacts within the renewable energy and electricity industries, there was a
strong view that the attitude of the RECs to renewable energy generators using their distribution
system was a very good indication of how positive they were to renewable energy in general.
Eastern Electricity stood out as the only REC with an explicitly positive attitude to such use and was
therefore awarded an extra point for this. To avoid penalising the Renewable Energy Company for
not being a REC, it was awarded a point in this category.
TABLE 1: RENEWABLE ENERGY
|
|
Investment
in projects
|
Target
|
Green Tariff
|
Attitude to
independents
|
Points
|
Rating
|
|
|
|
|
|
|
|
|
|
Centrica
|
Poor
|
Poor
|
Average
|
|
1
|
Poor
|
|
Eastern
|
Average
|
Good
|
Good +1
|
1
|
7
|
V Good
|
|
East
Midlands
|
Average
|
Poor
|
Poor
|
|
1
|
Poor
|
|
London
|
Poor
|
Poor
|
Average
|
|
1
|
Poor
|
|
Manweb
|
Average
|
Average
|
Average
|
|
3
|
Average
|
|
Midlands
|
Poor
|
Average
|
Average
|
|
2
|
Average
|
|
Northern
|
Poor
|
Poor
|
Average
|
|
1
|
Poor
|
|
NIE
|
Poor
|
Poor
|
Average
|
|
1
|
Poor
|
|
Norweb
|
Average
|
Good
|
Poor
|
|
3
|
Average
|
|
RECo
|
V Good
|
V Good
|
V Good +1
|
1
|
11
|
V Good
|
|
Scottish
Hydro
|
Average
|
Poor
|
Average
|
|
2
|
Average
|
|
Scottish
Power
|
Average
|
Average
|
Average
|
|
3
|
Average
|
|
Seeboard
|
Poor
|
Poor
|
Poor
|
|
0
|
Poor
|
|
Southern
|
Poor
|
Poor
|
Average
|
|
1
|
Poor
|
|
Swalec
|
Average
|
Poor
|
Poor
|
|
1
|
Poor
|
|
SWEB
|
Average
|
Poor
|
Good +1
|
|
4
|
Good
|
|
Yorkshire
|
Average
|
Poor
|
Average
|
|
2
|
Average
|
Section 2: Energy Efficiency
Information on energy efficiency was obtained from the companies through the questionnaire.
Companies scored points according to whether:
i. they have met or exceeded the Energy Efficiency Standards of Performance targets set for
the RECs by the Electricity Regulator (OFFER). The SoPs require the RECs to spend
money on meeting specified energy efficiency targets by 31.3.98
ii. they are doing anything on energy efficiency over and above their obligations under
Standards of Performance ('non-SoP projects')
iii. they run or plan to run any innovative schemes to help customers invest in energy efficiency
improvements, principally low cost loans repayable on fuel bills and the development of
Energy Service Companies (ESCOs).
The league table for this section is as follows:
Score Rating
Seeboard 5 Very Good
London 4 Good
Manweb 4 Good
Northern 4 Good
Scottish Power 4 Good
Southern 4 Good
Eastern 3 Average
Midlands 3 Average
RECo 3 Average
Scottish Hydro 3 Average
Centrica 2 Average
East Midlands 2 Average
NIE 2 Average
Swalec 2 Average
Yorkshire 2 Average
Norweb 1 Poor
SWEB 1 Poor
Details of how the companies scored in each category to produce the league table above is given
in Table 2 at the end of this Section (page 9).
Scores were awarded under each of the different categories as follows:
(i) Standards of Performance:
In 1994 the electricity regulator OFFER introduced a scheme called the 'Energy Efficiency
Standards of Performance' or SoPs. These required the RECs in England and Wales, as Public
Electricity Suppliers (PES), to spend money on meeting specified energy efficiency targets by
31.3.98. Typical schemes are targeted at the elderly or disabled, those in rural areas or on low
incomes, and might involve supplying low energy lighting, insulation or low energy appliances.
Similar standards were introduced for the two Scottish RECs in 1995. In Northern Ireland a similar
SoP scheme was introduced in May 1996 for a trial period of two years. This slightly different
programme is not easily comparable with the other UK SoPs. Centrica (British Gas) does not have
SoP targets, although it has carried out some energy efficiency schemes. So as not to prejudice
these two companies' overall rating, Centrica and NIE receive an 'Average' rating.
We obtained advance information from the RECs on the progress of these schemes through the
questionnaire. Despite several follow-up phone calls, two companies - Norweb and SWEB - did not
provide this information, but we understand that all RECs will at least meet their target and we have
therefore awarded them an 'Average' rating. (NB: SWEB's failure to respond to the entire
questionnaire has affected its score elsewhere)
The Standards of Performance targets are different for each company and are based on an
assessment and advice by the Energy Saving Trust (EST). All the companies met their targets, with
some exceeding them. However, the targets are conservative - RECs are required to spend the
equivalent of only £1 per customer on these schemes, a small percentage of their overall profits.
We have therefore awarded a 'Good' rating only to the two companies -Eastern and Seeboard- who
exceeded their target by more than 10% (119% and 117% respectively). The others - who simply
met the target set for them or did very little above their statutory obligations - received an 'Average'
rating.
ii) Non-SoP schemes
We asked companies if they were doing anything on energy efficiency in addition to their obligations
under Standards of Performance. Most of these amounted to energy efficiency advice, education,
awards and charitable donations. Some provision of energy efficiency advice is obligatory for RECs
and overall the services they provide are very standard. We therefore awarded an 'Average' to all
companies on this, except for Norweb and SWEB who received a 'Poor' rating because they failed
to provide any information when requested.
(iii) Energy Efficiency Loans or the Development of ESCOs
One of the major obstacles to investment in energy efficiency improvements by householders and
businesses is a lack of capital to pay for insulation, more efficient appliances, etc, despite the fact
that their investment will be paid back through lower fuel bills. Friends of the Earth has been
lobbying for companies to provide help to overcome this barrier, through provision of low cost loans
for such improvements, which can then be paid back through householders' fuel bills. The
repayments are not burdensome, since the fuel bills are lower as a result of reduced energy use.
We have been lobbying for some time for changes in regulations to encourage the transition of
electricity commpanies into 'energy service companies' (ESCOs) - companies that provide a whole
package of energy services to customers rather than simply selling units of electricity or gas, thus
providing an incentive and mechanisms for the provision of these services in the most efficient way.
We therefore asked companies if they offered, or planned to offer such services - such as low cost
loans - to customers. This information was gathered through the questionnaire.
We were ready to award a 'Very Good' if they had such services available to all customers or a
target to extend them to their customer base (no company received this rating); we awarded a
'Good' rating if they had trialed such schemes (Seeboard, Northern, Scottish Power/Manweb,
Southern, London); we awarded an 'Average' rating if they had plans to offer such a scheme
(Scottish Hydro, Midlands, the Renewable Energy Company) and a 'Poor' rating if they had not even
considered it.
TABLE 2: ENERGY EFFICIENCY
|
Standards of
Performance
|
Non-SoP
projects
|
ESCOs/
loans
|
Points
|
Rating
|
|
|
|
|
|
|
|
|
Centrica
|
Average
|
Average
|
Poor
|
2
|
Average
|
|
Eastern
|
Good
|
Average
|
Poor
|
3
|
Average
|
|
East Midlands
|
Average
|
Average
|
Poor
|
2
|
Average
|
|
London
|
Average
|
Average
|
Good
|
4
|
Good
|
|
Manweb
|
Average
|
Average
|
Good
|
4
|
Good
|
|
Midlands
|
Average
|
Average
|
Average
|
3
|
Average
|
|
Northern
|
Average
|
Average
|
Good
|
4
|
Good
|
|
NIE
|
Average
|
Average
|
Poor
|
2
|
Average
|
|
Norweb
|
Average
|
Poor
|
Poor
|
1
|
Poor
|
|
RECo
|
Average
|
Average
|
Average
|
3
|
Average
|
|
Scottish Hydro
|
Average
|
Average
|
Average
|
3
|
Average
|
|
Scottish Power
|
Average
|
Average
|
Good
|
4
|
Good
|
|
Seeboard
|
Good
|
Average
|
Good
|
5
|
Very Good
|
|
Southern
|
Average
|
Average
|
Good
|
4
|
Good
|
|
Swalec
|
Average
|
Average
|
Poor
|
2
|
Average
|
|
SWEB
|
Average
|
Poor
|
Poor
|
1
|
Poor
|
|
Yorkshire
|
Average
|
Average
|
Poor
|
2
|
Average
|
Section 3: Environmental Policy and Reporting
This section looks at environmental policies and reporting of the RECs themselves. It does not look
at environmental reporting at parent company or company group level which is covered in Section
Four below.
In March 1998 we wrote to all the companies in this report with a questionnaire asking about various
aspects of their environmental policy development. Responses to the questionnaire and actual
policy documents and reports form the basis for information in this section. Despite follow-up phone
calls, two of the companies (Midlands and SWEB) did not fully respond in time for the deadline for
this report and were consequently penalised. Manweb, a subsidiary of Scottish Power does not
appear to report on environmental issues (other than those required by law) separately to its parent
company. Its rating is therefore the same as its parent.
Score Rating
Scottish Power 16 Good
Manweb 16 Good
Eastern 16 Good
Yorkshire 14 Good
RECo 14 Good
London 13 Average
Northern 12 Average
Scottish Hydro 11 Average
Centrica 10 Average
Norweb 10 Average
NIE 9 Average
Seeboard 9 Average
East Midlands 6 Poor
Southern 6 Poor
Swalec 4 Poor
Midlands 3 Poor
SWEB 3 Poor
This league table was compiled using information in TABLE 3 on page 12. For this table, the scoring
is as follows: // = best rating (scores two points), / = next best rating (scores one point)
The companies were assessed under the following categories:
Environmental Policy Statement (EPS)/Environmental Report: Audited (ER(A))/Environmental
Report: Unaudited (ER(U))/Social Report: Audited(SR(A))/Social Report: Unaudited(SR(U))
These columns simply report the presence of publicly available documents and do not attempt to
judge the quality of these documents. The desirability of externally audited versions is
communicated by the fact that all those with externally audited environmental reports receive the
best rating.
Environmental Management Systems (EMS): Unofficial/BS 7750/EMAS/ISO 14001
We asked whether companies had any of the above internationally recognised environmental
managements standards, or whether they operated an unofficial EMS instead. Although the official
standards are not without their critics in the environmental movement, they all require some degree
of external verification. Companies received the best mark if these standards were operational in
the greater part of their businesses. Companies with the next best mark had such schemes planned
or under trial in various parts of the company.
Board Level Reporting
Indicated whether there is a board level environmental representative
Accountability to shareholders
We asked companies to indicate ways in which they attempted to maintain transparency and
accountability to British customers and shareholders. Most companies drew attention to their
environmental reporting and websites - and any attempt to answer is noted on the table with one
point. The main reason the question was asked was to try to encourage the companies to address
the problems of accountability that occur when US ownership means that the company no longer
holds annual general meetings in the UK.
Air Pollution/Climate Change/Energy Efficiency/DSM Policy/CHP Policy
These columns indicate the presence of policy statements which specifically address these issues.
DSM stands for 'demand-side management', or in other words schemes to meet supply shortages
by cutting demand rather than increasing supply. CHP stands for Combined Heat and Power, an
efficient method of energy generation and use. Clear policies with measurable targets receive the
best rating, whilst vaguer policies or even just claims to have such a policy receive the lower rating.
ECRA Rating (targets)
This rating awarded by Ethical Consumer Research Association is based on the presence
throughout the environmental policies and reports supplied by the companies of future measurable
targets for improvements or dates by which these would be achieved.
Globally consistent standards
We asked companies whether they had operations in more than one country or business sector and
if so, did they apply the same environmental and social standards globally across all their
operations. The response to this was disappointing. Of the three companies who even answered
this question, Eastern Electricity replied 'No, not yet' and Northern showed a misunderstanding of
the issue, saying that they complied with the relevant national legislation in the countries in which
they operated. Only the Renewable Energy Company replied positively, saying that it would apply
standards consistently if it operated in more than one country, which, being a new small company
it does not. We have not therefore awarded any points in this category.
Comments
Whilst the comments on ISO 14001 are self-explanatory, the 'good supply chain management'
comment next to Yorkshire is worth commenting on. It is the only company answering the
questionnaire to demonstrate a clear understanding that the environmental responsibilities of an
electricity supplier extend to its purchasing contracts with generators. Although its comments are
only related to future intentions, this is a vital point which could have beneficial repercussions for
the environment, especially when taken on board by other suppliers.
TABLE 3: ENVIRONMENTAL POLICY AND REPORTING
|
|
EPS
|
ER
(A)
|
ER
(U)
|
SR
(A)
|
SR
(U)
|
Unoff
EMS
|
BS7750/
EMAS/
ISO14001
|
Board
Level
Report.
|
Acc.
to
s/holders
|
Air
Poll
|
Climate
Change
|
EE
|
DSM
|
CHP
|
ECRA
Rating
targets
|
Global
standards
|
Comments
|
Score
|
Rating
|
|
Centrica
|
/
|
|
/
|
|
/
|
/
|
/
|
/
|
/
|
/
|
/
|
|
|
|
/
|
|
|
10
|
Average
|
|
Eastern
|
/
|
//
|
|
|
|
/
|
//
|
/
|
/
|
//
|
//
|
/
|
|
//
|
/
|
|
Group-wide ISO
14001
|
16
|
Good
|
|
East Mids
|
/
|
|
/
|
|
|
/
|
/
|
/
|
/
|
|
|
|
|
|
|
|
|
6
|
Poor
|
|
London
|
/
|
//
|
|
|
|
/
|
/
|
/
|
/
|
/
|
/
|
/
|
/
|
/
|
/
|
|
|
13
|
Average
|
|
Manweb
|
/
|
//
|
|
|
/
|
/
|
//
|
/
|
/
|
//
|
/
|
/
|
|
/
|
//
|
|
Manweb all ISO
14001
|
16
|
Good
|
|
Midlands
|
/
|
|
|
|
|
/
|
|
/
|
|
|
|
|
|
|
|
|
|
3
|
Poor
|
|
Northern
|
/
|
//
|
|
|
|
/
|
/
|
/
|
/
|
|
/
|
|
//
|
/
|
/
|
|
|
12
|
Average
|
|
NIE
|
/
|
//
|
|
|
|
/
|
|
/
|
|
/
|
/
|
/
|
|
/
|
|
|
|
9
|
Average
|
|
Norweb
|
/
|
|
/
|
|
|
/
|
/
|
/
|
|
|
/
|
/
|
/
|
/
|
/
|
|
|
10
|
Average
|
RECo
|
/
|
|
/
|
|
/
|
/
|
/
|
/
|
/
|
//
|
//
|
/
|
/
|
/
|
|
|
|
14
|
Good
|
|
Scottish H
|
/
|
|
/
|
|
|
/
|
//
|
/
|
|
/
|
|
//
|
|
/
|
/
|
|
|
11
|
Average
|
|
Scottish P
|
/
|
//
|
|
|
/
|
/
|
//
|
/
|
/
|
//
|
/
|
/
|
|
/
|
//
|
|
|
16
|
Good
|
|
Seeboard
|
/
|
|
|
|
|
/
|
/
|
/
|
/
|
/
|
/
|
|
/
|
/
|
|
|
|
9
|
Average
|
|
Southern
|
/
|
|
/
|
|
|
/
|
/
|
/
|
|
|
|
|
|
/
|
|
|
|
6
|
Poor
|
|
Swalec
|
/
|
|
|
|
|
/
|
|
/
|
|
|
|
|
|
/
|
|
|
|
4
|
Poor
|
|
SWEB
|
/
|
|
|
|
|
|
|
/
|
|
|
|
/
|
|
|
|
|
|
3
|
Poor
|
|
Yorkshire
|
/
|
//
|
|
|
|
/
|
/
|
/
|
/
|
/
|
|
/
|
//
|
/
|
//
|
|
good proposed
supply chain
management
|
14
|
Good
|
Section 4: Company Group Issues
The previous section assessed the companies' environmental reporting and policies. This section
tries to judge how well the company group to which they belong has actually done in practice. With
76% of consumers claiming to be keen to consider a company's overall ethical stance- as well as
how green its products are - this is now important additional information [5].
Of the sixteen suppliers covered in this report, eight are currently owned by US multinationals (the
US 'parent' companies are the ones without 'plc' after their names). The US companies appear in
all the rankings from 'Good' to 'Very Poor'. Four of the remaining companies are 'mixed utilities'
whereby the parent company owns both electricity and water providers. The suppliers owned by
mixed utilities are: Manweb, Norweb, Scottish Power and Swalec. It is interesting to note that three
of the four remaining companies - Southern, NIE and Scottish Hydro - receive the highest overall
rating. Note that this industry is undergoing dramatic change and ownership of companies may
alter. The above is correct at the time of going to print (August 1998)
The overall rating was as follows:
Company Parent Company Critical Score Rating
Southern Electric Southern Electric plc 0 Good
Scottish Hydro Scottish Hydro plc 1 Good
NIE Viridian Group plc 2 Good
Northern Electric CalEnergy Co Inc 4 Good
Manweb Scottish Power plc 5 Average
Scottish Power Scottish Power plc 5 Average
Seeboard Central & South West Corp 5 Average
Centrica Centrica plc 5 Average
Norweb Unitied Utilities plc 6 Average
Eastern Texas Utilities 7 Average
London Entergy Corp 7 Average
Swalec Hyder plc 9 Poor
Yorkshire American Electric Power 50%
New Century Energies 50% 11 Poor
East Midlands Dominion Resources Inc 11 Poor
Midlands Cinergy Corp 50%
General Public Utilities 50% 11 Poor
SWEB Southern Co Inc 15 Very Poor
The league table in this section has been compiled using information in TABLE 4 on page 16, which
shows 'criticism' of company group performance over the last five years. It is based on:
. Information provided by the US ethical investment research group, Council on Economic
Priorities
. Information on emissions from the US Environmental Protection Agency public access
database
. The Ethical Consumer Research Association Corporate Critic database (includes UK
pollution prosecutions)
The information was checked against additional information provided by EIRIS - the UK ethical
investment research group and its US partner the Investor Responsibility Research Centre.
Although some companies gained or lost one extra point under this research, the broad patterns
were identical with no company moving from its current position within the broad bands of 'Good'
or 'Average', 'Poor' or 'Very Poor'. A copy of the full 79-page report by ECRA on which the findings
in this section were based is available from Friends of the Earth for £50 (plus VAT) [6].
Points were awarded as follows:
Water/Air/Land Pollution and Fines:
X = three or more incidents or criticisms
x = one or two incidents or criticisms
Nuclear Power
X = evidence that more than 10% of US generating capacity is from nuclear sources
x = existing US capacity, but less than 10%, or evidence of providing supplies to the nuclear
industry. (NB None of the UK companies own their own nuclear capacity.)
Lobbying - GCC
X = membership of or support for the Global Climate Coalition - an industry lobby group heavily
criticised for its activities in Kyoto and elsewhere to prevent regulation by governments of
greenhouse gas emissions
Lobbying - Other
X = membership of or support for other industry lobby groups which argue against good
environmental practice or regulation
Environmental Policy of Parent Company (EP PC)
X = the company did not reply to our request for a copy of its environmental policy or reports
x = the company sent us environmental policies or reports but they contained no future measurable
targets for environmental improvements or dates by which these would be achieved.
(NB. The UK REC was also assessed under this criteria - this is reported in Section 3:
Environmental Policy and Reporting.)
Comments
AEP was listed by the US magazine Multinational Monitor in its annual award for the ten worst
corporations of 1997. Its main criticism was of AEP's role in lobbying against the US government's
Clean Air Acts during that year.
Weighting
The column entitled 'critical score' helps give a relative picture of performance. For each X mark,
companies scored two points, with one for point for a small x. We then added one point to Viridian -
the only company with no generating capacity and therefore likely to appear better than it really is.
Since some degree of pollution from large industrial companies is to some extent to be expected,
but the lobbying columns are evidence of unacceptable business activity, we added two extra points
for involvement in the GCC and one point for 'other' lobbying activities.
British Gas/Centrica
In February 1997 British Gas 'demerged' into two companies: Centrica and BG plc. Centrica now
owns the 'British Gas' and 'Scottish Gas' brands and sells the gas to UK customers. BG plc extracts
the gas and sells it on to Centrica and others. Strictly speaking, they are two separate companies,
but since the demerger was very recent and they are still the largest customers and suppliers of
each other, we have treated them as one company for the purposes of this ranking exercise.
The Renewable Energy Company's rating
The Renewable Energy Company was not included in this information search of corporate criticisms.
However, we are confident that such a search would show up no criticisms of a UK company which
is small in scale and whose operations are devoted to the generation and sale of renewable energy.
The company has made positive steps on the environment, particularly to address the problem of
climate change. Not only does its product contribute to the reduction of greenhouse gas emissions
(unlike the primary product of all the other companies researched), but the company has been
actively lobbying at international climate negotiations in support of targets for the reduction of
greenhouse gas emissions. We have therefore awarded the Renewable Energy Company a 'Very
Good' rating on Company Group Environmental Performance.
TABLE 4: COMPANY GROUP ISSUES
|
Company
|
Parent
|
Water
Poll
|
Air
Poll
|
Land/Waste
Poll
|
Fines
|
Nuclear
|
Lobbying
GCC
|
Lobbying
Other
|
EP
UHC
|
Comments
|
Score
|
|
Centrica
|
Centrica/formerly British Gas
|
|
x
|
|
|
|
|
|
|
|
1
|
|
British Gas
|
British Gas plc
|
X
|
x
|
|
x
|
|
|
|
|
Russian oil pipeline
problems
|
4
|
|
Eastern
|
Texas Utilities
|
x
|
X
|
x
|
x
|
x
|
|
|
x
|
|
7
|
|
East Midlands
|
Dominion Resources
|
x
|
X
|
|
|
X
|
X X
|
|
X
|
|
11
|
|
London
|
Entergy Corp
|
X
|
|
X
|
|
X
|
|
|
x
|
|
7
|
|
Manweb
|
Scottish Power plc
|
X
|
x
|
|
X
|
|
|
|
|
|
5
|
|
Midlands
|
Cinergy & GPU
|
X
|
|
x
|
|
|
X X
|
X x
|
x
|
GCC Board Member
(Cinergy)
|
11
|
|
Northern
|
Cal Energy
|
x
|
|
|
x
|
|
|
|
X
|
Geothermal energy
specialists
|
4
|
|
NIE
|
Viridian Group
|
|
x
|
|
|
|
|
|
|
x (see weighting)
|
2
|
|
Norweb
|
Unitied Utilities
|
X
|
x
|
|
X
|
x
|
|
|
|
|
6
|
|
Scottish Hydro-electric
|
Scottish Hydro-electric plc
|
|
x
|
|
|
|
|
|
|
|
1
|
|
Scottish Power
|
Scottish Power plc
|
X
|
x
|
|
X
|
|
|
|
|
|
5
|
|
Seeboard
|
Central & South West Corp
|
X
|
|
X
|
|
|
|
|
x
|
|
5
|
|
Southern
|
Southern Electric plc
|
|
|
|
|
|
|
|
|
|
0
|
|
Swalec
|
Hyder plc
|
X
|
|
|
X
|
|
|
X x
|
X
|
Roadbuilding/UK ship
canal (FOE
campaign)
|
9
|
|
SWEB
|
Southern Co
|
X
|
x
|
x
|
|
X
|
X X
|
X x
|
X
|
GCC Board member
|
15
|
|
Yorkshire
|
New Century Energies &
American Electric Power
|
X
|
x
|
X
|
x
|
x
|
|
X x
|
x
|
'10 worst US corps
award 1997' (AEP)
|
11
|
REFERENCES:
1. Eastern Electricity Press Release 3 October 1997, 'Eastern Unveils a 'Greener' Choice for
Customers'.
2. Eastern Electricity EcoPower sales brochure, current at April 1998.
3. SWEB Green Electron brochure, February 1998.
4. SWEB News Release 8 October 1997, 'SWEB to Test Green Electricity Programme'.
5. 1996 Ogilvy & Mather, reported in The Global Supermarket, Christian Aid, cited in Ethical
Consumer Magazine, Issue 50, December 1997
6. Please write to The Energy Team at Friends of the Earth asking for the 'Green Energy
League Table - Summary of ECRA Database Search' enclosing a cheque for £58.75 made
payable to Friends of the Earth.
CONTACT DETAILS:
Centrica
Charter Court
50 Windsor Road
Slough SL1 2HA
tel: 01753 758 000
Eastern Group
Wherstead Park
PO Box 40
Wherstead
IPSWICH
Suffolk IP9 2AQ
tel: 01473 688 688
East Midlands Electricity
Corporate Office
P O Box 444
Wollaton
NOTTINGHAM NG8 1EZ
tel: 0115 926 9711
London Electricity
Templar House
81-87 High Holborn
LONDON WC1V 6NU
tel: 0171 242 9050
Manweb
Manweb House
Kingsfield Court
Chester Business Park
CHESTER CH4 9RF
tel: 0345 112 211
|
Midlands Electricity
Mucklow Hill
HALESOWEN
West Midlands B62 8BP
tel: 0121 423 2345
Northern Electric
Carliol House
Market Street
NEWCASTLE-UPON-TYNE NE1 7NE
tel: 0191 210 2000
Northern Ireland Electricity
120 Malone Road
BELFAST BT9 5HT
tel: 01232 661 100
Norweb
United Utilities plc
Birchwood Point Business Park
410 Birchwood Boulevard
Warrington WA3 7WB
tel: 0161 873 8000
Renewable Energy Company
Stroud House
Russell Street
Stroud
Gloucestershire GL5 3AN
tel: 01453 756 111
|
Scottish Hydro
10 Dunkeld Road
Perth PH1 5WA
tel: 0800 300 000
Scottish Power
1 Atlantic Quay
Glasgow G2 8SP
tel: 0141 248 8200
SEEBOARD
Forest Gate
Brighton Road
CRAWLEY
West Sussex RH11 9BH
tel: 01293 565 888
Southern Electric
Southern Electric House
Westacott Way
Littlewick Green
MAIDENHEAD
Berkshire SL6 3QB
tel: 01628 822 166
SWALEC
Newport Road
St Mellons
CARDIFF CF3 9XW
tel: 01222 792 111
South Western Electricity
800 Park Avenue
Aztec West
Almondsbury
BRISTOL BS12 4SE
tel: 01454 201 101
Yorkshire Electricity Group
Wetherby Road
Scarcroft
LEEDS LS14 3HS
tel: 0113 289 2123
Friends of the Earth
26-28 Underwood Street
London N1 7JQ
Tel: 020 7490 1555 Fax: 020 7490 0881
Email: info@foe.co.uk
Website: www.foe.co.uk
August 1998
|