Archived press release

Foe warns regional electricity companies on climate change

5 April 1997

Friends of the Earth has today warned the chief executives of the 12 regional electricity companies (REC's) that they risk losing customers in a liberalised electricity market if they fail to take action to fight the threat of dangerous climate change. FOE's warning marks the launch of its Climate Change Campaign in the driest spring since records began [1] and in a critical year for determining global action to prevent dangerous climate change [2][3].

Three of the UK's twelve REC's are now owned by US parent companies who are members of the Global Climate Coalition, an international industry lobbying body that is seeking to block official agreement to combat global climate change. These are Southern Company,ACP and Cinergy who own SWEB, Yorkshire Electricity and Midlands Electricity.

Anna Stanford, Friends of the Earth's Fossil Fuel Campaigner said;

"These companies have one year to clean-up their act and show leadership in the fight against climate change. If they don't, Friends of the Earth will publicise their poor environmental record and encourage the public to move to greener companies once the UK energy market is liberalised in April 1998."

By December 1997, at the Climate Summit in Kyoto, Japan, world Governments need to have agreed legally binding CO2 cuts for the post 2000 period if dangerous climate change is to be prevented [4]. This will require an aggressive emphasis on energy efficiency and rapid development of renewable energy.

Through the switch from coal to gas, the UK has started to reduce its CO2 emissions, but has largely failed to significantly reduce emissions through energy efficiency. The Kyoto Climate Summit is likely to require the UK to make further cuts in CO2 emissions of up to 20 per cent by 2005. This will require big cuts in UK domestic energy consumption and action by the REC's.

Despite the significance of the threat of climate change and a legal obligation to promote energy efficiency, the 12 Regional Electricity Companies have done little to encourage

their customers to save energy and thus reduce CO2 emissions.

Criticism of the UK's poor record on energy efficiency has to date focused on the lack of action by OFFER, the electricity regulator, in not requiring the REC's to do more. Friends of the Earth, however, notes that the 12 REC's have failed to do anything over and above the minimum required, despite their vast profits made from the sale of electricity. The twelve REC's currently only spend a tiny 1 per customer per year on energy efficiency measures, amounting to 1-5% of their profits.

Friends of the Earth considers that the environmental performance of an electricity supplier will be a key determinant of whether it wins or loses customers in a liberalised electricity market post April 1998. It has therefore given the 12 REC's the opportunity to voluntarily start to improve on their poor environment record by providing information to customers on the impacts of climate change.

The REC's have been further asked to provide their customers with data on their fuel bill showing the source of their electricity - fossil fuels (coal, oil and gas), nuclear and renewables - and an indication of how much CO2 is generated by each individual customer's fuel use.

In Friends of the Earth's view, the provision of such information is key to the REC's fulfilling their legal obligation to promote energy efficiency as part of the fight against climate change.

ENDS

NOTES TO EDITORS:

[1] The last 24 months have been the driest two year period in England and Wales since reliable records began. The Department of the Environment has stated that the negative economic impact of the summer of 1995, the driest on record, exceed positive impacts. It has reported economic losses of around 200 million in livestock farming, additional water supply costs of 96 million, retail sector losses of 87 million, unusually high insurance industry losses for subsidence-related damage of 350 million.

[2] On Saturday 5th April, 108 Friends of the Earth local groups will be taking part in an action targeted at the twelve Regional Electricity Companies to raise public awareness threat of dangerous climate change, appraise them of the REC's environmental record and advise them of the implications of the planned liberalisation of the domestic energy markets from April 1998.

[3] Under liberalisation the domestic energy market will be opened up to full competition allowing consumers to choose which company they buy their electricity from. Friends of the Earth is supportive of the moves to liberalise the domestic energy market from April 1998 and see this as a significant opportunity to help combat the threat of climate change by creating a consumer demand for energy efficient services, combined heat and power and renewable energy.

[4] World Governments will be meeting in Kyoto in Japan at the Third Conference of the Parties under the Framework Convention on Climate Change.
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