APPENDIX 38
Memorandum submitted by EDF Energy
1. ABOUT EDF
ENERGY
1.1 EDF Energy is one of the UK's largest
energy companies. We are a vertically integrated company with
a balanced portfolio of business throughout the energy chain—from
generation to supply. Most pertinent to this inquiry:
— EDF Energy is the No 1 owner and
provider of private electricity infrastructures in the UK including
for the major London airports, the London Underground, (as a partner
in both the Metronet consortium and in EDF Energy Powerlink) the
channel tunnel rail link, the DLR and Canary Wharf.
— EDF Energy was the first company
to sign up as a Premier Partner of the London 2012 bid. We are
very keen to ensure that EDF Energy is able to do its part to
support the 2012 games so are setting up a cross company team
to deliver on this commitment.
1.2 EDF Energy also:
— Owns and operates the electricity
distribution networks serving London, the East and South East
of England which means that around one quarter of the UK population
relies on our distribution networks for their electricity.
— Is the 5th biggest electricity generator
in the UK. We own and operate an 800MW CCGT power station and
4GW of coal-fired generation assets as well as CHP and renewable
assets.
— Supplies gas and electricity with
5 million electricity and gas customer accounts throughout the
UK supplied through our retail brands, London Energy, Seeboard
Energy and SWEB Energy.
1.3 EDF Energy is pleased to have the opportunity
to contribute to the Transport Committee's inquiry into transport
for London's 2012 Olympic Games. Our response focuses on the role
that EDF Energy, as a private sector company is already playing
in delivering the public transport infrastructure investment and
upgrades that will allow London to successfully deliver its transport
commitments for the 2012 games.
1.4 As outlined in London's Candidate File:
"Almost all of the public transportation infrastructure improvements
needed to host the Games in 2012 are already planned or under
construction as part of a long term improvement programme."
Furthermore, "Over $30 billion is scheduled to be spent on
London's transport prior to 2012."
1.5 EDF Energy's contribution to this investment
and the necessary infrastructure upgrades will be crucial. The
company is currently sponsoring or co-sponsoring projects which
will invest over £6bn in public infrastructure projects the
vast majority of which are transport projects in and around London.
2. INTERNATIONAL
ACCESS FOR
OLYMPIC COMPETITORS
AND SPECTATORS—AIR
TRANSPORT
2.1 London's air transport capacity already
exceeds that which will be required for hosting the Olympic and
Paralympic Games in 2012 and will be further enhanced by the completion
of Heathrow Terminal 5.
2.2 However, a secure and reliable supply
of electricity is fundamental to its smooth operation. EDF Energy
has long term contracts with BAA for its three largest UK airports,
Heathrow, Gatwick and Stansted and also with London City Airport
to deliver the essential electrical infrastructure the airports
need to undertake their basic operations in a safe and efficient
manner on a daily basis and to grow and develop for the future
including for the 2012 Olympic Games.
2.3 As part of these contracts EDF Energy
owns all the electrical assets and risks and is responsible for
the maintenance, operation and replacement of the infrastructure.
The contract with BAA is for 90 years and within the first 10
years of operation a substantial investment of £100 million
in electrical assets has already been made. The agreement also
provides for the upgrade and reinforcement of the electrical networks
according to BAA's growth plans including for Terminal 5.
2.4 Through the 30 year London City Airport
contract EDF Energy owns, operates, develops and maintains the
existing high voltage (HV) and low voltage (LV) electrical networks,
and is making provision for services to allow for future expansion
of the airport including planned growth of aircraft movements
and the extension of the Docklands Light Railway to the airport.
2.5 The contracts that these airports have
with EDF Energy allows them to access the highest level of electrical
engineering expertise and provides them with a bespoke electrical
system specifically tailored to the unique and sophisticated needs
of each airport. EDF Energy engineers are permanently based at
each of these sites. This, and the long nature of the contracts,
will allow the airports to grow and develop in the ways needed
to respond to the Olympic Games and other challenges, and to ensure
that the worlds best connected city has the power it needs to
maintain that position.
3. TRANSPORTING
SPECTATORS AND
COMPETITORS TO
THE OLYMPIC
VENUES
3.1 The Olympic Javelin:
Rail transport including the underground is
likely to be the main way in which spectators access the Olympic
venues. A major element of serving the Olympic Park will be the
"Olympic Javelin" referred to as the "jewel in
the crown" of the transport plans. The Olympic Javelin shuttle
will run between Kings Cross and Stratford International using
the Channel Tunnel Rail Link (CTRL) track.
3.2 The new 68 mile link from the Channel
Tunnel to Kings Cross station in London is the first new mainline
railway to be built in the UK for over a century and is scheduled
to come into service by the end of 2007.
3.3 EDF Energy's experience and expertise
in building private electrical networks meant that it was best
placed to provide the electrical infrastructure for CTRL to meet
the needs, unique in the UK, of a high speed inter-continental
railway. EDF Energy is responsible for the design, procurement,
installation, commissioning and future operation and maintenance
over a period of 50 years after construction of the new electrical
distribution assets for the CTRL. As a result CTRL will have a
secure and reliable supply of electricity of sufficient volume
for its future operation and growth including making it possible
for the high speed Olympic Javelin trains to run on this line.
3.4 EDF Energy completed its work on the
first section that runs from the Channel Tunnel to Fawkham Junction,
near Gravesend ahead of time and to budget and won a national
award from the British Construction Industry for our power engineering
work on the project. It is also on target to complete the second
section ahead of time.
3.5 As a result of the work undertaken on
section one including the upgraded electrical infrastructure there
has already been significant improvements in the performance and
reliability of the Eurostar.
3.6 The London Underground and the Central
Line:
The London Underground and in particular the Central
and Jubilee lines will have an important role to play in transporting
spectators and competitors to the Olympic Park and other Olympic
venues around London. There are however, significant improvements
needed in terms of performance and capacity prior to 2012. The
majority of these are already planned and funding is in place.
3.7 One of the main improvements that will
be required for 2012 across the underground is new and more frequent
trains. To facilitate this there is first a need to significantly
increase the capacity of the London Underground power system.
EDF Energy Powerlink, a consortium of EDF Energy, Balfour Beatty
and ABB, (80% owned by EDF Energy and 10% owned by each of the
other partners) has a thirty year PFI contract to undertake this
work and will make a capital investment of around £300 million
to do so. This is in addition to £100m of capital investment
made in the first five years of the contract that has already
upgraded the substations and emergency supplies that serve the
London Underground's 270 stations and over 400 km of track.
3.8 Upgrading and maintaining the Central
Line is the responsibility of the Metronet consortium, under a
30-year-old Public Private Partnership (PPP) contract which came
into operation in April 2003. EDF Energy is a 20% shareholder
in the Metronet consortium.
3.9 EDF Energy's contribution to the project
focuses on the electrical contracting work and fire protection
installations in stations as part of the station modernisation
programme. By 2011, on the Central Line the Metronet Consortium
will have refurbished 25 stations, modernised 22 stations, and
completed nine escalator modernisations and three lift modernisations.
In addition to the track replacement, extra trains and other work
being undertaken by the consortium, this will result in a service
for Olympic and day to day passengers that is more frequent, reliable,
comfortable and pleasant.
4. IMPROVING
PASSENGER COMFORT
AND SAFETY
EDF Energy is also contributing to improvements
to passenger comfort and safety in other areas of the network.
As part of the programme to phase out the old slam-door rolling
stock operating on the Southern Region Rail Network, it is necessary
to increase the track power supplies to accommodate the modern
fleet of trains. EDF Energy in conjunction with Balfour Beatty
Rail Projects is undertaking the work on behalf of Network Rail
in the London area, which stretches from Staines in the West to
Gravesend in the East and Epsom in the South. Progress on the
work is at an advanced stage and is on schedule for completion
in 2005.
5. CONCLUSION
Private companies make a significant contribution,
not only in London but across the UK, to improving transport infrastructure.
EDF Energy is contributing significant investment and the necessary
expertise to upgrade the existing transport network and build
new facilities to prepare London for a successful 2012 Olympic
Games.
September 2005
| 
