Network Rail, EDF Energy ink 10-year power supply agreement
Neither party reveals value of the contract estimated to be above £1.5bn
By CFOWorld.co.uk staff | CFO UK | Published 16:30, 11 January 13
UK rail infrastructure operator Network Rail has awarded utilities provider EDF Energy with a 10-year power supply contract to bolster the country’s electrified railway network by the end of the decade, it was announced on Friday.
Under the agreement, EDF Energy will supply around 3.2 Terawatt-hours (TWh) of electricity per annum to Network Rail for passenger and freight transit. However, both parties did not divulge the value of the contract. Market estimates suggest it could be worth above £1.5 billion.
Network Rail's chief executive David Higgins said, “Currently only 40 percent of the rail network is electrified. By 2020, 54 percent of the network will be electrified.”
“Our work to electrify hundreds of miles of railway represents the biggest programme of rail electrification in a generation and will provide faster, quieter and more reliable journeys for millions of passengers while cutting the cost of the railway," he added.
For its part EDF Energy, the UK subsidiary of France’s state-controlled energy company EDF, said, "Network Rail is the biggest single electricity customer in the UK so this long term deal is a massive vote of confidence in our nuclear-backed energy."
EDF Energy is currently the UK’s largest nuclear power stations operator. It plans to build four new nuclear power stations in the next decade. The company recently lent its support to the London 2012 Olympics and Paralympics games as a sponsor and supplier.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
Outdated finance processes, systems and competencies leave too many questions unansweredmore ..
The announcement comes a day after an Indian retailer got $1bn in fundingmore ..
Madbits uses deep learning techniques to understand the content of an imagemore ..
Barclays’ costs fall 4.5% with increased digitisationmore ..
CFOs are keen for the chancellor to avoid any uncertaintymore ..
CFOs used to low interest rates ignore working capital optimisation at their perilmore ..