Marks & Spencer stores across England and Wales will soon be running on greener energy after a landmark deal with npower business. Over 350 Marks & Spencer stores, as well as the Company's head office in London, will be powered by Good Quality Combined Heat and Power.
As part of the three-year contract, which starts in April 2006, npower business will supply Marks & Spencer with 1800 GwH of Combined Heat and Power, representing one of the largest deals signed by a UK retailer. This type of energy ensures that the heat generated through electricity production is not wasted and is therefore more efficient. It is also Climate Change Levy exempt as it produces lower carbon emissions than power generated from traditional fuels.
The contract will provide Marks & Spencer with several 'buying points' over the three years, rather than a traditional fixed price arrangement. This will allow the Company to take advantage of the unpredictable wholesale energy market when purchasing its energy and eliminate the economic risks associated with buying at a one-off cost.
Mike Barry, Head of Corporate Social Responsibility, Marks & Spencer, said: "The use of energy and its impact on the environment is a major challenge for society and we know it is an issue that concerns our customers. Converting the majority of our UK stores to greener energy will not only reduce our carbon dioxide emissions by around 40%, it also makes good business sense.
"The flexible contract with npower business will enable us to buy the energy at various points during the year so we can get the best return on our investment."
Gordon Parsons, Managing Director, npower business commented: "This is a landmark deal for npower business and one of the largest contracts we have ever signed. Working closely with Marks & Spencer, we have been able to demonstrate our understanding of the challenges they face and provide an innovative solution. By choosing flexible purchasing and Good Quality Combined Heat and Power, Marks & Spencer will further demonstrate its environmental and CSR commitment while mitigating the current uncertainty in wholesale prices."
npower business was awarded the contract following a rigorous competitive tender conducted independently by Inenco, Marks & Spencer's energy market trading advisor.
For press information please contact:
npower business:
Alister Foye, McCann Erickson Public Relations, Tel: 0121 713 3776, Fax: 0121 713 3799
Joan Coe, npower business, Tel: 0121 703 3734 or visit http://www.npower.com/
Marks & Spencer:
Olivia Ross, Marks & Spencer corporate press office, Tel: 020 8718 1919
Fax: 020 8718 7714
Notes to editors
1. RWE npower is a leading integrated UK energy business. It generates electricity and supplies gas, electricity and related services to around 6 million customers through its retail business npower. The company operates and manages a flexible portfolio of power stations through its operations and engineering arm, and is a market leader in renewable energy development through its wind and hydro business npower Renewables.
2. npower is one of the UK's top three energy suppliers and draws on 50 years experience in supplying electricity and gas. npower offers a range of essential home and business services, to 6 million customers across the UK.
3. npower business is a leading supplier to the UK business market serving over 300,000 small to medium sized enterprise sites and around 20,000 industrial and commercial customers, with over 100,000 sites.
4. Inenco Group Ltd is a leading provider of energy market trading advice, bill verification and energy and environmental consultancy services.
