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2006 Corporate Social Repsonsibility Report - Environment

Waste and by-product management

All businesses generate waste from their processes and the everyday activities of their employees, and its responsible management is a key element of sustainable development. We aim to minimise our waste production and reuse or recycle as much as possible of what's produced, to improve efficiency, cut resource use and pollution, as well as minimise costs.

The waste produced from our day-to-day operations is varied, ranging from waste from power station processes, such as used lubricating oils, to general maintenance waste from our network activities, and office waste such as paper and redundant IT equipment. Large volumes of waste are also produced when power stations and other assets are demolished after decomissioning. We aim to recycle as much of our waste as possible within the constraints of the available recycling facilities.

Hazardous Waste, kt


2004 2005 2006
Total hazardous waste produced (including demolition) 39 17 23
Total hazardous waste disposed (including demolition) 17 15 22
Total hazardous waste recycled (including demolition) 22 2 1
Includes waste from all of our business streams

Hazardous waste is defined as waste that contains hazardous properties that may render it harmful to human health or the environment. The European Commission has issued a Directive on the controlled management of such waste (91/689/EEC) and hazardous waste is defined on the basis of a list, the European Waste Catalogue, drawn up under that Directive.

Non - Hazardous Waste, kt


2004 2005 2006
Total non-hazardous waste produced (including demolition) 137 162 287
Total non-hazardous waste disposed (including demolition) 121 123 184
Total non-hazardous waste recycled (including demolition) 14 39 103
Includes waste from all of our business streams

Changes in the amount of waste we produce are primarily the result of different stages of demolition activity at our retired generation assets. Better-quality waste data has also been made available through a single waste contract, which now covers all of our Central Networks and Energy Services businesses.

Waste recycling rates, %


2004 2005 2006
% Hazardous Waste Recycled 16 39 6
% Non-Hazardous Waste Recycled 3 3 7

Further details of the environmental performance of each our sites are available here   and detailed environmental trend data going back to 1990 is available here.

Packaging

We have obligations under the Packaging Regulations (Producer Responsibility) that require us to purchase packaging recovery notes to cover the amount of packaging produced. The bulk of this waste comes from our retail marketing and energy efficiency products. We are members of the Valpak packaging compliance scheme. The total cost of compliance is around £25,000 per year, of which up to £5,000 covers the issue of packaging recovery notes, with the remainder ensuring legal compliance through robust data collection and reporting processes and compliance scheme membership.

WEEE

The European Waste Electrical and Electronic Equipment (WEEE) Directive aims to reduce the waste arising from electrical and electronic equipment and improve the environmental performance of all those involved in their lifecycle. WEEE applies to any appliance or device whose primary use or function is electrical or electronic. For example, WEEE applies to a compact fluorescent light bulb but not to a Whispergen micro-combined heat and power (CHP) unit, since its primary purpose is as a high-efficiency gas boiler (which also generates some electricity). The WEEE Regulations were laid before Parliament in December 2006 and companies were required to register their obligations with the Environment Agency in early 2007. We have registered our producer obligation and distributor obligation through the Valpak compliance schemes. This means that for every item of EEE we produce or distribute we must provide data and make a contribution to cover the cost of handling the item once it becomes waste. Our distributor obligations are met through the Valpak Distributor Takeback Scheme, which will ensure that suitable local takeback facilities are available to process and treat WEEE at the end of its useful life.

Ash

In power generation, the main by-product is ash from burning coal. This is ideal for use in the construction industry either as a filler or landscaping agent, or as the main constituent of lightweight bricks. The sale of ash is driven by the construction industry's needs and we make every effort to produce ash of a quality that is suitable as a substitute raw material. We have invested heavily in technology that ensures our ash quality is consistent, and in processes that classify ash for different markets.

Pulverised Fuel Ash (PFA) and Furnace Bottom Ash (FBA) are produced in our coal-fired power stations at Kingsnorth, Ratcliffe-on-Soar and Ironbridge. FBA is also produced at our Kemsley CHP site.

Ash that is not sold is sent to landfill with a view to reclaiming it if opportunities arise to sell it for reuse.

Ash produced, disposed and recycled, kt


2004 2005 2006
FBA produced 167 174 93
FBA disposed 16 5 N/A
FBA recycled 151 169 93
PFA produced 914 949 780
PFA disposed 189 268 327
PFA recycled 725 681 724

FBA = Furnace bottom ash

PFA = Pulverised fuel ash

Excludes furnace bottom ash from Kemsley

Ash recycled, %


2004 2005 2006
FBA recycled as % of FBA produced 90 97 100
PFA recycled as % of PFA produced 79 72 93

FBA = Furnace bottom ash

PFA = Pulverised fuel ash

Excludes furnace bottom ash from Kemsley

The graph above shows the percentage of our ash sold for use in the construction industry. The volume of sales depends mainly on the market requirements and ash sold in any given year may have been produced in that year or previoulsly, so it's possible that in future years, if ash production falls or demand for ash increases, that the ash recycling rate will exceed 100%.

Gypsum

Gypsum is another by-product of coal-fired electricity generation when flue gas desulphurisation (FGD) technology is used. Gypsum is produced during the FGD process using limestone, the primary aim of which is to reduce emissions of sulphur dioxide (SO2).

Gypsum is used in large quantities by the construction industry and demand is therefore dictated by its needs.

Gypsum production, kt


2004 2005 2006
Total gypsum produced 350 235 206
Total gypsum disposed 0 0 0
Total gypsum recycled 350 235 206

100% of the gypsum we produce is sold as a useful product to the construction industry

The reduction in gypsum production is due to an unplanned outage at Ratcliffe-on-Soar power station.

Polychlorinated biphenyls (PCBs)

Our distribution business, Central Networks, and its predecessors never purchased equipment that contain Polychlorinated Biphenyls (PCBs), small trace elements may be present in a small number of its transformers due to cross contamination during manufacture.   The business manages all of its equipment in line with Environmental Protection (Disposal of Polychlorinated Biphenyls and other Dangerous Substances) (England and Wales) Regulations 2000 and has registered any item that has the potential to contain PCBs with the Environment Agency.

All equipment in service is below the higher control level of 500ppm, so any potentially contaminated units can remain in service, and all oil and equipment removed from the network is tested for the presence of PCBs.   Any equipment found to contain traces of PCBs above the lower control measure of 50ppm is disposed of as Hazardous Waste.   The business renews its registration of equipment with the Environment Agency on an annual basis and removes all units from the register that have been tested and proved to be PCB-free.


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