In looking back at 2007, I believe we reached a milestone in the history of our industry. The challenges we faced – and continue to face – are well documented: conventional sources of energy are running out; rising costs mean our customers are facing bigger energy bills; and we need to keep the UK’s lights on whilst leading the fight against the inescapable fact of climate change. In short, energy is becoming more scarce, more expensive and the way it’s produced and used can harm the environment.

As part of the energy industry, we’ve often been viewed as part of the problem; but we have the expertise and resources to deliver real and lasting solutions to these issues, so we’re starting to shape a new future for society. We call this approach Changing Energy because that’s exactly what we’re doing. We’re aiming to transform every aspect of energy: how we make it, how it’s used, and society’s understanding of it. To achieve this, we’re focusing our efforts in three key areas:

Planet and Society
We’re investing in a range of new generating capacity that will make us a lower carbon energy supplier and help provide the UK with secure and affordable energy supplies.

Customers
We help customers with their energy needs by providing customer focused products and services. We also support the vulnerable and fuel poor, helping society to access energy and to use it efficiently.

Our People
As a company we face enormous challenges, but with them come outstanding opportunities; after all, there are few other companies to work in where so much is at stake and where we can make such a positive impact. So we’re harnessing the passion and commitment of our people to lead our drive to change energy.

I called 2007 a milestone, because it was when we began to take some of the first big steps on our journey. We focused on our plans for a new cleaner coal-fired power station in Kent that we want to use to trial world leading low carbon coal technology; a new gas-fired combined heat and power (CHP) station at the Isle of Grain; completion of one of the UK’s largest dedicated biomass power stations at Steven’s Croft in Scotland; more onshore and offshore wind farms planned and our support for the Government’s nuclear programme.

These all made the headlines and are the kind of big decisions we have to make if we are to change energy in the UK. Of course these are part of our long-term plans, but in the face of the challenges I mentioned earlier we know we need to act now. So Changing Energy already dominates our thinking and over the past 12 months we’ve already achieved a huge amount in support of our strategy.

We’ve reduced the carbon intensity of the energy we produce, launched our new Sustainable Energy Solutions business and encouraged our customers to purchase products with environmental features by launching our Go Green and EasyGreen propositions. We have also launched the E.ON Engineering Academy to help address an industry-wide skills shortage.

We’re also starting to introduce smart metering that will provide our customers with accurate bills and also enable them to understand better how to manage their energy use. Changing Energy impacts every aspect of our business, every single day and that is reflected in this report. It’s the biggest challenge any business could face, but it’s one that we believe we’re uniquely positioned to take up.

Paul Golby
E.ON UK Chief Executive