Quality service at Edenor, Argentina.
Many companies of the Group operate in highly deregulated environments. Edenor, in Argentina, is now active in a market where eligibility thresholds have been lowered to 30 kW. To meet the challenge, Edenor has made significant investments to upgrade service quality. London Electricity is also successfully expanding in a highly competitive environment.
The Distribution Division is using the Group's experience in fully deregulated markets to set best practices in France. It's all part of the process of learning to serve customers ever better while complying with new regulations.

1. EDF has reinforced its relations with local authorities through new contractual policies. By 2000, over 95% of local municipalities had signed new long-term contracts with EDF.

2. EDF has adapted its distribution services. Services have been pooled to reduce costs and improve quality, including information technology purchasing and accounting. A team was setup to handle the transition to the euro.
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EDF is constantly seeking to improve the service provided to customers. As French opinion polls show, the company's image is excellent. But we intend to go further and give our customers state-of-the-art solutions providing ever greater comfort and efficiency.

Customer satisfaction has always been a top priority. Though the 1999 storms provoked a drop in satisfaction over power supply this year, professional customer satisfaction rose to 95.6% in 2000, a two-point increase as compared with 1999. Meanwhile, 24.6% expressed total satisfaction. 97.1% of our residential customers are satisfied with the service we provide, a two-point increase as compared with 1999. In all 36.3% expressed total satisfaction.

We are setting ourselves ever higher standards, and using every opportunity to improve service. For instance, our Mediator processes customer queries and deals with problems that have not been resolved through other channels. Our objective is to reach 50% total satisfaction by 2005.
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Virgin Energy, a London Electricity and Virgin joint venture: one of Europe's first e-commerce energy sales services.

Launching into e-commerce

In June 2000, London Electricity and Virgin signed a deal to sell electricity and gas in the UK through the internet. Virgin Energy (75%-owned by Virgin and 25% by London Electricity) is one of Europe's first e-commerce energy sales services.

London Electricity brings its energy purchasing, risk management, information technology and customer service expertise to the venture; Virgin brings its brand and marketing expertise.
"Our joint venture with Virgin is an important development for London Electricity and marks a step forward in our strategy to reach over 5 million retail customers. Virgin chose us for our excellent track record in customer service, our strength in IT and our position as a leading energy provider."

Bruno Lescœur, London Electricity, Chairman and CEO


Using the internet for better service

In April, EDF launched a new internet service for French customers called Mamaison. It allows them to receive personalized services and advice on electricity consumption and uses while navigating through an animated, virtual home. In addition, EDF's on-line service agency offers customers interactive services. It has been available in Northern France (Lille) since September 2000 and will be gradually extended to all customers.


Electric heating

Optimizing Vivrélec, our electric heating offer, has been one of the main thrusts of our sales efforts this year. EDF made major headway in home electric heating in 2000. Electric heating now accounts for 37.4% of that market, a 4.3% increase as compared with 1999.
The Vivrélec offer associates insulation, state-of-the-art devices and programming. It helps to significantly reduce consumer costs (10 to 30% savings as compared with traditional installations).
Vivrélec is also used in EDF's efforts to rehabilitate public housing. Out of the 30 000 units of public housing built in 2000, 20% were equipped with Vivrélec. EDF helped to renovate 1 000 such units in 2000.
A similar offer called Rénovation is available for older housing (40% savings compared with traditional installations).
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EDF R&D on the move
Helping US companies to improve transmission quality


EDF R&D was involved in a study to assess the reliability of the US grid. We developed risk probability tools that will be applied to parts of the grid. Final results will be announced in April 2001.

"The North American power grid was installed 50 years ago and was not designed to handle the volume of transport we are seeing today. As a result, the potential for large-scale disruptions is today considered higher than ever."

Karl Stahlkopf, Vice President Power Delivery at EPRI (Electric Power Research Institute)
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Light, in Brazil: providing quality service to all customers.

Launched in 1999, our program to reinforce service to the community aims to improve service to all customers and provide low-income households with adapted solutions. In 2000, the Group boosted its actions in favor of low-income customers.

Building on our longstanding commitment to social responsibility, we also supported initiatives for low-income customers in other countries.

These are designed to help customers manage their own electricity accounts, providing payment arrangements and giving advice on energy efficiency.

In France, customers who experience occasional financial difficulties are guaranteed a minimum level of service. Working with local community associations and EDF's Mediator, the Group has developed pilot programs in a number of communities: resource-adjusted billing and energy efficiency savings.

In Brazil, Light has introduced the Pronai program for low-income customers (approximately 450 000 people). The aim is to normalize consumption in poorer districts and thereby reduce losses and payment defaults. The program involves the community in finding solutions to meet its needs. By establishing regular payments, the program helps maintain and upgrade the network.

In Morocco, Lydec is electrifying the poorer district of Casablanca. Lydec has already connected 7 000 customers and 15 000 more are scheduled to be added.

In South Africa, EDF increased its holding to 50% in PN Energy services, a company that has electrified the Khayelitsha township (more than 800 000 people). Its ISO 9002 certification clearly shows that the EDF Group aims to provide quality, efficiency and equal access.

In the UK, London Electricity has partnered with HelpCo and Scottish Power to offer customers without a bank account access to the same advantageous tariffs offered to other customers.
"A commitment to quality and the environment has always been a priority at Edenor. We constantly strive to offer our customers ever better and more efficient services while taking advantage of the opportunities created by growing electricity demand, which has been increasing at an impressive annual rate of 5% in recent years."

Fernando Ponasso, Edenor, Chairman


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EDF R&D on the move
The first high-temperature superconductor cable


EDF R&D and Pirelli Cable have completed the first stage of a ground-breaking project on Superconductors: the construction of the first high-temperature superconductor EHV cable, designed to withstand 225 Kv. This will allow researchers to assess the feasibility and profitability of energy transmission links via superconductor cables. The next step will involve the construction of a 50 m prototype link. It will be tested on site in 2002.


EDF R&D on the move
Planning and quality in power distribution


Along with Light and the Brazilian Research Center CEPEL (Centro de Pesquisas de Energia Elétrica), EDF R&D has been promoting Prao, a tool that enables companies within the EDF Group to reduce network investment costs through better planning and new technologies. The contract is financed by the World Bank.
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