Sainsbury's Supermarkets has signed a seven-and-a-half year contract to outsource its energy management to Enron Energy Services. The agreement aims to reduce Sainsbury's energy expenditure and improve efficiency.

Sainsbury's currently spends in excess of £50 million a year on energy. Enron Energy Services will provide gas and electricity to all Sainsbury's Supermarkets' sites in the UK including offices, depots and 450 stores. Enron will also manage a £15 million investment programme of energy efficiency measures aimed at reducing consumption by 12 per cent over two and a half years. This programme will contribute to Sainsbury's environmental target of reducing CO2 emissions from its buildings.

Stuart Mitchell, Assistant Managing Director, Sainsbury's Supermarkets, said: "Energy is a significant expense for Sainsbury's and we are confident that Enron's expertise in energy supply and management will help us not only reduce our expenditure but also improve our energy efficiency which will help us meet our environmental responsibilities."

"Our partnership with Sainsbury's Supermarkets is a truly ground-breaking transaction in the market place," said John Sherriff, President and CEO of Enron Europe. "We believe it is the first deal of its type in the UK to combine commodity supply with a project-driven energy reduction programme."

Enron will assess energy consumption at all Sainsbury's Supermarkets' properties and develop an intensive energy reduction programme, which will encompass refrigeration, lighting and heating and ventilation projects.

Enron will modify refrigeration systems, review the effectiveness of existing equipment, monitor temperature controls, upgrade lighting infrastructure, and ensure that heating and ventilation systems are operating at optimum efficiency. It is intended that most of this work will form part of Sainsbury's current programme that aims to upgrade the whole of the supermarket estate to the standard of the best by April 2004.

Editors Notes

This week Sainsbury's unveils its 2001 Environment Report, this will be its sixth report. The Sainsbury's report is verified by Price Waterhouse Coopers and produced to meet the Global Reporting Initiative which sets standards for clear, coherent and responsible reporting.


Enron Energy Services has built a business to transform the energy marketplace by providing integrated energy and facility management solutions. Enron Energy Services serves customers in Europe, Canada and the US and has more than 31,000 customer facilities under contract. Total customer space managed by Enron Energy Services is approximately 3.1 billion sq ft.

Enron Energy Services' core capabilities include the management of energy commodities, energy equipment, energy information, facilities and capital. These comprehensive capabilities, coupled with Enron's enterprise-wide risk management skills and world-wide presence, make it possible for Enron to deliver first class energy and facility solutions that can lower operating costs and improve business performance.

Enron's European activities began in 1989 and are headquartered in London. Today the company employs over 5,000 people across Europe with principal offices in Frankfurt, London, Oslo, Amsterdam, Milan, Zurich and Madrid. Enron is a leading participant in the liberalised UK and Nordic energy markets and is the leading new entrant in the rapidly liberalising continental European markets. Natural gas and electricity marketing businesses are supported by power stations developed, owned and/or operated by Enron in Italy, Poland, Spain, Turkey and the UK, including the world's largest privately-owned CCGT combined heat and power plant, the 1875 MW Teesside station in the UK.