RNS Number:9672R
UK Coal PLC
12 November 2003


12 November 2003


             UK COAL AGREE THREE YEAR SUPPLY DEAL WITH EDF Energy:


UK COAL PLC has agreed terms with the energy company EDF Energy under which
between seven and eight million tonnes of coal will be supplied to the company's
two Midlands power stations over a three year period.


The agreement, worth around #200 million, takes effect in January 2004 and
supplements existing arrangements under which around half a million tonnes of
coal will be supplied to EDF Energy's West Burton and Cottam power stations in
2004.


All the coal will be transported by rail from UK COAL mines, principally
Welbeck, Harworth and Thoresby in Nottinghamshire and local surface mines
supplied through the Oxcroft disposal point in Derbyshire. EDF Energy's West
Burton and Cottam stations are both of 2000MW capacity, and are in the process
of being equipped with flue gas desulphurisation (FGD) plant designed to remove
around 90% of sulphur dioxide emissions from the coal combustion process.


Says UK COAL Chief Executive Gordon McPhie: "This is a significant contract with
a major customer operating two power stations in the heart of our coalfields,
and demonstrates the long term stability we can offer customers in the face of a
highly volatile international market. This agreement will provide both security
for our collieries and employees and for the power stations and their
customers."


EDF Energy's Chief Executive Vincent de Rivaz, said: "We are delighted to have
concluded this deal, which extends our strong relationship with the UK coal
industry. Together with our investment in environmentally friendly technology,
it confirms our commitment to our coal fired stations and to our staff that work
there.


"This contract also reaffirms our strategy going forward. Long term contracts
like these will help to reduce the impact on our customers of the volatility of
wholesale prices. Stable fuel costs have obvious benefits throughout the whole
energy chain and support low, stable prices for customers.


"The deal will help us get the balance right between investing in our assets, in
the environment and providing value to our customers."



MEDIA CONTACTS:

EDF Energy                          Tel: 0207 752 2265
Jonathan Levy

Gavin Anderson                      Tel: 020 7554 1400
Liz Morley
Ken Cronin


Note to Editors:


UK COAL

* Britain's biggest coal producer, UK COAL last year produced 19.5 million
tonnes from deep and surface mines in the Midlands, North East and Yorkshire.
With its headquarters at Harworth, near Doncaster, the company also produces a
range of smokeless fuels and has an extensive property portfolio of almost
50,000 acres. It employs over 6,000 people and has an annual turnover of around
#500m.


EDF Energy

* EDF Energy (previously London Electricity Group) is an integrated
energy provider, involved in all parts of the electricity supply chain -
generation, distribution and supply. The company has grown from its regional
roots to become a key provider of essential energy services across the UK. It
currently employs 11,300 people at locations throughout South East, North East
and South West England.

* EDF Energy transmits electricity to almost 7.8 million homes and
businesses, accounts for around 25% of the UK's electricity distribution,
supplies 5 million residential gas and electricity customers and major business
customers through its brands - London Energy (previously London Electricity),
Seeboard Energy and SWEB Energy (previously SWEB) and Virgin HomeEnergy.

* EDF Energy has some 5GW of generation capacity, operating coal and gas
power stations, as well as CHP stations and wind farms. The company is also a
key player in national infrastructure projects. These include the electrical
upgrading of the whole London Underground system, management of private
electricity networks serving four London airports and the Channel Tunnel Rail
Link, the UK's first new railway in 100 years.

* EDF Energy is a key element of the EDF Group, a company that operates
in 5 key European countries. With the backing of EDF Group EDF Energy is well
placed to play a significant role in the development of the UK energy market.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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