Sainsbury's Signs RWE To Save Energy At Stores And Depots

The UK supermarket group Sainsbury's expects to cut its power bills and carbon dioxide emissions from its buildings after signing an energy management contract with the German multi-utility RWE. The outsourcing deal replaces a similar agreement reached with the disgraced energy trader Enron shortly before its collapse late last year.

Under the four and a half year deal announced by Sainsbury group energy manager Julius Brinkworth, RWE will supply gas and electricity to stores, depots and offices, and manage a £14.5m ($22m) investment in energy efficiency measures across the business.

The programme will include modification of refrigeration systems, a review of existing equipment and monitoring of temperature controls. Sainsbury's, which operates 458 stores around the UK, says the move is expected to cut its £50m a year energy bill by 11% over two years. It will also contribute to its target of cutting carbon dioxide emissions from its buildings by 10% by March 2005.

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