19 October 2004 - LogicaCMG has announced a £8.1m ($14.6m) five year contract with EDF Energy in the UK. The deal covers the delivery of IT services, consultancy and support for two critical areas of EDF Energy's business - the electricity distribution network (the UK's largest), and its back-office SAP systems.

Following a competitive bid, LogicaCMG was selected to provide applications management and support for all EDF Energy's Networks Branch business systems. The service is flexible to meet the changing demands of EDF Energy's electricity distribution network, which serves more than a quarter of the UK's population.

LogicaCMG will be responsible for controlling, monitoring and maintaining key network applications to ensure they are always operational for more than 3500 staff in the branch.

As part of the deal, LogicaCMG will also be responsible for all EDF Energy's SAP support requirements across the company. This integrated back-office software includes the IT systems used to manage Work Management, Materials and Warehouse Management, Procurement, Finance and HR requirements.

EDF hope the new service will deliver operational cost savings, key business critical applications and help provide a high quality customer service.

Director of IT Andy Hooper said: "A highly reliable performance is essential when it comes to systems that support the power distribution network. In effect we are helping to keep the lights on. LogicaCMG's proposition meets our demanding requirements at a realistic price.

LogicaCMG's commercial approach is linked to continuous improvement which means that EDF Energy's payment for services can be made in inflation-linked instalments in proportion to the company's IT spend over the period of the five year contract.

Jim Yeats, UK managing director for Energy and Utilities at LogicaCMG said: "This is a very important win for LogicaCMG and our EDF Energy client team, which have worked closely with EDF Energy to build strong relationships and trust - delivering a service that matches the needs of the customer."