The contracts come to an end in February, at which time EDF will restructure the division.
A spokesman for EDF said: “EDF Energy recently entered a tendering process for two existing contracts with UKPN, which we were unsuccessful in retaining.
“This decision will impact around 65 of our employees and we expect to restructure our activities as a result, once these contracts come to an end in February.
“We will have a greater understanding of the impact once the consultation with trade unions and elected employee representatives has taken place.”
UK Power Networks said it had recently invited providers to bid for an agreement to ensure a georgraphical revenue protection service.
“Upon receiving a bid from EDF Energy, we then entered in to negotiations with them regarding the terms of this contract.
“The two parties were not able to come to agreed terms, and as a result UK Power Networks will now not be acting as an intermediary in this matter, instead it will remain the responsibility of individual suppliers to provide this service.”