Bulletin 22 February
Issue 268: Tuesday 22nd February 2011
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ENA tells MPs smart grids and gas can save money
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… and repeats message to Shadow Energy Minister
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ENA joins Electricity Networks Strategy Group
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ENA interviewed on Radio 5 Live on metal theft
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ENA join Ministerial roundtable on broadband
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Minister and Boris’ Adviser at ENA/SBGI Street Works Seminar
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Addressing the skills needs for the future is not a problem, it's an opportunity
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SHE 2011
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ENA tells MPs smart grids and gas can save money
ENA told MPs last Tuesday that a combination of smart electricity grids and continued deployment of low carbon and renewable gas will provide a low cost solution to the UK’s energy challenges. It will also play a vital role in delivering on the Governments low carbon targets. At the same time it will ensure that Britain’s energy security can continue way into this century.
Tony Glover of ENA was giving evidence to the Energy & Climate Change Select Committee on the Electricity Market Reform (EMR) consultation. The EMR has been described by Chris Huhne as representing a “seismic shift” in policy. Charles Hendry has described it as setting energy policy “for a generation”.
The proposals include introducing capacity payments, levying a pool of funds from consumers that would make pay-outs to low-carbon generators, including nuclear reactors and offshore windfarms. Also included are so-called contracts for difference to deal with the volatility of future power prices and prevent windfall profits. These contracts would compensate utilities for lower-than-expected energy prices or charge them if prices are higher, in this way locking in a price and allaying concerns that costly projects won’t get paid off.
A carbon floor would benefit nuclear and renewable energy assets-owners. The Committee on Climate Change suggested replacing the climate change levy to introduce a carbon floor that rises to £27 a ton by 2020.
Meeting later that day with the Shadow Energy Minister Huw Irranca-Davies MP we repeated the same message to him.
It was made clear to the MPs that the cost of meeting low carbon targets could be reduced by developing a smart grid in tandem with the smart meter roll-out. The smart grid can help facilitate this by ensuring energy is used more effectively.
Tony went on to say that electricity was only part of the story - According to a Redpoint report commissioned by ENA with gas as a central part of the future energy mix there could be savings of up to £700bn between 2010 and 2050 – around £20,000 per household or £10,000 per person – relative to scenarios where gas is phased out of the energy mix by 2050.
The evidence session can be seen here and the uncorrected evidence read here. ______________________________________________________________
… and repeats message to Shadow Energy Minister
Last week ENA brought together members to brief the Shadow Energy Minister Huw Irranca-Davies MP. In a long and comprehensive meeting the former DEFRA Minister was briefed on a range of networks issues. The Shadow Minister showed a wide knowledge of the issues gleaned in the few months he has been in the role.
Mr Irranca-Davies will be speaking at our next Well Connected event WC13 alongside National Grid’s Nick Winser which is being held in the heart of Whitehall on 16th March. We will also be launching our Annual Review at the event and anticipate hearing from other high profile guests.
If you are interested in attending WC13 please contact events@energynetworks.org
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ENA joins Electricity Networks Strategy Group
ENA are now members of the re-launched Electricity Networks Strategy Group (ENSG) and ENA Chief Executive David Smith has already attended a meeting. The ENSG provides a high level forum which brings together key stakeholders in electricity networks that work together to support government in meeting the long-term energy challenges of tackling climate change and ensuring secure, clean and affordable energy.
The Group is jointly chaired by DECC and Ofgem and its broad aim is to identify, and co-ordinate work to help address key strategic issues that affect the transition of electricity networks to a low-carbon future.
ENSG has been re-launched because of the ever increasing focus on network development and the key part it must play in shaping our energy future. The membership of ENA further highlights our central role in co-ordinating the response to this challenge through drivers such as the Low Carbon Networks Fund and our network futures work. With our gas network company membership we can also provide a key perspective on the role gas can play. ______________________________________________________________
ENA interviewed on Radio 5 Live on metal theft
ENA were interviewed on Radio Five Live and BBC Three Counties Radio last week on the issue of metal theft. We explained how it continues to grow and showed how it impacts on society. We called for changes to the law on scrap dealers thus stopping the means of disposing with the stolen metal. The current legislation is from the time of Steptoe and Son. We believe that greater police powers to close sites which have stolen metal, coupled with an effective registration scheme and a cashless system will stop most of the thefts.
We highlighted the fact that this problem has grown considerably over the years. We sent out the stark message that it impacts on the thieves (some die each year), it impacts on the public and it impacts on society as a whole.
It exposes the public to danger – although companies make the sites safe very quickly. We talked about the impact on the economy and the societal impact on schools, care homes and local communities.
We have seen a clear increase this January with over 4000 incidents in energy and telecoms over the past year. We are also seeing increasing theft of gas related infrastructure with the obvious serious safety implications. In one recent example in the North East – piping was cut resulting in a gas leak into a home. Luckily the resident was awake and detected a probably– otherwise she would have certainly have died. _____________________________________________________________
ENA join Ministerial roundtable on broadband
ENA participated in a Ministerial roundtable on 8th February on the role that network operators can have in facilitating rural broadband roll-out. The session comprised representatives from across the telecoms industry as well ENA member companies and was chaired by Broadband Minister Ed Vaisey.
On 6th December last year Culture Secretary Jeremy Hunt launched the Government’s National Broadband Strategy: Building Britain’s Superfast Broadband Future. On the same day they also published a summary of responses to the utility infrastructure sharing discussion paper which was published last summer.
The majority of respondents to that paper acknowledged the importance of infrastructure sharing as a means of reducing the cost of broadband deployment, provided infrastructure is suitable for sharing; the barriers to sharing can be overcome; and infrastructure owners have the incentive to share. The responses reflected a willingness on the part of both infrastructure owners and telecommunications companies to explore the issues around shared use.
The roundtable discussion raised a number of issues that ENA will now be addressing with member companies. ENA will continue to work with the Government and examine how network companies can facilitate broadband roll-out. We will also help shape the regulatory framework that will be needed to deliver this. The Strategy can be read here.
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Minister and Boris’ Adviser at ENA/SBGI Street Works Seminar
Transport Minister Norman Baker MP will close this year’s ENA/SBGI Utility Street Works Seminar speaking at a drinks reception following the day’s proceedings. Also speaking will be the Mayor of London’s Transport Adviser Kulveer Ranger. He will be speaking about his vision for lane rental.
The event is only a couple of days away. It takes place this Thursday 24th February 2011 between 9:15 – 5pm and will be held at One Great George Street in Westminster.
The seminar attracts representatives from all organisations with an interest in utility street works. Come and join delegates from the utility companies, engineering contractors, technology providers, and local and national government departments, to debate policy and share experience and best practice from across the sector. Other confirmed Speakers include:
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David Jones, Director Enterprise plc
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Richard Buckley, Head of Street Works, DfT
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Phil Clarke, Head of London Operations, National Grid plc
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Marian Coombs, Major Projects Integration Team Leader/ClearWay 2012 Project Manager at Transport for London
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Martin Low, Director of Transportation, Westminster City Council
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Richard Wakelen, UK Power Networks
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Les Guest, CEO, NJUG
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Marc Hobell, Strategic Developments Manager for Utilities, OS obo NUAG
Following the formal seminar you are invited to a drinks reception hosted by ENA at which Norman Baker, MP for Lewes and Parliamentary Under-Secretary of State for Transport will launch a book published by ENA on how a partnership approach to street works can deliver real results. The book by Richard Wakelen of UK Power Networks and Roger Williams of East Sussex County Council sets out how they worked together to deliver a more effective way to manage street works.
There will be an opportunity to discuss with the authors how their approach worked and to meet the Minister and other senior DfT officials.
BOOK NOW TO AVOID DISAPPOINTMENT
Cost:
SBGI/ENA Members £265 plus VAT
Non Members £315 plus VAT
For further information please contact Vanessa Webster on 01926 513763 or email vanessa@sbgi.org.uk ______________________________________________________________
Addressing the skills needs for the future is not a problem, it’s an opportunity
This year’s Annual Distribution Network Strategy Conference, hosted by ENA and EA Technology, looked at the challenges we face in meeting the skills needs of the future. The conference heard from a number of ENA members as well as the National Skills Academy for Power (NSAP) and academics working with our sector to develop training programmes.
The first National Apprenticeship Scheme started in the 1960s, and pausing for reflection on the present day employment opportunities might seem apt. Privatisation lead to a gradual decline in the workforce throughout the 90s and the leakage of skills as well as the drive behind them has lead to a shortage for the future – this is not just for the energy industry, but for many core disciplines within UK Plc.
According to NSAP, over the next 10 years 80% of the existing workforce will retire. New technology such as a smarter network means new skills and this is the time we need knowledge and experience of the current network more than ever.
But the lively discussions at the conference pointed not to a problem that needed fixing as much as an opportunity that would be the solution. Going forward the industry must think sooner and think long-term – it’s about starting with schools and focusing on a widespread engineering interest. The days of relying on teenage apprentices to become 30 year energy industry engineers are most likely behind us. However, the value of our current workforce is enormous. To engage and train the engineers of tomorrow we must make use of the passion and expertise of those who’ve served the industry for decades too.
Closing the conference, Robert Davies of EA Technology explained that the workforce we develop will need emotional intelligence with ‘soft’ or interpersonal skills as well as the ‘hard’ skills of the trade. There is an opportunity to change the approach for the long-term, but it requires a cultural change, one that is action driven from a collaborative approach.
For more information on the National Skills Academy for Power and their ‘Think Power’ initiative to drive interest in the industry see their website - http://www.power.nsacademy.co.uk/
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SHE 2011
With unprecedented challenges facing the energy industry, the advent of a new Government and the launch of Powering Improvement, SHE2011 is set to be the best ever.
Among the highlights are addresses from Paul Noon, General Secretary for Prospect, Dame Carol Black, author of the Working for a healthier tomorrow report and Lawrence Waterman, Head of Health and Safety for the Olympic Delivery Authority.
We will also hear from our Powering Improvement champions for 2011, John Crackett of Central Networks and Jane Willis of the HSE. The Energy Industry Safety, Health & Environment Conference is unique in the way it brings together all stakeholders, from the companies through Government and its agencies to the trades unions, to focus on safety, health and environment issues.
This is the 22nd such conference and it has established itself as ‘the event’ to attend for all those involved in safety, health and environment issues across the energy sector and beyond.
The Conference takes place on the 13th,14th and 15th of April 2011 at the famous Belfry Hotel near Birmingham, starting with a pre-conference reception being held there on the night of the 13th April and formal conference dinner on the night of the 14th. The conference is being hosted by E.ON UK.
As with last year delegate fees include accommodation for both nights of the conference (13th and 14th) and a discount is available for early bird bookings, on top of the special rates offered to ENA, AEP, ERA, GISG and Gas Forum members. So book early!
For more details and to make your booking click here.
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Brussels Update
ENA presentation
Andy Phelps will present a Eurelectric paper on “Regulation for Smart Grids” this week at a breakfast meeting in Brussels.
This paper, based on a survey carried out by Eurelectric amongst its members on the effectiveness of current regulatory regime, was put together by members of the Eurelectric Regulation for Smart Grids Sub Group, in which Andy Phelps is the UK representative. The paper highlights the lack of adequate regulatory incentives to encourage DSOs to invest in “smarter” distribution networks and urges national regulators to change their approach to grid tariff regulation models.
The meeting will be attended by DSO representatives from all Member States, ERGEG/CEER and DG Energy in the European Commission. Alongside the launch of the Eurelectric paper there will also be presentations from the ERGEG/CEER Electricity Quality of Supply and Smart Grids Task Force, and from DG Energy.
February Energy summit
Earlier this month, European Heads of State had their first ever energy themed summit. This was recognition of the way that energy issues have risen way up the European political agenda.
Published conclusions from the summit focus show full agreement on the key mid-term deadlines: 2014 for the completion of the internal energy market; 2015 for full interconnection across Europe, when no EU Member State should remain an energy island or see its energy security jeopardised by a lack of appropriate connections.
Short term objectives include technical standards for electric vehicle charging finalised by the middle of this year, with the end of 2012 the deadline for smart meter standards.
In terms of the infrastructure blueprint and future legislative proposals, there was general agreement that major efforts are needed to streamline and improve authorisation procedures, whilst recognising national competences.
ENA views on infrastructure needs
ENA has welcomed the spotlight the Commission had shone on the recognised barriers to infrastructure development. What has been absent, so far, is a unified policy approach at EU level, which is particularly needed to deal with permitting delays which can often blight new projects. Well co-ordinated support for the infrastructure which will deliver new technological advances eg the development of smart grids, accelerated roll out of electric vehicles, and the transport of hydrogen and CO2 would also be of real value.
The Commission has rightly identified the two key problem areas which currently put at risk many energy infrastructure projects, namely project authorisation delays, and securing sufficient financing.
Specific proposals from the Commission to introduce a fixed time limit for final decisions and a single permitting authority “one stop shop” for projects of European interest are very positive developments, and we look forward to more detail and working on the delivery thereof later this year. Maximum time limits have some appeal, for both transmission and distribution projects, but any time limits should be adaptable to the specific kind of project proposed, certainly less than 5 years for distribution projects, and should also be predictable.
Generally on financing, for the networks as regulated monopolies, there is a key enabling role for the regulators, with the right incentives, and sufficient rates of return on investment.
Fundamental to the successful roll out of the anticipated programme of infrastructure build will be public acceptance and support. Here there is most definitely a useful role the Commission can play, by developing a public awareness and education campaign, which will explain to EU energy customers just why energy infrastructure projects are so important, but also deals with the associated issues of potential disruptions and increased energy costs. This could be extremely helpful in supporting and reinforcing the work already being done by the energy utilities, and by national governments.
Commission’s proposals for Smart Grids
The Commission believes there is scope for further legislation on smart grids, and that without it there is a risk that the pace of work in Member States will slow down.
Accordingly, in April the Commission is expected to publish a communication which will set out what it sees as the current barriers to smart grids development in terms of the present regulatory framework and also financing challenges, and outline formal legislative proposals scheduled for the end of this year. The new legislation could be in the form of a stand-alone Smart Grids Directive, or an annex to the 3rd Package’s Electricity Directive, or alternatively perhaps form part of the new Energy Savings Directive which will follow up the 2011 Energy Efficiency Plan.
ENA takes the view that an organic process of development is probably the right approach to smart grids, with Member States at different stages of development, and therefore that EU intervention should be kept to a minimum. However, support in terms of encouraging the right regulatory incentives could be helpful. We must wait and see what the Commission proposes.
ENA members are fully engaged in smart grid development, and are participating in the European Electricity Grids Initiative (EEGI) part of the Strategic Energy Technology Plan through European energy associations Eurelectric and GEODE. The EEGI roadmap to 2018 is a good start, but with such new, untested and potentially expensive technologies, the Commission needs to make more public monies available within this industrial initiative, to support the substantial financial contributions from the companies and Member States. ______________________________________________________________
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