ENA Bulletin 27 July

Issue 277: Wednesday 27 July 2011  

  • ENA conference reveals the future of our energy networks

  • ENA set out case to scrap metal dealers for change to law

  • ENA thanked by Hendry as National Policy Statements approved  

  • ENA meet new Scottish Energy Minister  

  • ENA meet Transport Deputy Mayor for London  

  • Gas Safety Week: Take care, be gas safe  

  • Brussels update  

  • Forthcoming Events Organised and/or Supported by ENA  

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ENA conference reveals the future of our energy networks  

Exciting outcomes of Ofgem’s £500m Low Carbon Networks Fund (LCNF) were presented as part of the first conference of its kind in Newcastle last week in an event organised by ENA. The projects presented at the conference ranged from facilitating ‘smart villages’, the development of a 1MW battery, and the roll-out of smart fuses. It also discussed the challenges facing the networks of a customer-led revolution in energy generation and consumption.  

The Conference came a week after the Electricity Market Reform White Paper was published. The White Paper made clear that changes to the network and growth in demand side response, storage, and interconnection will need to accompany the transformation of electricity generation that is at the core of the reforms.  

The research and development projects discussed at the ENA conference help move the UK closer to realising our low carbon energy future through a smarter grid. ENA Chief Executive David Smith opened the conference by saying “the new LCNF Conference encapsulates our desire to spread the message of the networks in delivering the low carbon economy. We see this annual conference as nothing less than a forum for our future networks”.  

Mark Drye, Director of Asset Management of CE Electric UK, who hosted the conference, stated “rather than a decline in the golden age of industry and engineering the UK has seen, this is about our industry’s ability to innovate. The LCNF is a truly collaborative approach to the innovation for the future that we need. It is apt that the first of these conferences is being held in the North East where engineering has such deep roots”.  

The Conference also heard from Ofgem, welcoming the work of the networks so far, Anna Rossington, Head of Distribution Policy at Ofgem said “the LCNF is about a journey. We all know the end goal of a low carbon future, but there are many uncertainties such as managing increased renewable connections, storage of energy and demand side management. The projects being presented are essential to ensuring we have reliable and effective networks in the future”.  

Closing the conference, John Christie from DECC said “the networks are the linchpin to our future and without the impressive and extensive innovation projects presented here none of what we’re trying to achieve elsewhere would have the impact we need. We must remember this is about making best use of customers’ money to benefit the long-term goal of saving on their future bills through a low-carbon future. I would like to thank ENA for an absolutely outstanding conference”.  

Feedback following the Conference has been very positive. One attendee said the Conference “was absolutely outstanding” and he went on to say “the DNO representatives that took the stage to speak were all of a high calibre and did ENA proud in terms of content and delivery”.   ______________________________________________________________  

ENA set out case to scrap metal dealers for change to law  

In an article for Material Recycling Week, the leading magazine for the metal recycling industry, ENA have set out the imperative for legislative change around the regulation of their industry to combat metal theft.  

This came just over three weeks after a 16-year-old boy died in an electricity sub-station in the course of an alleged theft of copper cable. Every day managers in our industry pray that they will not get the phone call that another person has been killed as a result of metal theft. There have been four such deaths so far this year and at least 31 injured. The reality is that there are thefts taking place against our national energy infrastructure across the UK daily. These are malicious and leave sites unsafe as well as causing disruption to the public and the economy. We have seen over 7,000 incidents in the past year and year on year figures are doubling as the graph below illustrates.  

It is not just electricity infrastructure that is being attacked, gas pipes and equipment are also being stolen from private homes causing explosions and risking carbon monoxide poisoning. Thankfully so far no one has been seriously injured but the fear is that this could happen at any time.  

A large proportion of these thefts is small scale and low-value yet high-impact. We are talking about thefts that amount to no more than a few hundred pounds. There is an example of a £5 brass valve which was removed from an oil filled transformer which resulted in 30,000 litres of oil leaking out. Luckily this was contained within the site but if it hadn't, it could have caused road accidents and damaged the local environment.  

So what are we doing to address this problem? Safety remains our paramount concern. We are making our infrastructure as secure as possible but there are hundreds of thousands of individual sites. We are making our metal easier to identify but again we are dealing with millions of meters of cable. We are moving to lower value aluminium where possible but this will not stop the problem.  

Despite many detection initiatives the thefts still continue to grow and every day the odds increase that an innocent member of the public will be killed or seriously injured as a result of thieves leaving sites accessible. We believe it is vital to close down the means of disposal of the stolen metal. Therefore, we need to focus on the metal recycling industry. We know the largest amount of metal is processed by highly respectable companies. ENA visited such a company very recently. However they cannot control their supply chain so we need legislation that can.  

The current law is from the time of ‘Steptoe and Son’. We believe that greater police powers to close sites that have stolen metal, coupled with an effective registration scheme, and a cashless system will stop most of the thefts. We know that not everyone will be happy about this. We know that this will cause problems to the industry but we are willing to sit down with them to see how we can change things in a way that will minimise this. It is clear that change is coming.  

The new Crime Prevention Minister Baroness Browning has made clear that the law will be changed. At an ENA event in Parliament in June she set out a range of options, which she has asked her officials to consider. These include moving to a licensed rather than registered regime, more stringent identification requirements when selling metal, a duty that the scrap metal dealer should reasonably satisfy themselves that they are purchasing legitimately owned material, the power to close scrap metal yards where there is clear evidence of sustained illegal activity, and the possibility of moving away from cash as a method of payment for the industry. The Minister is clear that the regulation reduction agenda would not impede action on this issue where clearly something had to be done. This position has been strongly supported by the Energy Minister Charles Hendry. ENA are currently briefing MPs ahead of a debate in the House of Commons on metal theft in the electricity industry, which will be held on 6 September.  

We believe it is vital that the law is changed if we are to prevent any more deaths like the 16-year-old three weeks ago.  

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ENA thanked by Hendry as National Policy Statements approved  

Charles Hendry steered the Energy National Policy Statements (NPS) into a safe port last Monday as they were debated and approved by Parliament. The Networks NPS was approved without a vote and only 14 MPs voted against the Nuclear NPS. This came a week before the Government published its Draft National Planning Policy Framework (NPPF).  

The NPPF is designed to turn the “thicket” of planning documents into “a clearer, simpler, more coherent framework, easier to understand and easier to put in practice”. Crucially it will have a bearing on all planning decisions across local authorities to ensure that they are consistent with national priorities.  

Charles Hendry wrote to ENA following the successful vote thanking us for our support on NPSs. We had reaffirmed this during a meeting with Mr Hendry on the day the NPSs were laid before Parliament. ENA has long supported this full Parliamentary process and with the kind of rigorous consultation that Charles Hendry has overseen it is clear that they will have acquired a level of democratic accountability unsurpassed in previous policy statements, let alone policy statements on planning.  

During the debate the Energy Minister made it clear that the NPSs advance the policy process in relation to networks. He said the Government had “stated that the Holford rules should be followed when developers are planning the routes of proposed overhead lines”. He added that this “actually strengthens the policy, because before this NPS the use of the Holford rules by developers was voluntary”.  

With the clear support from MPs for the NPSs it is hoped this will ensure at least a 5-year shelf life, something that will be essential if we are to deliver on our energy targets. Critically, these will inform decision making across the planning process, whether in DECC Consents, the new Major Infrastructure Planning Unit, or in local planning authorities.  

The draft National Planning Policy Framework sets national priorities and rules only where it is necessary to do so. The Government believe it will help ensure that planning decisions reflect genuine national objectives, such as the need to safeguard the natural environment, combat climate change, and support sustainable local growth, while “allowing for local authorities and communities to produce their own plans, reflecting the distinctive needs and priorities of different parts of the country”.  

The principle of sustainable development permeates the draft of the new Framework; something that networks development underpin by their support for a low carbon future.  

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ENA meet new Scottish Energy Minister  

ENA met the new Energy Minister in the Scottish Government Fergus Ewing MSP in Edinburgh on 20 July. ENA took the opportunity to focus on the future role for gas. ENA had engaged very well with his predecessor Jim Mather and Mr Ewing made clear that he would follow very much in his direction, although there would be no more mind-maps or comprehensive reading lists – a characteristic of any meeting with Mr Mather!  

Mr Ewing echoed the First Minister in saying that the Scottish Government wanted to see a very strong oil and gas sector. This was something to which Alex Salmond was evangelical in his commitment and was backed up by his extensive experience as a former energy economist.  

ENA raised the role for gas in the domestic sector as well as part of the generation mix, something the Labour Party seemed to understand but that the Government were still unconvinced. It also came a day after Charles Hendry called for more gas-fired power stations to be built in the next few years to ensure security of supply but warned that if the increase in gas-fired power plants was “greater than anticipated” the Government may step in with “measures” to moderate it in order to prevent the country becoming too dependent on one fuel source. Hendry highlighted that measures could include tightening the emissions performance standard or raising the carbon price.  

ENA briefed the new Minister on our Redpoint work on the future of gas and will schedule a further meeting to discuss it and our other gas futures work and how this aligns with the Scottish Government’s policy agenda.  

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ENA meet Transport Deputy Mayor for London  

ENA met NJUG’s Chief Executive along with the new Deputy Mayor of London responsible for Transport issues Isabel Dedring. We briefed her on a range of issues and particularly focused on the issue of public perception. We drew her attention to the ComRes survey NJUG commissioned, which highlighted that the public understood the necessity of works but wanted improvements on the communication around the site of works. Some utilities were now using notices providing clear information including why the works were taking place and why no one was onsite (if that was the case).  

It was clear that Ms Dedring already had a thorough understanding of some of the unique issues that affect London (something gleaned from her time as former Transport for London Commissioner Bob Kiley’s Chief of Staff). However, it was important to discuss these issues as the recent evolution of the regulation of street works has taught us one thing; when London sneezes the rest of the UK catches a cold.   ______________________________________________________________  

Gas Safety Week: Take care, be gas safe  

We are proud to be supporting Gas Safety Week taking place 12–18 September 2011.  

Gas Safety Week is run by Gas Safe Register, the only official list of gas engineers who are legally allowed to work on your gas boiler, gas cooker, and gas fire. By law, all gas engineers must be on the Gas Safe Register, it replaced CORGI.  

Gas Safety Week aims to raise awareness of gas safety and the importance of taking care of your gas appliances. Badly fitted and poorly serviced gas appliances can cause gas leaks, fires, explosions, and carbon monoxide poisoning. Carbon monoxide is a highly poisonous gas. You can’t see it, taste it or smell it, but it can kill quickly with no warning.  

If you rent your home your landlord must keep gas appliances supplied for you to use in good condition. They should arrange a gas safety check every 12 months and give you a record of the check.  

By taking care of your gas appliances properly you are taking care of your home and your loved ones. Follow these top tips to help keep you and your family gas safe:  

  • Make sure only a Gas Safe registered engineer works on your gas appliances

  • Make sure gas appliances have a regular service and an annual gas safety check

  • Always check the engineer's Gas Safe Register ID card  

For gas safety advice or to find and check an engineer visit the Gas Safe Register website at www.GasSafeRegister.co.uk. Alternatively call the free helpline on 0800 408 5500.  

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Brussels update  

EU Network Codes - Update  

There has been a flurry of activity in Brussels and Ljubljana in the past couple of weeks, with some promising developments on the EU network codes.  

Firstly, ENTSO-E published a comprehensive summary of the many (1,500) comments they had received on the pilot code on generation connection, detailing what action they have taken. ENTSO-E has responded to the points made by the UK’s Distribution Code Review Panel.  

ENTSO-E’s press release refers to the need for reinforced collaboration with the European DSOs on the codes, which is a positive sign. The official consultation on the generation network code is expected to be launched by ENTSO-E in the autumn. The TSOs have also promised a paper for October which will explain the rationale for the technical choices they have made with regard to the generation code.  

Next up, ACER published its evaluation of the responses to the draft Framework Guidelines, which will set the scope and remit of the grid connection codes. The regulators outlined the changes they had made as a result of the comments received. Although the final version of the Guidelines has not yet been published, it is imminent and the regulators have indicated that they have made some changes to the text that should clarify when DSOs are grid users and when they are system operators.  

Finally, whilst we wait to see the finalised Guidelines, the regulators have launched a new summer consultation on the Guidelines for System Operation.  

The consultation consists of draft Guidelines, an initial impact assessment, and an online questionnaire. The ACER deadline for responses is 15 September. ENA will be reviewing this documentation, and we intend to put in a response. ACER will also be hosting a workshop on system operation in Ljubljana on 24 August.  

For some time now ENA has been pressing ACER and ENTSO-E to prioritise their work on system operation to help make sense of the proposals on grid connection. Ideally the work on system operation should have been completed first. Their absence has made the assessment of other codes, for example the generation connection code, more difficult since stakeholders have no baseline to assess the proportion of the proposed measures  against the security levels that they will be required to meet. So we welcome this initiative from ACER.  

The EU network codes, both gas and electricity, have the potential to make a significant impact on UK network codes. In the UK context this year both National Grid and Ofgem have run workshops with the aim of updating UK stakeholders on the scope of this work and progress made to date. The one element that has perhaps been missing so far is a more public input to the debate from DECC. The UK Government will, along with the other Member States, play a crucial role at the end of the legislative process when the EU codes are made binding through comitology. Therefore, it is good news that DECC and Ofgem are now understood to be jointly planning a key stakeholder group, to share information, and to exchange views. ENA members will be actively involved in this group.   

3rd Energy Package – UK Implementation  

The EU Third Package implementing regulations – the Electricity and Gas (Internal Markets) Regulations 2011 – were finally laid in Parliament last week, after some weeks of delay. These are now available for reference on Parliament’s website.  

The Regulations have to be approved by both Houses of Parliament, following debates in the House of Commons and House of Lords when Parliament returns in the autumn. In addition, changes to the Standard Special Conditions of Gas Transporter Licences will be brought about through separate regulations, which are expected to be laid in Parliament over the summer under the negative resolution procedure.  

Strictly speaking, the implementing regulations should have been laid and approved in time for the official 3rd package deadline of 3 March 2011. However, this is a very complex set of legislative proposals which, inter alia will require numerous changes to UK network companies licences’, and ENA members have been working with DECC on these complex issues.  

No Member State has as yet completed the process of transposing the 3rd package measures into national legislation. The Commission has seemingly accepted this state of affairs, at least for the time being, but if implementation is not pretty much completed by the late autumn, there is the threat of infringement proceedings from Brussels and the ultimate sanction of fines if there is a continuing failure to comply.  

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