News

ENA Bulletin 3 February

Issue 286: Friday 3 February 2012

**Stop Press** Chris Huhne resigns – to be replaced by Ed Davey
ENA victory on metal theft but still more to do
ENA meets Welsh Energy Minister
ENA/SBGI Utility Seminar – Street Works Minister to speak
Independent report spells out costs of undergrounding
ENA SHE Conference 2012
Chief Executive chairs New Energy Economy conference with Energy Minister
Brussels update
Forthcoming events organised and/or supported by ENA

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Stop Press Chris Huhne resigns – to be replaced by Ed Davey

The Secretary of State for Energy & Climate Change Chris Huhne was charged with perverting the course of justice this morning. Following this he has resigned and has been replaced by Ed Davey.

Ed Davey is currently Parliamentary Under-Secretary of State for Employment Relations, Consumer and Postal Affairs at the Department for Business, Innovation and Skills.

We are very encouraged that he has said that his favourite piece of legislation would be a law on energy conservation to tackle climate change. The development of the smarter network is at the heart of delivering this.

He joined the Lib Dem Shadow Cabinet in 2001 as Shadow Chief Secretary to the Treasury. In 2002 he moved to shadow the Office of the Deputy Prime Minister, with responsibility for local government and the regions.

In 2005 Charles Kennedy promoted him to the education brief. After Kennedy’s admission of a drink problem Davey drew up the list of 25 senior MPs who said they would refuse to serve under him.

Sir Menzies Campbell moved him to be Shadow Secretary of State for Trade and Industry (where he was responsible for energy issues), but 9 months later appointed him his Chief of Staff.

One interesting snippet about Ed Davey is that he won a Royal Humane Society award for rescuing a woman who fell on a railway track in 1995.
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ENA victory on metal theft but still more to do

ENA’s campaign to bring in a cashless system for the scrap metal industry achieved success last week. It came with a statement from the Home Secretary that the Government will introduce amendments to ban cash transactions for scrap metal and impose unlimited fines for metal thieves. It was a major victory for the campaign, which ENA initiated at the end of 2010. Both the current and previous Governments had rejected this proposal and only 3 weeks ago ENA were trying to persuade the Treasury of the need for this change.

Clearly a combination of political and media pressure that ENA have been at the heart of has delivered. However, we are concerned that the full package of measures needed has not been introduced at the same time. ENA were chairing a conference on metal theft on the day of the announcement and we were able to discuss it with MPs and representatives of the scrap metal industry as the proposals were revealed.

ENA has been supporting the Metal Theft (Prevention) Bill presented by Graham Jones MP. It set out the plethora of changes needed, however, Government objected to it on 20 January. The proposals include a robust licensing scheme, the requirement for proof of ID for all those selling scrap metal and the identification and recording of the metal itself to create an audit trail.

We made clear that supporting Graham’s Bill was vital. Throughout 2012 we will see our energy, transport and communications infrastructure tested to their limits and we saw this Bill as the last opportunity to deliver a lasting blow to the metal thieves in time for the Olympics.

We have also been briefing Lord Faulkner of Worcester who has proposed amendments to the Legal Aid and Sentencing of Offenders Bill, setting out the proposals identified by the Home Secretary.

In December the All-Party Parliamentary Group on Combating Metal Theft, for which ENA are providing support, set out their support for Graham Jones’ Metal Theft (Prevention) Bill and called for an end to “metal laundering” that had “infected the whole chain handling scrap metal”.

Meanwhile, in a breaking development on Tuesday night of this week MPs on the All Party Group secured a debate on the floor of the House for next Tuesday 7 February calling for a radical overhaul of the scrap metal industry. It is expected that the Home Secretary will respond for the Government. ENA have been working closely with these MPs to facilitate this debate.

The motion, which is subject to a vote, calls on the Government to urgently introduce a package of measures to coincide with the cashless system. Specifically:

A robust licensing scheme for scrap metal dealers to replace the present registration scheme.
A licence fee to fund the regulation of the licence.
Greater police powers to close unscrupulous scrap metal dealers in line with alcohol licensing.
Police authority to search and investigate all premises owned and operated by scrap metal dealers.
Use of photo identification and CCTV to identify sellers of scrap metal, and their vehicles.
Vehicle badging for mobile scrap metal dealers.
Magistrates' powers to add licence restrictions and prevent closed yards from re-opening.

The debate comes a day before a crucial meeting of the All-Party Group where we will hear from the Home Office Minister Lord Henley as well as BIS Minister Mark Prisk and the Deputy Mayor of London Richard Barnes. The Minister will be speaking at an Association of Chief Police Officers Conference earlier that day (at which ENA are also speaking) where he was expected to announce the details of the cashless system. Things have clearly moved on however. The debate, held the previous night, puts a huge amount of political pressure on the Government to respond to all our demands. With the debate subject to a vote the House will be very busy. MPs are clearly outraged at the attacks on their constituencies so they will be lining up to support our measures. The Government will have to decide how they can quell this anger. Any attempt to “whip” it out will be doomed to failure. The political endgame has been reached.

Clearly the political argument has been won. ENA in partnership with other affected sectors have secured the support of a huge cross section of MPs on this issue as well as ensuring a strong media profile. It is highly likely that MPs will force the Government to make a commitment to scrap metal legislation early in the new session. The Home Secretary knows that nothing less will satisfy Parliament and indeed the country. With a section of the Queen’s Speech on 9 May devoted to new proposals we will have achieved our objective and secured our total victory. Nothing less will suffice.
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ENA meets Welsh Energy Minister

Two weeks ago ENA led a delegation to see the Welsh Energy Minister John Griffiths AM and key officials in the Welsh Assembly Government including Dr Ron Loveland, the Energy Adviser to the First Minister.

The delegation comprised representatives of all our member companies operating networks in Wales.

The key issues discussed included the controversial issue of planning. This has been the focus of much debate in the Welsh Assembly as their planning policy TAN 8 is being reviewed, which was initiated by the First Minister Carwyn Jones AM. Indeed on the day of our visit the Welsh Assembly Sustainability Committee was hearing evidence on the issue.

Another key area discussed was the future role of gas – with parts of Wales not connected to the gas network there is a queue of communities desperate for connection. Surely this does not indicate a community prepared to relinquish gas supply over the coming decades?

One key area of focus was the critical importance of developing a smarter network in tandem with the smart meter roll-out and some of the challenges around the roll-out. We also briefed the Minister on the Low Carbon Networks Fund and the benefits of this process.

We also discussed the relationship of DECC, Ofgem and the Welsh Assembly Government.

Finally we discussed the issue of metal theft and the Minister undertook to ensure that the Welsh Assembly Government added its voice in support for our campaign.
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ENA/SBGI Utility Street Works 2012 – Street Works Minister to speak

The Street Works Minister Norman Baker MP will be the headline speaker at Utility Street Works 2012. He will give an update on Government thinking as well as launch a Safe Digging Charter.

The 1-day seminar is taking place on 26 April 2012 at the Institution of Civil Engineers, 1 Great George Street, London.

Building on the success of recent years, the event once again provides timely and topical presentations on all aspects of Street Works spanning policy and regulation, stakeholder interests, safety, partnerships, technology and best practice. This year’s event will also include inputs from English and Scottish regions.

In an Olympic year and with ever increasing pressure on utilities to replace ageing infrastructure in crowded urban environments – and with minimal disruption – the event provides an ideal opportunity to hear from experts in the field, network with peers, and of course sample the supporting industry exhibition.

Chairman: Les Guest, CEO NJUG.

Confirmed speakers from: Scotia Gas Networks, National Grid, J Murphy and Sons Ltd, National Underground Assets Group, and Balfour Beatty Utility Solutions (BBUS).

Invited speakers from: Transport for London Virgin Media, Veolia Water, Office of the Scottish Road Works Commissioner, Staffs CC Roads & Highways, Department for Transport

Sponsored by: J Murphy and Sons Ltd, BBUS.

Supported by: Utility Week, NJUG, PIG, SBWWI, UKSTT.

For enquiries or further information on Sponsoring/Exhibiting/Attending, contact: vanessa@sbgi.org.uk.
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Independent report spells out costs of undergrounding

The much awaited Independent report into the costs of various transmission technologies was published on 31 January.

The report endorsed by the Institute of Engineering and Technology confirmed the cost of undergrounding electricity network infrastructure can be 10 times that of overhead lines.

The key headlines were:

Overhead line is the cheapest transmission technology for any given route or capacity with the lifetime cost estimates varying between £2.2m and £4.2m per Km.
Direct-buried underground cable is the next cheapest technology with the lifetime costs varying between £10.2m and £24.1m per Km.
Deep tunnel costs vary from £12.9 to £23.9m per km depending on tunnel length.
The 75Km HVDC connections are estimated to cost between £13.4m and £31.8m. However, long HVDC connections are proportionally more efficient than short connections.
Undergrounded gas insulated line technology is between £10.6m and £16.2m.

Energy Minister Charles Hendry said in a statement to the House of Commons that “over the coming year’s major transmission reinforcements will be needed to connect Britain’s new power stations. Many people are concerned about the impact that new transmission lines can have on the landscape and on local communities, and it is therefore essential that these reinforcements are taken forward on the basis of informed discussion and the best available knowledge”.

The report was commissioned jointly by DECC and National Grid, Parsons Brinkerhoff collected data from global sources and prepared the report and the IET has overseen the project and endorsed the conclusions.
It sought to provide clarity around the estimates of increased cost of undergrounding electricity network infrastructure compared with the current method of carrying them on pylons.

This report is an important addition to the debate on our energy infrastructure. The additional cost of undergrounding is carried by every electricity customer in the country so ensuring a balance of priorities is essential. It is right that visual amenity of a location is considered as one of those factors but where such a significant cost increase is seen the impact on costs to the wider society should not be overlooked.

A smarter grid will mean less additional infrastructure. With better energy efficiency, smart technologies and engagement with customers we can reduce the need for more wires and save money.

The Report can be seen here.
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ENA SHE Conference 2012 – Wednesday 2nd May – Friday 4th May 2012

The early bird rate ends on 10 February so book now and be at THE conference for safety, health and environment issues in the electricity industry!

Over many years the Annual SHE conference has become a hugely successful and popular event drawing large numbers from across the energy industry. The 2012 conference promises to deliver thought provoking discussions around worker involvement, occupational health and how we deliver safety in a high hazard industry.

The 23rd ENA Safety, Health and Environment Management Conference (SHE2012) will be held on the 2–4 March 2012 at The Guoman Tower Hotel, London and will be hosted by UK Power Networks.

SHE2012 will bring together health and safety professionals and trade union representatives within the energy industry along with Government policy makers, regulators and experts from outside the sector to discuss and debate best practice in the management of SHE issues.

Keynote speakers confirmed for SHE2012 include: Judith Hackitt (Chair, HSE), Basil Scarsella (CEO UK Power Networks), Ed Mitchell (Director of Environment and Business, Environment Agency), and Robert Davis (CE EA Technology Ltd).

SHE2012 Delegate Fees:

* Early Bird Rate (Bookings made before 10th February 2012) *
Members: £699
Non members: £799

Full Price
Members: £749
Non members: £849

To book your place at SHE2012, please click here.

Click here to view the programme.
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Chief Executive chairs New Energy Economy conference with Energy Minister

ENA Chief Executive David Smith will be chairing the morning session of the New Energy Economy conference on 22nd February.

Opening the conference, which will look at delivering the UK’s future energy needs, David will set out the key role the networks play in enabling smarter networks that will help reduce the cost to customers.

He will then chair the keynote session, which will hear from Energy Minister Charles Hendry on delivering the UK’s energy transition – a topic the networks are critical to as the facilitators of the low-carbon future.

Details of the conference are available here.
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Brussels update

CEER Conference – “Energy Infrastructure and Energy Efficiency”

ENA participated in an important and lively energy conference held by the Council of European Regulators last month. The discussions focussed on two major pieces of draft EU legislation with the potential to impact significantly on the UK networks, the Infrastructure Package and the Energy Efficiency Directive.

Infrastructure Package

Lord Mogg, as Chairman of CEER (Council of European Regulators) and President of ACER (Association of European Regulators) gave some useful insights into regulator thinking on the new infrastructure proposals:

Permitting (EU speak for planning) remains the major source of delay to infrastructure investments, for new power lines, power stations, and wind farms (Lord Mogg said he spoke from personal experience of the difficulties). The regulators are pleased the Commission has made proposals on speeding up the process for the most important projects, even though some Member States saw this potentially as interference with their national competences.
New proposals should build on the 3rd package, not replace it. Accordingly the Ten Year Network Development Plan (TYNDP) should be the basis of the process for identifying electricity projects of common interest (PCIs).
The National Regulatory Authorities and the Agency for the Cooperation of Energy Regulators (ACER) should fully participate in the regional expert groups, which will develop the list of PCIs, but this must not prejudice their subsequent review and formalised ‘opinion’ of the list.
Potential investors need to be clear that only efficiently incurred costs will be allowed by the regulators for cost recovery from tariffs.
Commercially sound projects should not be delayed by their promoters in the hopes of being eligible for financial incentives from the EU that they don’t need. PCI status, with the associated benefits in terms of enhanced regulatory treatment, accelerated permitting, and potential EU funding must be exclusively reserved for ‘non commercial’ projects that are credible in the wider interests of Europe, but struggle to obtain private funding (e.g. innovation, new technologies, contribution to EU energy security etc.).

ENA has welcomed the Infrastructure Package, particularly the eligibility of distribution companies as potential PCI project developers, and smart grid projects as potential PCIs.

The Parliament’s newly appointed Rapporteur on the package, Antonio Correia de Campos, is at the early stage of his assessment. But he shared some thoughts with the conference audience. He has identified a number of possible issues including:

Clarifying involvement of national Governments versus regional expert groups.
How to address the possibility of a veto by a single Member State of a joint project that would benefit other Member States.
The absence of a TYNDP for gas.
The need to avoid market distortion in the financial/regulatory support given to PCIs etc.

The Rapporteur asked for early proposals for amendments to the Commission’s text by mid-February if possible. ENA will be submitting its suggestions to the Parliament via Eurelectric and GEODE. Our focus will be on the need to enlarge the criteria for smart grid projects to include low voltage, since the majority of new generation, renewables and other distributed and micro generation will connect at the distribution level.

Innovating on a large scale and in pressurised timescales, work that the networks are already undertaking, would certainly benefit from greater regulatory and financial support from the EU.

Energy Efficiency Directive

Paul Hodson, speaking for the Commission, gave a robust defence of the proposals in the draft Energy Efficiency Directive and its significance in terms of meeting energy climate objectives, while also securing competitive ‘gains’ for the EU by, for example, cutting costs and creating jobs.

The new legislative proposals addressed two key policy areas, regulation and financing. Consideration of the text in Council and Parliament had been progressing well, and the MEP proposals to strengthen the wording re demand response had been particularly useful.

The European Parliament’s Rapporteur, Claude Turmes, also spoke, and with some passion, about the Directive and his hopes and fears. His meetings with his shadow Rapporteur colleagues were making progress. They were actively whittling down the 2,000 plus MEP amendments to a more manageable set of compromise amendments in time for the Energy Committee vote on 24 February.

His personal contributions had focused on Article 6, and the financing proposals associated with the 1.5% annual energy savings required from Member States. The UK Government had already made it clear that these savings could only, realistically, be achieved from residential customers, a position which Mr Turmes appeared to accept.

ENA strongly supports the Directive’s energy efficiency objectives, which underlay a good deal of our regulatory framework already. However, we think some of the Directive’s measures, as drafted, are overly prescriptive. The key is to identify measures that are cost effective. And the safe and secure operation of the grid must always be the top priority.

Clearly other sectors of the European economy, for example buildings and transport, must also step up and play their part in this drive towards greater energy efficiency. Disappointingly transport issues are not addressed in the Directive.
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