EUA Annual Report 2013
Serving the energy and utilities sector
Serving the energy and utilities sector
Annual Report 2013
Our Mission Using our wealth of expertise and over 100 years of experience, we act to further the best interests of our members and the wider community in working towards a sustainable, energy secure and energy efficient future. The 7-year plan
Five things we need to do to get there
By 2020, EUA will be recognised as the organisation that helps shape policy within the energy and utilities sector.
• E nhance our public profile and provide thought leadership in a wide range of related issues. • D evelop strategic partnerships within the sector and with bodies that complement our work. • Use our technical know-how (especially that of our members) to support lobbying. • Grow membership, both size and breadth, to extend our influence. • As an organisation be open, accessible, engaging and operate the right values and ethics.
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Mike Foster, CE
Be it the cold start to 2013, price rise pledges or the polarising of views on tackling climate change, it is fair to say that energy and utility issues were at the forefront of debate and concern during the year.
Steve Murray, President
Our members have been active in responding to this debate - advocating change in programmes like the Green Deal, formulating arguments on energy security and pricing and offering options to meet greenhouse gas emission targets. Their input, combined with that of the staff at Camden House, means that EUA has once again punched above its weight within the sector. The format of this Annual Report is different this year, with a focus on several “case studies� which show what EUA does in practice. These are merely a sample of the work undertaken during the year but hopefully they will give you a more in-depth look at what is done to support member interests. During the year, EUA expanded again, with the Hot Water Association (HWA) joining the three existing divisions. It has also been announced that from 2014, the Manufacturers’ Association of Radiators and Convectors (MARC) will become another division - extending our influence and giving EUA an even broader base of support. We trust you find this Annual Report interesting and look forward to working with our members during 2014.
Serving the energy and utilities sector
Annual Report 2013
Gas storage - case study An essential element in security of supply In March 2013, a fault with the UK-Belgium interconnector led to a sharp increase in the wholesale price of gas, from below £1/therm to a high of £1.50/therm. This short outage, during a colder than average month, gave cause for concern over what might have happened had the interconnector been out of action for more than a few hours. The Gas Storage Operators Group, (GSOG), covering both fast-cycle as well as seasonal storage is an important group of member companies within EUA. The Government was already committed to a review of the potential for intervention in the market for seasonal gas storage. EUA staff helped GSOG members during the year in getting their voice heard. Over the Summer, we arranged for a meeting with both the Energy Minister, Michael Fallon as well as his Shadow, Tom Greatrex. In both meetings, the case for additional seasonal storage was made. Ahead of the Government response, EUA contributed to a number of media reports in the national press to help explain why there is a case for additional seasonal gas storage.
Unfortunately, the Department for Energy and Climate Change (DECC) decided against market intervention citing a report they had commissioned. Working with our members, closer analysis of the report highlighted how DECC had arguably misled people on the impact of intervention. Several media outlets covered this extensively, and when approached we briefed Sky News who ran the story as part of their ‘Energy Day’ with an EUA member featured every hour of the day! During the year, other bodies worked with EUA on this issue, including energy intensive users such as the ceramic industry. Several MPs also worked with EUA to ask questions on gas storage, helping to hold the Minister to account and providing an insight into DECC’s thinking. The House of Commons Energy and Climate Change Select Committee called a hearing into gas storage during the Autumn. Again, EUA and its members took the opportunity to give evidence, both orally and in writing to the committee. At the time of writing, we do not know what the committee have concluded, but it was important for members to be able to articulate their views at the highest and most appropriate levels possible.
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Smart metering - case study The road to smart Back in 2008, DECC announced that 53 million gas and electricity smart meters would be rolled out by energy suppliers to the 30 million homes in Britain by the end of 2020 – a £12 billion programme. The announcement kick-started preparations for smart meters with the development of a central smart metering implementation programme including the set up of a number of high level groups managed initially by Ofgem then DECC. The Utility Networks Division of EUA played a significant role within these groups, recognised as an important contributor to the debate because of its meter service, meter manufacture and data and communications management company members. 2013 was a significant year in the development of the programme. Arrangements have been completed and a Data and Communications Company (Smart DCC Ltd) has been established, who will; manage the smart metering service on behalf of its users and also contract with and manage the data and communications service providers. In the Summer, the Smart Metering Installation Code of Practice came into force to manage good customer experience and service, and the Central Delivery Body was established to engage consumers with the smart meter programme through TV, press, social media and digital media activity. Involvement in the Smart Programme and associated areas – National Skills Academy for Power, EU Skills, Smart Metering, Device Assurance Group, Smart Grids raised EUA’s profile and standing in the industry, further positioning EUA as a credible industry voice. The big
six energy suppliers recognise that they need the support of the wider industry, through organisations such as EUA, to implement their smart metering programmes. This has been highlighted through their contribution to Utility Business magazine and speaking at EUA events in 2013. The next two years up to mandated rollout in Autumn 2015 are possibly the most critical part of the programme. Industry will take the current programme output so far and bring it all together. The Smart Metering Equipment Specification (SMETS), the GB Companion Specification, Security Architecture and Accreditation criteria, Interoperability, Interchangeability and Intercompatibility have to be considered, regulated and governed by the appropriate stakeholders. EUA and its members will influence these processes at every opportunity and work
constructively with other parties to help ensure a worthwhile and positive outcome that is right for everybody – Suppliers, Networks, Meter Manufacturers, Meter Asset Providers and Meter Asset Managers but, most importantly the consumer.
Serving the energy and utilities sector
Annual Report 2013
Energized member group - case study Delivering a vision Greater secretariat focus and a proactive new Group Chairman saw renewed effectiveness and member engagement in the Network Engineering & Equipment Group in 2013. Chairman Andy Vine from Crane brought renewed enthusiasm to the group and moved it forward. His vision to enhance the benefits for Utility Networks members through improved member attendance – hence better networking – and identifying a range of subjects of specific interest to the group has proved a great success. RIIO, the new regulatory model for the gas and electricity distribution networks, is a significant policy change affecting the sector, transforming the relationship between the networks and the supply chain companies (EUA members). The RIIO model was implemented for the first time from April 2013 to run over 8 years, impacting directly and indirectly on all EUA Network Engineering & Equipment Group members. The new model moves to a much greater emphasis on incentivising delivery of outputs relating to the customer experience and sustainability, with the focus on six categories: • customer satisfaction • reliability and availability • conditions for connection • environmental impact • social obligations • safety The networks are tasked with delivering outputs, innovation and associated lower costs.
It was crucial that EUA stayed abreast of these changes, played a key part in the stakeholder relationship process, and communicated clearly how this might affect members’ business operations and where the potential business opportunities might be. To do this, a revived programme of meetings was devised offering members insight into the operational realities of RIIO – how it is working in practice, day to day experience on the ground, the challenges, difficulties, issues and new practices RIIO presents and an overview of how the networks interact with suppliers and manufacturers – invaluable for the Network Engineering & Equipment Group members. All of the major GDN’s have taken part – Scotia Gas Networks, National Grid, Wales & West Utilities and (planned for Spring 2014) Northern Gas Networks. To coincide with the meetings a brand new newsletter was launched by the secretariat – Network News – designed around the group’s business interests including general information as well as member company updates – business wins, new technology, awards and staff news.
Attendance numbers and member feedback serve to highlight the success of this strategy, which will be built on and improved in the 2014 membership year.
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European dimension - case study A strong voice in Europe For seven years HHIC worked diligently on the Eco-Design and Energy Labelling Regulation. Influencing the content was critical on this high impact European legislation which set minimum efficiency standards for space and water heaters. Having a strong and engaged membership allowed HHIC to take up the challenge providing a single voice representing the needs and wants of the industry. This collective voice enabled HHIC to exert political pressure on both UK MPs and MEPs ensuring that they were well briefed and informed on what the desired outcomes were. HHIC’s technical team strengthened and further developed their relationships with regulators and the European Commission working in collaboration to achieve a satisfactory outcome for members.
Much of the legislative and regulation work undertaken by HHIC takes years to come to fruition and it can be challenging to sustain the enthusiasm and commitment required to drive the agenda forward over such a long period of time. In order to have a consistent mechanism for gleaning feedback and debating policy, regular working group meetings are held with members representing those parts of the industry affected. Members then challenge HHIC to help provide the focus needed for the next round of lobbying.
Serving the energy and utilities sector
Annual Report 2013
Gas safety - case study Safety first
For HHIC and their membership, safety remains high on the agenda.
During 2013 the technical team led a major safety improvement project that will see the testing and recording of CO emissions on all new and replacement gas boilers. These new CO checks come into force in April 2014 and are the culmination of many hours work. On a project of this nature partnerships are critical and thanks to HHIC’s knowledge and influence stakeholders including Gas Safe Register, E&U Skills, BIS and the HSE actively engaged to deliver to make CO testing mandatory. The success and value of the Benchmark scheme has allowed this improvement to be introduced seamlessly for installers and those affected.
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Influencing policy - case study Directing UK policy
A trusted partner
HHIC works to influence the future direction of UK policy for domestic heating. In answer to the Government’s Heat Strategy, HHIC undertook a major strategic project that outlined a potentially more affordable alternative to the options set down in the Government’s strategy. With industry backing, HHIC has provided realistic pathways to meet de-carbonisation targets. HHIC’s Low Carbon Heat Pathways Report published in June has been exceptionally well received and is already influencing Government thinking. This work will continue into 2014 creating a long term partnership between the heating industry and Government officials helping to develop a new policy framework.
Boasting a strong membership from across the whole domestic heating industry supply chain, HHIC is recognized as an authoritative and trusted voice. HHIC is able to respond quickly and without bias and now routinely meets with senior officials and ministers on a range of policy developments and announcements. HHIC was instrumental in setting up the DECC Renewable Heat Industry Advisory Group as a collaborative body and following DECC’s indication that it would prefer a single trade association with whom to negotiate created the Biomass Heating Industry Group. Working with ICOM, the group has already met with representatives of both Ofgem and DECC.
Serving the energy and utilities sector
Annual Report 2013
Regulatory change - case study At the heart of technical change
ICOM is the accepted and trusted representative of the commercial and industrial heating industry
ICOM is the accepted and trusted representative of the commercial and industrial heating industry. This was demonstrated during 2013 when DCLG approached ICOM to provide advice and guidance on the development of the Building Regulations Part L: Non Domestic Compliance Guide. Thanks to the engagement of members, ICOM were able to propose efficiencies and work to separate various types of water heaters providing clarity to the performance of different types of appliance. Adding value to the members is key and the work undertaken aims to create the most favourable conditions in which their businesses can thrive. Our success in reducing the proposed regulations for ErP Ecodesign – Lot 20 Radiant Tube Heaters was just such a case in point. Following publication of the draft regulations, the radiant tube heater manufacturers advised that the EU proposals would destroy this sector of the industry as the technology could not work in the way it was proposed. Together with members, ICOM, EHI and the CEN TC 180 committee lobbied to set the efficiencies in the regulation to a realistic figure. With an authoritative brief from ICOM, DEFRA, our national representative at the regulatory meeting were able to have the regulations reduced to a level, which although higher than present, is achievable.
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Key figures at a glance for 2013 11
the number of Government consultations responded to
57
90
the percentage of our members who would recommend membership to others
the number of 249 meetings with other the number of policy makers member companies
89
the number of meetings with Ministers and officials
283
the number of external technical meetings attended
ÂŁ777,000
the Advertising Value Equivalent of our media work
15.4 million the number of UK homes with inefficient boilers
16.2 million
the media reach of the press releases issued
Thank you to all our members... A O Smith Water Products Company BV, A.C.Wilgar Ltd, ACV UK Ltd, Adey Professional Heating Solutions, Advance Appliances Ltd, Advanced Combustion Engineering Ltd, Alcatel Lucent, Alpha Therm Ltd, Altecnic Ltd, AmbiRad Ltd, AMEC Group Limited, Amey, Anton Industrial Services, Ariston Thermo UK Ltd, Arqiva, Atag Heating Ltd, Atmos Heating Systems, AVK UK Ltd, Babcock Wanson (UK) Ltd, Balfour Beatty Utility Solutions, Baxi Commercial Division, BDR Group Ltd, Be Modern Group, BES Ltd, BFM, Bglobal Metering Ltd, Biasi UK Ltd, Bosch Thermotechnology Ltd, Bowbros Ltd, British Gas, Burdens, Bureau Veritas, Burley Appliances Ltd, Buss Metering Services Limited, ByBox, Calor Gas Ltd, Calvin Asset Management, Capita Symonds Ltd, Carillion Energy Services, Carillion Utility Services, Centrica Storage, CEVA Logistics Limited, Charlton & Jenrick Ltd, Cheshire Cavity Storage Group Ltd, Clancy Docwra Limited, Clyde Energy Solutions, CNG Services Ltd, Cochran Ltd, Co-Operative Energy, Cotherm (UK) Limited, Crane Ltd t/a WASK, Crosslee plc, Crystal Fires, D I UK Limited, Daikin Airconditioning UK Ltd, Delta Energy & Environment, Develop Training Ltd, Dimplex UK Ltd (Fires), DNV GL, Domestic & General Group plc, Domestic Water Treatment Association (DWTA), E.ON Energy Solutions, E.on ENT, E.ON Gas Storage UK Ltd, Ecoflam (UK) Ltd, Ecuity Consulting LLP, EDF Energy, EDF Energy Customer Field Services, EDF Trading Gas Storage Limited, EDMI UK Ltd, Electralink, Electric Heating Company, ELEXON, Elster Kromschroder, Elster Metering, Encore Personnel, Energy Assets Ltd (was Pulse 24), Energy Technology and Control Ltd, Enertek International Ltd, Engage Consulting, Eni UK Ltd, Enzen Global Ltd, EOGB Energy Products Ltd, Fabdec, Fast Flow Group Ltd, Fernox, Cookson Electronics, Ferranti Computer Systems, Ferroli Limited, Fiorentini UK Limited, Flow, Fondital Helpline UK, Fulcrum , Fusion Provida Limited, Future Energy Group, G4S Utility Services Ltd, Gas Contract Services Ltd, Gas Fired Products (UK) Ltd, Gas Measurement Instruments Ltd, GASTEC at CRE Ltd, Gateway Storage Company Ltd, GAZCO Ltd, Generis Technology Ltd, George Fischer Sales Limited, George Wilson Industries Limited, Giona UK, Gledhill Building Products Ltd, Glen Dimplex UK Ltd, GlowarmCentralHeating Ltd, GP Burners (CIB) Ltd, GPS PE Pipe Systems, Grafton (Plumbase), Graham Group plc, Grant Engineering(UK) Ltd (Hot Water Storage Div), Grundfos Pumps A/S, Gtc, Halite Energy Group, Hamworthy Combustion Engineering Ltd, Hamworthy Heating Ltd, Harvey Water Softeners, Heatrae Sadia, HeatSol Technology Ltd, HETAS Ltd, Hewlett Packard, Honeywell Control Systems Ltd, Hoval Ltd, Humbly Grove Energy Ltd, Ideal Stelrad Ltd, IE-CHP (UK Eire) Ltd, INEOS Enterprises Ltd, InstaGroup Ltd, Intergas Heating Ltd, Islandmagee Storage Ltd, Itron Metering Solutions, J Murphy & Sons, Johnson & Starley Limited, Joule UK Ltd, Kamco Ltd, Kane International Ltd, King Street Energy, Kingsley Plastics Ltd, Kingspan Hot Water Systems Ltd, Landis+Gyr, Lettergold Water Treatment Solutions LLP, Lightsout Computer Services, Lochinvar Ltd, Logic Certification, Lomax Training Services Ltd, Lowri Beck Services Ltd, Mannley Cylinders Ltd, McDonald Engineers, MHS Boilers Ltd, Mike Stratton & Associates Ltd, Mikrofill Systems Ltd, Monarch Water, Morgan Lambert Ltd, Morland Utilities Ltd, Morrison Utility Services, Motan Gas Boilers.Co.UK Ltd, Myson Radiators, NAPIT, National Grid, NewarkCopperCylinders, NIBE Energy Systems, Nirvana Energy Systems Inc, Northern Energy Connections Ltd, Northern Gas Networks Ltd, npower Home Team, Nu-Flame, Nu-way (Enertech Ltd), OFTEC, OSO Hotwater (UK) Ltd, P N Daly Limited, Panasonic Industrial Devices Sales Europe GmbH, PanasonicIndustrialDevicesSalesEuropeGmbH, Pektron plc, PLCS Limited, Power Plus Communications AG, Powrmatic Ltd, Providor, PTS Plumbing & Heating Supplies (Formerly BSS), Pump House Pumps Ltd, R M Solar Limited, Radius Systems Ltd, Rangemaster, Ravenheat Manufacturing Ltd, Reliance Water Controls Lts, Remeha Commercial, Rhead Group Ltd, Riello Ltd, Rinnai UK Ltd, Roberts Gordon Europe Ltd, SARCO Stopper Ltd, Schwank Ltd, ScottishPower Energy Management Ltd, Secure Meters, Sensus UK, Sentinel Performance Solutions Ltd, Siemens Metering, Communications & Services, Silver Spring Networks UK & Ireland, Sime Ltd, Simply Marcomms Ltd (SMPR), SIT Controls Ltd, Smarter Metering Services Ltd, Solar Trade Association, Spirotech, SSE Hornsea Ltd, Statoil, Stokvis Industrial Boilers (International) Ltd, Storengy, Strebel Ltd, Sunamp, Sustainable Power Ltd, Synthotech Special Products Limited, TACMA, Teddington Controls, Telford Group, Thermoserv Ltd, Tuffentech Services Ltd, UKLPG, Vaillant Group UK Ltd, Veolia Water Outsourcing Ltd, Viessmann Ltd, Vokera Limited, Weishaupt (UK) Ltd, Widney Leisure Ltd, WINGAS Storage UK Ltd, World Heat Ltd, Xemex NV
Telephone Number: +44 (0)1926 513777
Fax Number: +44 (0)1926 511923
Email: mail@eua.org.uk
EUA AR2013 ED003