www.eua.org.uk
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Sustainable Energy and Investment In this Issue:
• Transition to Smart Meters • Heat Networks Delivery Unit – update from DECC • Community Based Energy Projects • The Impact of Building Information Modelling • 2014 Gas Industry Awards
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SUMMER 2014
WELCOME
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Welcome from your editor I’m really pleased to launch the new membership magazine for EUA and its divisions. This publication builds on the success of EUA’s previous two divisional magazines – HHIC Journal and Utility Business – now combining news from across EUA’s activity.
Events-Seminars June 5 ICOM Lunch, RAF Club, Piccadilly, London
The ICOM Annual Luncheon is one of the premier events in the commercial and industrial heating calendar. Attended by many of the industry’s leading companies and key decision makers, it is a great opportunity to network with industry colleagues.
June 11 Utility Asset Management, PwC, Birmingham
Hosted by PwC at its excellent Birmingham offices, hear from regulators, utility network companies and their asset management delivery partners, one year into their first RIIO regulatory settlements for energy transmission and gas distribution and as the industry heads towards new price settlements for water and electricity distribution in 2015.
September 11 Utility Metering, Heart of England Conference Centre, Fillongley
The programme will address policy, strategic objectives and gather stakeholder opinion from across the supply chain, smart metering/energy providers and include an update on the consumer programme.
November 5 HHIC Winter Briefing
Cholmondeley Room, House of Lords 3.00-5.00pm
2014
ICOM
Energy Association
The Heating and Hotwater Industry Council (HHIC), representing the domestic heating and hot water industry, including manufacturers, merchants and distributors, installers and service providers.
• Keep up to date with details of latest EUA events
ICOM, representing the industrial and commercial heating industry at UK Government and European levels, working to influence and secure both safe and reliable standards and regulations.
• See who is speaking, sponsoring, supporting • Find out more about sponsor and exhibiting opportunities
November 6 Gas 2014, Manchester United Football Club, Manchester
A high profile annual seminar will see senior decision makers debating current and future gas industry challenges.
2015
March 4 Utility Street Works, Cavendish Conference Centre, London
Annual update on policy, regulation, innovation and safer, more efficient, less disruptive Street Works.
www.eua.org.uk/events
The organisation continues to grow and comprises of five divisions Utility Networks (UN), representing and promoting the data and communications and utility metering sectors, network engineering and industry equipment supply chain and Gas Storage Operators.
EUA President Vic Tuffen (Tuffentech Ltd) EUA Vice President/Treasurer Ian Hughes (Kingspan Hot Water Storage) Chief Executive Mike Foster HHIC Director Roger Webb ICOM Director Ross Anderson
The Hot Water Association (HWA), driving and promoting sustained growth and improvement of standards within the entire domestic hot water industry. Finally, the Manufacturers' Association of Radiators and Convectors (MARC), giving a voice to the radiator and convector industry.
Contents Features
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Editor/Enquiries Caroline Taylor caroline@eua.org.uk 01926 513762
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Design and Publishing Mike Hill Graphics, Stratford upon Avon
Key to all our members activity is energy policy and schemes which affect business and economic decisions. Engagement with Government has become an increasingly important part of EUA’s work, shaping policy and working with government officials. We are delighted to have contribution from Edward Davey MP, Secretary of State for Energy & Climate Change in the ‘View from the House’ column and intend to share views from other MPs and Ministers in forthcoming issues. Thank you. I hope you enjoy the first issue.
Caroline Taylor Editor, OUTPUT
CONTENTS
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Energy & Utilities Alliance (EUA) Camden House Warwick Road Kenilworth Warwickshire CV8 1TH
Across the broad reach of EUA’s work there are many challenges facing the industry and a plethora of issues being covered. The magazine aims to provide a vehicle for highlighting some of the work EUA is involved with, in particular where there is cross divisional interest and involvement – for example the Heat Networks and Building Information Modelling articles in this issue – as well as covering the latest research, best practice, reviewing work-inprogress and significant developments, case studies, innovation and up-andcoming advances in the industry.
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Transition to Smart Meters Heat Networks Delivery Unit – update from DECC Community based energy projects The impact of Building Information Modelling
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2014 Gas Industry Awards
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View from the House
Regulars News from the divisions: 2
Utility Networks
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HHIC
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ICOM
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HWA
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Marc
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Leading Voice Member list/ New members
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UTILITY NETWORKS NEWS
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SUMMER 2014
Utility Networks News Towards successful testing and assurance On May 7, EUA held its one-day Data & Sponsors Communications for Smart Metering seminar at the ICO Conference Centre in London. The event attracted around 70 delegates for this third annual conference, which gave a broad review of end-to-end data and communications issues from a wide range of industry stakeholders’ perspectives.
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Here are some messages from the day: Over 2.3 million households are at risk of missing out on smart meters because they live in difficult buildings such as multiple dwelling units (MDUs). Smart metering is complex to install in high-rise apartment blocks, however Siemens offer an effective solution to overcome the high-rise challenge.
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Steve Rafferty, Siemens
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The Smart Metering Data Communications Company (DCC) is the interface between energy suppliers and customer, managing all data in/out provided by smart meters. Smart DCC Ltd, part of Capita PLC, has been granted the DCC Licence and they now enter an extensive period of testing/development:- Design and Assurance, Service Management, Security, SMKI (Smart Metering Key Infrastructure). Their Development Plan will be published on 31 July.
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Paul French, Smart DCC
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The UK Smart Meter Implementation Programme (SMIP) is well into the Transition Phase – the period where the programme moves from Foundation to Implementation. The SMIP testing policy will include several phases. There are many consultations running and scheduled under SMIP. The main risk currently to the programme timeline is delivery of SMETS2 meters.
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Mark Hudson, HP
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A new energy world is on its way. Consumers are used to choice and customisable offers which will create opportunities and introduce new players to the market. John Peters, Engage Consulting
Gemserv oversee the SEC (Smart Energy Code) a multiparty agreement between the DCC, Network Operators and energy suppliers. The SEC helps set out a framework for robust testing of data and communications services. Graeme Forbes, Gemserv
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DNVGL and Power Plus Communications shared learning from smart meter rollout programmes in the Netherlands, Spain and Germany.
Seamus Gallagher, DECC
Aurasma is HP’s augmented reality platform. Aurasma's image recognition technology uses a smartphone or tablet camera to recognize real world images and then overlay rich media on top of them in the form of animations, videos, 3D models and web pages. It offers a new way to interact with customers, installers and field engineers alike.
New EUA President
David Spalding, DNV GL
David Pitcher, Power Plus Communications
Energy retailer led deployment in the UK is unique in the world and requires new business models. Smart metering is just one facet in wider smart development which will lead to better services & new commercial opportunities. Steve Ravens, Ovum Energy
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Research by VaasaETT shows that In Home Displays (IHD) provide the single biggest benefit of smart meters to consumers. Their use often leads to changes in behaviour that result in a reduction of energy usage. Economies can be realised not just as a one-off, up-front reduction in energy usage, but on an ongoing basis, as consumers become more adept at using IHDs and changing their behaviours accordingly. In fact, the study found that those using an IHD for more than two years achieved greater savings than those using one for less than a year. Consumers feel more positive about the company providing them with an IHD, which may be the first tangible gift/product they have received from their energy retailer. Simon Hughes, geo
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Innovating for improved Street Works Sponsors
EUA’s one-day Utility Street Works seminar took place at the Cavendish Conference Centre in London on 11th March. The event attracted over 100 delegates for this annual update on policy, regulation, safety, technology and best practice.
The main news from Department for Transports keynote address was the consultation launching this summer on permit schemes. The opportunity to review progress and performance is welcomed by industry. Road Works in Scotland are managed independently by the Scottish Road Works Commissioner and considered world leading. Elspeth King shared findings from their consultation, which took place last year. Some of the feedback will lead to changes in regulation to improve the scheme further. Interestingly permit and lane rental schemes gained little support. Mark Beesley shared some of the huge challenges his team face to keep London’s road network moving. An extra 1.6m people are expected to be living in London by 2031, (equivalent to the population of Leeds or Birmingham) and London’s economy is expected to grow by 42%. As a result TfL expect to see increases in:- vehicle km by 10%, bus travel by 30% (and capacity by 10%), cycling to triple in volume, freight traffic by 22%. The scale and impact of street works is underestimated said Bob Gallienne. NJUG is carrying out work to gain a better understanding of this to manage and influence policy more effectively. Ultimately it’s about minimising road occupation.
The second session looked at how to deliver superior street works performance. LinesearchbeforeUdig’s Onecall service can help promote safety, reduce strikes and adherence to industry standards. UK Power Networks has been through an intensive change programme to improve its Street Works because they were performing poorly, shared Christopher Perkins. Tom Lambert, Balfour Beatty, reviewed safety in street works, calling for more emphasis on basic principles. He updated delegates on changes to the Safety Code of Practice in Street Works. ETON 6 is mandatory from 1 April but take up is slow. Mike Bartlett, Symology looked at the potential benefits/savings this system would offer. The final session of the day included two case study reviews: Derby City Council's permit scheme launched in October 2013 and has brought improved working relationships and changes in planning and behaviour. The council is working with Loughborough University to review and collate data. Kent’s Permit & Lane Rental schemes have provided focus on performance & commitment to drive further improvements. On technology and innovation, Tracey McIntyre shared some innovative systems that Southern Gas Networks is employing – including robotic repair of gas mains. All underpinned by Ignite, their innovation strategy. WRc plc is doing some interesting work on collaborative innovation to achieve zero excavations in water.
Vic Tuffen has been appointed new EUA president. Vic is widely acknowledged as one of the foremost authorities on meter lifecycle management with over 30 years in the Industry. He joined British Gas North Western in 1980 as a Gas Engineering Technical Apprentice and held several positions in the Regional Service Department then joined the Emergency and Meterwork Project. He is actively involved at committee level for both IGEM and EUA, whom he represents on the smart metering BMRG and ODG groups
New to the Secretariat Team The Utility Networks division welcomed new member of staff, Peter Day, who has taken over full time management of the Network Engineering and Equipment Group. Peter joined EUA at the beginning of April and has significant planning experience within project and programme management delivery environments, working for Carillion and Balfour Beatty Utility Solutions. Projects include the upgrading and refurbishment of Network Rail infrastructure and National Grid transmission assets. He has a strong background in collaboration, client and stakeholder engagement within an alliance working model.
Member Group Chairmen and Divisional Chairman Elections 2014/2015 Following the election process Group Chairmen for 2014/15 are confirmed as: Gas Storage Operators Group Roddy Monroe, Centrica Storage Metering Technology Group Jeff Cooper, Elster Metering Services Group Dave Gregson, Calvin Asset Management Network Engineering & Equipment Group Andy Vine, Crane Building Services & Utilities Data & Communications Management Gerard Van der Hoven, Xemex Vic Tuffen of Tuffentech Services Ltd remains Chairman of the Utility Networks Board.
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Together we are stronger, louder and ultimately more successful.
HHIC News Roger Webb, Director at HHIC...
The industry’s voice in Westminster Engagement with Westminster has become an increasingly important part of our work over the past two years. Inevitably this involves shaping policy, via both political lobbying and work with government officials. We regularly engage with MPs and Ministers, and I meet with various officials every week, from departments such as DECC.
Evidence based influencing
office, where on average I spend at least two days a week.
Green Deal
April saw the launch of our Pathways II project; a research study into how the heating industry can meet the challenges of reducing carbon emissions.
Something which has unsurprisingly required our attention over recent months is Green Deal. Take up is woeful, the scheme is simply not delivering, and our focus is on removing the barriers that are stopping heating installers from doing business in Green Deal.
This work follows on from our influential Pathways 1 project, which looked at the challenges facing the heating industry and the difficulties in achieving the Governments all electricity scenario for heat generation. We believe this approach enables us to provide a solution rather than highlight a problem. We have already met with DECC about Pathways II, and will be involving them and other departments in the project.
We also work closely with other key departments such as BIS, DCLG, and HM Treasury, who have a huge say on all policy Also critical is providing a means of entry developments in our sector. that is less onerous and expensive than PAS 2030, an obstacle we believe can be In order to help us, be more accessible to overcome by making use of existing policy makers, and maintain a continuous industry schemes, such as our own presence, we now have a London based Benchmark quality scheme.
HHIC increases technical support Reflecting the demands of the industry and the needs of our members HHIC has welcomed two new employees into the technical team, joining the experienced Glyn Thomas. Our new Technical Director Stewart Clements joined HHIC at the beginning of October 2013, having spent the last 3 ½ years working for a heating emitter manufacturer, and also having been actively involved in the wider heating industry, including boiler manufacturing and merchanting, all of his working life. Prior to this Steve Sutton joined HHIC in April 2013 as Technical Manager, following several years working for a gas systems
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and controls manufacturer, Steve also has a wide range of experience having worked for several appliance manufacturers. The new technical team has since had a busy twelve months. In addition to the day to day enquiries, they have been busy attending GSE committee meetings at British Standards in Chiswick, London and their corresponding European committees.
Stewart Clements
Central to the teams approach has been the HHIC working groups, in 2013 members of HHIC boiler manufacturers groups agreed to start work on a new procedure for gas installers to check the levels of flue gas Co² and combustion ratio when installing a new boiler.
There has also been much focus on British Standards due to some of the current standards, that are relevant to HHIC members requiring a re-write; such as BS6798, which is due to be published. (Specification for installation and maintenance of gas-fired boilers, of rated input not exceeding 70 kW net). A further set of standards demanding the attention of the team is the appliance standards, in particular the Ecodesign and Energy label directive; which aims to improve the energy efficiency of products, and is to be included in the appliance standards; affecting the industry and consumers alike.
HHIC has been working with members to ensure that they are fully aware of the requirements, and also providing feedback to the European commission when issues have been identified; such as the level of NOX for Gas Fires and efficiency calculations for micro CHP units.
This improvement in safety checks was introduced in April 2014, and is seen by the industry as another improvement in the already high levels of gas boiler safety. The details can be found in Gas Safe Register's Technical Bulletin TB 143. Steve Sutton
Technical support for our members is a central part of HHIC’s activity; it is the foundation of our industry, and as such requires constant focus and expertise; both of which HHIC have in abundance.
HHIC NEWS
Julian Furbank - Group Sales & Marketing Director, Teddington Group The way government and industry communicate needs to change. It is no longer acceptable or prudent for ministers to determine policy with scant reference to the authoritative bodies within those industries. It is equally not acceptable for industry to be satisfied with being a passenger of change; we must fight for our seat at the table, and ultimately influence the result. My involvement with HHIC has enabled me to witness how they are earning that seat on behalf of the industry, and positioning themselves as the governments ‘critical friend’; and also speaking, to the media, and the wider world. And they have been rather successful at it, but in order for that success to be optimised there needs to be a wider vision, one which will complement HHIC’s lobbying work and enable industry to become drivers of change.
Julian Furbank
understands and engages with. To do this we need to work together, and raise the level of action and ambition. HHIC delivers this unified vision via the work of their Marcomms group of which I am chair. Made up of marketing representatives from member organisations, the group meet quarterly with the shared objectives of; • Delivering planned and effective communications • Enhancing the industry’s public profile • Providing thought leadership in a wide range of related issues • Influencing consumers and the trade • Strengthening relationships with stakeholders/influencers • Building upon relations with trade press and • Ensuring each member receives media coverage
The reason is simple; together we are stronger, louder and ultimately more successful.
Those already involved with the group know it as a positive way in which they can involve their marketing teams with the aims of the likes of DECC, whilst delivering harmonised messages.
Typically, in most industries; companies operate in their own silos, fight their own corners and generally represent no one but themselves. And indeed why wouldn’t they?
In April this year the group developed their 12 month PR strategy, outlining the key industry messages and who they intend to influence. As group chairman I was very impressed with the level of care and attention the HHIC communications team had given to the plan, and it is clear to me how any party involved in its deliverance can benefit.
Marketing in Silos
Marketing is essentially for the purpose of generating business success. We take messages to market via various routes, with clearly identified goals. And ultimately the only success of true concern is ‘our’ own success. But by adopting a common goal and understanding, I believe we have an opportunity to; raise the profile of the industry, increase sales and promote government policy. Thus - delivering a message that the consumer receives,
Working to a calendar of activity, members are encouraged to input into campaigns, features and press releases. This is not only an opportunity to get product coverage - albeit not brand specific; it is also an opportunity to influence the messages HHIC are delivering on behalf of the industry.
Group members are able to co-ordinate their individual company marketing activity, with that of the group; aiding the campaign’s effectiveness - whilst strengthening their own marketing. Recent PR outputs from the plan include; how the UK are outshining the rest of Europe on sales of condensing boilers, and also a look at heat pumps in our future towns and cities - both campaigns, many members would welcome I am sure.
More sources = more noise
Creating a greater level of noise in the media strengthens any matter we as an industry wish to impress upon policy makers. Noise also provides HHIC with the relevant ‘clout’ at the table - demonstrating to Policy makers that; if they work with HHIC and the wider industry, they will ensure a credible strategy is developed to support their initiatives, in a way that will be realistic in the marketplace. So the vision is clear, the means is operational, and the plans and resources are in place. Membership of HHIC can bring huge benefit, BUT it all depends on how much you put into it. Some members are those who view from the grandstand, those who benefit the most are the players on the field! And so, this is a call; to all those who are not yet active within the Marcomms group. My message is simple; the HHIC Marcomms group are looking to members who will engage, who have something to say and who are passionate about building an industry in the UK. If you are in this sector and have a voice that you want heard, then join in, become involved and make a difference. If you would like to know more about the group or find out when the next meeting takes place contact: Laurah HutchinsonStrain, EUA PR Manager, 01926 513 743, laurah@eua.org.uk. 5
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ICOM NEWS
The structure of the ICOM committee system means that members may only see information that is relevant to their sector. This quarterly report in OUTPUT Magazine will give an overview of what else has been happening in ICOM.
plenty of new challenges Europe
We are in a phase where emissions are playing an important part in the regulations and directives that are being proposed by the European Commission. The Ecodesign process was believed, initially, to be biased towards efficiency, in an effort to reduce energy usage as a way to reduce green house gases. However, the more difficult challenge has become achieving the stringent emission levels. Lot 1 – Boilers upto 400kw, Lot 2 – Water Heaters and Lot 20 – radiant tube heaters have all affected the majority of our members and it is the emission levels which are testing the development teams. Then the EC published their plans for larger boilers and process plant in the form of the Medium Combustion Plants Directive, which tackles combustion equipment from 1 to 50 MW, once again causing the most problems with the emission levels being proposed.
Tashina Khan
BIM
Leaving the European issues to one side, the majority of our members are involved with the job of implementing Building Information Modelling (BIM). This is a topic which a year ago most members were not concerned with and some had not even heard of. However when we called a meeting to look at how ICOM membership needs to go forward, 26 people attended,
showing just how important the topic has now become. This subject is certainly one which will not go away and our members are working together to produce a series of Product Data Templates (PDT) for each type of equipment. These templates will be filled in by the manufacturer with details for each model in the range and these will then be known as Product Data Sheets (PDS). Although CIBSE, who are acting as the central point of knowledge for our industry, have stated that we only need these PDSs, our members know that their customers are expecting a 3D CAD block, with the PDS embedded in its structure. The BIM working group is just starting to develop the PDTs for members to use and this way the industry will give a united view on what is required. ICOM has the opportunity to write these templates for the industry and it is important that we succeed.
We have also now become involved with the CIBSE Heat Network Committee, developing a Code of Practice and we will also develop our own support information in the form of factsheets. There are a number of challenges facing ICOM and it is important that as many members as possible engage in the process to achieve our targets.
They include: Air Heater, Boilers, Burners, CHP, Gas Boosters, Heat Interface Units, Heat Pumps, Radiant Heaters, Water Conditioners and Water Heaters, however it is expected that more product types will be added as the structure is formed.
Energy Association
The Hot Water Association Strengthens its voice The Hot Water Association (HWA) joined EUA in June 2013, becoming the 4th organisational division. Being the leading trade association for the domestic hot water storage industry, their objectives of supporting and promoting the improvement of standards within the industry are closely aligned to the work of EUA’s wider members. Government departments and key stakeholders are continually looking to trade associations to help steer policy but
Ross Anderson
HWA NEWS the sheer numbers can mean smaller associations often find themselves side-lined. Joining together provides many benefits; government can liaise with fewer people whilst associations can still promote the interests of their members through a single collective voice. Barry Stitch of ACV UK, an HWA member recently said; “The Hot Water Association has been around for a long time in varying guises, with a focus in recent years on the introduction and growth of unvented systems. Now the association is under the all-encompassing guise of the EUA its voice and ability to influence is greater”. The re-energised association has wasted no time in setting their latest objectives which include, developing an industry charter to act as a set of standards for the industry. They are also working on, installer and consumer guides and increasing their focus on political lobbying.
Targeted PR
members are keen to emphasise that storage of some sort is necessary to support renewables. Space for siting a renewable ready water tank and appropriate joist support must be considered for both retrofit and new build properties. With the UK’s houses now the smallest in Western Europe this matter is at the forefront of HWA and its members. The message must also be shared with, homeowners who are considering installing a renewable heating solution, and with installers, architects and the construction industry. There is work to be done but HWA is primed and equipped to ensure that the hot water industry rises to the challenge. With the combined knowledge of member companies and the HWA team, becoming a member offers unrivalled advantages. For membership enquiries contact; Caroline Taylor, Membership Manager. caroline@eua.org.uk, 01926 513762
The recent launch of domestic RHI has presented an opportunity to communicate a variety of messages, and for HWA it’s all about being renewable ready. HWA
MARC NEWS
on your MARCS... EUA welcomes the Manufacturers' Association of Radiators and Convectors as a new division Becoming the 5th division, the Manufacturers' Association of Radiators and Convectors (MARC) joined EUA in January 2014.
Heat Networks
The other main issue that we are working on is Heat Networks. The Energy Efficiency Directive includes Heat Networks and, in particular, metering and
ICOM
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billing. The EUA divisions give us the unique ability to cover the main aspects of a Heat Network, because ICOM has the boilers and CHPs to supply the energy source, HHIC and ICOM have Heat Interface Units (HIU) and the Utility Networks Division covers the piping and metering. Between us we have the main elements and therefore we have formed an EUA group where we all work together. Once again, the inaugural meeting had 25 attendees and was very positive, with working groups formed to look at each of the elements.
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MARC chairman John Colling commented “Joining EUA provides our members with a fantastic opportunity to work with the other divisions and share our expertise. We all have the same aspirations and that is to create the most favourable conditions for our members to operate in”. MARC intend to be recognised as the organisation that helps shape policy and positioning of the industry by 2020, with planned and effective external communications being critical to that aim. The MARC board of directors and the EUA communications team have already
produced an extensive PR plan, designed to enhance the profile of radiators and convectors, both publicly and within the industry.
Key Message
A further opportunity for MARC to convey how well modern high performance steel panel radiators work with low water temperatures came earlier this year in the form of the domestic Renewable Heat Incentive (RHI).
A key message for the association is highlighting the suitability of radiators for use with low water temperature systems, as a result of myths within the heating industry; that good results could not be achieved with the products.
The launch facilitated a platform for our message, and saw articles in publications such as Planning and Building Control Today.
The campaigning proved a success when the publication of SAP 2012 illustrated that ‘radiators are as efficient as other emitters’. And so the focus turns to Green Deal - which lists underfloor heating as an approved measure, yet omits radiators. Keen to build upon the success with SAP, MARC and the EUA team are meeting with DECC to seek correction to that situation; ensuring Green Deal promotes a system approach to energy efficient heating design and is not prescriptive towards one type of heat emitter. We expect to deliver some positive news on radiators and Green Deal in the next edition.
So, with clearly defined messages and strategy MARC will continue to give a voice to the radiator and convector industry, focussing on the specific needs of, and issues faced by the industry. If you are a member and would like the association to explore a topic affecting your organisation, please contact: Laurah Hutchinson-Strain, EUA PR Manager, 01926 513 743, laurah@eua.org.uk.
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TRANSITION TO SMART METERS
The UK Smart Meter Implementation Programme (SMIP) is well into the Transition Phase – the period where the programme moves from Foundation to Implementation.
Smart Metering Data & Communications Company
Perhaps the most significant development in the last six months has been the creation of the Smart Metering Data and Communications Company (DCC). Smart DCC Ltd, part of Capita PLC, has been granted the DCC Licence and they now enter an extensive period of design and testing, working hard with their service providers - CGI, Telefónica and Arqiva - to develop the structures, processes and service offerings for the Smart programme.
CGI IT UK Limited has been appointed the Data Service Provider (DSP) contract to operate and develop the system controlling the movement of messages to and from smart meters. Arqiva Smart Metering Limited will be the Communications Service Provider (CSP) for the North region (north of England and Scotland) providing wide area communications to and from the smart meters. Telefónica UK Limited is the CSP for the Centre (Midlands, East Anglia and Wales) and South (south of England) regions.
Diagrams courtesy of Smart DCC Ltd
FEATURE
Imagery courtesy of SMCDB
Transition to
Smart The Service Management team has been working alongside Service Providers to create process documents detailing and agreeing the principles behind each process.
Security
Industry Paul French
Commercial Stephen Parker
Design & Assurance Matthew Roderick
Operations Dave Broady
Information and Security John Deakin Programme Paul Gilford
Current work
Design and Assurance
As part of its Licence Obligations, DCC has been engaging with SEC Parties, via design forums, to help shape consultation documents for the DSP Interface Specifications and Intimate Communications Hub Interface Specifications (ICHIS). Further Design Forums for the Communications Hub will take place over the next few months as well as sessions on DCC User Gateway Interface Specifications (DUGIS) and Self Service Interface (SSI). These feed into the Technical Business Design Group (TBDG).
A test strategy has been approved which pulls together test strategies for the Service Providers to ensure a consistent approach.
Gary Cottrell, EUA Smart Meter Lead
The Smart DCC security team has a role in ensuring that secure systems are in place and in ensuring the security of the overall solution from consumer premises through to the service users. All systems, data, processes and equipment need to be secure and security threats identified. Endto-end security of smart metering systems is critical to gaining public confidence and widespread adoption.
SMKI
DCC is in the process of procuring a Smart Metering Key Infrastructure (SMKI) service, as per the Smart Meter Communication Licence. The term ‘SMKI’ is used to refer to the specific closed Public Key Infrastructure (PKI) implementation in GB Smart Metering and is based on industry-standard PKI components, methods and good practice.
For more information and to access the latest documents the Smart DCC has a website at www.smartdcc.co.uk
The Smart Meter Central Delivery Body
The Smart Meter Central Delivery Body (SMCDB) is responsible for engaging consumers with smart meters, building consumer confidence in the installation of smart meters; and building consumer willingness, awareness and understanding
Communications Plan
The overall role for communication from the SMCDB will be to help people clearly recognise the benefits of smart meters both before and after installation.
The starting point is positioning the smart meter as a positive innovation. Behavioural models and audience insights identified roles such as creating a sense of social change, reassuring concerns and creating a brand with consumer and third party partner appeal. Potential SMCDB communication activities will include:
1 Position the smart meter
as a positive innovation
2 Create a sense of social change
Service Management
Smart DCC now operates a team of 60 in new offices at Ludgate House, Blackfriars Road, London. The team is headed up by Jonathan Simcock and the senior management team is split into seven close working functions:
Finance Nadim Ahmad
creative campaign ensuring there is synergy between the roll-out programme logo/icon and the Consumer engagement campaign. It is also likely that an endline and call to action, similar to “get set for digital” used in the digital TV rollout, will be developed.
SMCDB has taken over responsibility (from DECC) for the commissioning and publication of nationwide tracker research into public attitudes to, and understanding of, smart meters. In addition, they will undertake a comprehensive programme of qualitative consumer research to inform the campaign narrative.
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3 Provide reassurance 4 Develop smart meter know-how
of how to use smart meters to manage energy consumption.
2014 will be a key year as the programme moves to the first stages of engagement activity. The SMCDB has been building its team and infrastructure following the establishment of the Board, appointment of its Chairperson and recruitment of Chief Executive. Also now in place at their offices in Farringdon, London is an Interim Director of Communications, Communications Assistant, Administrative Assistant, Director of Finance & Operations, Director of Marketing, Director of Communications, Head of Planning and Web Architect. The team will continue to grow through further appointments in the London office, as well as in Scotland and Wales. Partnership working is at the heart of the SMCDB’s approach and over 100 different experts fed into the development of their Consumer Engagement Plan which was published in December 2013 and can be found on their website at www.smartmeter.org.uk/plan
What next for SMCDB
The focus for 2014 will be on building the foundations of the engagement programme. Further research will be carried out to create detailed channel plans together with a brand and campaign identity and creation of a website. A brand name will be developed as the programme will require a simple and self-explanatory name that can be used by all commentators when they refer to the smart meter roll-out.
To support this, a brand logo/icon will be created. The brand will be at the heart of the
The Consumer engagement plan provided some useful learnings and key messages that will help develop future campaigns. To ensure engagement about the smart meter roll-out is targeted correctly, consumer work will be framed within the context of four ‘mega trends’ identified.
1 Declining levels of trust:
particularly with energy companies
2 Squeezed Britain: There has been a £7 fall in average weekly discretionary household income between 2011 and 2013 creating low consumer confidence.
3 Networked Britain: around 55% of Britons own smartphones and 54% of them watch TV while surfing the web on their smart phone. Mobile is predicted to grow by an average of 39% each year from now until 2016.
4 Team me: “If you are going to talk to me, understand what really matters to me and make that your priority.” * SMCDB consumer engagement plan
5 Create a brand and a brand partner programme
Next Steps for EUA
Although the programme has reached some significant milestones, there is still a lot of work to do. The period up to mandated roll-out which is at the time of writing has moved slightly to December 2015 is possibly the most critical part of the programme. Industry will take the current programme output so far and bring it all together.
The closer to conclusion the last bits of detail get, the more important these details become and, in some ways, the harder they are to reach consensus across the industry stakeholders, with each group of stakeholders endeavouring to stamp their needs on the final tweaks.
EUA and its members are influencing these processes at every opportunity and working constructively with other parties to help ensure a worthwhile and positive outcome from the Smart Metering Implementation Programme.
For more information on EUA’s work within the Smart Meter Implementation Programme contact Gary Cottrell gary@eua.org.uk 01926 513764 9
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HEAT NETWORKS
Developing Heat Networks
Most buildings in the UK rely on a local source for their heating and hot water; homes commonly have their own gas boilers, for example. Heat networks, often referred to as district heating schemes, operate differently. They supply heat from a central source directly to homes and businesses through a network of pipes carrying hot water. This means that individual homes and business do not need to generate their own heat on site. Increasingly networks are also being used to provide cooling in a similar way, either through on-site, or centralised, absorption chillers. This brings numerous benefits including:
lEfficient transportation and use of heat for a wide variety of users lA broad range of energy generation technologies can work together to meet demand for heat lFuel flexibility lManaged supply and demand of energy l Lowered costs of energy generation l Increased fuel efficiency through use of CHP lReduced labour and maintenance cost as compared to individual systems
These in turn deliver a range of beneficial outcomes.
Modern technology allows for advanced heating controls in buildings or parts of buildings served by heat networks just as in homes powered by gas boilers. Heat networks can take, 10
and deliver, heat from a wide variety of sources. These heat sources can include dedicated central boiler plant, water, air or ground source heat pumps, heat from combined heat and power generation systems, waste to energy plants and recovered heat from industrial processes. By centralising heat supply and distribution, heat networks can be more energy efficient, deliver carbon savings and help to reduce fuel bills.
EUA Heat Networks Group
In late 2013, EUA organised a meeting with HHIC, ICOM and Utility Networks member companies interested in Heat Networks. DECC attended too, giving a presentation and update, and the meeting explored the impact that heating networks could have on the UK heating market both in terms of helping to make heat more affordable but also the potential impact on carbon emissions. All areas of the industry were represented including heat source, pipes, and metering. Actions from the meeting identified the need for more focused sub groups that could work on subject specific topics reporting back to an overall steering group overseeing output. These groups were formed following the second meeting of the Heat Network working group and the four subject specific groups are:
lHeat Sources - Boilers/CHP etc lNetworks lHeat Interface Units lMetering and Billing
If you are interested in getting involved with this group or participating in any of the working groups please contact Tahsina Khan tahsina.khan@icom.org.uk
SUMMER 2014
HEAT NETWORKS Heat Networks Delivery Unit Update from DECC Stephen Brooks, Investment Director Head of Heat Networks Delivery Unit, DECC
Government is providing support to Local Authorities to develop heat networks, keeping bills down and reducing carbon emissions.
The Heat Networks Delivery Unit (HNDU) was set up within the Department of Energy and Climate Change (DECC) in
September 2013 to encourage and enable Local Authorities to undertake the development stages of heat network projects. The response from Local Authorities to the Unit’s work has been very enthusiastic. Through the first two rounds of funding the Unit has distributed £4.7m to over 70 projects run by 50 Local Authorities. However, the Unit is more than just a distributer of funding. Local Authorities also receive one to one guidance from the Unit’s technical and commercial experts, and this in particular has been welcomed by Local Authorities. Round 3 is now open and will be accepting applications from Local Authorities until 27th June 2014, and we would encourage Local Authorities to engage with the Unit either for this funding round or to discuss applications for future rounds. There are already over 2,000 heat networks in the UK, supplying heat to more than 200,000 dwellings and commercial and public buildings. A further 150 schemes are estimated to be under development by Local Authorities across the UK. Estimates show that approximately 15% of UK heat demand could be met by heat networks by 2030
FEATURE
and around 50% by 2050, making a cost effective contribution to the UK’s decarbonisation targets.
Local Authorities have a key role to play in making heat networks succeed. They can: support private networks through the planning system; own or operate heat networks; or be a good heat customer – public buildings such as leisure centres and council offices have pretty consistent heat demand levels which helps the network operate effectively. However, the biggest impact Local Authorities can have is through leading heat networks through the initial, and often difficult, development stages, and that is where government is helping.
The Government’s March 2013 policy document “The Future of Heating – Meeting the Challenge” and the document “Research into barriers to deployment of district heating networks” showed that Local Authorities needed more capability and capacity if they were to develop successful heat networks at the scale needed to play a serious role in meeting the UK’s decarbonisation targets.
The HNDU provides grant funding, commercial experience and technical expertise to help to overcome the barriers identified in the research and comprises of technical and commercial experts who have significant experience of developing heat networks. Each of the HNDU specialists works with a number of the successful Local Authorities, calling on additional input from other HNDU colleagues where a different type of expertise is needed. The HNDU team cannot run the projects or make decisions on commissioning work from third parties, but they can act as a critical friend, helping local authority officers to find their way through the project’s development stages to reach an investible proposition. The HNDU has had great feedback from those it is already working with. Richard
Rees, Strategic Energy Manager, Birmingham City Council said, “Birmingham’s advice for anybody thinking of applying would be to approach HNDU at the earliest opportunity for initial advice. A lack of local experience or knowledge should not dissuade authorities from applying as assistance and expert guidance from HNDU is available to overcome such potential barriers.”
Steve Cains, Sustainability Manager, Swindon Borough Council said, “Working with HNDU has been refreshing. John and Charlotte were quick to spend the day in Swindon finding out more about the projects, and have since attended meetings with developers and provided clear guidance on both strategy and detail which we would otherwise not have had. I look forward to working with them in future and wouldn’t hesitate to recommend other councils apply.”
Local Authorities can apply to the HNDU for a combination of guidance and/or grant funding for all stages of heat network project development, from heat mapping, energy masterplanning and feasibility studies to detailed project development leading to the preparation of an investable grade proposal.
While we anticipate that it will be 3-5 years before many of these projects are constructed, this is a critical investment which is already changing the way that Local Authorities think about heat network projects.
To find out more about the HNDU, or to apply for funding or support, please email the HNDU hndu@decc.gsi.gov.uk
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COMMUNITY ENERGY
SUMMER 2014
FEATURE
John Peters Managing Director, Engage Consulting
Community-based energy projects are to be actively encouraged by Government Communities throughout the UK are being encouraged to take charge of their energy, with the launch of the government’s first Community Energy Strategy, which outlines new opportunities for communities to get involved in energy projects on a local level. The strategy is ambitious and wide ranging – it includes a series of initiatives and investments to enable the growth of community energy and remove barriers with the aim of starting what it describes as an ‘energy efficiency revolution’ in the UK. It also wants to see a growth in renewable energy projects that are community-based. The strategy highlights that government now sees a major role for communitybased energy projects and the important contribution individuals and local communities can have in helping to reduce energy consumption, create greener energy and keeping costs down for consumers.
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5,000 community groups have already been set up across the UK since 2008 and the Government's new strategy aims to support hundreds more. Whilst the UK’s community energy sector is still relatively small compared to some European nations such as Germany or Denmark, the government’s strategy highlights the potential of community energy and that Britain should be committed to helping these projects happen.
The Government’s aim is to make community energy an easier option and achievable by more people, which will enable communities and individuals to exercise real market power and add a further dimension to wider energy market reforms. Helping to give the power back to people, many successful community energy projects are already up and running. One of the projects highlighted in the document is Amberley Primary School in Newcastle which was able to generate 25% of the school’s electricity requirements through installing solar panels and a wind turbine in a project funded by the Big Lottery Fund. Previously the school had been spending around £8,000 per year on electricity. Another project in Newcastle saw a 53kW solar thermal system installed to heat Fenham Swimming Pool, with the help of a loan from PURE and the British Airways One Destination Fund. This led to estimated savings of almost £900 per year on energy bills.
Growth in consumer interest
There appears to be significant consumer interest in community energy schemes – largely driven by the desire for people to reduce energy bills. Research from DECC found that over half the people they surveyed claimed that saving money on bills would be the major motivation for getting involved with
community energy schemes. Indeed, 51% of people said that they would be motivated to get involved in community energy if they could save money on their energy bill and 40% said they were already interested in joining a community energy group, and taking part in collective switching or collective purchasing schemes. However, the government’s vision is far more ambitious. It wants every community with a desire to set up an energy scheme to be able to do so and believes that ‘community led action’, such as collective switching, will give people the power to bring down bills and encourage competition. More significantly, it sees local communities as the ‘energy producers’ of the future and believes that if more local communities generated energy they would drive down prices through increased competition, create warmer homes, cut carbon emissions and diversify the energy mix. There are four main areas where communities can get involved in energy projects: • Generating energy (electricity or heat) • Reducing energy use (saving energy through energy efficiency and behaviour change) • Managing energy (balancing supply and demand) • Purchasing energy (collective purchasing or switching to save money on energy)
Government believes that community involvement in generating electricity – whether fully community-owned projects or part community ownership of larger commercial projects – can also help achieve our goals of decarbonising the power sector - ensuring that 15% of energy is provided by renewable sources by 2020.
Community benefits
Community energy schemes could also deliver wider social and economic benefits too including stronger communities, giving people the opportunity to develop new skills and experiences through involvement in the projects and, if more communities are able to generate and sell their energy, they could create a sustainable, reliable source of income for their community. A case study mentioned in the government strategy highlights a project by Repowering London, a not-for-profit organisation that specialises in coproducing community owned renewable energy projects with Local Authorities and community groups. It’s third Project, Energy Solar 3, on the Roupell Park Estate in Brixton has raised funds through a community share offer. As a co-operative they have found ways to engage with the local community such as lowering their usual minimum shareholding from £250 to £50, so the majority of the community can be active participants in the projects, and providing work experience placements for young people. Projects like this can have many benefits for communities, particularly those that are in poorer neighbourhoods.
Government investment
To help communities generate energy the government has launched a £10m Urban Community Scheme that will provide neighbourhoods with up to £150,000 each to generate their own renewable energy from wind turbines, solar panels or hydro-electric plants. This investment follows the £15m DECC / Defra Rural Community Energy Fund (RCEF) launched in 2012 to provide finance for rural communities in England to explore the feasibility of, and planning for, electricity and heat projects. The Green Investment Bank is also expected to have greater involvement in supporting the new strategy as according to DECC one million homes could be supplied by green energy within the next 6 years. Communities will be encouraged to come together and collectively apply for the funds and the support of a newly created advice team to install the renewable energy plants and take greater control of their utility bills. Local neighbourhood groups will be invited to apply for grants of up to £20,000 for feasibility work, while loans of up to £130,000 will be made available to support projects from planning applications through to connection to the grid. The government has also pledged to work with communities and Ofgem to look at ways to enable communities to supply energy, including promoting schemes such as ‘Licence-lite,’ which removes barriers for smaller suppliers and makes it easier and more affordable for them to enter the market and sell their energy.
To help communities save energy, the government announced a community energy saving competition in January that is offering £100,000 to communities to develop innovative approaches to saving energy and money. Another key focus is to help communities purchase energy at a good price. Guidance and co-ordination will be offered for community energy purchasing projects. A £1m “Big Energy Saving Network’ Fund has also been pledged to support the work of volunteers helping vulnerable customers to reduce their energy. Lastly, the strategy also covers managing energy demand. Ofgem’s Smart Grid Forum is tasked with considering barriers to the development of Smart Grid which includes community energy schemes and community storage. The government is working with the Smart Grid Forum to ensure there is a co-ordinated and joined up approach to formulating policies and regulation and that involves community stakeholders. Government’s strategy is bold and ambitious. It has the potential to fundamentally change Britain’s energy market - placing communities in control of collectively purchasing and generating energy and playing an integral role in maintaining supply and reducing carbon emissions. For this vision to happen, the strategy needs major support - from regulators, Local Authorities, consumers, the developers of Britain’s energy infrastructure and financial investment. However the signs are encouraging for community-based energy projects and there is now a real opportunity for individuals and communities to take control of their energy.
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BUILDING INFORMATION MODELLING
Building Information Modelling (BIM) is the buzzword of the moment. Integral to the UK’s Construction Strategy, with a mandate for its use on all public sector capital projects by 2016...
Virtually there Government has embarked with industry on a four year programme for sector modernisation with the key objective of: reducing capital cost and the carbon burden from the construction and operation of the built environment by 20%. Central to these ambitions is the adoption of information rich Building Information Modelling (BIM) technologies, processes and collaborative behaviours. But BIM is not just about buildings, despite the title. It can be used for roads, gas pipelines, bridges, railways – any construction or civil engineering project. And it is not just about creating models. Visualisation is an important part of BIM but it is more than this. According to CIBSE at a recent ICOM meeting, the most accurate part of the BIM acronym is the ‘I’. BIM is about unlocking the power of information, thereby making it valuable knowledge. The true value of BIM is in enabling different parties to understand each other’s data which can create better informed more unified teams, where often siloed functions can see beyond their own interests to a more holistic view. Virtual designs are built in three dimensions before work proceeds on site; the attributes of all the elements of the building can be found in the model; and spatial ‘clashes’ can be identified and resolved in the model instead of on site. Design and construction documents can be produced more quickly and more effective decisions can be made at an earlier point in the design process. When you add 4D (time) and 5D (cost) information, this gives even greater opportunity for coordination, collaboration, production efficiencies and reduction in errors. The fundamental principles behind BIM are simple and there are key benefits, not just in terms of productivity efficiency and reduced costs, but also implications for health and safety. True BIM will integrate data and physical shape. Instead of drawing volumes, shapes or alignments, and attaching 14 dimensions and linked data,
there will be fully parametric self-contained units to make up the model. Each will generate their dimensions and characteristics as required for visualisations and quantities. With the use of augmented reality (AR), where digital data is overlaid on the real world, data bases can be linked and objects “know” what they are and how they relate to other objects. The potential is huge.
OUTPUT spoke to two organisations adopting BIM:
Ian Dawes, from research based consultancy WRc
To understand potential benefits, talk to Ops staff!
At a recent conference BIM was heralded as the biggest change to the construction industry in 100 years. Largely driven by alliance partners, Building Information Models are already being created in the water industry for large capital projects. However what happens to this model after construction? Will it be updated? If the full benefits of BIM are to be realised then the principles must be of benefit over the entire operational life of an asset. This will require each utility to develop a common BIM data environment which is a significant undertaking requiring software procurement, integration with existing systems, information security procedures, skills training and implementation of update processes. The required investment is substantial with the costs expected to run to tens of millions of pounds for a large utility company. Regulators are likely to view BIM as best practice for efficiently delivering services, so are unlikely to directly fund investment. To secure the required funding, a clear business case needs to be made to senior management. So what exactly are the potential savings? And how big are they?
Images courtesy of Crane
The output from recent BIM workshops identified that benefits would come from ‘a single version of the truth’ and ‘better’ operation of assets. It is important to recognise that these are enablers of value which do not represent monetary savings in their own right. Recent discussions suggest that the water industry does not currently have a clear enough definition of the operational efficiencies expected to be realised by implementing BIM. My view is that operational savings could be realised relatively quickly by reducing the number of visits to the same asset location, more rapid location of assets, and more efficient health and safety assessment processes. Sharing experiences both across industry sectors and within industries will be the quickest way to develop a robust business case. Surely the benefits should be defined in conjunction with those who will realise the value? These are field- based operational staff: a group that appears least well represented in any BIM discussions. In the water industry a sustainable BIM strategy for individual companies will be of increased benefit if it is in place at the start of AMP6. The industry should engage with operations staff in order to realise the operational efficiencies that BIM is expected to deliver. Time is ticking!
SUMMER 2014
Balfour Beatty
The Value of BIM
At Balfour Beatty, BIM is of paramount significance. Balfour Beatty adopted BIM early as they realised that a BIM environment and workflow could not only allow them to satisfy the UK Government’s requirements but also save money, reduce risk, waste and carbon footprint and increase efficiency. Cleator Waste Water Treatment Works was the first BIM project undertaken by Balfour Beatty. During this project all principles of BIM Level 2 were implemented.
FEATURE construction process and cost implications in relation to the program of works. All design reviews were conducted using the federated model in Balfour Beatty’s cutting-edge facility, the BIM C.A.V.E (Computer Aided Virtual Environment), in Cheadle Royal. This allowed the design team to cut down the use of paper drawings. The reviews also increased the level of accuracy and helped discover potential risks and design flaws. Through constructability reviews with the use of the federated model, the construction process was optimised, saving time, waste and carbon and reducing potential hazards and risks on site.
updated in real-time using ArtrA’s Field BIM functionality. This meant that the federated model and all the drawings stayed up-to-date and accurately reflected what was happening on site. The bespoke solutions Balfour Beatty created, such as Augmented Reality applications for the buried services, intelligent virtual tours for easy access to information, Unity 3D “game” environment for user friendly model walkthroughs, systems integration for gathering asset information on site real-time, etc., added value for the client but also proved to be valuable tools in the decision making process on site during construction phase.
the impact of Building Information Modelling Furthermore, various bespoke BIM solutions were created for the client and utilised to add extra value to the project in terms of efficiency, savings, accuracy and data collection. Through the use of laser scan survey, existing ground conditions and assets were captured in great detail which allowed for the accurate and precise modelling of the site. Panoramic 360 degrees photography was utilised in order to provide access to the site from the convenience of the office environment without the need to travel to site which would be inefficient and not cost effective in addition to increasing our carbon footprint.
All data was verified and gathered in the Asset Management solution, Amtech’s ArtrA, which allowed the teams to collaborate more effectively and monitor the design changes in real time in addition to observing the construction status. The gathering of data was continued from site during the construction phase which ensured that the existing office model was
Loukas Mitsou, BIM Manager for Balfour Beatty’s Gas & Water business unit, confirms the benefits of BIM: “With the use of BIM, we realised 20% comparative design time savings, risk prevention and elimination, which resulted in money and risk savings, and optimisation of the construction sequence which returned savings in money, time, risk and carbon.”
Using the latest BIM authoring tools, new assets and all works that were to be undertaken on site were designed, tested and modelled. All optioneering was digitally conducted, which optimised the design and functionality. Clash detections were run in order to avoid costly design errors. Vehicle movements were optimised with swept path analysis tools. Finally, 4D (construction sequence) and 5D (cost simulations) animations were created for better understanding of the Images courtesy of Balfour Beatty
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GAS INDUSTRY AWARDS 2014
Congratulations to all the winners of this years EUA/IGEM Gas Industry Awards Gas Industry Leadership Mark Oliver (collected by Nigel Winnan).
Manager of the Year Award Claire Edwards
Wales & West Utilities Sponsored by Rhead Group
Wales & West Utilities Sponsored by Radius Systems
SUMMER 2014
VIEW FROM THE HOUSE
View from the
House Lifetime Achievement Award Jeremy Bending Customer Service Scotia Gas Networks
Sustainability BG Group Plc
Sponsored by Domestic and General
Sponsored by GPS PE Pipe Systems
The decisive action this Government is taking to provide certainty and sustainability is consigning decades of UK energy under-investment to history. By providing certainty, an attractive framework for investors and doing what’s needed to manage supplies over the next few years we will keep the lights on as energy supply margins tighten. We’ve attracted £45 billion of investment since 2010, introducing sweeping reforms across both supply and demand.
Company of the Year Towngas China Company Limited Sponsored by J Murphy and Sons
Engineer of the Year Paul Leighton
Network Integrity Manager Fulcrum Sponsored By British Gas
Gas Industry Safety Award National Grid AGI Eakring Project
Young Persons’ Achievement Oliver Lancaster
Wales & West Utilities Sponsored by Morrison Utility Services
Sponsored by GISG
The first new nuclear power station in a generation, doubling the amount of electricity we get from renewables, bringing on Europe’s leading CCS projects, fast-tracking plans to maximise North Sea oil and gas, and supporting the domestic shale gas sector, all just some of the successes this Government has achieved in the past four years. And this year, we’ll hold the first ever Capacity Auction, that will encourage investment in new gas-fired power stations. The result is the UK is now rated the fourth most energy secure nation on earth by the US Chamber of Commerce.
Collecting the award Aaron Coulson, New Talent Manager, Glynn Barber, Technical Academy Manager (Gas), Simon Cowling Design Manager, Gas Transmission Asset Management, National Grid
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Gas Industry Innovation National Grid Carbon Capture and Storage Project team Sponsored by National Grid
Sustainable Energy & Investment
At the same time, our domestic Renewable Heat incentive (RHI) is the first scheme of its kind in the world – showing the UK is leading the way in the renewables sector. It is part of a wider mix of policies that this government has introduced aimed at giving consumers greater control of their energy usage and bills, while driving down carbon emissions. We are also forcing energy suppliers to be more honest and fair with their customers, we’ve trebled the number of energy suppliers, made switching easier and backed community energy all to drive challenger competition in our markets. As a world leader in energy efficiency we are placing real value on reducing electricity demand. Our demand-side auction in capacity market design and smart meter roll-out programme are both ambitious and on track. Certainty and sustainability are both driving forces along a clear path for investment and generation that will keep the lights on, reduce reliance on imports and increase supplies of secure, clean, home-grown energy.
Rt Hon Edward Davey MP Secretary of State for Energy and Climate Change
Special Recognition Award Balfour Beatty Utility Solutions and Solutions for the Planet
We are extremely grateful for the support of our event sponsors Capita, DNV GL, Lowri Beck and Providor as well as each individual award sponsor. 17
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LEADING VOICE
strategy
voice
answers times OUTPUT Magazine talks to Judy Lumsden, President, Crane Building Services At first glance the external façade of the manufacturing facility in Hitchin does little to convey the slick, modern operation that is Crane Building Services & Utilities. The visitor areas start to paint a picture of a global manufacturing success story with a proud UK base, a company with a long history and strong tradition but also highly responsive and innovative. Judy Lumsden has been President for three and a half years and heads up an employee base of 800 across the globe. A strong collaborative ethos is very much part of the company’s success, she says. And it is a success. This collaborative ethos goes back to the founder Richard Teller Crane. He focused on the importance of business ethics and values, the goodwill they engender among employees and customers, and the competitive advantage they can bring. The essence of this resolution is the business policy of Crane today, replicated at every Crane site. His words continue to drive the organisations philosophy and serve as a benchmark to measure performance. Crane Building Services & Utilities forms part of the Fluid Handling Group within Crane Co. founded in 1855, which is a multi-industry, New York Stock Exchange quoted company with a market capitalisation of around $4.5bn
Crane Ltd was founded in 1919 making malleable iron fittings and valves and Crane Building Services & Utilities was created as a result of Crane acquiring Viking Johnson, Helden and WASK in 2003, and Hattersley in 2004. The most recent acquisition was Delta Fluid Products in 2008. Crane Co is a diversified manufacturer of highly engineered industrial products focusing on niche markets. The company employs approximately 11,500 people in North and South America, Europe, the Middle East, Asia and Australia. Revenues from outside the United States are around 41% and the business is comprised of four segments – Aerospace & Electronics, Engineered Materials, Merchandising/Payment Innovations and Fluid Handling. Primary markets are aerospace, defence electronics, nonresidential construction, recreational vehicle (“RV”), transportation, automated payment and merchandising, chemical, pharmaceutical, oil, gas, power, nuclear, building services and utilities. Judy explained the company’s goal has been to become a more integrated operating business. Their strategy is to grow the earnings and cash flows of niche businesses/brands – strong brand identity helps maintain leading market share - and acquire businesses that fit strategically with existing businesses. New product development is a key strength and a significant emphasis is placed on organic growth. The UK R&D team is relatively small with 4 or 5 projects on going within each business sector and 10 to 12 ideas under evaluation at the same time. New ideas may come from customer interaction, customer feedback
business
Leading
performance
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personal
growth
people
feedback
opinion
speak words
comment
viewpoint
– there is a strong focus on gaining feedback from contractors, consultants etc – attending exhibitions, questionnaires, collaboration between marketing and engineering or the distribution chain and channel partners. Judy Lumsden
SUMMER 2014
The organisation is very keen on personal and professional development and growing its own talent. Intellectual capital is identified and developed which benefits the individual and the organisation. Judy says she herself is a good example of this culture, moving up from CFO to President in 2011. The flat structure of the company and lack of corporate tiers supports autonomous working which is closely aligned through the application of Crane’s Business System. The Crane Business System ‘incorporates a set of business processes and operational excellence tools to drive continuous improvement throughout the business’ by focusing on continuously improving safety, quality, delivery and cost. Judy Lumsden worked her way up to where she is today. Leaving school at 18 and focusing on a career in accounting and production within the manufacturing sector, she believes her background complements her management style. She is no more special than anyone else she modestly says, and places much emphasis on respect and trust in the workplace. People spend such a lot of time at work they have to enjoy it. She doesn’t feel her leadership offers anything particularly different to her predecessors. Every business requires a certain leadership style at a certain point in its evolution she says. Much of heading up an operation like Crane is a numbers
game and she has an ability to understand these numbers. What she has had to learn (and is still learning) is the front end and sales side. A clear strategy that is well documented and culture of learning encourages her management team to operate to their strengths. It’s very much about designing a sustainable base, employing good people/teams and continuing to grow and learn together. Building Information Modelling (BIM) has become an integral part of their strategy since 2011. It shares common information with everyone working on a project and makes extremely detailed elements of a build available to the whole team. The modelling achieved by BIM is more a simulation, a virtual version of a project which can enable more interesting building design and green sustainable construction. Being able to explore multiple scenarios, gain rapid feedback and visually and analytically communicate concepts and results helps mechanical engineers optimise their
designs. Furthermore it eliminates error and waste in the design phase allowing greater efficiency. Judy believes BIM has been a worthwhile investment - Crane is one of the first valve manufacturers to offer BIM content for products. Customers expect Crane to be leading the field and this helps maintain their preferred supplier position and competitive advantage. Crane operates in a very different marketplace to the one in which it did when Judy first joined Crane in 2007. The global recession radically changed the landscape and although Crane is never complacent, they were certainly in an enviable position being market leaders in many sectors. However, buying patterns affected loyalty, competition increased, new contractual customers demanded higher service levels and better prices. The company had to become more agile and customer oriented. They could no longer take their market position for Judy says. They must continue to develop, demonstrate organic growth and meet customer expectations. Each business
unit follows a systematic approach using a variety of tools to generate profitable growth by eliminating waste, reducing variability and focusing on customer needs including: • Lean manufacturing • Kaizen projects to improve all processes • Strategic selling, planning, and supply chain management • Six Sigma tools to measure, map, and reduce variability Judy believes Crane is well placed to meet the demands of 2014 and onwards. They are positioned as a significant supplier to international companies – they operate globally and sell into almost every country around the world – and they have a great team of people in place. They are addressing markets with a tightly focused approach that can better serve rapidly changing needs. Their biggest challenge will be to continue to grow and meet and exceed customer expectations.
Riser & Lateral System Demonstration & Open Day March 2014 Crane works closely with its customers encouraging engagement and feedback to help build relationships, remain the supplier of choice and promote customer driven innovation. The construction of a gas supply to a multi-occupancy building requires special consideration. Whilst the pipe work within each dwelling is the responsibility of the occupier, the communal pipe work presents particular problems. The WASK Riser & Lateral system comprises a range of dedicated corrosion resistant metal fittings, which can be attached to the outside wall of a building. Standard PE pipe connects to each fitting using the WASK site-assembled crimp joint to complete the system. The supply enters each dwelling through an outside wall by means of a WASK house entry tee or house entry elbow. The PE pipe is protected against sunlight and mechanical damage by GRP sleeves retained in place by wall clips. The system is lightweight and does not require skilled welders or pipe-fitters to install.
To engage and educate customers on this system and to show a live example of just how simple it is to fit, a recent open day saw a wide range of gas distribution network companies, contractors and UIPS attend, as well as OUTPUT Magazine.
The visit included product presentations and a factory tour of the Hitchin site. The event was extremely well received and appreciated by attendees and the open questions and answer session raised some interesting comment, product feedback and requests. 19
OUTPUT
New Members
CFCL (Ceramic Fuel Cells Limited) is pleased to become a member of the HHIC and to join the growing microCHP forum. CFCL is a world leader in developing fuel cell technology to generate highly efficient and low-emission electricity from widely available natural gas. CFCL has sold its BlueGEN gas-to-electricity generator to major utilities and other customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia, and the USA. CFCL is also developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom and EWE in Germany. CFCL offers its customers the ability to generate ‘greener and cheaper electricity’ than they can buy from the UK grid under the slogan “half the cost, half the carbon”. Our BlueGEN® technology has the world's highest electrical efficiency from a small-scale generator at up to 60% (LHV), with a typical total efficiency of up to 85% (LHV) or more and reduces carbon dioxide emissions by more than two-thirds compared to coal fired electricity generation. Such high electrical efficiency means very low thermal output, which allows BlueGEN® systems to run 24/7 as an add-on to existing building level heating and hot water systems, whether domestic or commercial. With approaching 100 fuel cell systems in the UK either installed or scheduled for installation plus in excess of another 300 systems installed around the world, together with more than 4 million fleet operational hours, we can confidently say that our fuel cells are tried, tested and available in the UK. We believe that our membership of HHIC will help to raise awareness at the national level of the benefits which stationary fuel cell generation offers to the UK and positively impact on public policy.
Our operating base is broadly international, with extensive R&D, testing and manufacturing facilities in Australia. Heinsberg in the German Rhineland is home to Ceramic Fuel Cells' European production facility. We have commercial operations in the UK, the Netherlands and Germany. For more information see
www.ceramicfuelcells.co.uk.
Contact: Paddy Thompson, General Manager Business Development on paddy.thompson@cfcl.com.au.
Cerro EMS designs and manufactures critical fluid control products for the gas industry. We are the leading producer of aluminium and brass forged and machined components in the UK. Founded in 1836, Cerro EMS is based in Birmingham and is a Marmon /Berkshire Hathaway company. We are BSI registered, and operate a Quality Management System to ISO9001: 2008. Our well invested facility includes robotically fed forging presses ranging from 100 to 1400 Tonnes and has a wide range of CNC machining centres, including automated Riello and Vertiflex units, giving the capability for 3, 4, and 5-axis machining. We also produce our branded range of Kite marked Valves and Fittings to gas industry standards.
Membership Matters...
NEW MEMBERS
WRc plc is pleased to be new members of the Energy & Utilities Alliance. WRc is a centre of excellence for innovation. Consisting of approximately 115 staff and based in Swindon, we pride ourselves in developing trusted relationships with our diverse portfolio of clients. We provide sustainable and robust solutions to new or difficult problems to enable our clients to innovatively provide a safe, reliable and efficient service to their customers. We operate in the UK and Europe and our clients are the gas and UK water utilities, their trade organisations, manufacturers, the waste and resource industry, their regulators, UK government and the European Commission. We recognise the benefits of shared knowledge through our collaborative research programme which develops and disseminates good management practice to leverage business efficiencies in our client base. We can bring to bear over 80 years’ of insight and expertise in assessing and modelling above and below-ground assets. By being at the centre of innovation, we bring together world-class partners to understand a given challenge and then working with all partners, develop the most cost effective solution. This solution may involve anything from complex technologies to challenging and ultimately changing customer’s behaviour’s. We always work with best-in-class because we believe that is the way to deliver world-class solutions.
Using the latest CAD, 3D modelling and forging simulation systems, we are able to accelerate the design process from quotation through to volume production. Our Engineering Team works closely with our customers to provide innovative designs that reduce cost. Cerro EMS has supplied the UK gas industry for over 50 years and holds trusted supplier positions with all the major distribution networks.
At our recent annual innovation day, over 300 guests from many different sectors came to WRc to network and talk innovative solutions. People solve problems for people and as a member of EUA, we are ready to work closely with other members so do not hesitate to get in touch if you are interested in getting involved in one of our many solution forums and action groups during the year.
www.cerro-ems.com
http://www.wrcplc.co.uk/
EUAGolfingCircle The Spring Meeting, the first event of Captain Andrew Pearson’s year, took place on a very wet day on the Earls Course at The Warwickshire on May 7th. The event was well attended with thirty six players teeing off. The course was soggy but the ‘never say die’ spirit was first class. The plaudits went to: Alan Chambers and Peter Day in the morning greensomes for the Chairman’s Cup; Grant Qualey for the Davis Cup (best score for handicaps less than 10); Steve Brophy for the Thornton Victory Cup (best score for handicaps 10 to 18); Andrew Robinson for the Sir Arthur Duckham SAGEM Cup (best score for handicaps over 18); Jeremy Nesbitt for the Coronation Plate (best score for IGEM members) and David James for the John Franklin Veterans Salver (best score by a member over 55 years). The prize for the best score by a Guest went to Paul Croucher. We are always pleased to welcome new members and our events are both fun and provide excellent networking. With a joining fee of only £20 don’t miss out on the opportunity to join circle members and Captain Andrew Pearson for what promises to be an excellent programme this year. The Golfing Circle has two further events for 2014: Captains Team Challenge to be held at Olton Golf Club on Thursday 3rd July and the Autumn Meeting to be held at Tadmarton 20 Heath Golf Club on Tuesday 14th October. For more information please contact Jeremy Nesbitt Jeremy.nesbitt@ngrid-aws.org.uk.
SUMMER 2014
MEMBERS LIST ACV UK Ltd Advance Appliances Ltd Altecnic Ltd Ariston Thermo UK Ltd Bosch Thermotechnology Ltd Cotherm (UK) Limited Gledhill Building Products Ltd Glen Dimplex UK Ltd
Heatrae Sadia Honeywell Control Systems Ltd Joule UK Ltd Kingspan Environmental Ltd Mannley Cylinders Ltd McDonald Engineers Newark Copper Cylinders OSO Hotwater (UK) Ltd
RM Cylinders Reliance Water Controls Ltd Telford Group Vaillant Group UK Ltd Viessmann Ltd World Heat Ltd
Adey A O Smith Water Products Company BV AmbiRad Ltd Babcock Wanson UK Ltd Baxi Commercial Division Bosch Thermotechnology UK Ltd
Calor Gas Ltd Cochran Ltd Ecoflam (Ariston) Energy Technology & Control Ltd EOGB Energy Products Ltd Ferroli Ltd G P Burners (CIB) Ltd Gas Fired Products Ltd Hamworthy Combustion Engineering Ltd Hamworthy Heating Ltd
HeatSol Technology Ltd Hoval Ltd Ideal Stelrad Group Johnson & Starley Ltd Lochinvar Ltd MHS Boilers Ltd Mikrofill Systems Ltd Nu-way (Enertech Ltd) Powrmatic Limited Remeha Ltd Riello Ltd
Rinnai UK Ltd Roberts Gordon Europe Ltd Schwank Ltd Sentinel Performance Solutions Ltd Stokvis Industrial Boilers (International) Ltd Strebel Ltd Vaillant Group UK Ltd Viessmann Ltd Weishaupt (UK) Ltd
A.C.Wilgar Ltd Adey Professional Heating Solutions Alpha Therm Ltd Altecnic Ltd Anton Industrial Services Ariston Thermo UK Ltd Atag Heating Ltd Atmos Heating Systems Baxi Group Be Modern Group BFM Biasi UK Ltd Worcester Bosch Bowbros Ltd British Gas Burley Appliances Ltd Calor Gas Ltd Carillion Energy Services Ceramic Fuel Cells Ltd
Charlton & Jenrick Ltd Crosslee plc Crystal Fires Daikin Airconditioning UK Ltd Delta Energy & Environment Valor Domestic & General Group plc Domestic Water Treatment Association E.on ENT Ecuity Consulting LLP EDF Energy The Electric Heating Company Kromschroder (UK) Ltd Encore Personnel Flowgroup plc Enertek International Ltd Fabdec Ltd Fernox Ferroli Limited Fondital Helpline UK Gas Contract Services Ltd GAZCO Ltd Giona UK Glowarm Central Heating Ltd Grafton Merchanting GB
Graham Group plc Grant Engineering (UK) Ltd Grundfos Pumps A/S Harvey Water Softeners Ltd HETAS Ltd Honeywell, ACS Control Products Ideal Heating Ltd IE-CHP (UK Eire) Ltd Inspirit Energy Holdings plc InstaGroup Ltd Intergas Heating Ltd Johnson & Starley Limited Kamco Ltd Kane International Ltd Kiwa GASTEC at CRE Ltd Lettergold Water Treatment Solutions LLP Logic Certification Monarch Water Morgan Lambert Ltd Myson Radiators NAPIT NIBE Energy Systems Nirvana Energy Systems Inc Npower Hometeam Nu-Flame
OFTEC Panasonic Industrial Devices Sales Europe GmbH Pektron plc Pump House Pumps Ltd Rangemaster Ravenheat Rinnai UK Ltd Sentinel Performance Solutions Ltd Sime Ltd SIT Controls Ltd Solar Trade Association Spirotech Sunamp Sustainable Power Ltd TACMA Teddington Controls Thermoserv Ltd Travis Perkins Group UKLPG Vaillant Group UK Ltd Viessmann Ltd Vokera Limited Widney Leisure Ltd Wolseley Centres Ltd
Ideal Stelrad Ltd Kudox Ltd
Zehnder Group UK Ltd Quinn Radiators
Myson Radiators
Develop DI UK Ltd DNV GL E.on Energy Solutions E.on Gas Storage UK Ltd EDF Energy Customer Field Services EDF Trading Gas Storage Ltd EDMI Europe Ltd ElectraLink Ltd Electricity Solutions Ltd Elexon Elgin Elster Metering Limited Energy Assets Ltd Engage Consulting Ltd Enzen Fastflow Group Ltd Ferranti Computer Systems NV Fiorentini UK Limited Fulcrum Connections Fusion Group Ltd Future Energy Group G4S Utility Services (UK) Limited Gas Measurement Instruments Ltd Gas Transportation Company
Gateway Storage Company Ltd Generis Technology Ltd George Fischer Sales Limited George Wilson Industries Limited GPS Halite Energy Group Harlaxton Engineering Services Ltd Hewlett Packard Humbly Grove Energy Ltd INEOS Enterprises Ltd Islandmagee Storage Ltd Itron King Street Energy Landis+Gyr Lightsout Computer Services Ltd Lomax Training & Services Lowri Beck Services Ltd Meter Provida Ltd Mike Stratton & Associates Ltd Morland Utilities Ltd Morrison Utility Services J Murphy & Sons Limited National Grid plc Northern Energy Connections Ltd Northern Gas Networks Ltd P N Daly Ltd
PLCS Limited Power Plus Communications AG Providor Ltd Radius Systems Ltd Sarco Stopper Ltd ScottishPower Energy Management Ltd Secure Meters (UK) Ltd Sensus UK Siemens Metering, Communications & Services Simply Marcomms Ltd Silver Spring Networks UK & Ireland SSE Hornsea Ltd Statoil (UK) Ltd Storengy UK Ltd Tuffentech Services Ltd UCML (Utilities Connections Management Ltd) Utility Customer Service Management Ltd Utility Innovations Solutions WINGAS Storage UK Ltd WRc plc Xemex NV
ICOM
Energy Association
AMEC Group Limited Amey AVK UK Ltd Balfour Beatty Utilities Burdens Bureau Veritas Buss Metering Services Ltd ByBox Calvin Asset Management Ltd Capita Symonds Ltd Carillion Utility Services Centrica Storage Ltd Cerro EMS Ceva Logistics Cheshire Cavity Storage Ltd Clancy Docwra Limited CNG Energy Services Ltd Co-operative Energy Comex 2000 (UK) Ltd Crane Building Services & Utilities
15
U T I L I T Y
M E T E R I N G
S E M I N A R
Managing the Transition to the SMART era
11 September 2014 Heart of England Conference Centre, Fillongley, Warwickshire Managing transition phase risks • Effective co-ordination during enduring roll-out Towards effective deployment The challenge of meter asset provision • Delivering effective coordination Gas & electricity network perspective on preparations for smart roll-out
Technical developments • Customer engagement challenge • The skills issue
Book online at www.eua.org.uk/events or contact vanessa@eua.org.uk Sponsor/exhibitor opportunities also available