www.eua.org.uk
What now for
energy policy
In this issue: • Looking to the future: the GB gas industry • Gas Industry Awards 2015: full list of this year’s winners
SUMMER 2015
WELCOME
OUTPUT
Welcome to this issue of OUTPUT Now that the dust has settled somewhat from the General Election, our attention turns to the new Government’s commitment to energy policy in their manifesto and our work begins building relationships with new Government Ministers. Although on the one hand challenging due to the lack of detailed policy it contains, on the other hand their plans could be seen as a positive indication that they do not intend to embark on any major reforms of the energy market, providing the industry with stability. EUA, across all its divisions, is supportive of a number of its manifesto pledges and is progressing meetings to help DECC achieve them.
SMART. ROBUST. COMPACT. Introducing our new residential and commercial meters EDMI’s gas meters are based on proven ultrasonic measurement technology and offer an extended temperature range from -25°C to 55°C. The G6000 meter (U6 and U10) is designed for residential and small commercial properties whilst the G10U (U10 and U16) meter measures larger flow rates for commercial use.
SMART METERING SOLUTIONS SMART COMMUNICATIONS
entries, culminating in a fantastic lunch and awards ceremony, it really was a fantastic showcase for the industry. This is my final issue of OUTPUT for a while as I go on maternity leave and take up a new role in life as a mum over the coming months. I am delighted to hand over the reins to Hollie Franklin, who will be Editor of OUTPUT into 2016.
ICOM
Energy Association
Hope you enjoy the issue. If your organisation would like to contribute any material to the magazine then please do get in touch with Hollie.
This issue looks at some of the areas EUA will be working with Government on and provides some of our thoughts on how Policy might be shaped under the new leadership. Also highlighted in this issue is the progress, development and success in the industry celebrated at this year’s EUA/IGEM Gas Industry Awards. With ten awards, an unprecedented number of
Features include: I Compact for ease of installation I Simple, user-friendly 5 step commissioning process I Zone 0 certified I IP67 certified ensuring protection from dust and water I Communications and battery are exchangeable in the field I Suitable for SMETS1, AMR, ZigBee and GSM communications I Single device installation with Integrated communications unit I Suitable for dual fuel and single fuel network architectures
www.edmi-meters.co.uk
Caroline Taylor Editor, OUTPUT
Contents 2 4 6 8 16 19
Regulars
News from the divisions: Utility Networks HHIC ICOM, HWA, MARC Presidents Column Leading Voice Carly Gilchrist New Members
9 12 14 18
EUA President Ian Hughes (Kingspan Hot Water Storage) Bob Murray EUA Vice President/Treasurer
Features
Gas Industry Awards 2015 What now for Energy Policy? Looking to the future: the GB gas industry How Does the Waste Electrical & Electronic equipment Directive affect the metering industry?
Chief Executive Mike Foster HHIC Director Stewart Clements ICOM Director Ross Anderson ………………………….................... Editor/enquiries Hollie Franklin hollie@eua.org.uk Energy & Utilities Alliance (EUA) Camden House Warwick Road Kenilworth Warwickshire CV8 1TH Design and Publishing Mike Hill Graphics, Stratford upon Avon
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UTILITY NETWORKS NEWS
Scheme to help underpin confidence in smart metering gathers pace: SMDA update
Utility Networks News
Brendan McGarry, Gemserv
Gas Storage in the Press EUA has reiterated its message on gas storage, calling on the new Government to review its decision to let the market determine the availability of gas storage.
Mike Foster
EUA Chief Executive, Mike Foster, warned that noticeable differences between winter and summer prices of gas, needed by the market to deliver gas storage, have not been seen for a number of years. The problem has been that Government – both the previous one and the one up to 2015 – said the market should determine the availability of gas storage. The market will only deliver gas storage if there are noticeable differences between winter and summer prices of gas, the price spread. This is one of the reasons people have not come forward and delivered gas storage even though they might have permission. Many gas storage schemes in the UK have been consented but are yet to be financed and built. The Gateway Gas Storage scheme gained consent from then Energy Secretary Ed Miliband in 2008, but is still unable to secure financial backing.
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Compared with UK total demand for gas, our storage capacity is about 6 per cent. That compares with
SUMMER 2015
28 per cent in France, 27 per cent in Germany and 35 per cent in Holland. We are considerably lower than our European counterparts. Mike also pointed out that some of the UK’s existing gas storage, such as Centrica’s Rough facility, is ageing and there are going to be costs associated with its upkeep. To lose what would be in the region of 70 per cent of our gas storage if Rough was not available, given that we don’t have a lot anyway, would really bring into question the Government’s priorities around energy security. If, in tackling the trilemma, the Government believes that there is a strategic imperative to maintain security of supply – both price security and physical security – they need to review the whole basis upon which gas storage is delivered. And to certainly review the decision they made a couple of years ago about the principle of leaving it to the markets, because clearly it isn’t working. It has been assumed that the market alone would deliver the UK’s gas security. However, with no significant new storage capacity having been constructed in recent years, it is time to re-consider the case for introducing support for both new and existing gas storage facilities.
Meeting of the Metering Technology, Metering Services and Data & Communications Management Groups The Metering and Data & Communications Management groups’ joint May meeting was hosted by Ceva Logistics at their Centre of Logistics Excellence (COLE) in Ashby de la Zouch. The meeting reviewed developments in the Smart Metering programme including an update on DCC, SMDA and NSAP, ODG and HAN committee updates, a Standards update – CEN TC, ZigBee Alliance, progress report on SEP – as well as TBDG update – SMETS2, CHTS, GBCS, Security TSEG and TPMAG. The groups also received a presentation from Mick Young of Dragon Recycling on their recycling methods and procedures as well as the pitfalls of certain production methods. What appears to be efficient and economic during production can seriously affect the ease that components and materials can be extracted for worthwhile recycling. Failure to think through the whole life of the device right through to disposal can lead to excessive pollution and land fill. New regulations are placing more responsibility on manufacturers for whole life and disposal, meaning greater focus on production processes to ensure whole life economy and responsibility. The meeting included a full tour of the CEVA demonstration facilities within COLE and a detailed explanation of their order picking, tracking and delivery recording systems as well as their vehicle tracking and monitoring systems. These enable them to monitor exactly where a particular part (such as an energy meter or associated components) is at any point in the cycle from warehouse to the delivery address.
Work is now well underway to put the mechanisms in place to ensure a new assurance scheme for smart metering equipment works effectively for industry. The Smart Metering Device Assurance (SMDA) scheme aims to enable suppliers to meet their obligations on smart metering equipment and to also give confidence to the market and key participants. The scheme was established after a number of suppliers, meter manufacturers and funders of smart metering programmes identified a common benefit in establishing a central assurance regime. The joint initiative between EUA, Energy UK, BEAMA and the Community of Meter Asset Providers (collectively forming the SMDA Company) focuses on interoperability – which energy supply companies have an obligation to demonstrate in relation to equipment installed on their networks – and interchangeability, which the industry wants in order to reduce the risk of ‘stranded’ assets. Interoperability relates to the ability of Type 1 devices to interact with the Data Communications Company (DCC), successfully receiving, interpreting, acting on and responding to messages. Interchangeability goes further, checking that all devices on the Home Area Network (HAN) can communicate with one another and interpret and act on commands.
Not every device combination or command will be tested and the approach will be risk based, driven by business process scenarios (e.g. change of supplier) that will be agreed by industry. Agreement on what scenarios to test for should provide a sufficient level of independent assurance to support investor confidence and reduce the risk of stranded assets when a customer changes supplier. In January the SMDA Co. appointed a scheme operator (SO) – a consortium headed by Gemserv – to establish the scheme and to engage third party test houses to carry out testing activity. The SO are establishing the selection approach for test houses and will be tendering for those services. The SO is independent of meter manufacturers, suppliers and other industry parties and testing services will be available to all. Since January, the SO has been working with SMDA Co. to put in place the correct governance and consultation mechanisms to ensure that the scheme works for industry. Members of the scheme can sit on the SMDA Working Group and provide input into the assurance process for the SO’s product outputs. In recognition of their contribution to the early development of the scheme, those involved will receive discounts on the cost of testing services. Ahead of the scheme’s ‘go live’ in 2016, which is intended to align with DCC Live, the SO will be developing the following:
• An approach to the selection of test houses within the SMDA scheme. Flexibility in meeting demand for testing together with competitive pricing will be key requirements of the procurement process; • The scenarios and specifications to be used in the tests performed; • The processes and procedures to support the delivery of testing and incorporating them into the working practices of test houses; • The charging model and the processes necessary to support invoicing and payments of scheme participants; • Access to the DCC’s testing environment and setting up the testing connections; and • Operational readiness of the SO to deliver the service across areas including branding, website, change and issue management, dispute resolution, staff training, enquiry service arrangements, and putting necessary administrative processes in place. The Working Group had its first meeting in June to consider the SO’s proposals around test house selection approach and the approach to developing test and business process scenarios. These will now go to the SMDA board, of which EUA is a member, for approval. Future Working Groups will focus on matters including the test prioritisation criteria and the approach to re-testing. If you have any queries about SMDA, please contact smdaenquiries@gemserv.com
NEEG Meeting at Hitchin
April’s NEEG meeting took place on 30th April at Crane Building Services & Utilities in Hitchin. With around 25 attendees, presenting to the Group were Dr Chris Bridge (Trunk Main Investment Manager, Asset Creation) of Severn Trent Water and Andrew Musgrave (Head of Network Strategy) of SGN.
Chris gave an update and insight to STW activities in the new AMP 6 period including innovation opportunities. Andrew shared with the Group SGN’s approach and benefits of applying predictive analytics to optimise the Iron Mains Replacement Programme. This was followed by a well-received tour of the hosts manufacturing and distribution facilities.
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HHIC NEWS
HHIC News Roger Webb, Director HHIC...
On 1st June, Stewart Clements took up his new position as the Director of the Heating and Hotwater Industry Council (HHIC) following the retirement of Roger Webb. At the dawn of this exciting new challenge, Stewart sets out his plans for HHIC.
Can you tell me what appealed to you about working for the HHIC, and what you will be bringing to your new role? Working for an association like the HHIC allows me to give something back. It also gives me the opportunity to help shape the industry I have been involved with for many years, whilst pursuing my interest in politics. Two birds with one stone if you like. As far as what I will bring to the role is concerned; experience, enthusiasm, and most importantly, a level head.
Having been in the industry for over 31 years, what do you think are our biggest challenges to 2020? Firstly is the challenge of achieving recognition on the importance of heat in the wider energy efficiency agenda. So much emphasis has been given to things like insulation, and rightly so, however as heating and hot water can account for up to 60 per cent of total domestic energy use, an equal footing for heat is required. The heating industry has a part to play in the quest for recognition too. We need to be bolder in stating our case to Government. We also need to draw attention to the industries’ unique position. A heating installer visits a UK home every 20 seconds, they are perfectly placed to advise consumers on energy efficiency and the
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An interview with new HHIC Director, Stewart Clements I would also like to showcase the world class manufacturing of HHIC’s members. Greater recognition of this could pave the way for the UK to lead the world in a heating revolution.
Government should utilise this perfect route to market.
What has surprised you most about the challenges facing the heating industry, since joining HHIC? There have been many surprises, but the one that stands out the most is how the Government have continued to ignore the very industry they are trying to change. Time and time again I have seen both manufacturers and installers – the backbone of the industry – consulted, and then ignored. Input from the people in the know is crucial if we are to deliver on our carbon emission targets.
What support will you be seeking from the Government, to enable the energy industry to overcome these challenges? To me the industry ‘ask’ from Government is quite a simple one: they must make a long term commitment to a single workable energy strategy. We need commitment to the long term future of RHI, and clarity over the future of ECO. We will also be asking the ‘new’ Government for a sensible workable scheme designed to achieve what past schemes, such as Green Deal, have failed to do. This will only be possible with industry input and recognition of the importance of heat. What support will you be seeking from HHIC members to enable the energy industry to overcome these challenges? HHIC is designed to give everyone in the industry one voice. By being actively engaged in our activities; attending meetings, and supporting our messages through the press, members will have an opportunity to shape the industry in which they thrive.
What are the key messages that you would like to drive forward as director of HHIC? The key one for me is controls and system design. Upgrading a heating system from an old inefficient boiler to a modern condensing one, could save the consumer up to £380 a year, but without good control and system design the true benefits won’t be realised.
Stewart Clements
Key to this will be ‘keeping it simple’. For example, the Energy Related Products Directive affects a wide range of products, such as ovens, vacuum cleaners, lamps and washing machines, all of which are arguably easier to understand than heating appliances, therefore the easier and simpler we can make our messaging the greater the opportunity we have to be fully understood. What would you say to someone considering joining HHIC? If you want to influence policy, drive innovation and help develop industry standards. Don’t try alone. Join us, be heard. Now is the perfect time.
A pathway to the decarbonisation of heat HHIC’s research study into how the heating industry can meet the challenges of carbon reduction – Pathways II, has now come to an end, with the findings from the study delivered at a Parliamentary reception in July. This work followed on from our influential Pathways I project, which looked at the difficulties in achieving the Government’s all-electricity scenario for heat generation. The findings from Pathways II support what HHIC and its members have been saying for some time; the UK Government must make a long term commitment to a single workable energy policy if low carbon heat is to be delivered and the fourth carbon budget targets achieved. The all-electric scenario outlined in the Heat Strategy is unrealistic and
SUMMER 2015 Pathways II, together with the united heating industry has outlined practical steps that need to be taken to make low carbon heating a reality for UK homes. To drive the necessary changes and reduce our carbon emissions, a Heat Council, an industry/Government forum, must be established immediately which will hold both industry and Government to account.
1. Industry to invest in developing new technologies. • A Government funded low carbon heat innovation network to be formed creating a partnership between industry and academia for the development of tomorrow’s technologies. • Increase the minimum energy efficiency requirements within building regulations by 3--4 per cent. 2. Industry to reduce the time it takes to bring technologies to market. • Industry to package together new technologies which are supported by innovative finance packages to help off set up front costs. 3. Installers must be fully engaged to play a role in the route to market. • Revisit the role installers play in supporting homeowners with their purchasing decisions, ensuring that installers aren't precluded from delivering Government programmes due to expensive and bureaucratic registration and certification schemes. 4. Consumers need to be brought on board. • Government policy streamlined to create one affordable ‘whole system approach' that is attractive to consumers. • Energy Performance Certificates to be introduced for all properties on notifiable works, allowing sectors of the market to be targeted for appropriate improvement works. 5. Policy makers to drive change for new technologies via a combination of incentives in the short term and longer term appropriate regulation. • Review regulation to establish if robust enough to deliver efficiency requirements. 6. Wider stakeholders to work together to create a whole building approach to heat. This report has been written with the full cooperation of the united heating industry and supply chain and in consultation with the appropriate Government officials. The evidence and actions identified in Pathways II will form the basis of HHIC’s lobbying work over the coming years, we firmly believe that the plan we have identified can transform the heating market, and provides a better outlook to delivering on our carbon targets.
Benchmark becomes the ‘Voice’ of the Installer
Stewart Clements, Director, HHIC Engaging with installers is key to the future development of the heating and hot water industry. They are the people in the know, without their valuable feedback and expertise the UK will not meet its carbon targets, fuel poverty will continue and consumers will not buy in to new technologies. I know from my discussions with members that we are all well aware of the need to actively engage with installers. Benchmark – the nationally recognised heating and hot water member scheme, promoting best practice within the industry – is a well-established and trusted brand, and we believe it is perfectly placed to facilitate engagement. Which is why we have chosen to broaden its purpose; enabling a way for the industry to communicate with installers directly and a way for installers to establish their voice.
85 per cent of installers currently have little or no representation. This has to change; messages from the industry need to be heard, and fast. Preparatory work on the expansion of Benchmark to tackle this issue has already begun. Here’s a brief summary: • The Benchmark commissioning checklists will be extended to include gas fires, and we are also exploring online completion of the checklist via the gas safe website, providing choice for the installer and encouraging a higher number of checklists being completed. • The Benchmark website will be refreshed to support the enhanced offering. This will include a number of
services for existing HHIC members, such as advertising space and the ability to run surveys or opinion polls. Services for Benchmark members will also be extended, providing a way for the 122,000 registered gas engineers in the UK to establish a greater voice. • Installers will be able to sign up for news and information updates, which will help them keep up to date and also help the wider industry communicate directly with installers. • A number of installer engagement events are planned where we will explore what additional support installers need to enable them to continue to thrive within the industry. Further details of these events and how members can get involved will be communicated. In addition to the enhanced services, Benchmark will lead a number of key industry campaigns on behalf of installers, starting with a campaign to tackle unnecessary red tape such as PAS2030 and MCS, which is strangling the industry and stifling its progress. Other key campaigns will cover; EU directives, smart meters and their relationship with domestic heating controls and renewables. We will of course welcome any support our members can offer. There are a number of installer clubs out there each with their own offering and each providing much needed support and information to the backbone of the industry-installers. The expansion of Benchmark aims to complement these existing installer and industry schemes, and provide a platform for our collective messages to be heard. One voice, united to influence change. 5
ICOM
Our world is full of legislation; we cannot get away from the process. It doesn’t seem like a week goes by without the European Commission issuing another mandate for a new regulation or directive. This then feeds through to UK Government policy, which is drafted to comply with the EC policies. It is not always the case that conformity to the European wish is the best or easiest route for the UK to follow and therefore some of the UK policy does not relate to the way our industry operates. Changes have to be made and there are always costs related to modifying the way we do things.
A world of legislation considerable publicity around the Ecodesign regulations for energy-related products in recent months and much of the attention has been on Lots 1 & 2, which come into force on 26th September 2015. Whilst the majority of the issues relating to these Lots are now resolved and reasonably well understood there is a serious issue regarding boiler shells and separate burners up to 400kW – and whether or not these fall within the scope of Lot 1. Identical replacement items will be available up to the 26th September 2018 but the situation for new installations is far from clear as a result of mixed messages from the European Commission.
Now that we are coming to the end of the Ecodesign process, the new directives and regulations are becoming wider in their scope, which makes M AtheRwhole C Nreview EWS process that much harder to resolve. Issues such as Lot 33 – Smart Appliances, the Fan Review, Lot 7 – Steam Equipment and the Medium Combustion Plant Directive are all very wide in their scope and proving difficult to administer.
Consequently, with less than 2 months to go, our members who manufacturer these items are still seeking a definitive answer, making it difficult for them to plan their product development. This, in turn, will create issues for specifiers insofar as it will be unclear which products will provide the necessary compliance.
For example, Lot 33 – Smart Appliances is a directive that is trying to include every appliance that is covered under the Ecodesign scheme. From our members point of view, it includes the appliances covered under Lots 1, 2, 15, 20 and 21, but in addition it covers all the “white goods”, air conditioning products, vacuum cleaners, computer power packs and everything else that uses energy. It is a major task to write a scope which can work with all the products on the market and an even bigger task to decide the process behind “smart” and then formulate a way to integrate everything.
Another sector that is struggling for clarity is that of warm air heaters, which are covered by Lot 21. This Lot has been put on the back burner for a year and a new draft has just been issued for comment.
The other directives mentioned above are similar in the problems involved in trying to gain agreement on the scope and detail as they cover very wide ranging products.
Ross Anderson
The issue this raises is that the first tier of efficiency and emission levels is due to come into effect on 1st January 2017. With only 18 months to go – and a round of comments and final voting by the regulating committee to be accommodated within that timescale – there is precious little time for manufacturers to even understand what criteria they need to be working to. This is clearly unacceptable
as the design and implementation process for products normally takes considerably longer than a year. The second tier of efficiency and emission levels will come into effect on 1st January 2020, which is a more reasonable timescale for manufacturers to work to.
Members of the Manufacturers’ Association of Radiators and Convectors (MARC) have all recognised the role they play in the pursuit of carbon reduction, bringing to market high performing efficient radiators that meet both the needs of the planet and the needs of homeowners. The Government on the other hand have so far failed to recognise the important role they play in the decarbonisation of UK homes. Radiators have been absent from every energy efficiency incentive scheme to date, and overlooked as an important factor in domestic carbon reduction. This has resulted in millions of homes with old inefficient radiators, often suffering from a bad case of corrosion and sludge build up.
The benefits of an energy efficient or renewable heating system can only be realised if the whole system is efficient, including having the right supporting products in place, otherwise a newer heating system can become redundant if it is working with ageing technology. If the UK is to meet its carbon reduction targets, the new Government must take an all-encompassing approach to energy efficiency. Including the whole heating system in incentive schemes, and considering what measures a homeowner is most likely to carry out is just the start. MARC would also like to see housebuilding increase to at least pre-2008 levels. With the low level of home building over the past seven years we are in desperate need to build more homes, both for the economy and energy efficiency. Rental properties need to be bought up to scratch. Social housing providers have the best SAP rated homes of all tenure types,
Another area of uncertainty is the ‘Fan Review’, which has the potential to impact the availability of spare parts for warm air heaters. Again, the situation in relation to fans is unclear. The key point here is that while certain areas of the Ecodesign regulations have acceptable timescales there are some with the potential to set unrealistic dates for compliance. Given the relatively long delay between specification of building services products and their installation, this situation potentially complicates matters for specifiers and could lead to specifications as vague as ‘in accordance with the Ecodesign Directive’. There is still a large amount of work for ICOM to be involved with, but where it was basically a technical discussion regarding product performance, now it is becoming much more a policy discussion on a much broader scope.
MARC News
largely due to the decent homes programme. Unfortunately private landlords are under no pressure to do the same. In 2015 the Government passed legislation forcing landlords to improve their homes to a band E by 2018. However the loop holes in that legislation will probably mean no landlord will actually be forced to improve the energy efficiency of the homes they own. MARC would like all private landlords to be required to ensure their homes reach a band D by 2018. This should include a new heating system and new radiators. This will help to reduce carbon emissions, ensure tenants have lower bills, and as a result reduce fuel poverty. The message from MARC is simple; energy efficiency requires an inclusive approach. We need more homes, and they need to be built with the future in mind. Existing homes, be they rented or owned must be retrofitted to ensure they are energy efficient, and we mustn’t forget our duty to do more to tackle fuel poverty.
HWA News Energy efficiency is in hot water Isaac Occhipinti, Head of External Affairs, HWA
Energy Association
John Colling, Chair, MARC
The ‘new’ Government must take an inclusive approach to energy efficiency
ICOM News
Whilst many aspects of the Ecodesign regulations are now finalised there is still some uncertainty in relation to Lots 1 & 2 and Lot 21. There has been 6
SUMMER 2015
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ICOM NEWS
The heating and hot water industry is well aware of the need to reduce domestic energy demand, and with heating accounting for approximately 50 per cent of domestic energy consumption in the UK, much of the focus has been directed towards heating efficiency and insulation. 11 per cent of the UK’s energy consumption is used for heating domestic hot water, yet it does not receive the same level of attention. Members of the Hot Water Association continually invest to ensure that the products they produce deliver on our environmental demands, but these investments will only go part way to addressing the energy demand for hot water. The industry needs wider support to achieve further savings. The space saving trend and the rise of the combination boiler have impacted on the number of homes with a hot water cylinder – now thought to be 50 per cent. At the same time the volume of hot water we get through has increased. Power showers, ensuites and more frequent showering have all increased our domestic hot water usage.
If we are to make further savings on energy demand for hot water we need to ensure the right systems are being fitted in the right homes. Part of the solution to this is greater installer training and awareness building. The benefits of fitting a modern high performing cylinder are not always well communicated to the installer base. UK energy policy does not encourage the replacement of cylinders and in many cases actively discourages their installation. Policies like ECO and Green Deal gave no credit or financial benefit to keeping or installing a new cylinder, even if the needs of the property required it and energy consumption would be reduced as a result. The drive under ECO to keep installation costs as low as possible meant that installers were simply fitting the cheapest heating system they could. Green Deal didn’t even include hot water cylinders as an eligible measure, so homeowners replacing their heating under the scheme would have been forced to remove their cylinder.
This policy deficit also contradicts DECC’s own heat strategy, which calls for millions of low carbon heating systems to be installed by 2020. The irony of course is that storage of some sort is essential to harvest these energy types, and hot water storage is the only practical solution to turning the energy produced into something useful, and banking it for when it needs to be used. So we are ripping out cylinders with one policy, and requiring them back in a few years’ time with another. HWA will be lobbying DECC over the next few months, firstly to determine what the new Conservative attitude to heating and hot water is. Secondly to discuss how hot water can gain more recognition and reverse the counterproductive trend of removing hot water cylinders. We will have completed our hot water cylinder research project shortly and this should provide the data we need to support our asks. HWA recognise that this will be a tough journey, but a necessary one if homes are going to be able to produce the hot water they need in the most efficient and effective way possible.
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PRESIDENTS COLUMN
PRESIDENT’S COLUMN My tenure as EUA President coincides with interesting times for the industry.
With the uncertainty that was felt in the lead up to the General Election now over, the work now begins for the new Government, in partnership with industry and consumers, to deliver a secure, decarbonised supply of cost efficient energy. The new Government’s manifesto was on the one hand challenging due to its lack of detailed policy; while on the other it could be seen as a positive indication that they do not plan to embark on any major reforms of the energy market, providing the industry with the stability it requires. EUA, across all its divisions, is supportive of a number of its manifesto pledges and is progressing meetings to help DECC achieve them. The delivery of the smart meter roll-out will, undoubtedly, be a major feature of energy policy over the next few years, with its potential to revolutionise retail
and Green Deal. Neither has had the intended impact. We will continue to press for a long term plan and Government support for industry.
markets, produce new collaborations between different industry partners and change the way in which people engage in their energy usage. EUA very much supports its implementation and is working in a variety of ways to advise and facilitate working group involvement and providing expertise. However, risks do exist around the time scales. The industry needs a concise timetable to offer certainty and predictability. Companies will have to gear up manufacturing and workforce and the shortage of skilled meter installers is nothing new. EUA is calling for a firm starting point as industry players are understandably reluctant to invest large amounts of money training staff when delays persist. The Conservative manifesto offered a lack of concrete measures to help improve the energy efficiency of UK building stock. The heating industry needs the right sounds from Government to tackle the age and inefficiency of UK buildings and to help meet efficiency targets. EUA would like to see a review of the Renewable Heat Incentive, currently scheduled to end in 2016,
EUA is also supportive of the manifesto commitment to proceed with shale gas extraction. We support the exploration (subject to adherence of regulatory and environmental standards) and this, together with investing in more short term gas storage will help reduce our dependence on imported gas and help guard against price spikes in colder months. There’s an awful lot to do, and EUA and its divisions will be working hard to represent the industry and push our members’ interests forward. I feel the election result has reinforced a certain sense of stability in the energy sector and look forward to my year as President and playing a key part in EUA’s role in developing energy policy.
Ian Hughes EUA President
Having studied Mechanical Engineering at Cardiff University, Ian worked his way up to the position of Head of Product Management at Kingspan Environmental, responsible for the development of new hot water storage products within the group’s companies. Ian is an active member of EUA’s Hot Water Association, having chaired the HWA’s vented technical committee. He is currently Chair of the Board of Directors and acts as one of the association’s technical experts.
SUMMER 2015
THE GAS INDUSTRY AWARDS 2015
Gas Industry Awards 2015 The winners of this year’s Gas Industry Awards were announced at a special awards lunch in London’s Park Lane Hilton on the 14th May 2015.
development of the UK and how as a fuel of choice it transformed and continues to transform the way we live. Dermot indicated that the ‘new’ majority Government will have clear ideas of what they want to achieve over this term; one of their manifesto pledges being a commitment to the smart meter roll-out. He believes that the issues faced by people living off the mains gas grid will come to the fore and that Ofgem will need to address the very real discrepancies between on and off grid customers. He complimented the gas network and gas network companies for the job they do in maintaining the infrastructure, innovation and their work in helping the fuel poor; drawing specific attention to the high levels of customer satisfaction.
The event, organised by EUA and The Institution of Gas Engineers and Managers (IGEM), was attended by over 600 delegates, who gathered to celebrate the largest and most respected event in the gas industry calendar. The awards were hosted by Broadcaster and Journalist Michael Collie, with an after dinner speech given by Dermot Nolan, Chief Executive of Ofgem.
Remarkable achievements at the Gas Industry Awards 2015 I was honoured to be part of this year’s EUA/IGEM Gas Industry Awards. Our sector is crammed full of talented people and exceptional companies and the annual awards is an opportunity to celebrate achievements and showcase the importance of our industry. I feel incredibly proud of our developments and successes.
Dermot Nolan
He suggested that future demand for gas will be more uncertain and advised caution and that the industry must not become complacent. Gas will have a role in supporting renewables, helping to bridge the shortfalls that will occur as and when renewables can't meet demand.
Judging The judging panel consisted of Chris Clarke (IGEM President), Ian Hughes (EUA President), Simon J Ayley (IGEM Immediate Past President), Vic Tuffen (EUA Immediate Past President), Roger Webb (EUA Director, HHIC), Chris Gorman (Chair IGEM Technical Co-ordinating Committee), Chris Bielby (Gas Industry Safety Group), Jane Williams (EU Skills), Ellen Bennett, (Editor (Utility Week).
Awards
This year saw the highest number of nominations ever in the history of the awards, with fierce competition across all categories – a testament to the excellent work being undertaken.
Dermot Nolan joined Ofgem in March 2014 from the Commission for Energy Regulation in Ireland where he had been a Commissioner since 2008 and it’s Chair since May 2011.
In his view Government will be broadly committed to decarbonisation, especially the need to reduce carbon emissions created by the generation of heat. He concluded by saying it was too early to tell but he didn’t believe gas would be a destination fuel, certainly may not be a main fuel post 2020 and that this coupled with environmental concerns will challenge the industry.
Being part of the judging panel was no easy task and myself and other representatives from across the transmission and downstream sector deliberated long and hard before reducing down over 100 entries to a shortlist of 28 individuals and companies.
He used his leadership experience in energy regulation, market competition and the protection of consumers' interests to reflect on the challenges facing the energy industry. Dermot talked about the pivotal role of Ofgem in protecting consumers’ interests whilst promoting good supplier behaviour. He recognised the historically important role gas has played in the
This year saw the highest number of nominations in the history of the Gas Industry Awards with fierce competition across all of the categories. A judging panel comprising of leading figures from across the transmission, distribution and downstream sectors had the unenviable task of whittling down over 100 entries to a shortlist of 28 individuals and companies.
I want to congratulate all our winners and runners up. It’s a remarkable achievement. 8
Keynote address
Sponsored by:
There were 9 award winners, each presented with their prizes by various representatives from the sponsors, all of whom paid tribute to the industry. A further ‘Lifetime Achievement Award’ was given to Gordon Davies to recognise his tireless contributions to the gas industry.
See the Gas Industry Awards 2015 videos online --- https://www.youtube.com/channel/UCvXGcebp3rawxgmN-xWwOQQ
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THE GAS INDUSTRY AWARDS 2015
OUTPUT
SUMMER 2015
Lifetime Achievement Award Gordon Davies
We are extremely grateful for the support of our event sponsors National Grid, Providor and ULC Pipeline Robotics as well as each individual award sponsor.
Co n
Gordon Davies began his career as an Articled Pupil Gas Engineer with the Wales Gas Board. After a successful career in the gas industry spanning 35 years, Gordon retired from British Gas in 1995. Since then he has undertaken assignments in the gas, oil and electricity industries in both the UK and overseas. He is internationally recognised for his managerial and technical expertise, which have been applied in Australia, USA, Far East, Middle East and throughout Europe. He currently holds the position of Honorary Secretary of IGEM and is the Chairman of the Membership Committee.
Gas Industry Innovation Award Northern Gas Networks
s n o i t a l u t a gr
Northern Gas Networks has cleverly combined a new innovation with existing technology used outside the gas industry to revolutionise the way in which gas leaks are detected.
Customer Service Award Wales & West Utilities
Wales & West Utilities (WWU) have won this award for their world class customer service model designed in collaboration with the Institute of Customer Service.
Young Persons’ Achievement Award Carly Gilchrist, Fulcrum
Five years after joining Fulcrum as a graduate, Carly joined the executive board. At just 28, she is proof of the career potential the gas industry offers talented people with commitment, drive and ambition.
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Manager of the Year Award Dave Bendle, British Gas
Dave Bendle is a praiseworthy recipient of this award to recognise his service to the gas industry.
Company of the Year Award Steve Vick International
Steve Vick International (SVI) recently moved to new premises but, even though the business continues to grow, the company remains proud to uphold its fundamental family ethos.
Energy Efficiency Award Phoenix Natural Gas Ltd
Phoenix Natural Gas developed Energy Aware Week to increase awareness of energy efficiency and provide homeowners with practical help and advice.
Engineer of the Year Alan Midwinter, SGN Ltd
With his technical expertise, commercial reasoning, troubleshooting abilities and his passion, Alan has been the driving force behind SGN’s Biogas plant building programme.
Gas Industry Safety Award British Gas Safety Team
Over the last decade, British Gas has expanded operations from what was once a traditional gas company to one that today encompasses a diverse product catalogue.
Gas Industry Leadership Award Alfred Chan Wing Kin, The Hong Kong And China Gas Company
Alfred has led a behavioural change shift within Towngas, taking the company from a Public Utility to a world class energy group.
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WHAT NOW FOR ENERGY POLICY?
OUTPUT
SUMMER 2015
What now for Energy Policy? Isaac Occhipinti, Head of External Affairs, EUA After months of campaigns, debates and polls, 8th May brought a new majority Conservative Government. So what does this mean for energy? Most of the political parties in the lead up to the election discussed three main aims for energy policy: decarbonisation, security of supply and affordability. The Conservative manifesto commits to “affordable, reliable energy”, by outlining five key areas of action. These actions promise “low as possible” energy bills and promoting competition in the market, reliable energy supplies for homes and businesses, helping home insulation, halting the spread of onshore wind farms, and to meet climate change commitments.
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The Tory manifesto does not propose major changes and DECC’s immediate priorities appear reasonably clear. Government promises to continue with a diverse approach to decarbonisation, including new nuclear, shale gas, offshore wind and tidal power. It cites the trebling of renewable energy capacity as an achievement of the coalition Government in the last 5 years, promises to commit £1 billion to carbon capture and storage, to continue to support the UK Climate Change Act and to push for a strong
global climate deal in Paris later this year. Many support the lack of detailed policy as a positive indication that it will provide the industry with stability.
Prior to the election, the leaders of the three main parties signed a joint agreement reiterating their commitment to tackle climate change. There will also be focus on the Government’s future efforts to negotiate a more ambitious EU greenhouse gas emission target for 2030, whilst continuing support on the current Climate Change Act put in place in 2008.
Ed Davey, who served as the pre-election Secretary of State for Energy and Climate Change, lost his seat as a Member of Parliament, creating a vacancy for the post of leader of the Department of Energy and Climate Change (DECC). On 11th May, David Cameron appointed Amber Rudd, a former investment banker and businesswoman, and Member of Parliament for Hastings and Rye, as the new Secretary of State for Energy and Climate Change.
Amber Rudd was climate change minister for almost a year before the election and is considered to have a strong grasp of the issues and opinions on how to tackle them. Her objective is to adhere to the UK's
overarching carbon targets, while focusing on minimizing costs. From her post-Queen’s speech blog it seems likely she will push hard for a deal to cut emissions at the December United Nations summit in Paris. She commented “The summit in Paris in December is the best opportunity for years to get comprehensive, rules based agreement that keeps the objective of limiting global warming to 2 degrees in reach. The three biggest carbon emitters, the EU, US and China are all determined to get a deal done.
A global deal is the only way we can deliver the scale of action required – and it is strongly in the UK’s interest. A global deal provides the only credible means to leverage more from others and would further drive down the costs of climate action. So agreeing a global deal is a massive opportunity for us to avoid climate change and also to open up new opportunities for our low carbon industries”.
However, even as carbon emissions are reduced over the coming decades, oil and gas will be needed as part of the energy mix. That includes maximising home grown energy sources rather than relying on
imports – which can benefit the jobs market too (the industry in the UK already supports around 375,000 jobs). A new independent regulator for the North Sea oil and gas industry has been created – The Oil and Gas Authority (OGA). This new approach to industry collaboration (which implements last year’s independent Wood Review) will help maintain secure supplies, prolonging the life of this mature oil and gas producing basin, to sustain its contribution to the economy bringing revenue and contributing to growth and employment. Amber Rudd has reiterated support for shale gas development and the Infrastructure Act 2015 will require Government to assess how the development of shale gas fits with UK carbon targets. However, public opposition to shale gas remains high and the recent ruling by Lancashire council, denying approval of test drilling by Cuadrilla in the Northwest, are negative signals for the industry and may potentially affect long term investment. The Conservatives' manifesto backed a significant expansion in new nuclear and Government is implementing measures to reduce regulatory and planning risks for investors. However, a number of challenges exist with the further postponement of the
plans for nuclear development starting at Hinkley Point. Two new reactors capable of supplying 7 per cent of total UK electricity demand are planned. But despite the prospect of a respectable price — index linked for 35 years regardless of what happens to global energy prices – and £10 billion of financial guarantees, funding for the investment required is not in place. Somewhat controversially, Government has announced an end to subsidies for onshore wind power from 2016. Additionally, existing consenting powers in relation to onshore wind will transfer to local planning authorities, and giving communities a direct say on these planning decisions. This has been met with significant concern from the wind industry, as well as the Scottish National Party, and the debate within Government will be an interesting one. The SNP have clearly embraced the green agenda and look sure to force the issue in Parliament. The delivery of the smart meter roll-out will, undoubtedly, be a major feature of energy policy over the next few years, with its potential to revolutionise retail markets, produce new collaborations between different industry partners and change the way in which people engage in their energy
usage. However, risks do exist around the time scales in the programme and the retail market for both gas and electricity has lost consumer trust. The industry needs a concise timetable to offer certainty and predictability.
There is the ongoing challenge of making the UK building stock – residential and commercial, existing and new – more energy-efficient. The Green Deal introduced some important innovations but got very little take up. There are few signs that the Government will be willing to subsidise much energy efficiency installation. And there is little evidence from anywhere that, without such subsidies, household energy efficiency, at least, can be improved on the scale necessary to reduce emissions sufficiently to meet the later carbon budgets, or to significantly decrease fuel bills. All the issues highlighted could be exacerbated by cuts to DECC’s budget which will be fully outlined in the upcoming spending review. DECC have already revealed that the Green Deal Home Improvement will not be continued and £40 million will be saved from energy saving subsidies.
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THE GB GAS INDUSTRY
Looking to the future: the GB gas industry
Dermot Nolan, Chief Executive, Ofgem
When people talk about the challenges facing Britain’s energy infrastructure electricity is often at the forefront of their minds. Replacing older power stations, connecting more renewables and developing smarter grids are the issues that grab the headlines. But what about the challenge facing the GB gas industry? The role of gas in the supply mix has changed in the last 10 years as North Sea supplies have declined. The sector has responded by building new import infrastructure. A second gas interconnector, a pipeline to Norwegian gas fields and three LNG import terminals now all play a key role in delivering gas to GB, as do our expanded gas storage facilities. The role that gas will play in the supply mix going forward will also change. Household gas use has been declining. However, gas is now used to generate more of our electricity after several years in which coal was the baseload fuel source. Gas generation is widely seen as a potential solution to provide back up for intermittent renewables. All this points to both gas fired generators and gas infrastructure owners needing to operate their assets with greater flexibility.
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Our price controls for gas networks help the companies adapt to meet future needs of customers so that this flexibility can be achieved. Gas transmission and distribution networks were among the first companies to
have their price controls set using the new formula we introduced for setting price controls: RIIO (revenue = incentives + innovation + outputs). These controls run from April 2013 until 31 March 2021, during which the companies are investing more than £2 billion per year in the maintenance and operation of the gas network. The RIIO formula sets strong financial incentives for the companies to deliver outputs that their customers want to see, at a fair price. Before the price controls were set, the companies had to demonstrate to us that they had talked to customers extensively to find out what they expected from the networks. Early signs show that the companies have worked harder on this. Customer satisfaction continues to improve year-onyear and all the companies are beating complaints targets. Northern Gas Networks, Scotia Gas Networks and Wales & West Utilities, which run the gas distribution networks that National Grid sold in 2005, have also each won independent customer service awards. As a regulator this is what I want to see, because it allows us to raise the bar for customer service. Maintaining high standards of safety and reliability is another area which the gas
distribution networks are focussing on. Over 3,500km of gas mains are being replaced each year under the iron mains risk reduction programme. That is the same length of the UK motorway network being replaced every year. Gas network companies also answer more than 3 million emergency calls every year, with 97 per cent of call outs attended within an hour. However there are areas where more progress is needed. Around 1.3 million homes are close to mains gas pipes but they do not have a connection and 2 million homes are completely off the gas grid. We want to get more fuel poor homes connected to the gas networks as it will give them more choice on energy tariffs. It could also reduce their bills. Around 14,700 fuel poor homes were connected in 2013/14, out of a total of 77,000 fuel poor homes that the companies planned to connect between 2013 and 2021. We want gas networks to step up connections and have challenged them to come back to us with more ambitious proposals. We expect a new fuel poor connections regime to be in place from 1st April 2016. So it’s clear that the gas industry, like the electricity sector, has its own challenges. And we are ensuring gas networks are equipped to do their job, through our price controls. Their task is to keep delivering for customers, and where we think they can do better we will keep asking for more.
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EUA Update
SUMMER 2015
New President for EUA
EUA welcomed a new President at its AGM in May. Ian Hughes of Kingspan is Head of Product Management at Kingspan Environmental. He has worked at Kingspan for over 9 years, formerly in the roles of Technical Manager for Kingspan Hot Water Systems and Quality Manager for Kingspan renewables. Prior to joining Kingspan he worked as a Process Engineer at Sony.
New Editor for OUTPUT Magazine
EUA Membership & Communications Manager, Caroline Taylor, takes maternity leave from 26th June. The new Editor for OUTPUT magazine and the weekly member news services will be Hollie Franklin, who joins from fsg (Future Science Group), a scientific and medical publishing group. Hollie’s publication production background and technical writing experience will see her manage and develop the magazine over the next few issues. Hollie can be contacted at hollie@eua.org.uk 01926 513762
ICOM Energy Glyn Thomas Retires Association HHIC Technical Manager, Glyn Thomas, retired in May with over 12 years’ service to Annual the organisation. Glyn provided solid technical support to the HHIC team, Lunch manning the HHIC website technical The 2015 ICOM Energy Association Annual Lunch was held at the RAF Club in London recently. The event was very well supported and feedback confirms that it was a great success. The event saw the culmination of the Association’s second Apprentice of the Year awards programme, with this year’s award going to Tom Case of Powrmatic. Members and guests were also treated to a fascinating presentation by renowned polar explorer Alan Chambers MBE, who enthralled his audience with recollections of one of his most gruelling expeditions. Current Chair Andy Parker noted the major role that ICOM plays in negotiations with Government bodies, attributing this to the strength and breadth of the Association’s membership. He welcomed membership growth in 2015 broadening ICOM’s range of interests and expertise. Andy is continuing as Chair for the 2015/16 year. Official presentations were concluded with the award of Honorary Life Membership to Phil Brompton, Managing Director of Powrmatic.
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EUA UPDATE
Roger Webb Retires
Esteemed colleague and respected industry figure Roger Webb retired from HHIC in June. During his time with the organisation he was involved in all aspects of service delivery and took particular responsibility for work on energy policy and legislation and for representing the industry with Government and other stakeholders.
As part of his work Roger participated in many influential UK policy committees and working groups. He also played an active role in the Association of European Heating Industry and represented the UK on EHI’s Executive Council, as well as being a Trustee of the Gas Safety Trust. Roger led the heating industry through the heating evolution in 2005, which saw the condensing boiler become mandatory via building regulations. This transformed the heating industry, and delivered the use of condensing boilers in 44 per cent of households (2012).
Roger, together with the HHIC team, has also represented the heating industry on a number of other key subjects. From collaborating with helpline, painstakingly answering the queries Government on a Boiler Scrappage Scheme, raised, never an easy task due to the diverse achieving inclusion of micro CHP into the UK Feed-in Tariff mechanism, to working closely nature of the enquiries. As well as writing a with the Government on the RHI, RHPP and number of technical documents Glyn did some excellent work with the Boiler Technical Green Deal policies and EU work on the Ecodesign and Energy Labelling Directives. Panel, Controls Technical Panel, Installation, Service & Training and Water Treatment In recognition of his very significant contribution Groups. His input was instrumental in key to industry, Roger received two awards this changes to regulation most notably on gas year – Outstanding contribution to Industry quality and the CO and combustion ratio Award at the H&V Awards and a recognition checks on condensing boilers. award from members of HHIC and EUA. HHIC’s enviable technical reputation is attributable to the strength of the technical Roger’s intention is to stay involved with the team and he will be greatly missed by industry to some extent. He also intends to find colleagues and industry. We wish him all the time for some gardening, walking and very best in his retirement. spending time with his grandchildren. Neil MacDonald joins the HHIC team as Technical Manager. Neil is currently employed by British Gas and will join the team from 20th July.
Stewart Clements took up the position of HHIC Director on the 1st June following Roger’s retirement. See interview with Stewart in the HHIC news section on page 4.
EUA Video Animation EUA has launched a new video animation to communicate the benefits of membership. Compiled in conjunction with Curveball Media, the 90 second modern animation will be the first in a series of video based tools to help communicate more about the association through this medium.
www.eua.org.uk
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LEADING VOICE
personal
strategy
My main aspiration for Fulcrum is for it to be the UK’s most trusted utilities services partner. This will be achieved through continued high-quality customer service and getting it right the first time, every time.
time
Leading
voice
business
people
performance
background
What are your aspirations for the organisation?
opinion
speak growth words
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viewpoint feedback
SUMMER 2015
Carly Gilchrist, winner of the IGEM/EUA Young Person’s Achievement Award
answers This issue OUTPUT Magazine caught up with Carly Gilchrist, Fulcrum’s Head of Commercial, and recent winner of the IGEM/EUA Young Person’s Achievement Award Fulcrum designs and delivers gas, electric and water connections and has managed a significant transformation within the last 12 months. Recently doubling in size, now employing in excess of 200 people, Fulcrum has achieved record half-year profits for the first time in its history, established a strong order book with a succession of contracts and agreements from customers including British Gas Business. Carly Gilchrist, Fulcrum’s Head of Commercial and youngest ever member of the company’s Executive Board, was announced as the IGEM/EUA Young Person’s Achievement Award Winner at the 2015 Gas Industry Awards. Carly has recently been pivotal to Fulcrum’s launch of a directly-managed delivery model, which enables the company to directly control projects from initial consultations through to project completion throughout England and Wales and in securing a £3.95m contract for Fulcrum to return to Speyside and deliver a 13km gas pipeline to feed four major Scottish Distilleries.
Career overview
Whilst studying for my Business and Management BA at Sheffield Hallam University, I joined Fulcrum as an intern and shortly after enrolled on its Graduate Development Programme.
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Since then I have progressed rapidly and became Commercial Manager in 2012 and then, in September 2014, Head of Commercial, at the age of 28, making me
the youngest member of Fulcrum’s Executive Board.
You have achieved a great deal in a short space of time, becoming Fulcrum’s Head of Commercial in 2014. Is there anything specifically that has helped you achieve this? Early on in my career I had the opportunity to work alongside key people in the business, which allowed me to build valuable relationships. Having this reliable, internal support network enabled me to tap into their knowledge and experience. It’s very much a case of being able to be strong enough to admit that you don’t know everything all of the time and having the strength of character to ask those around you for support. Fulcrum has also supported me with continued leadership development, most notably through our award nominated “Leading the Way” programme which has also provided me with ongoing support via a one-to-one coaching programme with one of the training company’s directors. I am also currently studying for a Masters Degree in Quantity Surveying, which Fulcrum are fully supporting me in, to further develop my contractual expertise.
What do you do differently and bring to the organisation?
I wouldn’t say that I do anything differently; I am extremely enthusiastic and do my best to inject this energy into the business by motivating those around me. I quite happily
jump out of bed on a morning, raring to go. For me my career at Fulcrum isn’t just about showing up and putting in a shift, it’s about having a truly valuable impact and making a real difference.
What have you learnt? How has this developed/shaped your interests and skills?
The most important lesson I’ve learnt so far is that businesses run on people. This is why Fulcrum places such emphasis on building strong team relationships and ensuring leaders have the skills they need to support its people while changes are being implemented.
How would you describe your leadership style?
I believe I lead by example by consistently displaying the characteristics I ask for from my team; I would never ask someone to do something that I wasn’t willing to do myself, which has, in my opinion, been vital to creating such a strong team spirit. My style has also been very much shaped by the leaders and mentors I had during my time on the Graduate Development Programme. They allowed me to grow into my role and take more responsibility, which was empowering and a great motivational tool.
When did you start your current post and what are your main roles and challenges?
I took up my post as Head of Commercial in September 2014; this involves handling contractors and managing our vast supply chain, among other things. In early 2015 we made one of Fulcrum’s most significant transitions, to a direct delivery model across England and Wales and a lot of my daily work is focused on embedding the new framework.
How does the culture/ethos of the company support day to day business operations and how are you instilling this as a manager?
Fulcrum’s culture is summed up by its four values: putting the customer first, having a can do attitude, keeping your promises and always working as a team. By living these values, our people are always focused on delivering exceptional customer service. Having these values to refer back to also gives me and the team a moral compass, which supports us to continue our first-class service provision.
What are the biggest challenges facing the business now and going forward?
We are 3 months into our new directly managed delivery method and working to make sure it is always delivered as effectively as possible is the biggest challenge I currently face. Fulcrum, this year, generated a profit for the first time and going forward we must build on this by continuing to ensure we deliver best value for money.
How would you describe current market conditions?
The market is buoyant; there are lots of opportunities available, particularly with the improved outlook for the construction industry, especially in the new housing market, which is really exciting the team at Fulcrum. We have invested heavily in our Business Development team, which is the biggest it has been for many years, and who will continue to grow sales and build more customer relationships.
What is your view on the mixed and varied energy landscape of the future? What future challenges are highest on the agenda?
The energy landscape is very exciting with a variety of opportunities for Fulcrum. The main challenge is identifying which of these opportunities will best serve us and our customers moving forward.
With a new Government in place, do you have any specific asks in terms of support for businesses, energy policy, investment certainty etc? The main issue I would like resolved is that surrounding smart meters. The Government need to fast-track a decision on its future use to provide clarity and reduce uncertainty. This would allow businesses to progress with confidence.
This sector is traditionally male dominated. How do you manage this?
Personally I don’t feel that there has been anything to manage. When you step onto the career ladder you must prove yourself and build trust – this is a challenge that doesn’t discriminate.
What are your thoughts on the skills gap in engineering. How can we tackle this and in particular attract young talent (and more women) into the sector? Here at Fulcrum there are a number of women in senior positions so I can’t really say that it is an issue we face. We must all make our industry attractive to young people by highlighting the wide range of opportunities available and raising the profile of the utilities industry. I hope that my recent award win will go some way in highlighting the career potential the industry offers for young people with commitment, drive and ambition.
Are you confident of Fulcrum’s continued success in the future?
Yes. In my opinion Fulcrum is in its strongest ever position and supported by very strong team who want to succeed. We have established a great platform and are now accelerating our growth phase with a lot of exciting developments on the horizon.
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DRAGON RECYCLING SOLUTIONS
How does the Waste Electrical & Electronic Equipment Directive affect the metering industry? The Waste Electrical & Electronic Equipment Directive (WEEE) now has significant implications for the UK Metering Industry and meter manufacturers as the responsibility for proper and legal recycling and disposal now reaches back to the producer of the original product and not just the installers or removers of the equipment. The European Union have a strict set of obligations and directives to control the waste generated in the EU. This is called the Waste Framework Directive. It is the controlling document that governs the waste industry end to end (from the manufacture of products to the eventual recovery and recycling/disposal). The utility market has a responsibility to manage the products in the market in a legal and ethical manner. In this article we have endeavoured to clarify and summarise the requirements of each sector. Once the decision has been made to remove devices from the premises where they have been installed the first question is: are the devices to be refurbished and reused or are they to be disposed of and the constituent parts recycled? The decision to dispose and recycle immediately means that the WEEE Directive must be considered and applied as appropriate.
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Considerations under the WEEE Directive A gas meter that is part of a domestic installation and purely mechanical in operation is not covered by the Directive. Also, a gas meter containing electronic parts or sections (displays etc) but still part of a domestic installation would still be out of scope. The same rules would also apply to electricity meters and in both cases this is because they can be considered to be business to consumer devices. However, the situation with the new smart meters for both gas and electricity that all contain electronics in the form of displays and communications technology etc is different. They will be considered to be business to business devices and therefore included under the Directive as in scope. Also, any associated equipment such as In Home Displays (IHDs), Comms Hubs etc which are supplied as part of the original install by the energy supplier are also considered in scope. They must therefore be handled according to the WEEE Directive. Source: Dragon Recycling Solutions Ltd/Natural Resource Wales (Environment Agency)
Meter and associated fittings manufacturers responsibility Under the European Directive WEEE, manufacturers have a responsibility to assist the funding of the recovery and recycling process for their products. They must be able to prove that their contribution is in proportion to the amount of waste disposed of or recycled. This will be by way of membership of a WEEE Producer Compliance Scheme. The scheme will purchase evidence documentation from an Approved Authorised Treatment Facility (AATF), manage the documentation and sell the compliance documents to the manufacturer.
Meter Asset Managers responsibility Each meter that is removed from a household/business should go through a triage process to determine whether it is to be re-used or recycled. Re-use is always
NEW MEMBERS
...making excellence a habitTM
Magic Thermodynamic Box has joined HHIC the preferred option but with smart metering looming this is becoming less likely, if the meter is to be recycled it must be handled in accordance with the Best Available Treatment, Recovery and Recycling Technologies guidelines (BATRRT), hazardous component (mercury and lithium batteries) bearing meters must be handled in accordance with the Hazardous Waste Directive. It should be noted that if a smart device is to be re-used there are other considerations outside of the WEEE Directive that cover the handling and processing of consumer data etc and resetting of security certificates etc to enable re-use within the overall smart metering system.
Ofgem Approved Meter Installers responsibility Currently there are no requirements, as until the meters and associated fittings have been through the triage process they do not enter the waste stream.
Recycler’s responsibility In order to undertake the triage, recovery and recycling of any materials, the recycler/waste management company must be covered by the relevant permit. To process WEEE and issue evidence certificates the recycler must be covered by an AATF permit. To process and recover hazardous materials, such as liquid mercury and lithium batteries, the recycler must hold the relevant permit as defined by the Environment Agency/Natural Resources Wales. Choosing the correct partner to handle obligated requirements is key to avoiding the pitfalls.
About the authors... Dragon Recycling Solutions Ltd provides bespoke solutions to waste problems. Having a well-qualified team with a wealth of experience, DRS are happy to work with the industry in an advisory capacity to ensure legal and ethical obligations are met. Dragon Recycling Solutions Ltd has built an enviable reputation in the utilities sector by offering a full range of services which encompass the requirements of WEEE. For more information see www.dragonrs.com/
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SUMMER 2015
The following link is a useful guide to your responsibility under the WEEE Directive. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/292632/bis-14-604-weee-regulations-2013-government-guidance-notes.pdf
Established to manufacture high quality Eco friendly products, since opening in 2012, products are now available in 15 countries across Europe, Australia, South Africa and New Zealand – all manufactured in the UK. Magic Thermodynamic Box Company has been voted as finalists and won several industry awards, including the National Business Awards and the Heat and Ventilation Awards and been compared to the likes of Google and British Gas. The Essex based company manufacture innovative energy saving products such as The Little Magic Thermodynamic Box (Thermodynamics) which consists of a single aluminium panel that works day and night to generate up to 80 per cent of the users domestic hot water. This product has been extremely successful due to its unique nature and efficiency. The company also manufactures a Central Heating Management System which comprises a whole package of central heating components such as the Magic Heating Box, along with Globus plumbing and heating components. The intelligent system transforms the way that the system is heated, making it more efficient, giving savings of up to 30 per cent on central heating energy usage. The Central Heating Management System also helps reduce common problems such as cold spots, poor flow rate and helps reduce the temperature differential between the top and bottom of a radiator giving the customer a radiant heat. This is the company’s best-selling product, having received excellent reviews from customers and a UKAS accredited test centre. The company is no stranger to media attention having appeared on BBC Essex and featured in various local and national newspapers including The Telegraph, The Times and The Guardian. Products have been used on Channel 4’s Grand Designs and the team are regular contributors to Renewable Energy Installer magazine and are plumbing and heating experts for the Times column 'Ask the experts'.
www.magicthermodynamicbox.com
BSI is the business standards company that equips businesses with the necessary solutions to turn standards of best practice into habits of excellence BSI helps its clients drive performance, manage risk and grow sustainably. Formed in 1901, BSI was the world’s first National Standards Body and over a century later is globally recognized as a champion of best practice. BSI is responsible for originating many of the world’s most commonly used management systems standards and publishes over 2,700 standards annually. These standards address the most pressing issues of today from clear billing to energy management and disability access to nano-technology; spanning domains including Aerospace, Automotive, Built Environment, Food, Healthcare and IT. BSI’s standards are underpinned by a collaborative and rigorous approach honed over decades; working with industry experts, Government bodies, trade associations, businesses of all sizes and consumers to develop the standards for excellence. BSI works with 80,000 clients in 172 countries worldwide to help them adopt and cultivate the habits of best practice. Clients are trained and provided with practical guidance for implementation alongside a suite of compliance tools. Moreover, to ensure they receive the very
best service, BSI is also independently assessed and accredited globally by ANAB (ANSI-ASQ National Accreditation Board) and by over 26 other accreditation bodies throughout the world including UKAS (United Kingdom Accreditation Service). BSI is also renowned for its marks of excellence including the consumer recognized BSI Kitemark™, which today ranks amongst the UK’s most trusted brands. Our comprehensive range of gas testing services includes BSI Kitemark certification and testing to support CE marking. We have an international reputation for technical expertise, quality services, and an in depth knowledge of gas spanning over 30 years. Our dedicated centre of excellence in Loughborough, is where our test engineers are based and where testing is carried out. We work with key industry bodies such as IGEM (Institution of Gas Engineers and Managers) to promote awareness of gas safety, uphold safety standards and protect people from dangers such as carbon monoxide poisoning. It’s never been more important to make sure gas products are safe and compliant. There are increasingly stringent regulations requiring products to be more energy efficient, a need to make products as safe as possible, and an ever changing regulatory landscape. If you are looking for independent third party certification we can work with you to help make your products safe, reliable and compliant. 19
www.bsigroup.com
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NEW MEMBERS
Danfoss is a leading manufacturer of world-class heating controls, covering domestic commercial and heat network applications, with factories throughout Europe, including the UK and Denmark Founded in Nordborg, Denmark in 1933, Danfoss has grown from a solo enterprise specialising in expansion valves for refrigeration systems to a global organisation with over 50 product lines and 24,000 employees worldwide.
Pioneering developments
Danfoss’ success has been built on innovative engineering and early entry into emerging markets. The company has a reputation for pioneering developments that make a difference to people and businesses worldwide. These include the invention of one of the world’s first radiator thermostats over 70 years ago. Today, Danfoss continues to invest heavily in innovation (this investment stood at 3.9 per cent of net sales in 2014) in order to maintain the company’s position at the forefront of engineering solutions that exceed expectations. In addition, the
company is committed to involving customers and manufacturing partners in its product development programmes.
Wealth of expertise
Well known for its comprehensive domestic control offering which includes, timers, zone valves, room thermostats, cylinder thermostats and TRVs, Danfoss also offers an extensive range of balancing and control valves, flow and temperature controllers, plate heat exchangers and a range of energy meters and calculators. Although Danfoss Heat Interface Units (HIUs) are distributed by SAV in the UK, Danfoss Limited offers all components used in HIUs and standard domestic heating systems, as well as solutions for commercial heating, cooling, central boiler and heat network applications.
LSC Group Ltd has joined the Utility Networks Division LSC Group offer a unique blend of asset management professionals and technologists and have been enabling clients to realise value from their asset information and enhancing asset information strategies for over 25 years. They combine data and information savvy analysts, deep subject matter expertise across asset management disciplines and a commitment to innovative technologies, working with clients to derive best value and competitive advantage from their asset information.
For more information about Danfoss in the UK, including product catalogues, service and support, and the latest news articles, go to:
www.heating.danfoss.co.uk Areas of specialisation include:
www.lsc.co.uk
20
10 September
Utility Metering, Heart of England Conference Centre, Fillongley
15 October
Utility Asset Management, PwC, Birmingham
29 October
ICOM Winter Conference, Science Museum,
4 November
Gas 2015, Williams F1 Conference Centre, Grove, Oxfordshire
25 November
HHIC Conference & Parliamentary Reception, One Birdcage Walk and House of Lords,
16 March 2016
Utility Street Works, Cavendish Conference Centre, London
13 April 2016
Regulation, Hogan Lovells, London
MEMBERS LIST ACV UK Ltd Advance Appliances Altecnic Ltd Ariston Thermo Group Bosch Thermotechnology Ltd Cotherm Ltd Danfoss Ltd Dimplex UK Limited
Gledhill Building Products Ltd Heatrae Sadia Heatrod Elements Limited Honeywell, ACS Control Products Joule UK Ltd Kingspan Hot Water Storage Mannley Cylinders Ltd McDonald Engineers
Newark Copper Cylinders Co Ltd OSO Hotwater (UK) Ltd Reliance Water Controls Ltd RM Cylinders Telford Copper Cylinders Ltd Vaillant Group UK Ltd Viessmann Ltd World Heat Ltd
A O Smith Water Products Company BV ACV UK Ltd Adey Professional Heating Solutions Alpha Heating Innovation AmbiRad Ltd Babcock Wanson UK Ltd Baxi Commercial
Bosch Thermotechnology UK Ltd Calor Gas Ltd Cochran Ltd Combat HVAC Ltd Ecoflam UK ELCO UK (MHS Boilers Ltd) Energy Technology & Control Ltd EOGB Energy Products Ltd Ferroli Ltd Fernox Gas Fired Products (UK) Ltd G P Burners (CIB) Ltd
Hamworthy Heating Ltd Hoval Ltd Ideal Boilers Ltd Johnson & Starley Ltd Lochinvar Ltd Mikrofill Systems Ltd Nu-way (Enertech Ltd) Powrmatic Limited Remeha Commercial Reznor (UK) Ltd Riello Ltd Rinnai UK Ltd
Sabien Technology Ltd Schwank Ltd Sentinel Performance Solutions Ltd Spirotech UK 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 Be Modern Group BEAMA Heating Controls BEAMA Water Treatment BFM Europe Limited Biasi UK Ltd Bosch Thermotechnology Ltd Bowbros Ltd British Gas BSI Assurance UK Ltd Burley Appliances Ltd
Calor Gas Ltd Carillion Energy Services Ceramic Fuel Cells Ltd Charlton & Jenrick Ltd Crosslee plc Crystal Fires Limited Daikin Airconditioning UK Ltd Danfoss Ltd Delta Energy & Environment Ltd Dimplex UK Limited Domestic & General Group plc Ecuity Consulting LLP EDF Energy Encore Energy Enertek International Ltd Fabdec Ltd Fernox Ferroli Limited Flowgroup plc Fondital Helpline UK Gas Contract Services Ltd Giona UK Grafton Merchanting GB Graham Group Ltd Grant Engineering (UK) Ltd
Ground Source Heat Pump Association 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 KD Navien Ltd Kiwa GASTEC at CRE Ltd Lettergold Water Treatment Solutions LLP Logic Certification Magic Thermodynamic box Monarch Water Morgan Lambert Ltd NAPIT NIBE Energy Systems Limited Nirvana Energy Systems Inc Nu-Flame OFTEC
Pektron plc Pump House Pumps Rangemaster Ravenheat Rinnai UK Ltd Sentinel Performance Solutions Ltd Sime Ltd Solar Trade Association Spirotech UK Ltd Sunamp Ltd Sustainable Power Ltd Teddington Appliance Controls Ltd The Electric Heating Company Ltd Thermoserv Ltd Travis Perkins Group UK Heating Distribution Ltd UKLPG Vaillant Group Ltd Valor Viessmann Ltd Vokera Limited Widney Leisure Ltd Wolseley UK Ltd
Ideal Stelrad Ltd Kudox Ltd
Myson Radiators Quinn Radiators
Zehnder Group UK Ltd
DI UK Ltd DNV GL Dragon Recycling Solutions Ltd E.on Gas Storage UK Ltd EDF Energy (Gas Storage Hole House) Ltd EDF Energy Customer Field Services EDMI Europe Ltd ElectraLink Ltd Elexon Elgin Elster Energy Assets Ltd Engage Consulting Enzen Fastflow Group Ltd Ferranti Computer Systems NV Fiorentini UK Limited Fulcrum Fusion Group Ltd Future Energy Group G4S Utility & Outsourcing Services (UK) Ltd Gas Measurement Instruments Ltd.
Gateway Storage Company Ltd Generis Technology Ltd George Fischer Sales Limited George Wilson Industries Limited GPS PE Pipe Systems GTC Halite Energy Group Harlaxton Engineering Services Ltd HP Humbly Grove Energy Ltd INEOS Enterprises Ltd Islandmagee Storage Ltd Itron Metering Solutions UK Ltd J Murphy & Sons Limited King Street Energy Landis+Gyr Lightsout Computer Services Ltd Lomax Training Services Lowri Beck Services Ltd LSC Group Ltd Meter Provida Ltd Metertech Ltd Mike Stratton & Associates Ltd Morland Utilities Ltd Morrison Utility Services
National Grid plc 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 Silver Spring Networks UK & Ireland Skanska UK (Utilities) SSE Hornsea Ltd Statoil (UK) Ltd Storengy UK Ltd Tuffentech Services Ltd Utility Innovations Solutions Ltd Wales & West Utilities Ltd WRc plc
ICOM
Asset Information Standards (Led development of ISO8000 – Data Quality), Data Visualisation and Analytics, Data Management and Assurance, Data Science, Advanced Collaboration, Mobile Worker Apps, Decision Support Tools, Business Intelligence and Data Scorecards, Knowledge Management Solutions, Lifecycle Engineering, Supply Chain Management, Enterprise Risk Management (ISO31000)
Events 2015/16
SUMMER 2015
Energy Association
AVK UK Limited Amec Foster Wheeler Amey Balfour Beatty Burdens Utilities Bureau Veritas Buss Metering Services Ltd ByBox Calvin Capital Ltd Capita Carillion Utility Services Centrica Storage Ltd Cerro EMS CEVA Logistics Limited Clancy Docwra Limited CNG Services Ltd Co-operative Energy Crane Building Services & Utilities Develop Training Ltd
15
Utility Asset Management 2015
15th October 2015 l PWC, Birmingham
EUA Member ÂŁ275 + VAT l Non Member ÂŁ350 + VAT
Book online at eua.org.uk/utility-asset-management-2015 or contact Vanessa Webster vanessa@eua.org.uk 01926 513763 Sponsored by: