Utility Business Spring 2012

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UTILITY BUSINESS SPRING 2012

THE QUARTERLY PUBLICATION FROM SBGI UTILITY NETWORKS

THE SKILLS ISSUE MANAGING TALENT IN UTILITIES

In this issue: A New Concept in Education Developing the Future Utilities Workforce Leading Voice Utility Business talks to Professor Alison Halstead

SBGI Utility Business Spring 2012

www.camdenhouse.org.uk SBGI | Camden House | Warwick Road | Kenilworth CV8 1TH |Tel: 01926 513725 | Email: camdenhouse@sbgi.org.uk 2

SBGI Utility Networks Director: David Jones davidjones@sbgi.org.uk

01926 513760

Administrator: Ana Ray ana@sbgi.org.uk

01926 513761

Marketing & Communications Manager: Caroline Taylor caroline@sbgi.org.uk 01926 513762 Services Manager: Vanessa Webster vanessa@sbgi.org.uk Services Manager: Gary Cottrell gary@sbgi.org.uk

01926 513763

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THE QUARTERLY PUBLICATION FROM SBGI UTILITY NETWORKS

Welcome

WELCOME FROM YOUR EDITOR // CONTENTS

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UTILITY BUSINESS from your editor Welcome to Utility Business. We have a packed Spring issue and the main feature, ‘Managing Talent in Utilities’, looks at efforts and initiatives being undertaken in education through to the Utilities themselves, to tackle the skills shortage in critical parts of the energy and utilities sector. Tim Balcon, EU Skills, provides an interesting foreword to the feature.

Professor Alison Halstead, Pro-Vice Chancellor for Learning, Teaching & Innovation at Aston University, is leading development of the ‘Aston University Engineering Academy’ - a new concept in education for 1419yr olds. It is one of the UK’s first University Technical Colleges and Utility Business talked to Professor Halstead about the academy and other issues surrounding skills and education – see page 19.

We have a new columnist for 2012. Energy specialist, Dr Gill Owen of the UCL Energy Institute will provide comment and insight in a regular column and we look forward to her contribution throughout the year.

01926 513764

=================================== Chairmen Utility Networks Board: Steve Murray (National Grid Distribution) Dist/Trans Equipment Group: Richard Stone (AVK UK Ltd) Network Engineering Group: Ian Foster (Fulcrum) Metering Services Group: Vic Tuffen (Tuffentech Ltd) Metering Technology Group: Jeff Cooper (Elster Metering) Gas Storage Operators Group: Roddy Monroe (Centrica Storage) Data & Communications Management Group: Mike Buss (Sensus Conservation Solutions) =================================== Editor/Enquiries Caroline Taylor caroline@sbgi.org.uk 01926 513762 ISSN Number 1359-9836 SBGI Utility Networks Camden House, Warwick Road, Kenilworth, Warwickshire CV8 1TH Tel: 01926 513765 Fax: 01926 857474 Visit the blog at www.utility-business.org

Skills issues are right at the top of the agenda in our industry and we hope you enjoy the subject matter covered in this issue. We must extend thanks to all contributors for the excellent content provided.

If you have any news to share regarding developments in your own company for the next issue, please do drop me a line.

Caroline Taylor, Editor caroline@sbgi.org.uk

In this issue…

Feature Managing Talent in Utilities

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- Foreword Tim Balcon, EU Skills

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- Engineering our Future

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- A New Concept in Education – Aston University Engineering Academy

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- Wales & West Training Academy

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- Training - The Essential Element

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- Developing the Future Utilities Workforce

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Leading Voice

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Utility Business talks to Professor Alison Halstead

Viewpoint from Engineering UK

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Regulars Utility Networks News Industry News Regulatory Update New Members Member Directory

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SBGI Utility Business Spring 2012

Utility Networks News Changes to the Secretariat Team On 5 March, David Jones took over the role of Utility Networks Director from Martin Atkinson. David has a long association with SBGI, as President during 2010/11, and in the wider gas and utilities sector, so he will be a familiar face to many members.

David has a longstanding gas industry career starting out as a gas fitting apprentice with British Gas and working for the company in a variety of areas until 2002. In 2003 he was offered a position with Enterprise plc and in 2005 became Operations Director Gas and Power Division. During his time with Enterprise, the business saw significant growth and completed a successful management buyout.

David is committed to the development of the industry and is a Trustee and Council Member of IGEM and current Chair of the Midlands Section. He also sits on various groups and is a past Chairman of the Pipeline Industries Guild.

Smart Metering Update Spring 2012 The Smart Metering Implementation programme has reached a major milestone with the final discussions on the Smart Metering Equipment Specification version1 (SMETS v1) concluded. DECC will be carrying out the final editing and proof reading as Utility Business goes to press with (Gas DDS, Elec DDS and IHD DDS) submission to Europe by the end of March.

Once over this hurdle the specification for Foundation Meters should be in production later this year.

Technical support for the work group drafting the SMETS has been provided by several SBGI members and their colleagues from BEAMA, with the suppliers and other stakeholders in attendance to ensure the specification meets all requirements.

We now have a short breathing space before work begins in earnest on the SMETS v2 set of documents which will be the first of the enduring phase meter specifications (other versions may be developed as the programme progresses etc). The SMETS v2 planning meeting is scheduled for 18th April.

The remainder of the programme is still in full swing with regular meetings for several work groups. SBGI has representation at all of the below groups.

On taking up the post he said, “I am delighted to be joining SBGI in a period of change, a new Chief Executive has arrived with a clear focus on moving the organisation forward, a rebranding exercise is underway, and my immediate challenge is to ensure that members not only benefit from this in the longer term, but that existing issues are still managed.

In the mid to longer term, it is my drive to enhance the services and value we currently offer our members, to ensure that they have the opportunity to put their individual point of views to me, it is from these individual views that collectively, we can form our strategy moving forward.

I would like to say to all our members please give me call, drop me an email, let’s get together in order that I can represent you, as an old TV advert used to say “it’s good to talk”.

David’s email address is davidjones@sbgi.org.uk or tel: 01926 513760 mobile: 07970 851245

SBGI is also holding one to one meetings with key programme managers to ensure that members views influence the output from all these work groups. Should you require any further detail on the Smart Metering Programme or feel you are able to contribute to SBGI’s representation within the programme, please contact Gary Cottrell gary@sbgi.org.uk or 01926 513764.

> David Jones

USIT Awards 2012 SBGI in conjunction with USIT (Utilities and Service Industries Training Limited) is offering free attendance at two SBGI events this year under the USIT CPD Awards. USIT will pay delegate fees and up to £100 expenses* for attendance at the following: n Data & Communications for Smart Metering, 30 May, Savoy Place, London n Utility Metering, 20 September, Motorcycle Museum, Birmingham Both seminars will include key influential speakers and be supported by informative and topical exhibitions showcasing the latest technologies and solutions.

To receive your FREE place, please submit a short explanation (around 100 words) about how you expect to benefit from attending the event to caroline@sbgi.org.uk. The closing date for the CPD Awards is 30 April. *Maximum five places available at each event. Places offered on a first come first served basis

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Transforming Utility Performance Now in its seventh year, this event brought together a variety of stakeholders and was beneficial not only for the subject matter covered, but also the topical exhibition and networking it provided.

Concerns over sustainability, changing business models and new technologies are transforming the utility sector and forcing constant change on all participants in the industry. Eighty senior representatives from the industry gained valuable insight into how other companies are managing strategic transformation and change, at SBGI’s annual Transforming Utility Performance seminar in November 2011. SBGI Chief Executive Mike Foster welcomed delegates to the event which provided opportunity to learn and debate not only the issues which have influenced the direction particular companies have taken, but also how they plan to meet the challenges facing them in the future.

An interesting and thought provoking morning session started with two dramatically different examples. External regulatory changes forced significant transformation on ESB Electric Ireland, requiring a new structure, new brand and new products, explained General Manager, Liam Molloy.

This created an exciting new energy proposition for Ireland though meant significant challenges for the organisation.

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UTILITY NETWORKS NEWS // TRANSFORMING UTILTY PERFORMANCE

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Mike Hogg, Shell Gas Direct, shared honest experiences of a new IT platform implementation. This internal change had significant external impact when the transformation failed. (On a separate note it was also learned that Shell Gas Direct had been acquired by Dong Energy. The sale should complete in the first half of 2012).

UK Power Networks began operations in October 2010, following the sale of EDF Energy Networks to Cheung Kong Infrastructure Holdings. Talking about his first twelve months in post, CEO Basil Scarsella, outlined the significant changes the business was undergoing to its management structure, culture and strategy. The company has a strong vision - to be an employer of choice, a respected corporate citizen and a sustainable, cost efficient operation – which is driving its business values and objectives. Basil emphasised the need for a clear, consistent message to engage people and stakeholders in order to achieve the vision.

In an engaging and thoroughly interesting presentation Alastair Pollock of Phoenix Natural Gas concluded the first session. He outlined how the company’s strong focus on Corporate Social Responsibility (around one third of their marketing budget is spent on CSR - an increase of over 50% since 2006) was bringing considerable short and long-term benefits to the business.

Among other highlights were addresses from Charlotte Wedd on how British Gas is building their new Smart meter delivery business, with over 330,000 already installed in homes, Nigel Stirk OC&C Strategy Consultants who had some interesting ideas on how utility service providers can add value to clients businesses, Jeff Hayward from AMEC, who considered what delivers best value for money in collaborative partnerships and Paul Sankey SEAMS who shared lessons learnt from some of his significant business planning experience in large utilities.

SBGI is grateful to the support of seminar sponsors Seams, Oakland Consulting and Balfour Beatty.

Exhibition The day provided a topical supply chain exhibition showcasing the event sponsors along with exhibitors Enzen Global, CDC Software and cTrack.

(1) Mike Turner, Chief Executive, Oakland Consulting (2) Mike Foster, SBGI (3) Liam Molloy, ESB Electric Ireland (4) Mike Hogg, Shell Gas Direct (5) Basil Scarsella, UK Power Networks (6) Alastair Pollock, Phoenix Energy Holdings (7) Ian Mitton, Global Utilities Director, Hewlett Packard (8) Charlotte Wedd, British Gas Smart Metering (9) Nigel Stirk, OC&C Strategy Consultants (10) Ian Wainwright, QC Data (11) Mark Drye, Northern Powergrid (12) Jeff Hayward, AMEC Power & Process Europe (13) Paul Sankey, SEAMS (14) Mike Halley, Toa Technologies (15) Andy Cooper, Logica Business Consulting (16) Mark Fitchett, Security, QinetiQ

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SBGI Utility Business Spring 2012

Industry News Construction Firms Still Feel Disconnected From Utility Services, Says Report Building contractors are struggling with poor performing utility companies, according to findings from the National Federation of Builders (NFB). The Utilities Survey 2011 found that almost three quarters of sites are experiencing problems and delays when seeking new connections to water, gas and electricity networks.

This latest report, compiled from a site-by-site survey of members conducted in 2011, assesses what, if any, improvements were experienced by members.

Metal Theft Concerns There are fears that water, gas and electricity supplies could be endangered as thieves continue to cash in on the soaring value of metal on the world markets – estimated to be costing the British economy £1 billion a year, with 1,000 offences taking place every week. Thieves are stealing steel, lead and copper, such as electrical cable, inspection covers, key water fittings and connectors.

Government announced recently that it will outlaw cash transactions for scrap metal and increase penalties for those caught stealing it, but harsher measures are being called for by industry.

Trade Association Merge The Association of Electricity Producers is merging with two of the energy industry’s lobby groups – The Energy Retail Association – and its public face Energy UK – and the Business Council for Sustainable Energy.

Gas Storage Update Centrica has cancelled plans to convert its Bains gas field into a subsea gas storage site. The Bains field in the eastern Irish Sea had been due to start storing natural gas at the end of this year with a capacity of 20 billion cubic feet.

E.ON Gas Storage UK has begun full commercial operations at the Holford Gas Storage facility in Cheshire, England. The first three caverns are now fully available with a current capacity of 60 million cubic metres.

When all eight caverns are commercially available, Holford will have capacity of up to 160 million cubic metres.

Cheshire Cavity Storage (a wholly owned subsidiary of EDF Energy plc) has commenced operations with its first cavity at the Hill Top Gas Storage facility in Cheshire, England. The remaining 9 cavities are due to enter service progressively over the period to 2016.

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Preparation for the Rollout of Smart Meters

Water Bills in England and Wales to Rise

The Commons Public Accounts Committee has published a report examining preparations for the roll-out of smart meters. MP’s concluded that consumers will only benefit if they understand the opportunity to reduce their energy bills and change their behaviour. So far the evidence on whether they will do so has been inconclusive. Consumer Champions Which? were quick to respond to this report, confirming their view that the smart meter roll-out should be reviewed before costs escalate.

A further report by the Centre for Sustainable Energy also concluded that the programme may not deliver a full share of its benefits to consumers, instead enabling energy suppliers and others in the energy market to gain at the expense of consumers.

Average water and sewerage bills in England and Wales will rise by 5.7% from April to about £376 per household. The average figure disguises variations between water and sewerage firms, with customers at Southern seeing an 8.2% rise and those at Dwr Cymru 3.8%. In 2009, Ofwat, announced a five-year plan of annual rises from 2010 to 2015 to help fund £22bn of investments.

Shale Oil and Gas ‘Will Make US Self-sufficient’ Growth in shale gas will make the US virtually self-sufficient in energy by 2030, according to BP’s latest Energy Outlook. The report forecasts a growth in unconventional energy sources, including US shale oil and gas, Canadian oil sands and Brazilian deepwater. By 2030, China and India will be the world’s largest and third-largest economies and energy consumers, jointly accounting for about 35% of global population, GDP and energy demand.

SBGI Golf Circle Programme 2012 Once again the Golfing Circle is pleased to announce three fantastic venues and networking events for its 2012 season: Spring Meeting Ladbrook Park GC, Warwickshire, 10th May Captain’s Challenge Day Olton GC, Solihull, 6th July (for Corporate Teams) Autumn Meeting Kirby Muxloe, 11th October Circle members and their guests are invited to join Captain Neil Williams for what promises to be an excellent programme this year.

If you would like to join the Golfing Circle, or find out more about these events please contact David Jones davidjones@sbgi.org.uk or Ana Ray ana@sbgi.org.uk

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New Secretary of State for Energy and Climate Change Following the resignation of Chris Huhne MP, Ed Davey MP became Secretary of State for Energy and Climate Change, heading up DECC and joining Charles Hendry MP, Energy Minister and Greg Barker MP Climate Change Minister.

No Fast-track for Gas Distributors in RIIO-GD1 Process Ofgem confirmed that none of the gas distribution network companies (GDNs) will go down the RIIOGD1 fast-track route. Following an initial delay to the GDNs’ business plan submissions after a change to the Health and Safety Executive policy on iron mains replacement, Ofgem decided that there were material issues with all GDNs’ plans that would be difficult to resolve in the consumer interest within the restricted RIIO-GD1 fast-track timetable (i.e. by the end of April 2012).

Electricity Market Reform Moves Ahead

Water White Paper – Next Steps

Following publication of Government’s Electricity Market Reform White Paper in July, plans took another step in December with publication of a technical update. Electricity market reform legislation should reach the statute book by the end of spring 2013, to support low-carbon projects from 2014.

Government’s Water White paper, Water for Life, was launched in December. In March it was subject to examination by the Efra Select Committee to gather evidence. Government is expected to publish a draft Water Bill shortly.

INDUSTRY NEWS // REGULATORY INDUSTRY NEWS UPDATE

Regulatory Update

Electricity –Launch of RIIO-ED1 Ofgem has launched the start of the price control review for Britain’s 255,000 miles of low voltage electricity network (RIIO-ED1). The new price controls will run from 2015 until at least 2023.

Over this period low carbon technologies including heat pumps, solar panels as well as electric vehicles and small scale renewable generation driven by incentives such as the feed-in tariff and renewable heat incentive.

The Dr Gill Owen Column

TIME FOR A BETTER DEAL FOR THE FUEL POOR Whilst millions of households struggle to pay their energy bills, government schemes intended to help them are finding it difficult to achieve their targets. This bizarre situation has been brought about through poor scheme design and delivery and budget cuts. And the situation looks likely to get much worse over the next few years unless there is a radical re-think.

The first problem is with the Government’s taxpayer funded Warm Front scheme in England, the budget for which was cut from over £300 million in 2010 to £110 million in the current year with more restrictive eligibility. The scheme was also closed to new applicants for a while in 2010-11 and this coupled with eligibility changes made it difficult and expensive to identify eligible households. As a result, it may underspend by £30 million this year. The cuts are part of a planned closure of the scheme by April 2013.

The second is the energy supplier led Carbon

Emissions Reduction Target where again changes in eligibility criteria have caused confusion and made it difficult to locate eligible households – British Gas has resorted to paying people to take up free insulation to meet its targets! The third problem area is the Community Energy Saving Programme (CESP), created in 2009 to require gas and electricity suppliers and electricity generators to deliver energy saving measures in low income areas. But the scheme was hampered from the start by being given a carbon saving rather than affordable warmth (the objective of the scheme) target. Over complex arrangements mean that projects are taking too long to win approval. The scheme was expected to benefit 90,000 households by the end of December 2012 – so far it has helped only 30,000.

The government’s new energy efficiency programme, the Green Deal, is not expected to help many fuel poor households who often under consume energy and are unlikely to meet the “pay as you save” requirements. So the main

scheme to address fuel poverty in future will be the new Energy Company Obligation which will replace CERT and CESP. Yet despite encouraging statements by the Minister, Greg Barker, the plans revealed so far by DECC suggest the scheme, with only 25% being devoted to affordable warmth and over restrictive eligibility criteria, will be inadequate to the task of meeting the Government’s legally binding commitment to eradicate fuel poverty by 2016.

There is no shortage of fuel poor households in need of better heating and insulation so what is needed is an effective, well resourced energy efficiency programme. A street-by-street approach in deprived areas could also ensure that those who are typically hard to reach do benefit.

This should be the main focus of a substantial Energy Company Obligation over the next few years. And if extra funds are needed, the Treasury will start receiving substantial revenues from the carbon price floor in 2013.

Gill Owen is a Senior Research Associate at the Energy Institute, University College London and Associate with the think tank Sustainability First. She is also Vice Chair of the Government’s Fuel Poverty Advisory Group, a Non Executive Director of Ofwat, a member of Ofgem’s Consumer Challenge Group for the network price control reviews and a member of the DECC Smart Meters Consumer Advisory Group. This article is written in her personal capacity.

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SBGI Utility Business Spring 2012

Member News Mayor Praises Exceptional Fundraising The Fusion Charity Challenge, Fusion Group’s celebration of its 40th birthday, dared 18 teams across the company to raise £40,000 for local and national charities using a seed fund of £500. Their initiative surpassed all expectations, crashing through the original target and raising over £65,000.

The Mayor of Chesterfield praised Fusion’s efforts and joined the Fusion Group’s employees and selected local charities to celebrate and pay tribute to the fundraisers and supporters.

Mayor and Mayoress, Cllr Peter Barr and Mrs Jean Barr, presented awards to the top fundraising team, the Red Hot Chilli Peppers, and top fundraiser, Marie Whitehead, and commended everyone involved. > (left to right): Mrs Jean Barr, Cllr Peter Barr, Rob Turner (Macmillan Cancer Care), Petra Bridgstock (Fusion), Joanne Edwards (Ashgate Hospice), John Yarnall (British Heart Foundation), Margot walker (St Luke’s Hospice), Tchad Western (Children’s Hospital Charity), Robin Stonebridge (Chesterfield Canal Trust)

“Chesterfield is full of so many people that volunteer and do their bit and you are a perfect example of this - it is truly exceptional what you have achieved,” the Mayor said.

Develop Training Helps Water Companies Cope with Added Responsibility From 1st October water and sewerage companies faced the task of maintaining a further 200,000 km of Britain’s lateral drains and sewers, as the responsibility of private drains was reassigned to them.

Develop Training has launched a specially tailored qualification to support this changeover to ensure engineers adjust quickly and modify their current skill set.

Private drainage is not mapped out in any significant detail so locating the drain will be the first of many tasks engineers encounter. Other major challenges are private lateral drains in poor repair needing more time and resource to maintain and they may not even be constructed of a uniform material. Private drains are also often of a significantly smaller diameter than those in the public sewer network.

Develop Training has launched a new City & Guilds accredited qualification under their Front Line Skills Framework. The ‘Advanced Certificate in Private Drains and Sewers’, is offered across their six training centres and will be split into nine units giving engineers the relevant training to cope with the extra volume of work and new skills they will need.

> Tim Walmsley, Develop Training

Morrison Utility Services Invests 1,000 Training Hours in its Workforce Morrison Utility Services, is investing over 1,000 hours in training its apprentices who are working towards a number of qualifications from Installing Electro Technical Systems to Gas Network Operations and Motor Vehicle Maintenance. In addition, each apprentice receives training via short courses for a range of workplace qualifications from first aid to working in confined spaces amounting to potentially one new qualification achieved every three months.

Mike Bialyj, Director of Employer Services, CITB-ConstructionSkills said: “Our research shows that more than a quarter (29%) of construction businesses in the UK reduced their training activity in 2011, and 1 in 5 were planning to scale back training even further this year. So it is particularly refreshing to see that Morrison Utility Services is bucking the trend and making the investment in support of recruitment and retention of young workers. Apprenticeships are the lifeblood of this industry, and training and skills make absolute business sense. This has clearly been recognised and acted upon, and the benefits to both the young recruits and to Morrison Utility Services are clear to see. We view this commitment to training as absolute best practice.”

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UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

MEMBER NEWS // MANAGING TALENT INDUSTRY IN UTILITIES NEWS

EMPLOYERS MUST WORK TOGETHER TO CLOSE THE ENERGY AND UTILITIES SKILLS GAP There is no doubt there are skills shortage in critical parts of the energy and utilities sector, created by a combination of the development and deployment of new technologies and a high proportion of the workforce approaching retirement. The sector needs to recruit and train over 30,000 staff over the next five years representing a significant increase in both recruitment and training activity. In the Power Sector alone, over 93% of the workforce needs to be replaced in the next 15 to 20 years in order for the UK to continue to compete on a global scale.

Taking into account the ageing workforce, infrastructure expansion plans and the introduction of new technologies across all industries, it is now more important than ever for employers to focus on upskilling their workforce to keep Britain running. As John Hayes MP stated in 2009, unless we fill the skills gap, our economy will falter and fail. Skills shortages are still a significant problem because a mismatch remains in skills policy between provision and need. We must align skills policies much more closely with the needs of businesses and individuals. It’s about acting now and thinking long-term.

Whilst the provision of good quality on-the-job training is a step in the right direction, this doesn’t necessarily help in the crucial task of attracting new people into the sector. We need to attract young new entrants into the energy and utilities industries now, particularly those from science and engineering disciplines, to meet future skills needs.

Through the Skills Academy, we have launched Think Power – an initiative to inspire more talented people to choose a career in the Power Sector. Think Power is about making the Power Sector more accessible and attractive.

As the Sector Skills Council for the gas, power, waste management and water industries, our prime strategic objective is to ensure that our industries have the skills they need now and in the future. We work closely with employers to ensure that training and qualifications directly reflect current and future employer requirements and develop the frameworks, mechanisms and approaches needed to meet their skills and compliance needs.

This last financial year, EU Skills has had to work through a period of change in respect of the funding landscape. As we move forward into the new financial year 2012/13, as an SSC, we will no longer be receiving any core funding from our governing body the UK Commission for Employment and Skills (UKCES). This has meant we have had to work hard to secure funding through other nationally available routes.

Sector Skills Councils (SSCs) have a central role in the future of the UK skills system, and it is crucial for employers and training providers to engage with us in preparation for the future. This means getting skills on the agenda at board level. By seeking advice from SSCs, as well as sharing their own valuable understanding, employers can begin to take advantage of new skills policies as they are implemented.

In the energy and utilities sector, we will continue to be the voice of our employers and encourage Government to direct their resources and realise equitable investment in energy and utilities. The creation of the National Skills Academy for Power (the Skills Academy) is one example of this. It plays a critical role in delivering the training and development needs of the Power Sector and ensuring the sector attracts sufficient talent to meet those recruitment targets.

EU Skills has secured a further £3.4m of funding through the Employer Investment Fund and a further lucrative grant from the Growth and Innovation Fund to develop an employer-endorsed Talent Bank. Work is well underway to develop the Talent Bank, a recruitment and training hub, developed in collaboration with employers and other stakeholders across the energy and utilities sector and will provide a range of flexible and regionally focused services to match recruitment and training needs of both large and small companies.

Training the future workforce is key to the future of our economy. Unless employers work together to encourage and support talent into areas where skills are needed, not only will we be left with a lost generation of skilled workers but the UK economy will continue to suffer.

Tim Balcon Chief Executive, Energy & Utility Skills

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SBGI Utility Business Spring 2012

UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

Engineering our Future National Grid Education

Richard Earp Education and Skills Manager, National Grid

It’s almost three years since National Grid published its report Engineering our Future which looked at attitudes toward engineering among teachers, young people and parents. The report concluded that many young people struggle to visualise themselves as professional engineers – they don’t know what they do all day – and this reduces their chances of choosing engineering as a career.

More concerning perhaps was the finding that too many teachers were in a similar position, and were unlikely to recommend engineering. This, of course, at a time when the energy utilities are seeking to expand their engineering workforces ahead of substantial investment programmes.

So, what has happened since? National Grid has significantly upped its game when it comes to engaging with schools and education. This effort has had the personal backing of the Chief Executive Steve Holliday. The company now makes time to have good quality conversations with some 3,500 school students every year. They do this through established industry-education organisations such as Imagineering, the Education Engineering Scheme and The Smallpeice Trust, and through new, home-grown initiatives. At the forefront has been a programme of Open House days, and two residential work experience courses at their Nottinghamshire training centre.

Two principal topics dominate the content of both work experience week and open house days, namely the role of engineers in the company, and then the challenges around the future of energy. Young people have usually heard of climate change and the need to change the way energy is produced and consumed, but they often do not realise the scale and complexity of the issues and how it might affect them and their lives. The conclusion of these sessions is that there is a lot of vital and exciting work needed, and most of it demands science and engineering skills.

Students visiting National Grid also get to see the scale and complexity of the equipment needed on the gas and electricity transmission networks. They see at first hand the way our systems are designed and operated. Typical

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response from students is ‘I never knew it worked like that’, or ‘I didn’t realise it was that big’, and this is great to see.

National Grid’s schools work extends also to running Imagineering clubs in primary schools – an after-school club based around engineering kits – and giving more general support to schools around careers. They have also worked with Imagineering to develop a ‘build a grid’ exercise for primary schools. This is run at an education partnership centre built by Jaguar Land Rover at their HQ in Warwickshire and has been a great success.

So what about results and impact? It’s too soon to connect specific recruitment successes with much of the schools work, but National Grid is getting plenty of feedback from students and teachers that they do feel better informed about engineering and the excellent potential career opportunities in the energy sector.

There is evidence that students’ choices of A level subjects, for example, have been influenced by these projects. The bigger picture around STEM education is improving slowly as well. More students are taking maths and physics at A level, and there is renewed interest in high-grade apprenticeships as a route into technical careers.

All this is welcome, but is it enough, and is it just a short term reaction to the bashing that banking and other sectors have received recently? National Grid is not taking anything for granted and will be continuing to invest in schools engagement work. Energy is vital for modern life, and providing it is first and foremost an engineering problem. We simply have to keep talking to young people about this and excite them about the challenges ahead.

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UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

NATIONAL GRID // WISE // TALENT BANK

Raising the Profile of Women in the Workforce WISE is the lead organisation in the UK specialising in working with girls and young women to inspire them to study and take up careers in science, technology, engineering and maths (STEM). It is led by the UKRC, and together the two organisations offer a classroom to board room range of organisational development services, with a focus on gender and diversity.

We have much to do: developing a workforce skilled in STEM is essential to boost the UK’s recovery and stimulate economic growth. Growth in STEM subjects at all levels of education is vital if we are to tackle the global challenges ahead. A key driver needs to be an increased engagement with women, who still remain under-represented in STEM professions despite continued efforts to encourage and inspire them to take up careers in the field.

WISE works at different levels, across all sectors. One of its recent projects has involved working with a cluster of energy companies - including E.ON, British Gas, Drax and National Grid - to help them build the skills and knowledge needed to make apprenticeships attractive to women. In 2008, only 8.7% of all NVQ/ SVQ awards given in engineering and manufacturing technologies were to women, and this decreased to only 1% at advanced apprenticeship level. We felt that this situation needed addressing, as did our project partners.

Over a 12 month period, WISE developed ways of supporting women apprentices, and improving the recruitment process, and helped our partners embed these in their policies and practice. The approach can also be translated to assist in the attraction, recruitment and retention of black and minority ethnic candidates who are also in a minority in engineering and energy apprenticeships. Information, including quizzes and film clips for people facing an interview or assessment centre, are available on their website: www.theukrc.org/apprenticeships WISE has a 25 year history of working with girls and young women, and teachers, parents and careers advisors and employers. They are building on that tradition: the high profile annual WISE Awards will take place in October and the new WISE Experience will be on the road in the next few months.

For more information see the website www.theukrc.org, tel 01274 436485.

Think Talent Bank – the effective way to recruit and train your workforce Investing in workforce recruitment and training is ultimately the only effective way of building a competent workforce for the future. Whilst the demand for Higher Skills and Graduate recruitment is high on the agenda for most employers, the challenges involved in attracting candidates, retaining them and providing a quality development programme can be prohibitive.

Having secured funding from the Growth and Innovation Fund, Energy & Utility Skills (EU Skills) is working to develop an employer-led Talent Bank.

Developed in collaboration with employers and other stakeholders across the energy and utilities sector, Talent Bank is a recruitment and training hub providing a range of flexible and regionally focused services to match recruitment and training needs of both large and small companies.

What Talent Bank offers Talent Bank builds on the Group Training Association (GTA) model offering a range of quality services including: • End to end recruitment and training services, to pool demand and broker collaborative arrangements between employers to share the investment in skills and reduce risk.

• Drive down the costs associated with wide scale recruitment.

• Capability to act as the direct employer of trainees, providing payroll services on the employers’ behalf, until successful competition of their training.

• Provide each trainee with a Learner Manager, responsible for

co-ordinating their learning plan and managing work placements.

• Source and manage training provision on behalf of employers; negotiating best prices and ensuring courses are contextualised and industry specific.

Next Steps To develop Talent Bank further, EU Skills is currently running a series of pilots to ensure that the services Talent Bank offers meet the training and recruitment needs of employers within the energy and utilities sector. EU Skills is keen to hear from employers, both large and small who believe they could benefit from the Talent Bank services. For further information visit www.euskills.co.uk 11

SBGI Utility Business Spring 2012

UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

A NEW CONCEPT IN EDUCATION

Companies up and down the country desperately need skilled technicians and engineers. The work of highly skilled, vocationally qualified people is vital to our economy and throughout the 21st century we will need to train more people right up to degree standard.

University Technical Colleges (UTCs) are a new concept in education, which should help to satisfy this need by providing high level practical and technical education. This movement has the support of Government but will not be driven by policies and decrees. UTC’s are free standing colleges for 14 to 19 year old students, with a working day of 8:30am 5:30pm. Technical and academic education is integrated and practical work is valued as highly as academic study. UTC’s will provide at least one technical specialism alongside the key GCSEs in english, maths and science, as well as a foreign language, humanities, finance, business, entrepreneurial and employability skills. All UTCs will be supported by a University and very often an FE college. This unique approach opens up to students a high quality pathway to success, which can lead to apprenticeships, foundation and higher degrees.

Local employers both big and small have a major role too. They help to shape the curriculum and relate it to future jobs that match the needs of the local economy. Students in turn acquire the skills and knowledge employers are looking for. The vision is for 10,000 young people to be attending the eighteen planned UTCs by 2015 combining hands-on learning with academic education. In the words of Michael Gove MP, Secretary of State for Education, UTC’s will increase our capacity to inspire and train the next generation of engineers, technicians, craftsmen and industrial innovators.

There are currently two UTC’s already operating – the JCB Academy in Staffordshire, and the Black Country UTC in Walsall – and in 2011 14 new UTCs were approved to enter the pre-opening stage. They are spread across England and specialise in technical subjects including engineering, advanced manufacturing, science and health technologies. More than 130 major national and local employers have been involved in developing these projects. Three further UTC projects are already in the pre-opening phase – Hackney and Aston UTCs are planned to open in September 2012, and Greenwich UTC is due to open in September 2013. The Government is well on its trajectory to delivering the 24 committed to in the Budget 2011.

12

Case Study: Aston University Aston University Engineering Academy First to Deliver Apprenticeships Aston University Engineering Academy (AUEA) will be the first UTC in the UK to deliver an apprenticeship scheme, alongside its A Level and technical pathways, with focus on science and engineering excellence.

E.ON is one of the many high profile businesses involved with the AUEA – helping to design and develop the apprenticeship offer.

AUEA is a state funded school for 14-19 year olds, sponsored by the University and will open in September 2012 with an intake of 120 Year 10 and 60 Year 12 students. It is located at Faraday Wharf adjacent to Birmingham Science Park Aston.

The AUEA apprenticeship scheme will act as a pilot for further apprenticeship development across all the UK’s UTC’s. The National Apprenticeship Service will be working in partnership with the Baker Dearing Educational Trust to deliver apprenticeships in UTC’s across the country. All apprentices at AUEA will be employed by one of the sponsor companies, such as E.ON. Students will benefit from high levels of support including mentoring and being part of the unique ethos of the UTC so that all feel valued and supported.

AUEA Principal Designate Lee Kilgour, said; “There are significant shortages of appropriately qualified engineers in the UK. Our apprenticeship programme will ensure young people are able to gain highly regarded, high quality technical qualifications whilst working for our sponsor companies and learning the skills they need for the workplace.”

For more information see their website www.auea.co.uk

www.utility-business.org

UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

A NEW CONCEPT IN EDUCATION // INVESTING IN THE FUTURE

INVESTING IN THE FUTURE Gas network, Wales & West Utilities (WWU), has made a £3million investment in training facilities, aimed at maintaining its industry leading position in customer service and safety. The company runs the gas distribution network across Wales and the South West of England - serving a population of seven and a half million people.

The £3m investment includes a new Training Academy based in Treforest, South Wales. WWU’s Chief Executive Graham Edwards says that the facility is another key investment by the company in the longer term future - a future where gas will continue to play a key role in the UK energy mix.

“We are very proud of our Treforest Training Academy. Maintaining our industry leading safety record requires top quality training in a safe and controlled environment – and this was the major driving force behind this considerable investment.”

In a few short years, WWU has positioned itself as one of the UK’s leading utility companies. It has been top in its sector for customer service since 2009 winning the coveted Gas Industry Customer Service Award for three consecutive years. Other accolades from industry peers include Network Operator of the Year and Utility Company of the Year.

Edwards says “A fundamental priority for us when WWU was launched, was to deliver excellent customer service and, given the nature of the business, to deliver gas safely. We recognised at the beginning that a key element of meeting these objectives was investing in our people.”

Since its start in 2005, WWU has recruited over 500 people, including nearly 100 apprentices. “We are particularly proud of our apprentice recruitment” says Edwards, “they now represent over 10% of our operational workforce - illustrating a huge investment by the company.”

The new Training Academy in Treforest represents a major investment by WWU. The cutting-edge Academy features a unique indoor ‘street’ - with terraced houses, 2-storey flats and a large training and assessment area all offering a ‘hands on’ realistic training experience for gas leak detection, search and rescue, streetwork activity, Health & Safety and excavation.

Carbon Monoxide detection and Smart Metering training will also be included in this state-of-the-art facility.

the professionalism of all those involved from WWU. On a personal point, I have seen a marked difference and improvement in the attitude, not only in Health & Safety, but in work in general from those who have already experienced how WWU operates”.

Training is provided by WWU’s own qualified trainers who each have more than 20 years experience working on and managing the gas distribution network. The style is relaxed and practically based so that participants can get the most out of each training day – and leave with increased competence and confidence.

South Wales Police Force is another organisation which has quickly recognised the benefits of the Training Academy, carrying out specialist dog training in the realistic surroundings of the ‘street’. Organisations including paramedics and other utilities are also showing considerable interest.

While the Academy was developed primarily to train WWU’s gas engineers, it has attracted significant interest from other organisations such as the Isle of Man’s gas supplier, Manx Gas, whose engineers have received Health & Safety and operational training. John Davies, Operations Support Engineer for Manx Gas said: “Participants have been completely impressed with the content of the training and in particular

“As a key part of the energy supply chain we are constantly seeking ways of improving our efficiency and customer service to ensure we transport gas to consumers across our region cost effectively and safely” says Edwards.

“Part of this continuous improvement will be our ongoing investment in people and processes to maintain the leading service we have delivered so far in our brief history”.

> Training Academy Street

13

SBGI Utility Business Spring 2012

EVENTS 2012

UTILITY BUSINESS

11XXXX_Murphy ad_124x180mm v1

ENA/SBGI Utility Street Works 26 April - One Great George Street, London

SBGI/IGEM Gas Industry Awards 9 May - London Hilton Park Lane, London

Data & Communications For Smart Metering 30 May - Savoy Place, London

Utility Regulation 26 June - Hogan Lovells, London

Utility Metering 20 September - National Motorcycle Museum, Birmingham

Gas 2012 31 October - Holywell Park, Loughborough

16/2/12 Page 1 see the website www.sgbi.org.uk/events For more13:27 information

How do you get 600 million cubic feet of gas per day from ship to shore?

Think Murphy.

LNG isn’t just a fuel of the future. It’s already here. Murphy has completed the fast-track design of the first LNG dockside Regasification Port in the United Kingdom. In just 12 months from conception to completion, we planned, site-prepared, constructed and commissioned the GasPort on schedule for the first ever shipment of Liquefied Natural Gas to Teesside. In fact, Murphy has an enviable track record in the design, construction and maintenance of major cross country and urban pipelines, above ground installations and compressor stations – often in difficult and challenging conditions.

For more than 60 years, Murphy has been building and maintaining the infrastructure of the nation. We continue to break new ground with the design and construction of high-profile projects across a range of key industries. From national tunnelling, power and rail projects to major water and wastewater contracts, pipelines, and process plant construction; with Murphy, the thinking is always as important as the delivery.

Breathing life into infrastructure

For deeper thinking visit www.murphygroup.co.uk

14

www.utility-business.org

FEATURE - MANAGING TALENT IN UTILITIES

Training The Essential Element John Kerr - Utilities Director, Develop Training The energy and utility sector faces significant challenges over the next decade – it is facing critical skills shortages and an ageing workforce.

This is compounded by the impact of Government policy to meet carbon reduction targets through better energy efficiency, despite increasing energy needs and the requirement for less reliance on fossil fuels and greater dependence on renewables. Many utility companies are investing in large capital programmes designed to meet these requirements and the electricity, gas and water operators need a highly skilled workforce to deliver this.

Develop Training is a leading technical skills training provider and is working with a number of the major utilities on these issues.

They have seen first-hand the massive changes affecting the sector.

There is growing demand for more efficiency in a highly controlled regulatory environment and the need to demonstrate a greater return on investment. The main impact on the training market has been the necessity to adapt in line with utility sector needs - courses are increasingly being delivered in a way which reduces staff downtime by taking training to site and carrying out less residential training.

Training Accreditation for Industry Courses

TACKLING DISRUPTION ON OUR ROADS EVENTS 2012 // TRAINING - THE ESSENTIAL ELEMENT // TRAINING ACCREDITATION FOR INDUSTRY COURSES

UTILITY BUSINESS

Balfour Beatty Utility Solutions has become one of the first organisations to have its in-house designed and delivered training courses accredited

by Cskills Awards, the awarding organisation of CITB-ConstructionSkills.

The company has developed a number of courses, delivered by its training team, many of which lead to nationally-recognised qualifications including National Vocational Qualifications. Courses range from safe use of equipment, such as disc cutters and vibratory rammers, to excavator banksman training, ensuring that the safety and efficiency of the company’s essential work is constantly improving.

The first course to be recognised by Cskills Awards is the Slinger Signaller (Experienced Worker) programme, which has been delivered to over 200 of the company’s operatives in the gas, water, cabling and overhead lines sectors. Accreditation by Cskills Awards ensures best practise is shared and that workers can prove their competencies in the workplace.

Rob Sweeney, Product Developer at Construction Skills said: “We’re delighted to be working with Balfour Beatty Utility Solutions on this entirely new model for delivering training. The company was one of the first to enter into partnership with Construction Skills as part of a pilot programme last April, and since then we’ve been very impressed with the openness, honesty and commitment to fulfilling the training vision shown by its training team.”

Additionally, there is greater focus on multi-utility training, allowing operators to work across utility sectors and this is a key part of addressing the skills problem. This is most successfully achieved through a combination of traditional technical and the latest behavioural training to deliver competent, flexible individuals.

Greater investment is required in new talent, particularly relevant at the current time when we see young people under the age of 25 being some the hardest hit by unemployment. One way to boost the energy and utility workforce is to develop apprenticeships, which many of Develops clients are now investing in. School or college leavers have fewer jobs to apply for and a limited amount of ‘on the job’ experience, however apprenticeships could be the solution for many to find employment.

Taking on apprentices and training them effectively can increase the efficiency of the workforce, improve management skills and introduce loyal, valuable and qualified members to the team. The National Apprenticeship Service research shows that 92% of employers believe that apprenticeships lead to a more motivated and satisfied workforce.

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SBGI Utility Business Spring 2012

UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

Developing the Future Utilities Workforce: Big Challenges, Big Changes

Laura Manson-Smith Partner in PwC’s Energy and Utilities Practice

The transformation challenge facing the UK utilities sector in the coming years is immense. In order to secure the energy supply needed and to meet carbon reduction targets, utility companies are embarking on huge programmes of work. The key impacts of these significant industry changes on skill requirements are summarised in the adjoining image.

In 2011, PwC brought together leaders from the UK power and education sectors to discuss the future workforce challenges and how they can be addressed. This article summarises the main topics debated.

cleaner energy and new technologies, rather than focusing on the engineering aspect.

A further area of debate was how to create remuneration packages that appeal to the concerns of young people today. “It’s about cash,” said one participant.

Future workforce challenge The capability challenge is two-fold. Firstly, with 30% of employers in the UK electricity, gas and water sector reporting capability gaps compared to a national average of 19% of all employers, this has to to be addressed.

Secondly, new skills and ways of working must be developed. These will be determined by factors such as the complexity of the power generation mix, customer interaction from smart metering and new uses for electricity. As one roundtable participant said: “We need to take some brave steps in training people to work confidently with huge shades of grey… more future job roles will be about dealing with uncertainty and working out what we don’t know yet.”

The importance of blending new skills with existing capabilities, places added demands on knowledge management. “We’ve got so much knowledge in our industry, yet we find it very difficult to pass that knowledge through the organisation,” said one CEO. The challenge becomes all the more acute in particular areas, such as the expansion of nuclear power, where new build activity is restarting after decades of inactivity.

“Our kids will be the grandparents of people who decommission these power stations. We’ve got to ensure the knowledge we have gets passed down.”

Attracting and competing for talent - presenting utilities in a new light Getting the right flow of talent to match the future workforce was a major topic for discussion, in particular how companies can attract the best talent from the so-called Generation Y. All agreed that despite the fact that the sector competes well in terms of worklife balance and job-security, overall it is not perceived as appealing. Unlike the attraction of a career in medicine or law, for example, there is no equivalent compelling ‘brand’ in energy. The emphasis should be more on what people will be doing and achieving working in the sector, such as helping develop 16

“Young people face big housing costs if living away from home. Many also have debt from their studies, yet a lot of our reward policies don’t recognise this.

We have to offer more enticing packages that are tailored to their situations.”

Some companies are looking at new forms of incentives to address this, such as schemes which involve subsidised tuition fees. The need was also identified to develop a distinctive and attractive ‘middle tier’ offer as well as graduate and apprenticeship entry routes. This might appeal to young people weighing up the cost-effectiveness of taking a degree course and accumulating student debt.

Attracting future employees early and reaching into primary, as well as secondary schools was emphasised, with many companies and industry bodies already running initiatives in this area. One company reported on a project aimed at stimulating the interest of schoolchildren in construction.

The same company is also encouraging its young graduates to work with teachers to enthuse schoolchildren about the energy sector using teaching packs and running. For example, low carbon events. “It’s giving students an opportunity to find out ‘hands-on’ about the sector and we’re using people closer to their age to get them interested.”

Working together to make a bigger impact Collaboration was a common thread running through the roundtable discussion. From the need to join forces to develop a more coherent and distinctive sector appeal, to the challenge of engagement with government and education services to improve the skills supply chain, participants felt there was scope to make a bigger impact with sector-wide initiatives.

This was particularly the case for the interface between industry and education where specific schemes are already taking root at a regional and local level. Participants pointed to a number of companies, schools and colleges that are already involved in partnerships to stimulate interest in STEM subjects and are considering ways of feeding future talent into the sector. In some cases this involves cross-sector teamwork .

In the West Midlands, for example, companies from different sectors, including utilities and aerospace, are teaming up with schools as part of Engineering UK’s ‘Tomorrow’s Engineers’ programme.

www.utility-business.org

UTILITY BUSINESS

FEATURE - MANAGING TALENT IN UTILITIES

DEVELOPING THE FUTURE UTILITIES WORKFORCE

> Image is kindly provided by PwC and is not for reproduction without their permission

Joining up education and energy policies

Taking people planning seriously

There was some concern that current industry initiatives are not being matched by government action. “We’re about to embark on the biggest construction phase in history. I would expect a greater sense of urgency” said one participant.

There was strong agreement that organisations need a much clearer view on which capabilities are critical to their future success, which transferable skills current employees have and what their long term forecasts for capability needs are.

“Decision-making on education investment is too disconnected... we need a more direct way for demand signals to flow from industry to education.”

There was a desire to see a more direct translation from the needs of the UK’s energy policy into education and training strategies, enabling a better supply chain of future science and engineering talent.

The scope for high profile partnerships with government was illustrated by experience in the Canadian oil sands industry. Over the last decade, the industry recognised that it was facing workforce shortages and formed industryeducation partnerships to identify where the skills gaps would be and how to work together to address them. It recognised that it was important to invest in growing the talent pool overall rather than simply competing with peer companies and indeed other sectors.

The next level is to decide which roles need to be filled by graduate entry. Which roles demand more experienced and senior expertise and should come from cross-company, cross-sector or international recruitment?

What is the apprenticeship requirement? And what about the middle tier which doesn’t require a graduate entry but is not served by apprenticeships? The roundtable participants saw this last area as an important area for companies to focus on.

In summary, the skills challenges facing the sector are unprecedented. The industry as a whole will need to work together with Government to make some big changes if they are to be overcome.

“We need to be as good at long term people planning as we are at looking at long term investment in equipment.”

17

SBGI Utility Business Spring 2012

GAS INDUSTRY AWARDS LUNCH

London Hilton Hotel Wednesday 9 May 2012

For further information or to book your table contact Claire Pitt 01926 513726 claire@sbgi.org.uk 18

www.utility-business.org

LEADING VOICE

2012 GAS INDUSTRY AWARDS // LEADING VOICE

Professor Alison Halstead is Pro-Vice Chancellor for Learning, Teaching & Innovation at Aston University, a post held since 2007.

She is leading development of the ‘Aston University Engineering Academy’ - a School for 14-19yr olds, which is being built next to the University on the Aston Science Park and due to commence courses in September. This will be one of the UK’s first University Technical Colleges (UTC). She also chaired a recent Skills Commission Inquiry on ‘ Technicians and Progression’.

Utility Business caught up with Professor Halstead to talk to her about this and other issues surrounding skills and education.

With the significant challenges ahead for industry in upgrading an ageing energy network infrastructure, new nuclear, wind farms etc, the UK will require the right skills at all levels. To encourage young people into these careers, we have to excite and interest students and make them aware of the opportunities available and the relevance. This should be part of the curriculum alongside English, history etc, Alison believes.

Alison is concerned that schools are producing young people who do not fit the expectations and requirements of modern employers and that bureaucracy and emphasis on schools performance league tables is threatening innovation in education. She is also concerned about the common belief that University is the major route to career success and that anything else is a second or third rate option. This she feels must change and will require effort by Government, media, industry and schools. It is right and proper to need and strive for an educated society but whether this is workbased, part-time or in further or higher education it does not really matter, but we do need to enable young people to understand the opportunities and excite them about these options she said.

Half of our young people do not obtain five good GCSEs including English and mathematics. The reasons are various but one is disengagement and lack of motivation. There are many young people who could achieve more but whose technical talents and predisposition are being neither utilised nor brought to fruition.

This is where UTC’s come in. They are a new concept initiated and founded by Lord Baker and Lord Dearing, explained Alison. They will offer 14-19 year olds the opportunity to take a technically oriented course of study. Students start at the age of 14 (11 is too early to choose a subject path to follow and 16 is too late - students who know what they want to do can often become bored at school and so underachieve by the time they are 16). The curriculum is divided into two components: general education/bridging core studies and technical studies. They are not taught separately but integrated into each other, so technical subjects are studied alongside the basic GCSE subjects of English, mathematics, science and IT. They also acquire financial and business skills and take part in a wider enrichment programme to encourage outside interests.

UTC’s also offer clear progression routes into higher education or further learning in work. Unlike traditional routes the school follows a business day from 8.30am to 5.30pm, with business dress and all work can be completed during the day with teacher support. Most UTCs will have around 600 students, a deliberately small size to be able to personalise the individuals programme.

Each student will have an industrial supervisor to oversee their work placement and an undergraduate student mentor.

Central to UTC’s are employers, who are encouraged to become formal co-sponsors or partners. There are opportunities for businesses to input directly to the curriculum and delivery so that it reflects the needs of their industry sectors. The industrialists role as mentors will also help to inform, motivate and inspire them to pursue a career or further study in their industry.

UTCs are very well placed to deliver success. The university will have invested development time and research and apply this to the teaching and curriculum. UTC’s are just one initiative and the UK may develop up to 50 good, technical regional hubs supporting the engineering sector with links to universities, but they will only be a small niche. It is early days and Alison believes it will take five years or so for to the concept to take shape and for UTCs to make an impact.

With regard to encouraging youngsters into engineering careers, Alison agreed there exists a perception problem.

The issue, she explained, is that you don’t see engineering in schools, it is not in the curriculum and is almost a meaningless word. Perhaps we should not use the word ‘engineering’, but relate the subject to real world messages.

Science and engineering can be communicated by so many industries and companies.

For example, careers in energy networks is about showing youngsters the ins and outs of the job including insight into materials, manufacture, cable/pipe laying, significance of the job to UK energy supply, seeing the reality i.e. teamwork or solo job. The employment market is so diverse we need to get young people interested and understanding the reality.

We really need to focus on what we are trying to solve and that is to get school age people enthused about work and the world, to enable them to make accurate choices. There is a crucial role for both educators and employers in achieving this.

Alison Halstead gained a Physics degree and Materials Engineering PhD at Imperial College. Her early career was with Tube Investments and she has held academic posts at Brunel University, Coventry University, the Open University and University of Wolverhampton before taking up her current post as the Pro-Vice-Chancellor for Learning and Teaching Innovation at Aston University. In 2005 she received a National Teaching Fellowship for her innovative curriculum development. At Aston she is responsible for quality and standards of all programmes, the student learning experience and widening participation and is leading the development of the ‘Aston University Engineering Academy’.

She is a Board member of the OCRWMR, EU Skills and The Children’s University.

Our thanks to Alison Halstead for generously giving up her time for this interview.

19

SBGI Utility Business Spring 2012

UTILITY BUSINESS

New Members Morrison Utility Services works on behalf of blue chip utility clients in the UK. The business has national coverage from Scotland to Cornwall with considerable expertise in gas REPEX, OPEX and CAPEX work streams. Our track record includes a diverse range of asset investments from emergency escapes and meter installation through to major gas mains renewals and governor maintenance.

Our flexibility enables us to meet the challenges of the evolving utility market.

With the advent of sweeping changes in the gas industry we are equipped to respond to our clients’ requirements. We are focused on targeting innovation and sharing our multi-utility experience offering shared best practise from across the industry.

For example, network operators face a challenge in managing gas risers and laterals. Finding a solution as assets continue to age makes it a priority. We are currently exploring techniques which provide cost savings but also importantly peace of mind. Similarly, with extensive operations in London we have detailed knowledge of emerging street works legislation including permit and lane rental schemes. Our bespoke works management system plays a key role in managing

King Street is a salt cavern underground gas storage project near Northwich, Cheshire. The King Street site is approximately 245 acres. It will store gas in underground cavities leached in the salt layer some 330m below the surface. The thick salt layer coupled with the overlying marl makes the conditions ideal for gas storage.

The project has received all of the key permissions and consents required to enable the development of phase 1 of the project. Phase 1 consists of 10 underground gas storage caverns with a trading gas capacity of 348 million cubic metres (“mcm”). Phase 2 of the Project adds a further 278mcm of trading gas capacity providing a total working gas capacity of 626mcm.

In order to speed the development, King Street Energy will construct a 58km twin pipeline system between the Mersey Estuary and the King Street site to supply leaching water and to discharge the brine. Other gas storage projects in the district take water from local rivers and pass the brine to process users. The ability to obtain sufficient water and subsequently discharge the resultant brine is 20

the street works process and is the nerve centre of all of our operations.

Currently we are part of alliance and partnership agreements which, have been innovatively designed to deliver more for less as a result of efficiencies and greater productivity.

Our close working relationships, often co-locating our teams to work alongside client colleagues, foster good communication and a shared-responsibility towards the customer. As a result of this insight we have successfully implemented training designed to engage field teams and drive the customer experience message home.

In order to assure the sustainability of our business we are investing in our resources. We are committed to enhancing our in-house training and to finding a creative solution to the ageing workforce issue. We are developing opportunities for the recruitment of apprenticeships, ex-offenders and ex-service personnel.

We believe this makes good business sense and is key to our reputation as a leading utility service provider.

For more information see our website www.morrisonus.com

crucial to the successful and timely development of onshore gas storage caverns.

The twin pipelines are what separate the King Street Energy Project from any other similar developments. The use of a pipeline system ensures that the leaching programme can proceed without being constrained by the off take and demand of local brine users.

Why King Street?

• The King Street Project has phase 1 fully consented, with all land agreements now in place and ready to be implemented.

• Low cost per storage unit, low capital and less complex in comparison to others • With four other similar projects in the area, the salt bed and gas storage has proven integrity.

• Available resources in the local area for project delivery, operation and maintenance.

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BGE Ltd (Bord Gais Eirann) Centrica Storage Cheshire Cavity Storage Group Ltd EDF Trading Gas Storage Limited E.ON Gas Storage UK Ltd Eni Uk Ltd Gateway Storage (Stag) Halite Energy Group Humbly Grove Energy Ltd INEOS Enterprises Ltd Infrastrata King Street Energy Scottish Power Gas Transportation Hatfield SSE Hornsea Ltd Statoil Storengy WINGAS Storage UK Ltd

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NETWORK ENGINEERING GROUP

EDF Energy Customer Field Services E.On Energy Services Energy Assets Ltd G4S Utility Services Ltd Lowri Beck Services Ltd Providor Siemens Metering Services Tuffentech Services Ltd

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Aeon Pipe Systems Ltd AVK UK Ltd Crane Ltd t/a WASK Drain Center Fiorentini UK Limited Fusion Provida Limited Gas Measurement Instruments Ltd. George Fischer Sales Limited GPS nrg2 PLCS Limited Radius Systems Ltd Sarco Stopper Syddal Engineering Limited Synthotech Special Products Limited

AMEC Group Limited Balfour Beatty Utility Solutions Bureau Veritas Carillion Utility Services Clancy Docwra Limited Enterprise Fulcrum Future Energy Group GL Noble Denton J Murphy & Sons Morland Utilities Ltd Morrison Utility Services National Grid Northern Energy Connections Northern Gas Networks P N Daly Limited PMI Denholm Squire Energy Ltd Veolia Water Outsourcing

NEW MEMBERS // MEMBER DIRECTORY

Member Directory

Itron Metering Solutions D I UK Limited Elster metering George Wilson Industries Limited Landis+Gyr Secure Meters ASSOCIATE MEMBERS BG Group plc ByBox Capita Symonds Ltd CEVA Logistics Limited CNG Services Ltd Develop Training Ltd DHL Exel Supply Chain Engage Consulting Enzen Global Ltd Generis Technology Ltd Gtc Jonathan Lee Kingsley Plastics Ltd Lightsout Computer Services Lomax Training Services Ltd Wilcock Consulting Xoserve

21

SBGI Utility Business Spring 2012

Viewpoint

Today’s eight year olds can save the UK

There could not be a more timely opportunity to write for Viewpoint about the importa Engineering UK 2012: The state of engineering.

My colleagues and I are back in the office after an amazing three days at The Big Bang UK Young Scientists & Engineers Fair. Led by EngineeringUK, The Fair is the UK’s largest single celebration of science, technology, engineering and mathematics (STEM) for young people.

I’m pleased to report that in its fourth year The Big Bang Fair welcomed a record number of visitors to The NEC in Birmingham, inspiring over 48,000 young people, their teachers and parents to see science and engineering in a fresh new way. The findings of the report help to underline exactly why The Big Bang Fair, and its wider programme, is so important. One of the report’s key findings is the need for over two million additional engineers to meet demand by the time today’s primary school pupils are of working age.

The engineering community, in its widest sense, must do everything it can to make sure that children, parents and teachers understand the world of opportunity that physics and mathematics can open up - these subjects are a must for most engineering careers.

The report confirms what those of us in the industry know: that engineering is central to ensuring economic growth and plays a major role in tackling global challenges, including climate change, health, food security, biodiversity, water security, population and energy security. At home, the challenge for the engineering, manufacturing and science sectors is to develop and exploit emerging technologies, such as advanced manufacturing, manu-services, and low carbon and environmental goods and services.

22

The engineering sector is a huge success story, generating £1.15 trillion in turnover – nearly 25% of the turnover of all UK businesses - employing 5.6 million people across more than half a million enterprises. The Government recognises the need to promote and grow the UK’s engineering capabilities; the UK can only achieve success in these fields if future engineers have skills rooted in maths and the sciences, however.

One message underpinning the report’s every fact and statistic is the underlying challenge to re-invigorate public perception about what it means to be an engineer in the twenty-first century. From large infrastructure projects such as Crossrail or this year’s Olympics, to the massive impact at a microscopic level of robotic surgery or blood monitors that will help diabetes sufferers, there are numerous excellent opportunities to showcase UK feats of engineering.

Working together, EngineeringUK with the wider STEM community including Government and leading UK business and industry are tackling this challenge head-on. The Big Bang and programmes which share its ethos to inspire, such as Tomorrow’s Engineers and The Queen Elizabeth Prize for Engineering, will go a long way to ensuring our future talent pipeline of engineers.

Belief in UK engineering and commitment to our future generation of engineers is visible: the launch of the report was held at the Department for Business, Innovation and Skills and attended by representatives from Alstom Ltd, Aston University, BAE Systems Plc, Crossrail, EDF Energy,

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VIEWPOINT

K economy Paul Jackson, Chief Executive of EngineeringUK and The Big Bang Education CIC

ant messages behind the findings of

> Launch of Engineering UK Report: The State of Engineering

EngineeringUK, Finmeccanica UK Ltd, Rolls Royce Plc, Shell UK Ltd, Semta and The Royal Academy of Engineering; and this year, over 150 organisations were involved in making The Big Bang Fair its biggest ever yet.

They do say that seeing is believing; of course we engineers also like to weigh up our opinions based on sound evidence. Well, I am seeing the effects of the engineering community’s collaborative efforts through EngineeringUK’s programmes, and everything we do to engage young people is evaluated thoroughly with heartening results. We have a journey ahead of us of course, but the path is obvious and we have good reason to be optimistic about the outlook for UK engineering.

Engineering UK 2012: The state of engineering is an annual report on the state of UK engineering and the cornerstone of wider policy output. To read the report, go to www.EngineeringUK.com To find out more about The Big Bang Fair go to www.thebigbangfair.co.uk The UK’s engineering outlook • Examination of the Sector Skills Assessments for the 10 engineeringrelated Sector Skills Councils shows that the estimated requirement for employees over the next 5-10 years will be an additional 2,217,500.

• The UK is the seventh-largest manufacturing nation in the world, behind the USA, China, Japan, Germany Italy and France.

• In 2010, 2.5 million people were employed in UK manufacturing, representing 10% of all employees.

• Manufacturing is a major investor in Research & Development (R&D) which, in turn, is an important driver of technological innovation.

Of the top 25 UK companies by R&D spend, eight are from the manufacturing sector.

EngineeringUK EngineeringUK is an independent organisation that promotes the vital contribution of engineers, engineering and technology in our society.

EngineeringUK partners business and industry, Government and the wider science and engineering community: producing evidence on the state of engineering, sharing knowledge within engineering and inspiring young people to choose a career in engineering, matching employers’ demand for skills. For more information about EngineeringUK please visit www.EngineeringUK.com

@engineering_uk @BigBangFair @2morosEngineers 23

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