Utility Business Summer 2012 by Energy and Utilities Alliance (EUA)

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UTILITY BUSINESS SUMMER 2012

THE QUARTERLY PUBLICATION FROM SBGI UTILITY NETWORKS

CELEBRATING INDUSTRY ACHIEVEMENT THE 2012 GAS INDUSTRY AWARDS In this issue: Reducing Disruption in Street Works 200 Years of Gas USIT Harvard Awards

SBGI Utility Business Summer 2012Business Magazine is here… Your New Look Utility

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

01926 513760

Divisional 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

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Services Manager: Gary Cottrell gary@sbgi.org.uk

01926 513764

=================================== Chairmen Utility Networks Board: Steve Murray (National Grid Distribution)

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THE QUARTERLY PUBLICATION FROM SBGI UTILITY NETWORKS

Welcome

WELCOME FROM YOUR EDITOR // CONTENTS

UTILITY BUSINESS from your editor Welcome to Utility Business. This issue we are celebrating innovation, achievement and longevity in the Gas Industry. With the ‘200 years of Gas’ event in April and the 2012 Gas Industry Awards in May, it truly has been a time to appreciate and acknowledge the opportunities this sector provides and share success within the industry. Congratulations to all our member companies who were shortlisted and won awards. There has been significant Government policy development with publication of the Energy Bill, including Electricity Market Reform. The EMR proposes reform to the electricity market to attract the £110 billion investment required for a 21st century energy infrastructure. Market reforms are also expected in the water industry with a draft water bill being announced in the Queens speech, likely to continue the direction of travel started by last December’s Water White Paper. With Government’s latest set of consultation documents on Smart Metering published in April and the ongoing programme of meetings, it has been a really busy period. Energy specialist Dr Gill Owen of the UCL Energy Institute shares her timely thoughts on consumer engagement for effective smart meter roll-out - a subject of one of the recent consultations. I do hope you enjoy this issue. If you have any news to share regarding developments in your own company for the next issue, please drop me a line.

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

Caroline Taylor, Editor caroline@sbgi.org.uk

In this issue… Features Reducing Disruption in Road Works

Review of SBGI/ENA Annual Street Works Seminar

200 Years of Gas

An industry celebration

Recognising Achievement in the Gas Industry

Thirteen winners announced

East of England To Focus Inward Investment Through New Energy Zone

USIT Harvard Awards

19 11

Regulars Utility Networks News Member News Regulatory Update New Members Member Directory Events Calendar Viewpoint

4 7 8 20 21 21 22

18 3

SBGI Utility Business Summer 2012

Utility Networks News > Steve Murray

Utility Networks Chairman 2012/2013 We are pleased to confirm that, following the election process, Steve Murray of National Grid Distribution will continue for a third year as Chairman of the Utility Networks Board (2012/13). Steve has worked in gas distribution upstream and downstream of the emergency control valve in a number of Asset and Operational managerial positions. Currently Steve is the Alliance Manager for Gas Distribution in the West Midlands region, which is an Alliance between National Grid and Morgan Sindall. Passionate about driving excellence in industry and community, Steve is Vice President of SBGI, Chairman of IGEM Midlands section, a Chartered Manager, Northamptonshire Branch Treasurer of the Chartered Management Institute and a Foundation Governor for a Secondary school. On being elected Utility Networks Chairman, Steve said: “I am extremely privileged to be Chairman of Utility Networks at a time of immense change in the industry which also provides fantastic opportunities for our members.”

Member Group Chairmen Elections 2012/2013 SBGI member groups steer and formulate the consensus view on industry issues and provide useful information sharing and networking opportunities for members. The Chairman of each member group also sits on the Utility Networks board and contributes to setting the overall strategy and direction of the Division. Chairmen for 2012/13 are confirmed as:

Gas Storage Operators Group Roddy Monroe, Centrica Storage Metering Technology Group Jeff Cooper, Elster Metering Metering Services Group Vic Tuffen, Tuffentech Ltd Distribution & Transmission Equipment Group Richard Stone, AVK UK Network Engineering Group Ian Foster, Fulcrum Data & Communications Management

New President for SBGI At the AGM on 9 May, SBGI members elected Carl Arntzen as its President for the coming year. Carl is Managing Director of Bosch Thermotechnology Ltd in the UK and Ireland. Arntzen’s commitment to the industry began during his time studying for a mechanical engineering degree, during which he spent time working across a number of different departments at Worcester Engineering, including manufacturing and R&D. On completion of his degree, Arntzen joined the company, now part of Bosch Thermotechnology Ltd, as a Development Engineer in 1985. Arntzen has been a Board Director since 1997 and was appointed Managing Director in September 2011 with a focus on controlled expansion as the business moves forward. On being elected SBGI President, Arntzen said: “It is a real privilege to have been elected President of SBGI for the year ahead. “As one of the UK’s most established trade associations, we have a huge role to play in maintaining the industries’ reputation, both in the UK and overseas. I intend to draw upon my own hands-on experience within the industry, as well as those of the membership, to enhance the SBGI’s leadership over the year ahead.” Steve Murray from National Grid became Vice President.

Mike Buss, Sensus Conservation Solutions

> Carl Arntzen, new SBGI President

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@ SBGIUN

UTILITY NETWORKS NEWS

SBGI Name Change Agreed at AGM At this year’s AGM on 9 May, members voted in favour of a change in name to embrace the challenges facing a 21st century trade body. Mike Foster, CEO, answers a number of questions for Utility Business. What will the new name be? Signalling its intent to represent the wider energy and utilities sector, SBGI will be changing its name to “Energy and Utilities Alliance” (EUA). Why is the name changing? Historically, SBGI was the only trade association to represent the whole of the onshore gas industry. More recently, its scope has extended to other parts of the energy and utility industry. If you think about the sectors covered by members of the divisions; from gas storage to smart meters, from pipes to high efficiency boilers, from industrial boilers to renewables, Energy and Utilities Alliance better reflects this broad base; the new name says who we are. EUA will umbrella the three (current) organisational divisions - SBGI Utility Networks, the Heating and Hotwater Industry Council (HHIC) and ICOM Energy Association. Going forward the vision is to increase the number of divisions within the Alliance. What about the history and identity tied up in SBGI? The name change is a significant step forward for the organisation. SBGI is widely respected by those who know us. But its name no longer does justice to the wide range of members we have and our long term aspirations. What are the objectives of EUA? The change reflects not just a new name but a shift in focus. EUA intends to provide a high level industry voice to help shape the future policy direction within the sector. Using our wealth of expertise, and over 100 years of experience, we will act to further the interests of our members and the wider community in

working towards a sustainable, energy secure and efficient future. There are enormous challenges ahead in the energy and related industrial sector. Rising energy costs, issues over security of supply, greenhouse gas emissions and UK jobs and skills are at the forefront of concerns. Working in partnership with others, EUA intends to be a powerful voice for the industry, speaking out when it matters, as the UK faces these challenges in the years ahead. What are the next steps? I have been working with the team at Camden House and you will soon start to see more references to EUA, and a new logo, website etc, but rest assured there will be no change to the level of service you receive. The divisional focus will be maintained and secretariat structure remains the same. The change in name will not affect the day to day activities of the divisions.

In fact, it is likely members will receive increased benefits by EUA positioning itself as a high level, powerful voice for the industry, lobbying on members behalf, speaking out when it matters and helping shape future policy direction within the sector.

SBGI Golf Circle Spring Meeting 2012 Despite changeable conditions, the weather remained kind and an excellent day was had by all at the Spring meeting held at Ladbrook Park GC, Warwickshire on 10th May. The circle was well looked after by the club with a nice lunch provided and sandwiches served at the end of the day. The Golfing Circle has two remaining events for its 2012 season:

Captain’s Challenge Day - Olton GC, Solihull, 6th July (for Corporate Teams)

Autumn Meeting - Kirby Muxloe, 11th October

We are always pleased to welcome new members and our events are both fun and provide excellent networking. With a joining fee of just £20, don’t miss out on the opportunity to join circle members and Captain Neil Williams for what promises to be an excellent programme over the next few months. For more information please contact David Jones davidjones@sbgi.org.uk or Ana Ray ana@sbgi.org.uk

SBGI Utility Business Summer 2012

Utility Networks News Smart Metering Update There’s been a huge amount of activity around smart metering over the last few months with the programme still in full swing and regular meetings taking place each week for most of the working groups, involving SBGI’s Gary Cottrell as well as our member representatives. On 5th April the Department for Energy and Climate Change (DECC) published its latest set of consultation documents, describing their policy positions and questions for industry. Publication of these documents is a key delivery milestone for DECC in the Foundation Phase of the Programme. Some of the key conclusions from the policy documents include:- no sales during the smart meter installation visit, installers must provide energy efficiency advice as part of the visit, consumer permission will be needed in advance of the visit if they are to talk to them about their own particular products; and all households will be offered an in-home display allowing them to see what energy is being used and how much it is costing. Some key proposals for industry review were set out in the consultation documents including:- giving the consumer a choice about who has access to their data, except for data which is needed for billing and meeting other regulatory obligations, typically on a monthly basis, a model for centralised communications activity to help all consumers understand how to use smart meters to better manage their energy consumption and expenditure; and proposals to ensure that vulnerable and low income consumers can benefit from the rollout.

1. Consumer Engagement Strategy This consultation seeks views on a proposed framework for customer engagement to support the overall Programme. Government is taking responsibility for developing the consumer engagement policy framework to ensure consistent messages are used. They are proposing a central consumer engagement body as a source of independent advice and information, media handling and development of common materials and messages. They have suggested placing licence conditions on the larger Suppliers which would oblige them to create and fund this central delivery body. An existing body could potentially be used and set up during the first half of 2013. SBGI argues that Consumer engagement is critical to the success of smart metering and that this timetable be brought forward. Government should also consider how consumer engagement can interact with other energy policies: for example, the Green Deal and demand-side response.

2. Data and Communications Company (DCC) Licence Conditions and Licence Application Regulations The DCC is a key element of the Government’s approach to rolling out smart meters. The principal role of the DCC will be to provide smart meter data and communication services via contracted services with a data service provider and up to three communication service providers. The DCC will be appointed through a competitive licence application process and will be responsible for enabling service users to communicate remotely with smart electricity and gas meters through the contracts it procures and manages. It is proposed that the DCC licence will be granted for a fixed, non-rolling term of 12 years, with a potential 6 year extension. The licence consists of terms relating to its grant and revocation (including handover requirements to ensure the efficient transition from an incumbent DCC to a successor DCC) and a range of other conditions .

3. Smart Energy Code The Smart Energy Code (SEC) outlines governance of the DCC and the parties who will use its services. The consultation seeks views on the proposed arrangements by which energy market participants will access and use the services of the DCC to interface remotely with smart metering equipment in consumers’ premises. Government’s position is that all remote access to the smart meter including by “Meter Parties” (MOPs, MAMs, etc.) must be made via the DCC, however the Meter Parties’ are considering various options.

4. Data Access and Privacy Government is clear that its data access and privacy policy needs to protect consumers’ interests in relation to privacy, enable proportionate access to data by authorised parties, and promote innovation in the energy services market. This consultation seeks views on the proposed framework for smart metering data access and privacy as these apply to the domestic consumer, their Supplier, the network operator and to third parties.

SBGI has responded to all of the consultations which closed in early June. We are grateful to all members for their contribution and input to the meetings and responses. 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.

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Member News

UTILITY NETWORKS NEWS // INDUSTRY MEMBER NEWS NEWS

Balfour Beatty Hold Group-wide Sustainability Month The month of May was Sustainability Month for Balfour Beatty. Entitled “Together for Tomorrow” it showcased the company’s progress against its 2020 sustainability vision. The initiative saw individuals from across the company engage in a range of activities to celebrate sustainability and help raise awareness of environmental and community issues.

potential suppliers to pitch sustainable products and ideas to a panel of experts from the company’s environment, innovation and operations teams.

Events included a sustainability webinar, health, wellbeing and sustainable lifestyle days, a charity bike ride, starting at the company’s office in Perth and calling at 14 sites down the country before arriving at Balfour Beatty’s head office at Wilton Road, London, raising money for the company’s charity Building Better Futures and ‘Dragons’ Den’-style events for current and

Bglobal & Neul Achieve UK First Bglobal is claiming a UK first with the launch of a system that allows the energy used in buildings to be monitored from one kilometre away. The system utilises ‘white space’ – the spare frequency previously used by television broadcasters that is no longer utilised following the switchover from analogue to digital TV. Bglobal says the breakthrough has implications for the nationwide roll-out of smart metering and has teamed up with NEUL to develop the system.

Murphy at 60: A Diamond Year, Looking to the Future SBGI member and leading civil engineering and building contractor J Murphy & Sons Ltd is celebrating its Diamond Jubilee anniversary with 60 years in business in 2012. Established and developed by John Murphy, Murphy now provides a multi-disciplined design and build service across a range of market sectors including process energy pipelines, water and wastewater, rail, tunnelling, power and renewables. The Murphy Board of Directors commissioned a special ‘Murphy at 60’ commemorative book to mark this significant milestone - a photographic celebration of the key moments throughout the company’s history and a heritage of the achievements of John Murphy and his present and past employees.

Balfour Beatty’s Chief Executive, Ian Tyler, said: “Sustainability is at the heart of Balfour Beatty’s business strategy and inherent in the way we work. For me and all our people, this means working in partnership with our clients to create a profitable and ethical infrastructure business for the long term. It also means enhancing the communities we work in and delivering sustainable infrastructure for society.”

UK’s Water Network ‘SAFE & SECURE’ in Kingsley Plastic’s Hands Asset security is paramount to the UK’s water network and electrical industries and choosing the right specialised, certified products are the only choice to protect against the daily risk of vandalism, malicious damage, theft and the ever increasing terrorist threat is key. Kingsley Plastics Ltd is the ONLY current UK company to have achieved a LPCB 1175 Security rating for the manufacture of GRP Doors, both for use within their own GRP Housings or as a security door for existing structures. No other company has yet achieved the same certification to such a standard. Due to the unique method of construction, Kingsley is able to offer solutions for every size imaginable, including ready assembled housings and flat-pack units alike. All deliverable on Kingsley’s fleet of company owned hi-ab equipped lorries. Kevin Down, Kingsley’s Managing Director commented ‘this latest innovation and full certification is recognition of the whole workforce within Kingsley Plastics Ltd. We strive to not only offer our clients the very latest in technology and approved products but, with Kingsley being the first and only UK certified company to have achieved a security rating using GRP Doors within a GRP Housing, we can be rightly proud of our achievements to date’. The Managing Director’s enthusiasm is borne out by the fact that even in this time of recession and uncertainty, Kingsley achieved the largest order book in their 35 year history, as well as recently celebrating the opening of new factory premises in Honiton, Devon, and the extension of their existing head office and manufacturing ground space by the building of additional production facilities.

BG Energy Challenge > left to right John Stack, MD, Cedric Brown, Ted Jestin, Director, Paul Mallorie, Group Business Development Director, Les Dawson, Chairman

The BG Energy Challenge is the ultimate team building and networking event for the energy industry. It is an annual test of teamwork, ingenuity, skill and commitment, drawing support from a wide variety of companies across the sector and raising substantial funds for charity. Since 1996, events have raised more than £6.2 million for deserving causes. This year’s challenge takes place 5 - 7 July in Dartmoor. For more information see the website www.bg-energychallenge.com

SBGI Utility Business Summer 2012

Regulatory Update Energy Bill

Draft Water Bill

Government has published its long-awaited draft energy bill, designed to encourage major investment in clean energy generation and help increase security of supply. The bill outlines long-term contracts to encourage investment in renewables, new nuclear and Carbon Capture and Storage (CCS) and measures to ensure that these technologies can compete fairly in the market-place. A key element of the Energy Bill is Electricity Market Reform. Electricity will increasingly be used to power transport and domestic heating and investment in energy infrastructure needs to be secured. The EMR proposes reform to the electricity market to attract the £110 billion required. The Bill is expected to achieve Royal Assent in 2013, so that the first projects can be supported in 2014.

RIIO-GD1 Second Business Plans The Gas Distribution Networks have published their second business plans. Ofgem is calling for stakeholders’ views on the plan and request feedback on the overall quality of plans, customers /stakeholder engagement, expenditure proposals, financial proposals and review of uncertainty and risk.

The Queens speech included a draft water bill which will continue the direction of travel started by Water for Life, the Government’s Water White Paper, published in December 2011 by DEFRA. It is likely that many of the intentions set out in the white paper will be included in the bill which will be published before Parliament’s summer recess. These include a package of market reforms including contestable water and sewerage services and reforming the abstraction licensing regime.

Ofwat Roadmap for Sustainable Water Sector Ofwat has published a ‘Statement of Principles’, which provides a framework for how the regulator will set new limits on the prices water and sewerage companies can charge 2015 – 2020, in advance of a formal consultation in the Autumn. It describes how regulation will evolve so the sector can continue to deliver sustainable services for customers in decades to come.

The Dr Gill Owen Column

EFFECTIVE CONSUMER ENGAGEMENT ESSENTIAL TO SMART METER ROLL-OUT The Government expects substantial consumer benefits from smart meters – including over £4bn in energy savings by households. However these benefits will only be realised if consumers make effective use of the information from their smart meters and key to this is consumer engagement. DECC’s view is that “consumer engagement should not just be left to suppliers to manage individually. This could result in messages not being consistent and coordinated, which could lead to potential confusion or inefficiencies.” DECC is therefore consulting on a centralised consumer engagement strategy, the aim of which is to build consumer confidence in benefits, provide reassurance on areas of consumer concern, help consumers to use smart metering to better manage their energy consumption and expenditure and ensure that vulnerable and low income consumers can benefit from the roll-out.

The activities that would be undertaken centrally could include : • motivational campaigns to raise awareness of smart meters and how they can be used to help consumers save energy • energy efficiency advice and guidance to individual consumers • addressing consumer concerns and explaining the benefits of smart metering to consumers and other parties (including the media) • providing additional support to vulnerable and low income consumers in relation to the smart meter roll-out The organisation that takes on this task will also need to work with third parties such as charities, consumer groups, community organisations, local authorities, and housing associations on many of these activities.

The consultation proposes that suppliers should set up and fund this centralised engagement but the consultation is open on whether suppliers should be obliged to do this or whether a voluntary agreement would be sufficient. It seems unlikely that relying on suppliers voluntary action will be appropriate. The Government believes centralised engagement is needed because a supplier led approach might not ensure that the public benefits of smart meters are realised (or realised cost effectively). DECC therefore needs to provide leadership and set out the outcomes that it expects from this centralised strategy. Placing an obligation on suppliers will then ensure the necessary clarity and accountability – the latter being particularly important as it is consumers who will be paying for the engagement strategy whether it is done voluntarily or on a mandatory basis.

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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REGULATORY UPDATE // REDUCING DISRUPTION INDUSTRY IN ROADNEWS WORKS

Reducing Disruption in Road Works SBGI Utility Networks, in conjunction with the Energy Networks Association (ENA), held their one-day Street Works seminar on April 26. The event attracted capacity audience of nearly 140 delegates to the Institute of Civil Engineers, One Great George Street, London. This seminar serves as an annual industry update to all those involved in Street Works from utility companies to contractors, Highways and Local Authorities, Government, trade bodies and other stakeholders. As legislation is continually evolving in the industry Chairman of the event, Les Guest, NJUG, reiterated just how vital forums such as this event were in sharing experience and best practice.

Regional Perspectives Scotland Scotland has a different approach to street works, defined under the Scottish Transport Act 2005, explained John Gooday, Scottish Road Works Commissioner. He is accountable to the Scottish Ministers and ultimately the Scottish Parliament and his team oversees planning, co-ordination and quality of road works in Scotland, taking a national strategic view, unlike Traffic Managers in England and Wales who are appointed by each local council. The Commissioner requires the road works authority or undertaker to carry out all work but can impose penalties (up to £50,000) when failure of duties occurs. Work is managed through the Scottish Road Works Register which covers all of Scotland, explained Andrew Leyden, Scotland Gas Networks. It is a national computerised system for the transfer, retention and management of road works data with a public facing site which is reportedly extremely well used.

London Road congestion is a major issue for the transport system in London. With around half a million holes dug in London’s roads every year, it is not surprising that road works account for about a third of the Capital’s most serious traffic disruption. It is estimated that disruption from roadworks costs the Capital’s economy around £750 million a year. Around £300 million of this is on London’s busiest roads - the Transport for London Road Network (TLRN) or Red Routes – which, although only comprising around 5% of London’s road network, carry over 30% of the traffic. Paul Jones, Construction Engineer for Skanska shared a few of the particular challenges in London, for example, in one job correspondence to residents had to be produced in 30 languages due to the population diversity of the area. And in the year of the London Olympics utilities are facing even greater challenges. He highlighted the importance of working with local communities and the significance of communicating clearly to the public and road user through notices and information boards to explain how the work was progressing. Since January 2010, Westminster City Council, in partnership with 17 other London councils and Transport for London (TfL), has operated, a Permit Scheme for better co-ordination of Road Works. However, although permits have decreased the number of street works there has been no visible impact on improving disruption, said Martin Low, City Commissioner of Transportation. There are 20,000 street works in the

Minister Launches Safe Dig Charter Transport Minister Norman Baker, MP, launched the Safe Dig charter at the SBGI/ENA Street Works Seminar. Representatives from the relevant utilities all provided their signatures to the charter at a special launch ceremony. The Charter has been compiled by the utilities sectors and contractors to ensure the highest standards

of safety and best practice when carrying out maintenance work on the vital services for homes and businesses. In particular the charter will help those carrying out work avoid disrupting supplies through accidental strikes on utilities in the ground. Norman Baker said: “I know how frustrating it is when road works

cause unnecessary disruption and delays, or worse, when lanes are coned off with no explanation of why no work is taking place. It is not just inconvenient but expensive, costing the economy £4 billion a year. The launch of today’s charter will help to reduce delays to the travelling public, while improving standards within the industry.”

> l to r: Transport Minister Norman Baker with SBGI Chief Executive Mike Foster 9

SBGI Utility Business 1 Summer 2012 2

The days speakers

1 Les Guest, Chairman 2 John Gooday, Scottish Road Works Commissioner 3 Andrew Leyden, Scotland Gas Networks 4 Paul Jones, Skanska 5 Martin Low, Westminster City Council 6 Paul Gerrard, National Grid 7 Tony Glover, Energy Networks Association 8 Sean Mooney, J Murphy & Sons Ltd 9 Becky Fuller, Staffordshire County Council 10 David Walters, Staffordshire County Council 11 Tim Sargent, Morrison Utility Services 12 Tom Lambert, Balfour Beatty Utility Solutions 13 Mike Farrimond, NUAG

About Lane Rental In January 2012 the Department for Transport introduced Proposals for ‘Lane rental’. Under the scheme councils will be able to charge utility companies up to £2,500 a day to dig up the busiest roads during peak times when road works cause the most disruption. This will incentivise utility firms to carry out their works more quickly and at times when roads are quieter. Companies would be able to avoid the charges by carrying out works during off-peak periods or, if appropriate, at night. Guidance has been published for local authorities wanting to put lane rental schemes in place and they have to apply to DfT to proceed. To be eligible the local authority must have exhausted all other options, including using a permit scheme. They will also need to evaluate their scheme annually so the evidence can be used to help implement other schemes. In the areas where lane rental charges apply, the proposed scheme will provide adequate time for works to be carried out without charge, therefore minimising the opportunity for costs to be passed onto the consumer. It is intended that any revenue raised through the scheme, after implementation and running costs are deducted, will be reinvested in measures that help to reduce traffic disruption on the road network.

City of Westminster consistently year on year of which 13,000 are concentrated in the West End and he does not feel the permit system has realised its full benefits. Going forward Martin is keen to adopt lane rental in Westminster. Properly structured he believes it will create the right price incentives and discounts and a fund to develop techniques and tools that benefit the whole industry. Together with Kensington and Chelsea and Hammersmith and Fulham, Westminster City Council is preparing an enhanced proposal to put before DfT. Paul Gerrard, National Grid, shared with delegates his thoughts on lane rental. He cautioned that the impact of such schemes on congestion is unclear and unproven and called for proposals to be carefully analysed and only those which demonstrate clear net benefits be considered for implementation, as the costs must be ultimately passed on to energy consumer. He felt in many cases existing road and traffic management legislation was sufficient to manage street works if implemented and applied consistently, and equally to all works promoters. Full assessment of trial schemes is vital to prove net benefits prior to wider roll out.

Metal Theft in the Networks ENA has been campaigning hard to drive out the trade in stolen metal which is impacting on the UK’s energy networks, involving theft of cables, pipes and material from pylons and substations. They are calling for a comprehensive change in the Law. Specifically they would like to see a robust licensing scheme for scrap metal dealers to replace the present registration scheme, a licence fee to fund the regulation of the licence, greater police powers to close unscrupulous dealers in line with alcohol licensing, more police authority to search and investigate premises, use of photo identification and CCTV, vehicle badging for mobile scrap metal dealers and magistrates’ powers to add licence restrictions and prevent closed yards from re-opening.

Delivering Through Partnerships The afternoon session featured a range of excellent examples of partnerships that are delivering real results. Sean Mooney shared J Murphy’s experience of Contractor Alliancing through three case studies:The Process Alliance – involving KMI (Kier, Murphy, Interserve & Mouchel) and United Utilities, Electricity

Alliance North (EAN) which involves Siemens, PB Power and Murphy and Optimise Water (LLP) - a Joint Venture between Murphy, Barhale, Clancy Docwra and MWH undertaking Victorian mains replacement in the Thames valley and North London areas. David Walters and Becky Fuller, Staffordshire County Council, shared how they are using partnerships to deliver innovation and achieve efficiencies. Their model has achieved significant savings and cost efficiencies as well as receiving a number of industry and best practice awards. Tim Sargent, Morrison Utility Services, focused on the importance of keeping customers informed. Expectations are changing, he said, and communicating clearly to the public is crucial. The industry must not underestimate the effect of poor perception on brand reputation. The way we communicate is changing too and we must embrace this and use digital media as a communication vehicle, he said. It is widely recognised that poor quality reinstatements are likely to have an adverse affect on the highway asset, resulting in additional maintenance, unnecessary disruption and wasting valuable resource. Coring involves taking cores of completed reinstatements which are then scrutinised to ensure compliance and monitor the quality of work. Tom Lambert, Balfour Beatty Utility Solutions, reviewed Hauc’s Best Practice Guide and asked if the benefits associated with a structured coring programme were being realised. Mike Farrimond reviewed the progress of the National Underground Asset Groups (NUAG) London Project. The National Records Service (NRS) project is the first stage of a GB wide implementation of the exchange of asset records. The NRS service will enable, through a single enquiry website, the exchange of underground and above ground records between asset owners, such as utilities and Highways.

Exhibition The event was supported by an exhibition which facilitated enjoyable and valuable networking between speakers, delegates and exhibitors. Exhibiting were the event sponsors along with Vac-Ex, Synthotech, Strata Coring, Steve Vick International, LINESEARCHBEFOREUDIG, Northern Powergrid.

years of gas

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Jointly organised by SBGI, IGEM and the Pipeline Industries Guild, a special industry celebration commemorating the forming of the first gas company 200 years ago, took place on 26 April. The event was held at the Best Western Windmill Village Hotel and Conference Centre on the outskirts of Coventry.

REDUCING DISRUPTION IN ROAD WORKS // CELEBRATING 200 YEARS OF GAS

1812-2012

Celebrating

Golf Day The day commenced on a competitive note with a Golf tournament, which saw twenty teams of four tee off. The teams represented a broad cross section of industry businesses, bringing plenty of competitive spirit to the proceedings. With days of continuous rain leading up to event there was concern that the golf course would be affected but it stood up to the poor weather extremely well, with the greens in superb condition, a testament to the Head Professional Robert Hunter and his team. On the day despite a damp start, the rain abated and a great day was had by all.

> SBGI Golf team who came second (but only by one point!) > Cedric Brown

Evening Event Celebrations extended into the evening, with over two hundred people of all age groups, from graduates and apprentices to long serving retired employees turning up to enjoy a guest lecture evening with contribution from leading industry figures. Dave Goodall welcomed everyone then attendees heard from Cedric Brown, ex British Gas Chairman, who gave a fascinating presentation on his industry life across five decades. This was followed by Chris Murray CEO, xoserve who gave a hugely enjoyable review of two hundred years of gas, which included plenty of audience participation.

> Chris Murray

A mid evening refreshment break gave attendees the opportunity to visit the many stands and exhibitions, and enjoy some networking. The formal presentations finished with Les Dawson, Chairman of J Murphy & Sons giving his own unique recollections of life throughout his years working in gas. The evening concluded with the speakers and organisers being awarded with a gift to mark the occasion, followed by a drinks reception, where tales continued well into the small hours!

> Les Dawson

SBGI, IGEM and Pipeline Industries Guild would like to thank the generous event sponsors National Grid, Scotia Gas Networks Enterprise, Balfour Beatty and J Murphy & Sons and the exhibitors Steve Vick International, PSS Plant & Site Services, Capita Symonds, and Pipe Equipment. Photography courtesy of Martin Streets. All images subject to copyright Brightspark Design 2012.

SBGI Utility Business Summer 2012

2012 Gas Industry Awards

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Winners of the 2012 Gas Industry Awards were announced at a special lunchtime awards ceremony in Park Lane, London on 9 May.

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David Mo rga Carl Arntze n – IGEM, Presid ent n – SBGI Chris Mu Presiden rray t Phil Brown – IGEM, Presiden t Elect – IGEM, Im Roger We bb – SBGI, mediate Past Pre sident David Jon Deputy Ch es – SBG ief Exec

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FEATURE - GAS INDUSTRY AWARDS 2012

GAS INDUSTRY AWARDS 2012

UTILITY BUSINESS

Over 700 attendees gathered to celebrate the awards which recognised success, achievement and innovation in the gas industry. Jointly organised by the Institution of Gas Engineers and Managers and SBGI, the annual event included a networking drinks reception, sumptuous three course lunch and topical after dinner address. Following the luncheon and address the announcement of the awards took place where thirteen awards were presented to individuals and companies. The after dinner speaker this year was Malcolm Wicks, Member of Parliament for Croydon North since 1992. During his nine and a half years as a Government Minister he served as Minister of State for Energy on two occasions before taking on the role of the Prime Minister’s Special Representative on International Energy Issues from October 2008 until the General Election in May 2010. He produced an influential report in 2009, Energy Security: a national challenge in a changing world. He is currently Chairman of National Grid Affordable Warmth Solutions. His address focused on European energy security (in a world living dangerously) and he delivered a comprehensive and thought provoking speech. Looking at the challenges facing the industry he remarked on the “myriad of issues…We meet in the wake of the BP Gulf of Mexico disaster, the Fukushima nuclear reactors’ crisis in Japan, at a time when oil is again more than $100 a barrel and when shale gas is a loud new kid on the block. We also await electricity market reform. Moreover, numerous technologies, from nuclear to renewable to Carbon Capture and Storage (CCS), jostle for attention….The future of gas certainly needs to be viewed against this complex and compelling backcloth”.

Moving on to the awards, the presentation party took up their place on the stage. This included the Minister, Carl Arntzen, President SBGI, David Morgan, President IGEM and a representative from the award sponsor. All judging decisions were made (several weeks prior to the event) from the wide range of nominations for the different award categories. It proved an extremely tough job this year due to the sheer quantity of entries and high quality of submissions. The panel of judges included: David Morgan – IGEM President, Carl Arntzen – SBGI President, Chris Murray – IGEM President Elect, Roger Webb – HHIC, David Jones – SBGI Utility Networks, Tim Balcon – Energy and Utility Skills, Tony Hetherington – HSE, Chris Bielby – IGEM, Martin Atkinson – Vector Business Services Ltd, Noel Hughes – GPS PE Pipe Systems, Paul Mallorie – J Murphy& Sons. SBGI and IGEM would like to extend their thanks to the event sponsors GPS and J Murphy & Sons Ltd and to each of the award sponsors.

“The geopolitics of energy insecurity will be a key theme of the 21st century”, he concluded. “This presents new challenges. There is no exact science on this, more a question of risk assessment and judgement. But the loss of relative energy self-sufficiency takes place at a time of rapid energy change and challenge”. He summed up “I believe that gas has a vital role to play well into this century, but the industry has to become a more responsible one and must therefore move fast to develop and implement science and technologies that make a difference.”

> Rt Hon Malcolm Wicks MP

> Carl Arntzen, SBGI President

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FEATURE - GAS INDUSTRY AWARDS 2012

2012 Gas Industry Awards - and the winners are… Gas Safety Award

M1 Corridor Gas Alliance for their “BEYOND ZERO” programme The M1 Corridor Gas Alliance and its partner companies National Grid and AMEC, was recognised for its strong safety culture, proactive management and innovation in its continuing safety journey in the ‘beyond zero’ programme. This has resulted in an impressive achievement of over 4 million man hours without a ‘lost time injury’ (LTI) incident. As John Dowson commented “To put this in context, it has been nearly 3 years without an LTI, working in an area of over 9600 square kilometres, laying in excess of 1200km of pipe (nearly the distance between Lands End and John O’Groats) and to do this we have excavated more than 150,000 holes and interrupted more than 120,000 customers supplies. I believe that this significant achievement has been possible because of our continued hard work and attention to safety on a daily basis.” In a large part due to the professionalism and dedication of everyone over the last 7 years at the M1 Corridor Gas Alliance, a safer working environment exists and everyone should be justly proud of their achievements so far in their journey ‘beyond zero’.

Customer Service Award

Wales and West Utilities

Company of the Year

Fusion Group Ltd Fusion Group gained the prestigious ‘Company of the Year’ award for the first time in its forty-one year history. The award is independent recognition of their commercial and technical success. In spite of economic conditions, Fusion Group increased turnover by 29% in 2010-11 (from £82m to £105.5m in 2011-12). Fusion’s international achievements also caught the eye of the judges – they are one of the three top suppliers of electrofusion equipment and fittings and butt fusion machines into China, the world’s fastest growing major gas market. Fusion has also established a presence in the rapidly developing gas market of Kazakhstan. There has also been considerable success for Fusion Group in the UK gas market too being a major supplier of products and services to Gas Network Operators, Independent as Transporters and GIRS registered contractors. Kevin Raine, Group Managing Director, commented: ‘I believe that Fusion Group’s strong financial performance over recent years, our continued expansion into international gas markets, and the diversity of our portfolio of gas products and services make us deserving winners of the 2012 Gas Company of the Year Award. I would like to thank everyone in the Fusion team, both in our UK and International operations, for the hard work and dedication that have culminated in Fusion receiving this award. Keep up the good work!’

Gas Industry Climate Change Award

Skanska UK Plc

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FEATURE - GAS INDUSTRY AWARDS 2012

Chief Executive of the Year

Jeff Randles, Managing Director, Capita Symonds Jeff Randles lies at the heart of a great success story. He was the cofounder, alongside Les Ireland, of Multi-Tech Contracts Ltd, a privately owned and managed company which started trading in 1990. Jeff has continuously proven to be a motivated, successful and results orientated professional with outstanding people skills. His leadership through periods of change and strategic development have proven paramount to the company’s organic growth and continued success. Jeff has shown great focus, resilience and dedication over the last 20 years to build up the business; he has never strayed from his belief to work smarter, research and develop new technologies and to streamline service delivery. This culminated in the sale of the business to Capita Symonds in 2009. The acquisition has proven mutually beneficial, enabling both companies to further develop opportunities and markets in tandem, particularly in the areas of project engineering and project execution. Jeff Randles said: ‘I am delighted to win the 2012 Chief Executive of the Year Award at this year’s ceremony in London; it’s a great honour to be recognised by my peers, especially as I am in the process of handing over the Managing Directors position of Capita Symonds Industrial to my successor Paul Gledhill and looking forward to a part-time role. I would like to thank the many people we have in our team both now and in the past. We have always been a ‘people’ business and without their commitment and support we would never have achieved the significant growth over the 22 years’.

TACKLINGGAS DISRUPTION OUR ROADS INDUSTRYON AWARDS 2012

UTILITY BUSINESS

Leadership Award

Kutty Prabakaran, UK & Europe Director, Enzen Global Ltd. Kutty Prabakaran received the Leadership of the Year award in recognition of his successfully steering and growing the company from conception. Leading from the front, Kutty has become a trusted personal advisor to his clients and respected leader to his team. Enzen’s growth has taken place against a pre-defined strategy and is focused upon delivering business and systems excellence within the chosen market sectors – Gas, Power and Water. Kutty’s clear vision is to deepen and broaden Enzen’s involvement within these key utility markets, including an expansion into Europe from the existing UK base. Kutty commented; “I’m proud to have received this prestigious Gas Industry award. I feel privileged and humbled to be recognised in this way, this would not have been possible without the trust of our customers and my passionate team at Enzen. We were also pleased to be runners up in the Company of the Year award category.”

Gas Industry Energy Efficiency Award

Wirral Council for their successful community insulation scheme

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FEATURE - GAS INDUSTRY AWARDS 2012

2012 Gas Industry Awards - and the winners are… Gas Industry Innovation Award

International Business Development Award

North London Gas Alliance received the innovation award for their smartphone application. They take up the story…

J Murphy & Sons Limited received the International Business Development Award in recognition of the establishment in March 2011 and success of Murphy Pipe and Civil based in Brisbane, Australia following the downturn in major pipeline activity in the UK. Combining the high standards of the UK and Australian companies in safety, technical expertise and methodology with the expertise of Murphy as the UK’s leading gas pipelines specialist, Murphy Pipe and Civil has quickly grown to become one of the leading players in the Australian onshore pipeline market and is growing rapidly.

North London Gas Alliance More and more people embraced this technology in 2011, equipping themselves with compact, yet powerful, devices; equipment, not just to make calls and take email ‘on-the-go’, but helping them to run their lives more efficiently. Smartphone’s, though, are not only limited to personal uses as NLGA discovered. They successfully developed and implemented a Smartphone application that gas service engineers can use to evidence the air tests they perform on every service connection they relay or transfer as part of the gas mains renewal. But what is all the more remarkable is the total development and deployment costs to deliver this solution have come in under £100k, with year-on-year running costs anticipated to be a quarter of this and perhaps most importantly, providing a level of assurance for both teams and customers, that a safe quality product has been installed, securing their future gas requirements. “Such recognition from the gas industry is an honour, and we are all delighted with the award. Smartphone hardware and development platforms have evolved to a point where field mobility solutions can be very slick, but are relatively inexpensive to deploy – I really hope word starts to get out within our industry, and everyone starts to take advantage of this fantastic technology”. – John Anderson, Data Manager.

J Murphy & Sons Ltd

Kevin McGrath, Director of Murphy Process Energy Pipelines, commented: “Having built the Murphy pipelines operation to be the largest in the UK, we needed to seek new markets to sustain the skilled resources we have built up, and to retain the knowledge and experience in the industry. The Australian gas market offers huge potential within the coal seam gas sector with four large operators undertaking multibillion projects to bring production of gas for export to 40 mtpa (million tonnes per annum). “The young dynamic Murphy Pipe and Civil team has already gained an excellent reputation with its customers and has been driven by a similar philosophy and approach as Murphy itself. Since its inception Murphy Pipe and Civil has completed the first substantial 1,200mm steel pipeline on the SINO Iron Project in Western Australia and has secured a £300m contract with the Queensland Gas Company to install a coal seam gas gathering system.” At the time of the merger, Pipe and Civil had a total workforce of 200 and within a year this has grown to over 450 and will exceed 600 employees by the middle of the year. Murphy was also pleased to be shortlisted in the Leadership and Gas Safety award categories.

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FEATURE - GAS INDUSTRY AWARDS 2012

Business Skills Award

Morrison Utility Services Morrison Utility Services received two awards. As winner of the Business Skills Award the company was recognised for its delivery of the NVQ in Gas Network Operations in an innovative style, using courtroom training scenarios to deliver important safety training and providing on-going mentoring support to coach employees on the job.

GAS INDUSTRY AWARDS 2012

UTILITY BUSINESS

Gas Industry Manager of the Year

Paul Williams, National Grid, UK Construction

Paul Griffiths, one of Morrison Utility Services’ Gas Network Operatives, received the Young Person’s Achievement Award which recognised his determination to succeed whilst part of National Grid’s Young Offender Programme. Paul was cited as: “….someone who has demonstrated that, despite early setbacks and sometimes when it feels that the odds are stacked against you, a determination to succeed coupled with an exemplary work ethic can lay the foundations for a secure and stable future.” Charles Morrison, Chief Executive, Morrison Utility Services, commented: “We are delighted to be recognised twice at the Gas Industry Awards, it represents two major achievements at a prestigious and high-profile event for the industry. For Paul Griffiths and our Skills Development Team these awards acknowledge that they are leaders in their particular fields. These are both winning examples of how our approach to safety and quality are at the heart of everything we do and Paul is an excellent ambassador for us in this respect.”

Gas Industry Engineer of the Year

John McIntosh, Scotia Gas Networks

Gas Industry Young Persons Achievement Award

Jointly awarded to Paul Griffiths, Morrison Utility Services and Nicola Shand of Scotia Gas Networks. 17

SBGI Utility Business Summer 2012

East of England To Focus Inward Investment Through New Energy Zone As many business leaders are aware, managing organisational change is a complex and time consuming process, entailing thoughtful planning and sensitive implementation. Some areas of change, however, may be more critical to the success than others, such as assessing the best location for your business to thrive and prosper. Recognising that competition is fierce amongst different areas of the UK to attract energy sector companies to its region, business and public sector leaders in the East of England have created a distinctive brand, the East of England Energy Zone, to represent the region and communicate the benefits of locating there. The Energy Zone is already home to a thriving energy industry that spans all sectors. The region is responsible for the generation of £12.9 billion annual turnover and the employment of around 103,400 people in 6,200 businesses. The workforce and supply chain also has 50 years’ experience in offshore and marine operations in the southern North Sea. Now, the Energy Zone is standing on the brink of major investment with over £50 billion of capital expenditure planned for offshore wind, nuclear, gas storage and platform decommissioning over the next 20 years. The Energy Zone also is expected to stimulate inward investment of 1£30bn in the energy sector over the next eight years, providing exceptional growth opportunities for businesses and creating jobs within the region through an industry driven skills programme. James Gray, Inward Investment Director, East of England Energy Zone, explained: “This is a time of unprecedented growth in offshore wind and ongoing investment in all-energy in the North Sea. “We are keen to demonstrate what’s on offer in the region and want to ensure that companies investing in all-energy are fully aware of the benefits of locating and operating in the East of England Energy Zone.” Geographically, the East of England is ideally situated to support the offshore wind, oil and gas sectors with Lowestoft and Great Yarmouth being the closest deep-water ports to the UK’s first operational offshore wind farm, the East Anglia Array. The ports have been at the heart of the Operations and Maintenance operations of the offshore energy sector in the Southern North Sea for more than 50 years.

Both ports, which have recently been granted Enterprise Zone status, are within a 70 km radius of a significant concentration of new investment. The Enterprise Zones also qualify for a simplified planning regime and valuable business rate relief available for existing commercial premises there. In addition to these deep water ports, the East of England is also home to a number of other port facilities including Wells and Kings Lynn in Norfolk, Ipswich in Suffolk and Harwich in Essex, all offering easy access to the Hornsea, Dogger Bank and many Round 2 developments. In the past few months the area has been officially designated as one of only five Centres of Renewable Engineering (CORE) by the UK Government, recognising the immense potential the region has to support the development and future maintenance of the world’s largest wind farms. Another area critical for businesses undergoing change is skills. The East of England Energy Zone is ready to meet that demand with Skills for Energy hosted by EEEGR, the industry association for energy in the East of England. Skills for Energy is a unique and widely-admired industry-led programme that focuses on delivering skilled people to the industry when they need them for long term careers and ensuring the existing workforce continues to meet the industry’s needs into the future. It is centred on addressing core skills needs across all energy sectors, both technical and commercial, achieved through collaborative partnerships. The partnership responsible for the East of England Energy Zone is made up of Norfolk and Suffolk County Councils, Great Yarmouth Borough Council, Waveney and North Norfolk District Councils, EEEGR and the Chambers of Commerce for Norfolk and Suffolk. Mr Gray concluded: “The East of England Energy Zone has a strong political and business community commitment to making the region the leader for the energy industry. We would be more than happy to talk to any change managers in the industry about the benefits of locating here.” Further information about the East of England Energy Zone is available from James Gray on 01493 446535.

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Harvard Award Deadline for entries 30th Sept 2012

EAST OF ENGLAND TO FOCUS INWARD INVESTMENT THROUGH NEW ENERGY ZONE // USIT HARVARD AWARD

Enabling Education & Training

USIT is offering sponsorship to attend the High Potentials Leadership Program at Harvard Business School. Harvard Business School Executive Education is not for everyone. Those who accept the challenge, however, will find unique rewards with lasting impact for their companies and careers. Helping companies invest in their most promising and talented executives, the High Potentials Leadership Program readies emerging leaders for managing today’s toughest business challenges while illuminating pathways for longterm success. You will learn how to lead under pressure, champion change, build teams, and develop effective leadership throughout the organisation.

The Award Sponsorship to attend the High Potentials Leadership Program at Harvard Business School in June 2013*. Meeting the needs of top performers who want to grow as leaders, the High Potentials Leadership Program is designed for high-impact, fast-track individuals with more than 10 years of experience in roles of increasing responsibility. The Harvard Award is open to any individual employed in the UK utilities sector and will cover travel, accommodation and course fees. Employers may need to finance additional costs. Gleaning from the insights of faculty experts, the experiences of successful

leaders, and the latest research on management and leadership, you will be ready to embrace increasing levels of responsibility – and success – throughout your career. You will be prepared for both the risks and the opportunities that accompany new roles. You will learn how to: • • • •

Lead under pressure. Champion change. Build teams. Develop effective leadership throughout their organisation.

How to apply Complete an Application Form and send it together with a supporting paper explaining in up to 1,000 words how you expect you, your company and the utilities industry to benefit if you win the Award, by email to info@usit.org.uk or by post to; USIT, c/o Lorraine Wisedale Severn Trent Severn Trent Centre PO Box 5309 Coventry CV3 9FH Closing date is 30th September 2012. A short-list of applicants will be invited to give a brief presentation to a small panel of judges on 23rd November (venue to be confirmed).

*subject to availability, see general condtions

To apply you need to complete the application form available to download on the USIT website www.usit.org.uk/harvardaward.asp or email caroline@sbgi.org.uk for a leaflet. Utilities and Service Industries Training Limited. Charity Registration Number 287700.

SBGI Utility Business Summer 2012

UTILITY BUSINESS

New Members

Axiom Metering Ltd

Lomax Training Services

Axiom Metering Limited (formally known as PH Jones Metering Services Ltd) is delighted to announce their membership of SBGI. Prior to May 2011, PH Jones Metering Services formed part of PH Jones Group Limited who were members of HHIC. In May 2011, the previously associated companies PH Jones Group Limited, PH Jones Limited and PH Jones Facilities Management Limited were acquired by British Gas.

Established in the year 2000, Lomax Training Services provides an extensive range of training programmes to suite a wide range of customers within the energy sector.

PH Jones Metering Services became a stand alone, independent company and did not form part of the British Gas acquisition. Martin Jones and David Burke have continued to manage the new company as Chairman and Managing Director respectively. From 1st June 2012 the company became known as Axiom Metering. Axiom is committed to continuing to operate as a specialist metering organisation providing ‘metering solutions for homes and businesses’. Axiom’s domestic and industrial and commercial utility metering services include maintenance and installation of gas, electric, and water meters on behalf of utility metering suppliers. Through the transition into smart metering, it is our intention to continue to support clients with ‘traditional’ metering solutions. The company holds early experience of smart metering deployment including the British Gas Smart Metering contract which commenced in October 2010 and smart metering trials with OnStream within South Wales and Scotia Gas Networks/Utilita within the South of England. Axiom’s service delivery is focussed on a “customer first” approach, and is committed to quality, efficiency, health and safety, and to reducing the environmental impact of services and operations. The company recognise the fundamental element of assessing engineer’s customer focus and providing support and training to enhance these skills.

Lomax is committed to delivering high quality training and meeting their customers’ needs with the capability to offer a diverse range of courses which are accredited through various awarding bodies including City & Guilds, BPEC Certification, NICEIC, EAL and LOGIC. This allows Lomax to be a “one stop” shop offering a robust training needs analysis and a range of bespoke training services to fit with every specific requirement. In addition, Lomax has strong representation with the sector skills councils, Energy Utility Skills, Summit Skills and IGEM. Although based in the North East of England, Lomax has a highly flexible and professional workforce who can work throughout the UK as well as on an international level. Our current employers/clients vary from major utility organisations to sole traders in the domestic sector. In addition we offer support to new people wishing to develop their skills and gain a career in the industry. Lomax has established good links with the schools to inform youngsters of the opportunities that may be available to them if they are considering a career in the energy industry. In addition to our range of programmes, our highly experienced team can develop any bespoke programme to suit your training needs. CONTACT US: If you would like to discuss your development needs, please contact Tracey Butler on 0191 2623040/email traceybutler@lomaxtraining.co.uk or John Rosenbrier on 0191 2623040/email johnrosenbrier@lomaxtraining.co.uk

Axiom’s business strategy in relation to smart metering is to be recognised as the leading smart metering installer of choice within the UK through: • Safety performance • Client and customer satisfaction • Competitive approach • Innovative solutions The Directors look forward to working with the team at SBGI and their members at this exciting period in our industry’s history.

BGlobal

Current member Utiligroup, a Bglobal company, has extended its membership to include its wider organisation. They will now be known as Bglobal in the membership listing.

www.utility-business.org GAS STORAGE OPERATORS GROUP 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) Humbly Grove Energy Ltd Halite Energy Group INEOS Enterprises Ltd Infrastrata King Street Energy SSE Hornsea Ltd ScottishPower Energy Management Ltd Statoil Storengy WINGAS Storage UK Ltd DISTRIBUTION & TRANSMISSION EQUIPMENT GROUP 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 Ltd Syddal Engineering Limited Synthotech Special Products Limited DATA & COMMUNICATIONS MANAGEMENT Alcatel Lucent Arqiva Bglobal Metering Ltd Electralink ELEXON Ferranti Computer Systems Hewlett Packard Logica UK Ltd Sensus Conservation Solutions Serck Controls Ltd Power Plus Communications AG NETWORK ENGINEERING GROUP GL Noble Denton AMEC Group Limited Balfour Beatty Utility Solutions Bureau Veritas

Carillion Utility Services Clancy Docwra Limited Denholm Pipecare Ltd Enterprise Fulcrum Future Energy Group J Murphy & Sons Morrision Utility Services Morland Utilities Ltd National Grid Northern Energy Connections Ltd Northern Gas Networks Ltd P N Daly Limited Squire Energy Ltd Veolia Water Outsourcing Ltd METERING SERVICES GROUP Axiom Metering Ltd EDF Energy Customer Field Services Energy Assets Ltd (was Pulse 24) E.On Energy Services G4S Utility Services Ltd Gentrack Lowri Beck Services Ltd Providor Siemens Metering Services Tuffentech Services Ltd METERING TECHNOLOGY GROUP D I UK Limited Elster Metering George Wilson Industries Limited Itron Metering Solutions 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 Kingsley Plastics Ltd Lightsout Computer Services Lomax Training Services Ltd Rhead Group Ltd Wilcock Consulting Xoserve

NEW MEMBERS // MEMBER DIRECTORY // EVENTS CALENDAR

Member Directory Events Calendar Utility Regulation 2012 28 June 2012 London, Hogan Lovells

Now in its eighth year, this one day seminar will address regulatory issues primarily across the gas, power and water sectors. This is a well attended industry event which attracts a high calibre audience year after year due to its influential speakers and high level content.

Utility Asset Management 02 October 2012 PricewaterhouseCoopers, London

Now in its fourth year, this seminar will bring together senior decision makers in the energy and utilities sector including government, regulators, network asset management companies, and services providers, to debate the current and future challenges in the industry and to share best practice approaches. The programme will contain a wide range of experience and the event format will provide excellent networking opportunities for delegates.

Utility Metering

20 September 2012 National Motorcycle Museum, Birmingham With the technical specifications finalised, next steps being considered and arrangements for the DCC shaping up, there will be much to update at this yearâ&#x20AC;&#x2122;s annual Utility Metering seminar. The programme will address policy and strategic objectives and gather stakeholder opinion from across the supply chain and data and communications providers.

Gas 2012

31 October 2012 Imago, Loughborough The Utility Networksâ&#x20AC;&#x2122; team is pleased to be working again with the Institution of Gas Engineers & Managers on this high profile annual seminar. Gas 2012 will bring together senior decision makers to debate current and future challenges to the Gas industry with a stimulating programme of distinguished speakers in prospect. The event will follow the usual formula, providing full exhibition and excellent networking opportunities for delegates. For more information please visit: www.sbgi.org.uk/events or contact Vanessa Webster 01926 513763, email vanessa@sbgi.org.uk 21

SBGI Utility Business Summer 2012

Viewpoint It’s Generation Location, Location, Location … but CCS is ‘between the level and the deep blue sea’ says Miles Thomas, operations director, Savills Energy the power division of the global real estate adviser which manages millions of acres of land in the UK. The debate surrounding the security of the UK’s power supplies is less about ‘what’ and more about ‘where’ and ‘when’ it can be delivered. As we know, the UK Government is committed to delivering energy security while accelerating the transition to a low carbon economy. Greenhouse gas emissions are to be reduced by a minimum of 34% by 2020 against a 1990 baseline. All this is against a backdrop of a changing and locally orientated planning system. Security of energy supply is therefore at risk as our existing capacity is exposed to more stringent standards and older plants reach the end of their operating life. Significant investment will be needed in new generation capacity to meet our needs. But where? The optimisation of Britain’s nuclear, conventional and renewable ambitions has faced political and legal peaks and troughs in recent months, but achieving the correct low-carbon mix is as much about practical delivery as it is about political posturing. Strip away the rhetoric, the debates over feed-in tariffs, Renewable Obligation Certificates (ROC)s and Electricity Market Reform (EMR) and you still have a very complex real-estate playing field for large plants, within one of the most tightly regulated development arenas in the world. The consenting regime under the Infrastructure Planning Commission (IPC), and now the National Infrastructure Directorate at the Planning Inspectorate is presided over by planners rather than engineers, as it once was under Section 36 (of The Electricity Act), a factor that has demanded a very different approach from developers of major plant. It is all about location, location, location. The power generation market has moved light-years on from a world where developers could shoe-horn large plants into technically perfect windfall sites. The new world demands a strategic approach in screening for new projects, meaning that the ‘why it is needed’ and the ‘who will develop it’ will define the ‘where is it located’, the ‘when’ and ultimately ‘what technology it will embrace’. As well as costs, power companies have to factor in Government strategy, capacity, carbon capture, capability and financial incentives and levies – from TNUoS to ROCs which, depending on your adopted technology, makes locating in certain parts of the UK much more expensive and challenging than others. Taking Carbon Capture and Storage (CCS) on its own, this is a hugely challenged area. Essentially any new coal plants must have CCS, but the technology is largely unproven and therefore very difficult to fund. To coin a phrase, the business case is ‘between the ‘level and the deep blue sea’ – the carbon price floor isn’t high enough to improve economics, but if its set too high whilst such a significant percentage of capacity comes from unabated coal and gas, it would cause bills would to rise substantially. New gas plants must prove they are carbon capture ready (CCR) - they have sufficient land to accommodate the technology and could feasibly pipe the

CO2 to a point of storage. That is the easy bit, because this strategy must also become viable during the planned plant’s life which limits the siting of new plants to only the most sustainable of locations. The ‘grandfathering’ of Emission Performance Standards (EPS) is a big move and one which will help remove a big risk barrier that these requirements have put in the path of new investment in the sector. Because this effectively sets the allowed level of a plant’s emissions at the point that consent is granted, its at odds with the requirement that all new gas plants should be Carbon Capture ready as if the level of emissions allowed is not changed retrospectively, CCS won’t need to be delivered as a result of the emissions directly; the carbon price would need to reach a much higher level to provide a financial case for it and at the moment there doesn’t seem to be much sign of this happening and some will take the gamble that they will be able to consent, build and run profitable plants on the back of CCR stories that may not be practical to deliver on. If the Government really wants to make it happen, it needs to quickly create the right environment to deliver commercial confidence and be clear about what it wants. To some extent, the CCS plant itself is only part of the story. For example, a large gas plant developed in South Wales would have to demonstrate that it not only had sufficient land for CCS, it would also need to demonstrate that it’s pipeline route for the captured carbon could get it to Morecambe Bay or the North Sea and that during its life such a prospect would become viable. This could require a massive cross-country pipeline through Wales or a connector to a wider network at huge cost – likely to be much more bearable if a number of emitters are clustered together and the consenting and support mechanism is receptive - another potentially huge locationary factor. At present the North East of England seems to be leading the field in terms of this collaborative approach. Ships have been considered but whilst they might be practical for a small part of the logistical solution, it’s difficult to see how they could be a sensible longer-term option. By the same token, on shore storage is likely to face huge opposition as it has elsewhere in Europe due to the health safety issues associated with such a strategy. You have to know where in the country you can connect a plant i.e. where the grid both exists and more importantly where there is capacity, as well as understand and be able to respond to the softer issues that often dish out the unexpected ‘upper-cut’: heat use, local opposition, ecology etc. The supply chain solution for the fuel and construction is also key, whether focussed on a pipeline, road, rail or sea; whether it is prohibitive to move significant components of a plant around the opportunity to secure easements and wayleaves sensitive areas and the potential problems of passing close to housing. Costing routes to avoid such areas can mean miles of additional cable or pipeline through the countryside, all of which all have the potential to kill a project.

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Silverdell steps up as a major player in global high hazard, regulated industrial environments Silverdell Plc, the Specialist Environmental Support Services group, has increased their reach on a global scale following the recent acquisition of EDS Group Holdings Ltd (EDS). EDS are experts in the provision of decommissioning and dismantling services across the power generation, chemical, oil & gas, pharmaceutical, petrochemical sectors. The £15 million acquisition marks an entirely new stage in Silverdell’s growth strategy, providing scope and enhanced capabilities with an established blue chip customer base. Silverdell’s business has grown successfully from a leading asbestos removal and remediation company to a global Specialist Environmental Support Services group and it is this transformation, over the last three years, which has created significant opportunities for the business. Silverdell can now integrate the hugely specialised decommissioning and dismantling capabilities of EDS within the group, to offer a truly unique, end-to-end proposition for the safe removal and management of all kinds of notifiable waste in highly regulated, highly hazardous environments.

Servicing the chemical and pharmaceutical industries, existing projects range from controlled explosive demolitions to the decommissioning of oil refineries, chemical process structures, pharmaceutical production lines and highly contaminated buildings. Owners of such plants have a duty to ensure the sites are safe and cleaned up to meet legislative standards, so decommissioning of industrial plants is viewed as a growing market, a market that will generate significant work for the group.

For further information on Silverdell Plc – the Specialist Environmental Support Services group, please visit www.silverdell.plc.uk

Silverdell’s enhanced position is complemented by the group’s existing capabilities and will attract market niches within their target territories in the UK and overseas, making them well placed to win further large global framework contracts. EDS has successfully won contracts with several multi-national corporations including: Shell, RioTinto, GSK GlaxsoSmithKline, ExxonMobil, Rolls Royce, Pfizer and Ineos.

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