Utlity Business - Summer 2011 Issue

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UTILITY BUSINESS SUMMER 2011 THE QUARTERLY PUBLICATION FROM SBGI UTILITY NETWORKS

In this issue: > GAS INDUSTRY AWARDS The winners of this year’s prestigious awards > UTILITY REGULATION Delivering Investment and Customer Value > LEADING VOICE Utility Business talks to Mark Horsley

The Policy Issue

SECURING OUR ENERGY FUTURE

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SBGI Utility Networks Director: Martin Atkinson martin@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 01926 513763 Services Manager: Gary Cottrell gary@sbgi.org.uk

01926 513764

International Services Manager: David Wilson davidw@sbgi.org.uk 07774 441228 =================================== Chairmen Utility Networks Board: Steve Murray (National Grid Distribution)

Welcome

from your editor Welcome to the summer edition of Utility Business. With some major policy decisions being undertaken by Government, culminating in an energy white paper expected in July, support for investment in energy is at a crucial juncture.

Leading global consultants, Ernst & Young, consider some of the key issues influencing the investment landscape in the cover feature ‘Securing our Energy Future’.

This year’s Utility Regulation seminar also contributed to this debate, as keynote addresses from the Chief Executives of regulators Ofgem and Ofwat highlighted the significant changes taking place to promote investment and innovation in the energy and water sectors.

Viewpoint this issue comes from Roddy Monroe, Chairman of SBGI’s Gas Storage Operators Group, who looks at impacts of the third package on investment on gas storage and Dr Michael Pollitt of Cambridge University comments on the effect of Fukushima on UK energy policy in our Regulatory Update.

Finally don’t miss this issues Leading Voice interview with Northern Gas Networks Chief Executive, Mark Horsley.

Overall a thought provoking issue which I hope you enjoy. If you have any news to share regarding developments in your own company for the next issue, please do drop me a line.

Dist/Trans Equipment Group: Richard Stone (AVK UK Ltd)

Caroline Taylor, Editor caroline@sbgi.org.uk

Network Engineering Group: Ian Foster (Fulcrum)

In this issue…

Metering Services Group: Vic Tuffen (Tuffentech Ltd)

Features

Metering Technology Group: Jeff Cooper (Elster Metering)

The Policy Issue

Gas Storage Operators Group: Roddy Monroe (Centrica Storage)

Gas Industry Awards

Data & Communications Management Group: Mike Buss (Sensus Conservation Solutions)

Utility Regulation

=================================== Editor/Enquries 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

Cover image supplied by Chris Yates

www.utility-business.org

THE QUARTERLY PUBLICATION FROM SBGI UTILITY NETWORKS WELCOME FROM YOUR EDITOR // CONTENTS

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UTILITY BUSINESS

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Securing our Energy Future

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The winners of this year’s prestigious awards

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Delivering Investment & Customer Value

Leading Voice

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Utility Business talks to Mark Horsley

Utility and Services Industry Training

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Enabling Education & Training

Gastech 2011

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Full event report from Conference & Exhibition in Amsterdam

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Regulars Utility Networks News Regulatory Update Industry News Viewpoint Member Directory

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SBGI Utility Business Summer 2011

Utility Networks News Utility Networks Chairman 2011/12 We are pleased to confirm that, following the election process, Steve Murray of National Grid Distribution will continue as Chairman of the Utility Networks Board for 2011/12.

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 North West region, which is an Alliance between National Grid and Balfour Beatty, both long supporters of SBGI. Passionate about driving excellence in the industry, Steve also chairs the panel undertaking the rewrite into one standard of SR/26 & SR/28 (Trenchless Techniques) on behalf of IGEM and is a Chartered Manager and Northamptonshire Branch Treasurer of the Chartered Management Institute.

> Steve Murray

On being elected Utility Networks Chairman, Steve said: “I am proud to be elected for the second year as Chairman of the Utility Networks Board and intend to build on the excellent work done to ensure we maintain the focus in providing a value for money proposition for member organisations and their employees.”

Member Group Chairmen Elections 2011/2012 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 2011/12 are confirmed as: Gas Storage Operators Group Roddy Monroe, Centrica Storage Metering Technology Group Jeff Cooper, Elster Metering Services Group Vic Tuffen, Tuffentech Ltd Distribution & Transmission Equipment Group Richard Stone, AVK UK Network Engineering Group Ian Foster, Fulcrum Data & Communications Management Mike Buss, Sensus Conservation Solutions

New President for SBGI At the AGM on 10 May, SBGI members elected Stuart Godfrey as President for the next 12 months. Stuart is the CEO of Radius Systems Limited, who some may remember as Du Pont (1969 - 1991) or indeed as Uponor (1991 - 2008).

Stuart began his career in 1979 with Du Pont and has been with the business, supplying the gas industry and other utilities, for the following 32 years in a variety of roles through the years, heading up the Management led purchase of the business in 2008. His business’ association with SBGI covers all of this time.

On his appointment as President, Stuart said “I would like to thank members for the privilege of serving the association in this way and for the trust you have placed in me. I am pleased to follow David Jones as President and recognise the good work and effort that he has done in the last year”.

“I intend to consult with the membership about how we can improve SBGI’s presence and leadership in the broader energy and utilities industry to strengthen its position from being the voice of the gas industry, both in the UK and further afield for the benefit of the UK’s strong energy sector.”

I would like to thank and acknowledge the effort and hard work of our Chief Executive of 16 years, John Stiggers, who leaves us soon. He has been a great servant to SBGI.” Carl Arntzen from Worcester Bosch became Vice President. > From left: new SBGI President Stuart Godfrey, and Carl Arntzen, SBGI Vice President

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www.utility-business.org

“John has made a huge contribution to the industry over the last 16 years during its migration from monopoly British Gas into the multi-faceted competitive energy industry we find ourselves part of today.”

Charles Hendry MP Minister of State, Energy & Climate Change, May 2011

> John Stiggers

UTILITY NETWORKS NEWS

John Stiggers moves on after 16 years with SBGI John Stiggers shares a few personal observations on his 16 years as SBGI Chief Executive.

What has been the biggest change during your time at SBGI?

So your role has evolved?

Undoubtedly the move to Camden House in Kenilworth. The offices in Leamington Spa were more than adequate in 1995, when we only had 7 staff, but we now have a team of 24 and provide services for ICOM Energy Association and UKLPG as well as our own members. Camden House has excellent facilities. And even though it is over three times the size of our previous building, we were able to purchase it without breaking the bank in fact SBGI’s reserves now are over 12 times what they were at the beginning of 1995.

Yes – generally gradually, but there was a step change with the formation of the Heating and Hotwater Industry Council and Utility Networks as operational divisions. In my view it was critical to the success of this arrangement that members should recognise their divisional Director as their main senior contact, so I deliberately took a lower profile, but I have missed the level of direct contact with members that I used to enjoy.

How have membership services developed?

Creating things – introducing new events, new publications, new websites, new member groups. But with the exception of one or two difficult personnel situations, I have genuinely found every aspect of my work both fulfilling and enjoyable. Specific personal memories include attending the World Gas Conferences in Copenhagen, Nice, Tokyo and Amsterdam and – on the fun side, experiencing a Buckingham Palace Garden Party and appreciating members’ generous hospitality at various sporting events, including the Rugby World Cup final at Cardiff in 1999. Above all, though, it has been an enormous privilege to meet and get to know so many great people.

Until 1995 the only event was the Annual Lunch and the only annual publication was the Review of Activities. On top of that we now hold a Dinner Dance and about ten seminars every year, publish two quarterly journals, issue two weekly ‘Latest News’ e-bulletins and run three websites. There has also been a great improvement in the scope and quality of our work representing and promoting members’ interests and in other membership services. This is overwhelmingly due to the huge change in the calibre of SBGI staff. I am proud of the contribution made by every member of the secretariat team, which now includes thirteen graduates and eight people with directly relevant industry experience.

Has membership grown much?

Yes, it has gone up from 114 companies to around 200, but these figures understate the real growth. There has been a significant amount of merger and acquisition activity, which has often meant that two or more members have become one. Also many of the companies which have joined SBGI in recent years are much larger than any in membership sixteen years ago.

What has given you the most satisfaction?

Do you have any particular ‘heroes’?

The list of people I have come to respect would be almost endless. It would certainly include every SBGI President I have had the honour of serving, also Roger Webb and Martin Atkinson, who have been the best possible management colleagues to work with. And I would pay particular tribute to Terry Pinchin for his outstanding publication on the SBGI’s first 100 years.

The two people who have inspired me most, however, are Cedric Brown in the early years and Steve Holliday more recently.

What are your hopes for the future?

How has all this been achieved?

By effective team work – both within the secretariat and between staff and members. In the early years I made quite a contribution to that effort. More recently I have let my talented colleagues take the lead in most areas.

I genuinely hope that SBGI will progress further and faster over the next few years on its journey towards serving the wider energy and utilities sector than if I had remained in post. Equally I hope that what I will finally be remembered for is what I have still to achieve. And for all Utility Business readers too, hopefully the best is still to come!

> Clockwise from left: John Stiggers at a Parliamentary reception, the old SBGI offices, Camden House, John Stiggers and Alistair Buchanan CBE

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SBGI Utility Business Summer 2011

Regulatory Update Early summer has seen a period of reflection and analysis by the Government on the range of energy regulation consultation responses described in the last edition of Utility Business – Energy Bill, Electricity Market Reform, and RIIO review of gas distribution and energy transmission price controls from 2013/21 – and as Utility Business goes to press the industry still awaits the primary legislation that will enact these reforms.

Government has published findings from their Review of Ofgem, concluding that the current system should remain but be strengthened to bring greater clarity and coherence to the distinct roles of Government and the regulator. A full report will be published with the electricity market reform White Paper before the summer recess (anticipated to be the 18th July).

There has been progress in moving forward with the price control review process under Ofgem’s new RIIO framework. Huge thanks are due to those supply chain member companies and secretariat staff who have spent time at network operators’ stakeholder consultation meetings putting forward their views to Scotia Gas Networks, National Grid Gas, and Wales and West Utilities.

Ofgem’s Price Control Forum held its 3rd meeting in late May and provided a helpful summary of the common points arising from this consultation exercise.

A key aspect of the gas distribution review is the impact of the HSE/CEPA review of iron mains replacement policy. In light of the proposed changes, Ofgem has moved the deadline back by four months requiring the GDNs to submit their business plans by the end of November 2011, rather than at the end of July 2011.

The transmission review will run as planned and Ofgem remains committed to completing RIIO TD-I and RIIO GD-I in December 2012. We will be keeping a close eye on the aggregate effect of these plans on supply chain requirements.

The Dr Michael Pollitt Column

FUKUSHIMA AND UK ENERGY SECURITY POLICY The Tohuku earthquake and tsunami on March 11th was a terrible natural disaster, with a profound effect on the Japanese energy system.

The two most obvious energy impacts were a nuclear emergency at the Fukushima Daiichi power plant and the severe curtailment of power supplies in the greater Tokyo area. The nuclear emergency knocked out a site with 6 nuclear reactors totalling 4.7 GW (7% of TEPCO’s total capacity), while 4.4 GW of additional nuclear capacity (7 miles away) was rendered unavailable. Energy demand in the TEPCO region is around 6 GW or 15% lower than a year ago. Japan has increased its purchases of LNG in the world market to compensate. This gives rise to four observations on energy security.

First, there are always risks associated with the location of large amounts of a single generation technology at a single site. Individual sites are subject to correlated risks in terms of natural events, transmission problems, civil and union action. Plans to provide energy security by large

one-off projects always have such site specific risks. Any long term UK plan to build several nuclear power plants at one site would need to pay attention to such risks.

Second, wide area interconnection is very valuable.

The Japanese electricity system consists of two weakly interconnected grids - in the east and the west - operating at different frequencies.

TEPCO is on the eastern side of the divide.

Frequency converter stations between the two grids are similar investments to international transmission links. If Japan had had a fully liberalised electricity market there would have been more pressure to increase interconnection between east and west and Tokyo would have had more energy security. In the UK more merchant international interconnection is profitable, and incidentally provides increased security against the catastrophic loss of local generation.

Third, demand reduction and demand flexibility are potentially crucial in handling supply side shocks.

The size of the demand curtailment in the TEPCO region is striking and has been accompanied by

a redoubling of the already substantial Japanese commitment to demand management. The UK may not be able to rely on the same degree of moral suasion as is evident in Japan in a supply emergency but there will no doubt be much to learn when the history of this most recent period of Japanese demand side reduction is analysed.

Finally, the ability to access and rely on international markets for gas (and oil) is a key part of energy security policy. There is a common misconception that international commodity markets are a source of energy insecurity. The Japanese recourse to international markets to shore up energy supplies in response to a domestic incident reveals that the opposite is in fact true.

International markets for oil and gas provide a common pool on which all countries can draw.

A nuclear disaster in a large country may raise the price of gas globally, but only in the same way as larger insurance claims raise the general price of insurance. Far from suggesting that such insurance is unnecessarily costly, Fukushima suggests that it is essential.

Michael Pollitt is a University Reader in Business Economics at the Judge Business School, University of Cambridge and Director of Studies in Economics and Management at Sidney Sussex College, Cambridge. Between 2007 and 2011 Michael was external Economic Advisor to Ofgem, advising on Project Discovery, the Fifth Distribution Price Review, the LENS project, RPI-X@20 and the smart meter rollout, among other projects. He is currently a member of Ofwat’s Future Challenges expert panel. He is also an Assistant Director of the ESRC Electricity Policy Research Group.

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www.utility-business.org

New Energy Labelling

BritNed Undersea Cable Goes Live

From June a new energy saving rating label will apply when buying washing machines, dishwashers and fridge freezers.

The UK and Dutch 260 km BritNed undersea cable went live on 1 April.

The European Energy Label includes a rainbow of coloured bars and an indicator showing how well that product performs. The labels currently run from A-G but the new labels will see the introduction of A+ and A++.

REGULATORY UPDATE // THE DR MICHAEL POLLITT COLUMN //INDUSTRY INDUSTRY NEWS NEWS

Industry News

The £500 million, 1000 MW high voltage connection which runs between the Isle of Grain in Kent and Maasvlakte near Rotterdam transmits power in both directions. The joint National Grid/TenneT venture will help to create a stronger European energy market.

As well as the band indication, the labels will also have figures such as the amount of energy that the product uses (kWh). More products are expected to carry this label in the future, like televisions, boilers and vacuum cleaners.

Fourth Carbon Budget Proposed

Warm Front Scheme Reopens

The UK’s fourth binding carbon budget commits the country to a 50 per cent cut in greenhouse gas emissions between 2023 and 2027 compared to 1990 levels.

Government has reopened the Warm Front scheme to help 90,000 of the country’s poorest households move out of fuel poverty.

Under the system of carbon budgets, every tonne of greenhouse gas emitted between now and 2050 will count. The first three carbon budgets run from 2008-12, 2013-17 and 2018-22 and impose legally binding emissions reduction targets. The proposal puts the UK on course to cut emissions by at least 80 per cent by 2050.

Under the scheme, householders who struggle to afford to heat their home can apply for assistance to install energy efficiency measures up to a value of £3,500 like more efficient heating systems, loft and cavity wall insulation and draught proofing. The budget for the scheme has suffered a cut in the Spending Review, with £110 million available this financial year and £100 million in 2012/13.

Golfing Circle 27 golfers turned out for the first Circle of the year and enjoyed an excellent day at Sutton Coldfield Golf Club. Winners of the morning Greensomes event (Chairman’s Cup) were Gary Wignall and Gary Whittle.

The three afternoon winners in the low, mid and high handicap categories were, respectively, Gary Wignall (Davis Cup), Dave Robinson (Thornton Victory Cup), and David Jones (Sir Arthur Duckham SAGEM Cup).

Thanks again to Win Ellis (Secretary) for arranging such a great day.

The Circle looks forward to seeing its members and guests at the Captains Challenge Day (July 5th, Ladbrook Park GC) and at its Autumn meeting (5th October, King’s Norton GC).

> David Jones receives the Sir Arthur Duckham SAGEM Cup from Circle Captain Gary Wignall

If you would like to find out more about the SBGI Golfing Circle, please contact Martin Atkinson martin@sbgi.org.uk 7

SBGI Utility Business Summer 2011

Securing Our Energy Future

By Bill Easton & Filippo Gaddo Just over a year ago, the new UK Government won plaudits from the energy sector by recognising the need for policy changes to help meet the 2020 carbon reduction targets in the first Queen’s Speech of the new Parliament.

The positive climate was maintained with the publication of the Electricity Market Reform (EMR) consultation paper in December which proposed four potentially significant reforms to encourage investments in low carbon generation. However, six months on, the mood music in the industry is in danger of changing. With around a month to go until the EMR White Paper is due to be published, Bill Easton and Filippo Gaddo from Ernst & Young’s Utility Sector team look at the complex challenges facing the industry and the Government.

Solving the investor’s trilemma Over the last two years, there has been much debate about the trilemma faced by energy policy, as potentially competing dimensions of efficiency, carbon reduction and security of supply need to be balanced. This trilemma was at the heart of the initial thinking around the EMR and the core objective of encouraging investment in low carbon without increasing risks to the security of supply.

This presentation of the trilemma facing policymakers recognised that investors faced difficult decisions around their choice of generation technology. However, events over the last six months have emphasised that this is actually only one of the critical questions facing investors. Arguably, investors face their own trilemma of issues: • Which generation technology to invest in?

• How much generation to invest in given all of the things happening elsewhere in the energy value-chain?

• And last, but by no means least, where to invest – recognising that other energy markets also offer opportunities in addition to those in the UK? Since publishing the EMR paper, the Government has also been actively progressing substantial policy measures around smart metering, energy efficiency, the Green Deal, distributed generation, feed-in-tariffs and the encouragement of active demand response. To illustrate the challenges for investors here, the recent paper published at the first meeting of the Smart Grid Forum identified no less than 19 different policies impacting on the potential value of smart grids. While this admittedly was a slightly different context, the great majority of the policies identified are entirely relevant to an investor considering a generation project.

These policies are potential game changers for utilities, both because of the transformation they will create in the role of suppliers and their relationship

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with consumers, and because of the potential to significantly reduce the demand for ”traditional” centralised generation and alter the daily and seasonal production profiles required. So investors in generation may no longer focus solely on the technology and engineering considerations such as the speed with which new technologies will become commercial or the challenges of project planning and construction. They must now also consider the commercial risks faced by different forms of generation under a wide range of demand scenarios depending on how well, and how quickly, these other policies deliver results.

Although other countries are also seeking to increase their use of renewable generation, the UK alone has made the achievement of carbon reductions a statutory requirement. Combined with the reduction in available indigenous fuel sources, this has made the policy trilemma particularly acute in the UK. So when combined with the rapid growth potential in markets such as China and India, along with the progressive regulatory squeeze on returns in parts of the UK energy industry, there is a danger that the UK could potentially lose ground as a preferred option for international investment.

A difficult six months for investors The investor’s trilemma has been heightened by a number of regulatory issues in the UK and also international energy market developments.

Alongside the EMR, Ofgem has launched Project Transmit which looks at the pricing for the usage of, and connection to, the three electricity transmission systems in the UK. Given the potential changes to the generation fleet in the next few years, the underlying issues are clearly important. Indeed the range of outcomes from Project Transmit could have a material impact on siting decisions for new generation.

Additionally, Ofgem’s review of the retail market (RMR) has created an element of uncertainty in the marketplace. While Ofgem will point to their primary duty to protect current and future customers as the reason why they felt compelled to investigate following domestic price increases in 2010, it remains important to ensure the right connections are made across the different points of the value chain.

Gaining consumer acceptance is key to getting adequate and sustainable rewards from investments. There is an argument that repeated regulatory reviews will impact adversely on consumers’ confidence and their understanding of the underlying drivers of energy prices. Concerns on pricing in the retail market may risk making it more difficult for investors

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The complex task facing the EMR White Paper First and foremost, it is essential that the White Paper provides real clarity on how the four different EMR policy strands will be implemented, and how they will work together. Critical investment decisions have been put on hold while the EMR consultation process has run its course. While this has not yet impacted on projected go-live dates to any great extent as preparatory work has continued, a number of key commitment decisions do need to be made in the next 12 months or else dates will start to slip. Ideally, there will also be clarity from Ofgem or DECC around the same time as to how Project Transmit outcomes will be managed to allow siting decisions to be finalised.

These tasks are demanding enough, but after developments in the first half of 2011, there is also a real need for the White Paper to address issues around the confidence of both investors and consumers in energy policy and the energy market. Given the costs of the transition to a low carbon energy sector and all the associated policy initiatives, some further increase in

SECURING OUR ENERGY FUTURE

to raise the finance necessary for the ÂŁ200bn investment programme that is essential to achieve the statutory requirements of the Climate Change act. Indeed, there is also a risk of undermining consumer acceptance of the whole thrust towards a low carbon energy sector, especially when set alongside recent international developments following the nuclear accident in Japan and the political instability in the Middle East.

costs is inevitable even without any further developments in international commodity prices. Equally, the financeability of the necessary investments does depend on there being adequate returns in the UK, both in absolute terms, and also relative to returns in other countries. Since these are inevitable consequences of the chosen energy policies, it is becoming essential that Government, Regulator and Industry work together in gaining consumer acceptance for these. Failure to do so risks creating a vicious circle that the transition to a lower carbon energy sector becomes progressively less effective and more costly.

Further information from: Bill Easton beaston@uk.ey.com Filippo Gaddo fgaddo@uk.ey.com www.ey.com

“Over the last two years, there has been much debate about the trilemma faced by energy policy, as potentially competing dimensions of efficiency, carbon reduction and security of supply need to be balanced�.

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SBGI Utility Business Summer 2011

Sustainable Utility Connections

The guest speakers…

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Kindly sponsored by Fulcrum, gtc, and Murphy Group, with special thanks to Clive Linsdell, Chairman for the day.

Around 90 delegates gathered at the Chesford Grange Conference centre on 12th April to receive an update from key industry participants on utility connections – this year themed around sustainability.

Jointly produced by SBGI and SBWWI, covering both energy and water connection issues, the programme also included an update on ‘connecting broadband Britain’, now the responsibility at government level of the Department for Culture, Media and Sport. It was revealing to see the UK as a ‘mid-field’ player in terms of superfast broadband coverage and deployment with South Korea and Japan heading the field.

So what will connecting a zero carbon home mean for utility infrastructure providers? A difficult question indeed, as the goal posts continue to shift in this area. However the Homes and Community Agency offered a fascinating insight into heat networks, passive heating and other low carbon approaches and tackling some of the practical issues in urban regeneration projects. It was also fascinating to see the project history of Severn Trent’s new HQ building (STC) delivering a reduced carbon footprint of some 74%.

Both energy and water regulators offered an insight to how the competitive market for connections is emerging. Against tough figures for new housing starts, over 50% of gas connections are now provided by independents compared with less than 15% in metered electrical connections. DNOs cited greatly improved customer service levels in response to the competitive challenge.

The seminar was concluded with some interesting perspectives on innovation in PE fusion technology, data acquisition and skills development. Huge thanks must go to all presenters for providing such an interesting and varied day.

> Our speakers 1. Clive Linsdell (Event Chairman), 2. James Veaney (Ofgem), 3. Andrew Walker (Ofwat), 4. Emyr Poole (Homes & Communities Agency), 5. John Cockaday (Department of Culture, Media & Sport) 6. Paul O’Donnell (Scottish Water), 7. Mark Crump (Severn Trent Water), 8. Ian Foster (Fulcrum), 9. Steve Wood (UK Power Networks), 10. Steve Hobbs (Consumer Council for Water), 11. Tom Brough (gtc) 12. Jim Allen (Western Power Distribution), 13. James Worthington (Anglian Water), 14. Nick Mark (Fusion Group), 15. David Green (GB Group), 16. Phil Burnett (E&U Skills)

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SUSTAINABLE UTILITY CONNECTIONS // GAS INDUSTRY AWARDS 20111

UTILITY BUSINESS www.utility-business.org

FEATURE

Gas Industry Awards 2011

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SBGI Utility Business Summer 2011

Gas Industry Awards 2011 Recognition for Achievement, Success and Innovation in the Gas Industry

Gas Industry Safety Award winner Underpinning Knowledge Testing Programme, British Gas

Sponsored by:

Gas Industry Customer Service Award winner Wales and West Utilities

This year’s Gas Industry Awards Luncheon at the London Hilton Hotel, jointly organised by the Institution of Gas Engineers and Managers and SBGI, was attended by around 700 senior representatives and distinguished guests.

This annual event, which includes a three course lunch, effective networking opportunity and topical industry keynote address, recognises significant achievement in the gas industry and acknowledges accomplishment and innovation.

In his luncheon address, Charles Hendry MP, Minister of State, Energy & Climate Change highlighted the vital role gas plays, and will continue to play in the future energy mix. The Minister admitted the agenda was challenging and that the outlook for gas has changed beyond recognition but reassured the audience that Government was reacting to this reality.

Sponsored by:

Gas Industry Manager of the Year Award winner Julia Deans of Scotia Gas Networks

In the transition to a low carbon economy, gas with CCS will be part of the UK’s long-term future energy mix to 2050. Government is pressing forward with proposals in the current Energy Bill to improve resilience to events that could disrupt supplies and help underpin commercial demand for the additional infrastructure needed in the future. And energy efficiency is also crucial, hence the commitment to the major rollout of smart meters. Charles Hendry took the opportunity to thank the industry for the huge investment they have made in it.

Following the luncheon and Keynote Address, the announcement of the awards took place.

Twelve awards recognising significant achievement within the gas industry were presented by the Minister, Philip Brown, President IGEM, Stuart Godfrey, SBGI President and a representative from the award sponsor.

The Institution of Gas Engineers and Managers also made a special presentation of the Institution’s Birmingham Medal, awarded in recognition of outstanding achievement in the objectives of the Institution. The award went to Chartered Engineer, Fellow of the Institution and member for almost 50 years, Gordon Davies.

Sponsored by:

Energy & Utility Skills Business Skills Award winner British Gas Smart Metering and Engineering Academy

Sponsored by:

> Charles Hendry MP

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National Grid Grain LNG

Sponsored by:

Gas Industry Leadership Award winner Kim Challis, Managing Director, G4S Utility Services

Sponsored by:

Gas Industry Innovation Award winner The Beam Drilling Development Team

Sponsored by:

Gas Industry Young Person’s Achievement Award winner Richard Lowes of Scotia Gas Networks

Sponsored by:

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Gas Industry Chief Executive of the Year Award winner John Morea, Chief Executive Officer, Scotia Gas Networks

GAS INDUSTRY AWARDS 20111

Gas Industry Company of the Year Award winner

Sponsored by:

Gas Industry Energy Efficiency Award winner Walsall Housing Group

Sponsored by:

Gas Industry Engineer of the Year Award winner Simon Fairman, National Grid Grain LNG

Sponsored by:

Gas Industry Climate Change Award winner National Grid Meter Assessment and Recycling Centre

Sponsored by:

Event Sponsors

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SBGI Utility Business Summer 2011

> Alistair Buchanan, Ofgem

> Regina Finn, Ofwat

> Sonia Phippard, DEFRA

Utility Regulation -

Developing Investment and Customer Value Over 100 delegates caught up with the latest industry thinking at a high profile update in London, in June.

The resounding message that emerged from this year’s seventh annual seminar was that of change. In fact the regulatory environment within energy and water is undergoing significant change and we should anticipate a much different landscape going forward.

Huge investment is required in network infrastructure to ensure that energy and water supplies continue to be available, balanced with keeping prices at levels acceptable to consumers and it is a hugely challenging and exciting time for Government, regulators and the regulated.

Over the years, this event has offered leading edge insight into the thinking and planning underpinning developments in Utility regulation, and this year’s event was no different. With contribution from senior industry players the event highlighted the processes now in action bringing about major transformation.

In energy, Alistair Buchanan, Chief Executive of regulator Ofgem said that “everything was new”. As we move away from the old RPI-X regulation into the new RIIO (Revenue, Incentives, Innovation, Outputs) from 2013, it is already occupying the transmission and distribution companies who must produce their business plans for Ofgem by this July (November for the GDNs).

Alistair reported that an Energy White Paper would be delivered this summer, that Government would likely revisit security of supply in Gas in the short term and spoke of continued activity in the review of retail markets, which commenced with the market probe back in 2008. As well as the profound challenges facing Government with regard to climate change, carbon targets and security of energy supply, Europe is also influencing the agenda and Alistair spoke of likely energy efficiency targets to come out of Brussels soon for SME’s.

A ‘mid-term’ review of RIIO gave a mostly positive conclusion to how it is shaping up to deliver the investment and innovation needed in the energy transmission and gas distribution sectors.

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Over the past twelve months just about every element of water regulation has been scrutinised and consulted on, with the Gray review of Ofwat and Ofwat’s own strategic review. Regina Finn, Water Regulator Ofwat’s Chief Executive, said their finding showed the industry to have evolved a culture of dependency, narrowly focussing on what the regulator wanted.

This needs and is set to change, in the first instance with the abolition of June returns – a significant leap of faith, she described. She called for substantial cultural and behavioural change. Customers feel disengaged there is too much complexity, lack of customer focus and above all poor understanding of the value of water.

The focus needs to change to be on the consumer, the environment and outcomes. Going forward a broader philosophy will be applied with outcome based regulation fit for the future, that rewards high performing companies.

A Water White Paper will be published by Government in the Autumn, reported Sonia Phippard of DEFRA. Speakers from the industry professed broad support for the reality of this new era of regulation, highlighting the importance of sound business planning. They shared their experience of the new requirement for stakeholder engagement and, most encouragingly, fed back the changing language within their organisations - from the boardroom down. There is underway a much greater focus on the customer, on outcomes, on innovation, on efficiency and accountability - much more so in energy than in water, though inevitably this places the water industry in an excellent place to learn from the experience in energy.

Looking ahead to a smart grid future Ernst and Young challenged whether recent developments in regulation would be sufficient to support its progress. A paradigm shift in thinking may well be required they warned – and soon.

www.utility-business.org > Mark Lane, Session 2 Chairman

> Alan Sutherland, WIC Scotland

> Tony Ballance, Severn Trent

> Tony Smith, Session 3 Chairman

> Martin Beesley, Morrison Utility Services

> Steven Edwards, Wales & West Utilities > Paul Whittaker, National Grid

> Simon Hobday, Pinsent Masons

> Richard Postance, Ernst & Young

> Paul Sankey, SEAMS

> Hannah Nixon, Ofgem

> Dr Michael Pollitt, University of Cambridge

TACKLING DISRUPTION ON OUR ROADS UTILITY REGULATION - DELIVERING INVESTMENT & CUSTOMER VALUE

> Bill Easton, Session 1 Chairman

> Dr David Zetland, University of Wageningen

It was enjoyable to hear input from the world of academia. Imagine a world where Utilities insure their operational performance in the external insurance market, posed Dr David Zetland from the Netherland Wageningen University, in his review of ‘Bad and Rad ideas for regulated utilities’. Dr Micheal Pollitt from Cambridge University looked at Offshore transmission and reviewed the US system of pricing network access to see what lessons could be learnt.

SBGI is grateful to all the day’s speakers for making the event such a resounding success. Thanks also to the event sponsors:

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LEADING VOICE

SBGI Utility Business Summer 2011

In the second of a new series of interviews with senior industry figures, Utility Business was delighted to catch up with Mark Horsley, Chief Executive Officer of Northern Gas Networks.

In the post since January 4th, Mark Horsley has had a busy first few months at the Gas Distribution Network operator Northern Gas Networks (NGN). In fact, he could probably not have joined at a much busier time, with the inevitable aftermath of a region having just experienced the worst winter on record in the past 100 years.

Additionally, in November 2010, services previously provided by dedicated contract subsidiary United Utilities Operations Limited (UUOL), were brought back “in-house” to develop a fully integrated operating model, creating many new challenges. And on top of this, a brand new price control framework is looming.

“But I wouldn’t have it any other way”, shared Mark, “it’s been a great introduction to a very good team.”

His decision to join the gas business was an easy one. “Our majority shareholder, CKI, has a strategy of long-term ownership and stewardship of assets. This, together with their core values, made joining the company a very easy decision”, said Mark.

Originally from York, Mark is pleased to be working and living back in the area again after a career that has included time in the US. He began as an apprentice with the North Eastern Electricity Board and rose through the ranks to become the President and Chief Operating Officer of CE Electric UK in 2003, running the Yorkshire and Northern power distribution businesses, and a power contracting business in the UK and Ireland. Previous to the NGN role he was a Partner at EC Harris, an international built asset consultancy and prior to that he was a Director at Scottish Power.

With a workforce of 1,200 full time and 800 contracted staff, NGN is a sizable operation. The network area extends south from the Scottish border to South Yorkshire covering West, East & North Yorkshire, the North East and northern Cumbria, containing a mixture of large cities - Newcastle, Sunderland, Leeds, Hull and Bradford and a significant rural area. It serves approximately 2.6 million customers through a pipeline network 37,000 kilometres in length, supplied from 23 off-takes from the National Transmission System.

With more than 30 years in the energy industry Mark feels he has the required experience, knowledge and ideas to bring to the position, with an understanding for what will work and what won’t, and he has an obvious passion for the role. He appears to have a steely determination for the business to succeed and a great sense of responsibility in his position at the helm.

Although the business operates autonomously to UK Power Networks (the electricity distribution business also owned by CKI) he does converse regularly with former NGN Chief Executive, and new Chief Executive of the electricity business, Basil Scarsella.

Both organisations have independent boards and focus on their respective business areas, but they do look for cost synergies and opportunities to learn from each other.

There are three core challenges for Northern Gas Networks, as he outlined. i)

Improving efficiency – which is a journey that never ends.

ii) Improving customer service – his objective is to be even more customer focused, which he is working towards through a commitment to weekly customer service meetings with managers of all levels reviewing issues and discussing best practice. iii) Maintaining a high degree of integrity in the network and in safety. This, he believes, is ingrained in the organisation, part of its DNA. Mark believes the new price control framework, RIIO, will require the business to develop its thinking and change its thought processes. There is much greater emphasis on innovation and understanding asset performance, which the businesses new integrated operating model should go a long way to supporting.

Mark fosters a desire to get people throughout the organisation involved. How is he going to achieve this? “Great ideas can be stifled”, he said. “My senior management team and I will back new ideas and allow people to try things. Businesses learn through mistakes (we obviously don’t want to make them twice!).

I want to encourage freedom of thought, ask questions, challenge conventional wisdom, break down the tiers. A cultural shift is required to encourage more innovative thinking but not just in response to the price control. It is an energy force within a business, a continual process, a series of incremental changes over time, a constant flow, a fluidity, not a knee jerk reaction but a long term process”.

He believes Northern Gas Networks is well placed to meet the demands of RIIO in 2013 and is looking forward to presenting their business case to Ofgem in the Autumn. Their recent stakeholder engagement programme went well and proved extremely useful, but there is no right or wrong process, he concluded. They are at an excellent starting point to move forward to the next level, building on the significant achievements of the last five years.

Our thanks to Mark Horsley for generously giving up his time on a Monday morning for this interview and to Communications Director, John O’Grady, and the NGN team for putting the arrangements in place, providing images etc.

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www.utility-business.org

LEADING VOICE // USIT – ENABLING EDUCATION & TRAINING

“As Chairman of USIT I am delighted that SBGI has agreed to become a partner organisation. I am confident that with SBGI onboard we will see more candidates from the energy sector coming forward and securing our support to help them fulfil their potential.”

Martin Kane Chairman USIT

SBGI signs up to new partnership with USIT

Utilities and Service Industries Training Limited or USIT is a charity providing grants and bursaries for education and training for the utilities industries. The organisation is passionate about the future of utilities and its objective is to support and advance education and training for the public benefit, particularly in the water industry but also in other public utilities, the service industries and Government departments and agencies. USIT was established in July 2004 after the sale of the assets and businesses of Water Training International (WTI).

USIT Trustees include: Martin Kane (Chairman) Director of Customer Relations, Severn Trent Water Ltd

Tony Cooke Former Managing Director, Bournemouth & West Hampshire Water PLC

Lynn Cooper Chief Executive, Institute of Water

David Smoker Business Development Director, Saint-Gobain PAM UK Ltd

Bob Hodge Secretary

The Awards There are currently three training awards on offer:

Harvard Award The Harvard award sponsors attendance of the ‘High Potentials Leadership Program’ at Harvard Business School. USIT is committed to providing funds for overseas studies, which is an integral part of increasing skills levels in the utilities industries. This award is open to any individual employed in the utilities sector. The award will cover travel, accommodation and course fees and it is recognised that employers may need to finance additional costs.

To enter candidates will be asked to write a short paper in support of their application based on what the development provided will do for the individual, his/her company and the industry as a whole in the years to follow.

Applications are now invited for this award with a closing date of 30th September. See http:// www.usit.org.uk/harvardaward.asp for general conditions and application form.

Business Skills Award This award offers sponsorship of up to £7,500 to attend an established academic or training course in the UK which is relevant to the Utilities Industry. This award is primarily designed to assist individuals to benefit from opportunities that would not normally be available to them from their employer’s ongoing training and development support arrangements. Awards will be made based on industry needs as assessed by the Trustees.

The award may also be made available in circumstances where the Trustees are satisfied that alternative sources of funding are not available, to those in full time education wishing to take a qualification of long term benefit to the Utilities Industry. Awards will be limited to £7,500 and it is recognised that employers may need to finance additional costs. The award will concentrate on

assisting individuals of any discipline and level who are striving to develop their career in a manner which is seen to be of benefit to the industry.

Typically USIT will award five Business Skills Awards in any given year. Applications for 2011 are now closed but applications for 2012 will open 1st Jan 2012.

CPD Award The CPD award sponsors delegate fees plus allowances towards accommodation for attendance of a conference or seminar run by a partner organisation.

SBGI Involvement SBGI is delighted to have been approached to become a partner organisation. Through SBGI’s direct involvement we hope to broaden significantly the range of applications for USIT awards.

Our annual seminar programme is, for example, an excellent way for new entrants to the sector to gain an understanding of the ‘hot topics’ in gas and the wider energy and utility sector commercial issues.

We are looking forward to welcoming the first CPD award winners to our autumn events programme.

If you would like to find out more email: usit@sbgi.org.uk

For more information visit the website www.usit.org.uk 17

SBGI Utility Business Summer 2011

Gastech 2011

SBGI supports Members at the 25th Gastech Conference and Exhibition.

The Gastech 2011 Conference and Exhibition, this year hosted by Shell, was a major opportunity for all sectors of the international gas industry to display and promote their products and services to a world wide audience of gas professionals.

This 25th Gastech event took place between the 21st and 24th March at the RAI in Amsterdam. Official figures recently released show that there were almost 10,000 visitors, including 1,616 conference attendees, to the four day event. This year saw an increase in exhibition floor space to over 14,500 sq metres with 408 exhibitors from some 34 countries taking part and SBGI were pleased to secure stand space for this sell out event.

The Exhibition

The Conference

SBGI International Services organised and hosted the ‘SBGI Pavilion’ where five members were able to showcase their technology, services and products.

The 84 sq m Pavilion featured members - BDR Thermea, Crane Business & Utility Services, Gas Measurement Instruments Ltd, Syddal Engineering Ltd and Technolog Ltd.

Although the SBGI focus was primarily on the trade Exhibition, the Conference was also a major feature of the event. Attended by 1,616 delegates, the Gastech 2011 Conference featured more than 120 of the industry’s most prominent speakers and representatives, with four days of ministerial keynote speeches and addresses, commercial, technical and specialty presentations, question and answer sessions and panel debates.

Additionally a number of other SBGI member and associate member companies were also exhibiting independently. These included Aeon International Ltd, BG Group plc, GL Noble Denton and Sarco Stopper Ltd. The ‘SBGI Pavilion’ featured not only the five individual exhibitor areas but also a private meeting room, kitchen facilities, store room, a plasma screen with rolling presentation and wifi facilities. SBGI provided full administrative support to exhibitors both before and during the Exhibition and corporate support throughout was provided by Ana Ray and David Wilson.

While several exhibitors expressed the view that more trade visitors to the exhibition would have been desirable, the official statistics and initial data from the companies on the SBGI stand in terms of the total number of contacts and trade leads established suggests that the event was nevertheless a success.

Designed and built by Best Expo, the ‘SBGI Pavilion’, by making the best possible use of UKTI’s distinctive ‘UK Energy’ branding alongside the SBGI logo, ensured that it stood out well against the background of other stands and basic ‘shell schemes’. It was easily visible to potential visitors, and offered a corporate ‘UK’ feel to the stand despite the fact that it was not the official ‘UK Pavilion’.

SBGI and the members exhibiting on the stand were supported on the logistics side of things by Agility. Both Best Expo and Agility provided an excellent service and especially when interfacing with the RAI authorities.

The Exhibition was also supported by over twenty other trade associations and technical bodies and SBGI were pleased to work with colleagues from IGEM and to display some of their literature in the SBGI Corporate area.

The Conference covered subjects such as the Global Market Outlook, Developments in Safety & Training, Natural Gas & LNG Projects and Advances in Gas Technologies.

Gastech introduced a new approach for this year’s event resulting in the traditional Conference and Exhibition boundaries becoming less well defined. COTEs (Centres of Technical Excellence) were trialled and provided exhibition floor presentations throughout the four day event on a range of technical issues facing the gas industry world wide. Of particular note were presentations on the latest technical and product innovations.

Both the Conference and Exhibition featured aspects of ‘unconventional gas’ and its growing impact on gas supply markets worldwide. Much emphasis was laid on the opportunities for innovative companies to assist in developing new technologies to fully exploit this ‘new’ source of supply.

Gastech 2012 - London ExCel The 26th Gastech Conference and Exhibition will be taking place at the award-winning ExCeL Conference & Exhibition Centre in London’s Docklands between the 8-11 October 2012.

The SBGI Secretariat is already in negotiations with the organisers about the event and has identified space opportunities. It is anticipated further information will be provided to members in mid or late July 2011.

In the meantime, if you want to express interest in exhibiting at Gastech 2012 or find out more about the event contact Ana Ray: ana@sbgi.org.uk

“The SBGI’s help and organizational skills for the Gastech event were excellent. The Wask stand was constructed to a high quality as were all the other stands within the SBGI Pavilion.”

Marc Hough Sales Director - Gas, Crane Building Services and Utilities

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www.utility-business.org

GASTECH 2011

“The stand design, position and organisation provided by the SBGI was very good and contributed to Gastech being a successful exhibition for our Company.�

Andrew Holmes Managing Director, Syddal Engineering

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SBGI Utility Business Summer 2011

Viewpoint Roddy Monroe has been Chairman of the Gas Storage Operators’ Group for the past 4 years and has been involved in energy regulation for somewhat longer; here he provides his observations on the EU Third Energy Package and how it may impact on Gas Storage Investment

The EU Third Energy Package: good or bad for storage?

The high level objectives of Third Package are indeed laudable if not perhaps overly optimistic.

The market failures it sets to address are not trivial; the continuing market power of incumbents in many Member States, the inadequate separation of network and supply companies leading to foreclosure of new entrants and investments, and lack of cross border integration of networks and cross border regulatory supervision. I wish it good luck; it will need it.

However, my real interest lies in what this piece of EU wide legislation means for gas storage in the UK and the much needed investment this sector is crying out for.

The requirements for gas storage facilities are intended to improve the efficiency of wholesale gas markets across Europe by ensuring objective, transparent and non-discriminatory access for all. However, irrespective of how sound the principles, the prescriptive nature of the arrangements, combined with uncertainty regarding how regulators both in UK and other member states do create real challenges for those seeking to move their projects to a positive final investment decision. In the following sections I offer thoughts as to the nature of those challenges; it is hoped that this will be of interest to both those considering investing in Storage and those who are involved in transposing and implementing the legislation.

Prescriptive requirements In relation to the individual requirements, the Third Package (as it is likely to be transposed into UK legislation) will make it more challenging for storage operators to respond to changes in market demand, or the needs of individual customers quickly. Requirements to consult the market are very important for preventing discrimination. However, these requirements could also stifle innovation if lengthy consultation processes are required for each new product (and associated contract). Such requirements make it more difficult to test market demand or provide unique products to individual customers. The market for flexible gas is liquid and competitive; providers range from traders,

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producers, importers to large users. It is essential that those transposing and implementing the Third Package recognise this and do not unintentionally create an unlevel playing field which will increase the risk that the Storage System Operators (SSO) will not be able to maximise the value generated by the storage facility, and therefore the potential returns on the investment.

In addition, rules about the mix of services, particularly in relation to long and short term contracts, add to the challenges of securing investors for new facilities. Despite the direction provided by Ofgem, it is unclear as to how much capacity SSOs must set aside to offer on a short term basis.

Interpretation of the allocation mechanism requirements also poses challenges for companies considering investing in new storage facilities. A significant challenge is presented by the inability of investors to reserve any capacity for their own use. Although the non-discrimination provisions are based on sound economic reasoning, there is an internal challenge explaining to those holding the purse strings why a timely and costly allocation process must be engaged in if the primary purpose for the facility is to balance its gas portfolio. The costs and difficulties will also be greater for those companies that do not already have a legally and operationally separate SSO. The transparency requirements could also negatively impact on the investment case for new storage developments. Providing more information regarding how storage is being used, even in aggregated forms, particularly when combined with other reporting requirements of the Uniform Network Code (UNC), could result in increased cost for storage operators when the facility is under stress (i.e. unable to flow at its technical maximum capacity).

Regulatory uncertainty Perhaps the greatest challenge for those looking to invest in storage is presented by the uncertainty associated with how the regulator is likely to interpret these requirements of the third package in practice. There is always

www.utility-business.org

VIEWPOINT an inherent sovereign risk when investing in regulated sectors. However, currently those risks seem unnecessarily high. There are two reasons for this heightened uncertainty. The first reason is commonly noted and stems from the numerous and often conflicting objectives of national regulators.

The second is the increasing appetite for intervention in the market at all levels (EU, Government, and national regulators). These factors appear to have resulted in a shift away from facilitating competitive markets to deliver the best outcomes in relation to infrastructure investment.

The fact that energy market regulation appears to be shifting away from a competition driven focus creates real uncertainty for investors as it makes it far more difficult to predict how the regulator is most likely to interpret the requirements of the Third Package. In addition, the move away from competition also makes it more difficult for investors to predict what other policies the Government and regulator are likely to implement and therefore the future certainty of revenue flows. For example, some of the options being considered by Ofgem in relation to the significant code review for gas security of supply could have significant implications for gas storage projects.

One size fits all As I think has been aptly demonstrated in Greece, the euro crises well illustrates the pitfalls which arises when a common “one size fits all�

European standard is applied to different markets. Unless the finances of every EU member states are the same then imposing a common currency over them can now be seen to lead to major stress.

Whilst the market failures the Third Package sets to address may be more aimed at mainland Europe the provisions relating to storage could potentially have similar unintended consequences.

The degree of liberalisation in gas markets varies greatly across Europe.

Some EU states have regimes where taking storage is compulsory, with controls over the timing of release of this gas in store. Therefore whilst investment in storage is comparatively low risk, there is a credible case for regulating storage access and price.

However applying such a regulatory storage regime to the UK where we have a liberalised gas market and the sovereign failures have to a large extent already been addressed through many years of effective regulation, may not be so credible.

Investment Care is needed that investment is not driven overseas. The Third Package is intended to reduce distortions in investment decisions that may result from differences in how the member states regulate storage. More prescriptive requirements, combined with greater independence of regulators could well reduce the potential distortions created by differences in approaches to regulatory oversight. However, the more prescriptive nature of the third package could also represent a double edged sword. The addition of more rules could exacerbate the impact of differences in approach to interpretation and enforcement of the requirements, with those member states that are willing to take a more laissez-faire approach being more attractive for those looking to invest in new infrastructure.

It is a paradox that the Third Package which sets out to remedy many of the mainland EU failings that have already been addressed in the UK may result in a less attractive investment climate in the UK; care must be taken by those involved in the transposition and implementation of the package to minimise the risk of this happening.

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SBGI Utility Business Summer 2011

Member Directory GAS STORAGE OPERATORS GROUP

DATA & COMMUNICATIONS MANAGEMENT

METERING TECHNOLOGY GROUP

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

DISTRIBUTION & TRANSMISSION EQUIPMENT GROUP

Alcatel Lucent Arqiva ELEXON Ferranti Computer Systems Hewlett-Packard Ltd Logica UK Ltd Sensus Conservation Solutions Serck Controls

NETWORK ENGINEERING GROUP

D I UK Limited Elster metering George Wilson Industries Limited Itron Metering Solutions Landis+Gyr Secure Meters

Aeon Pipe Systems Ltd AVK UK Ltd Caldervale Technology Ltd Crane Ltd t/a WASK Drain Center Fiorentini UK Limited Fusion Provida Limited Gas Measurement Instruments Ltd. George Fischer Sales Limited GPS nrg2 Pipeline Technology Ltd PLCS Limited Radius Systems Ltd Sarco Stopper Limited Syddal Engineering Limited Synthotech Special Products Limited Technolog Limited Talis (was Tyco)

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AMEC Group Limited Balfour Beatty Utility Solutions Bureau Veritas Carillion Utility Services Clancy Docwra Limited Enterprise plc Fulcrum Future Energy Group GL Noble Denton Morland Utilities Ltd Murphy Pipelines Limited National Grid Northern Energy Connections Ltd Northern Gas Networks Ltd P N Daly Limited PMI Denholm Squire Energy Ltd Veolia Water Outsourcing Ltd METERING SERVICES GROUP EDF Energy Customer Field Services Energy Assets Ltd E.ON Energy Services G4S Utility Services Ltd Lowri Beck Services Ltd OnStream Providor Siemens Metering Services Tuffentech Services Ltd

ASSOCIATE MEMBERS BG Group plc ByBox Capita Symonds Ltd CEVA Logistics Limited CNG Services Ltd Cripps Sears Develop Training Ltd DHL Supply Chain Engage Consulting Enzen Global Ltd Generis Technology Ltd Gerald Eve LLP Gtc Jonathan Lee Kingsley Plastics Ltd Lighsout Computer Services Ltd Rhead Group Ltd Street Work Solutions Turner & Townsend Wilcock Consulting Wood Group Pressure Control Ltd Xoserve

www.utility-business.org

MEMBERSHIP DIRECTORY // SBGI EVENTS 2011

SBGI Events 2011 Utility Asset Management The Role of Data in Effective Asset Management Tuesday 19 July IMAGO, Holywell Park, Loughborough • • • •

Third annual Seminar Attended by senior decision makers in the energy and utilities sector Provides a wide range of experience and shares best practice approaches Includes exhibition with networking opportunities

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Utility Metering Seminar

Wednesday 14 September National Motorcycle Museum, Birmingham • Valuable event in the utility calendar • Programme will address policy, strategic objectives and gather stakeholder opinion from across the supply chain and data and communications providers • Supported by highly informative and topical exhibition showcasing latest technologies and solutions for smart metering -------------------------------------------------------------------------------------------------------------------------------

Gas 2011

Thursday 13 October IMAGO, Holywell Park, Loughborough • • • •

High profile annual Seminar Joint event with Institution of Gas Engineers & Managers Senior decision makers will debate current and future gas industry challenges Stimulating programme supported by full exhibition providing excellent networking

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Transforming Utility Performance

Tuesday 29 November Chesford Grange Conference Centre, Leamington Spa • Sixth annual Strategic Change and Performance Improvement Seminar • Forum for sharing best-practice from experiences across water, power and gas sectors • Focuses on lessons that major utilities and their service suppliers have learned from strategic change projects implemented in the past year

For further details and booking: www.sbgi.org.uk Event contact: Vanessa Webster vanessa@sbgi.org.uk 01926 513763

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