2011. UK Power Networks. All rights reserved

Critical Friends Panel 6

6 December 2013

2013. UK Power Networks. All rights reserved

Stakeholder Consultations: From RIIO-ED1 to Transformation

Nazrin Mehdiyeva – Head of Stakeholder Engagement

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Safety and housekeeping

• No planned fire alarms

• Emergency exits

• Fire assembly points

• Toilets

• Mobile phones

• Data Protection - we record our findings and publish a report of the proceedings and our follow-up actions

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UK Power Networks’ Power of Giving Fund A community grant scheme • £100,000 available per year for each

network region for community projects • Grants up to a value of £10,000

We are interested in projects that: • Benefit our customers by improving the

local environment • Help vulnerable or fuel poor customers • Promote energy efficiency or the use of

renewable energy • Reduce demand on the electricity network

UK Power Networks’ Power of Giving Fund Applications received for the first round of awards • Of 64 applications received, 49 eligible • 21 short-listed applications were passed on

to the judging panel • Panel composed of external and internal

judges • Convened on 26 November 2013

Total awards - £90,610 5 projects in EPN 3 projects in SPN 2 projects in LPN

Next panel sitting in May 2014. Applications accepted on an on-going basis. For more information, please visit

http://www.ukpowernetworks.co.uk/internet/en/community/power-of-giving-scheme/

Today’s Agenda

09:30 – 09:45 Introductions and overview of process 09:45 – 10:00 Vision, Values & Sustainability Policy 10:00 – 10:45 Safety - staff, contractor and public safety 10:45 – 11:00 Key CSR initiatives 11:00 – 11:15 Coffee 11:15 – 12:15 Reducing the environmental impact 12:15 – 12:55 Smart meter roll-out 12:55 – 13:00 Closing remarks 13:00 – 14:00 Lunch

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UK Power Networks team here today

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Matt Rudling Director of Customer Services

Murdo Allan Director of Health, Safety, Sustainability & Technical Training

Brian Stratton Head of Smart Metering Programme

Nazrin Mehdiyeva Head of Stakeholder Engagement

James Nicholl Lead Environment Advisor

Frances Powell Customer Relationship Manager

Welcome from the Chairman

Gareth Spinner, Director, Noveus and Independent Chairman of LPN Panels

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Vision, Values & Sustainability Policy

Murdo Allan – Director of Health, Safety, Sustainability & Technical Training

UK Power Networks’ Vision

• Safety • Employee well-

being and health • Technical

knowledge and skills through training

• Outperform Ofgem allowances

• Ensuring we deliver cost efficient services

• Public safety • Legal compliance • Environment • Meeting stakeholders’

expectations • Community

involvement

UK Power Networks’ Values

Overview of sustainability policy Future Proofing

• Assist transition to low carbon economy

• Drive improvement through innovation

• Develop a smarter network • Engage our stakeholders

Environment • Comply with environmental

legislation • Reduce business carbon footprint • Protect environment against

pollution • Encourage resource efficiency

Workforce • A healthy, inclusive and diverse

workforce • Engage all employees • Personal development • A safe place to work

Community • Support vulnerable customers • Public safety • Partner community & charitable

organisations • Employee volunteering scheme

Focus on Safety: How we are improving staff, contractor and public safety

Stay Safe Film

Safety highlights

Stay Safe culture change programme launched in February 3 safety videos delivered • Silver in International Visual Communication

Awards ‘Best Script’ category • Bronze in ‘Best Health and Safety

Communications’ category

Towards Zero (employee campaign focusing on Cardiovascular disease) • National finalist in BUPA Workwell Award • Winner of East of England Action on Public

Health award

UK Power Networks - Safety Performance

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20

40

60

2007 2008 2009 2010 2011 2012 2013

Medical Treatment injuries since 2007

Employee

Contractor

0

50

100

150

200

2007 2008 2009 2010 2011 2012 2013

Personal Minor injuries since 2007

Employee

Contractor

0

5

10

15

20

25

30

35

40

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2007 2008 2009 2010 2011 2012 2013

Lost Time Incidents since 2007

Employee

Contractor

• 260 days in 2013 without an employee LTI

• Since 2010 reduced Accident Frequency Rate by 63%

Public Safety – Contractors

• UK Power Networks’

Directors/Senior Managers hold face to face meetings with top 10 responsible for incidents

• Others contacted with a letter with key safety information and an offer of tool box talks

In 2013 we identified companies that repeatedly come into contact with our network to promote safe working and support them reduce the number of incidents

Public Safety Safety messages reaching >90,000 customers

Safety communications for high risk sectors, i.e. scaffolding & construction, and leisure activities

Schools / young people – In 2013 >239,000 reached via events and Powerup! website

Attended 10 large community events, i.e. County Shows and given many tool box talks/safety talks

Short safety films planned for 2014

Initiatives with emergency services and the traveller community

Questions

1. How else can UK Power Networks address the issue of safety?

2. Should UK Power Networks benchmark its safety performance against other utilities?

Key CSR initiatives

Employee Volunteering

• Each employee allowed two working days per year to volunteer for a charity or the local community

• Builds relationships with our local communities

• Volunteering helps develop employee skills and fosters team spirit

207 employees have volunteered 1641 hours labour in 2013

Some of our 2013 work parties

RSPCA centre Leybourne, Kent Blindley Heath Common, Surrey

West Stow Country Park, Suffolk Tewin Orchard, Herts Runfold Wood, Surrey

Roydon Common, Norfolk

Wildlife Trust Partnership

• Nine Wildlife Trusts in UK Power Networks area

• 3 work parties each year

• Financial and practical support provided to the Trusts • We utilise the Trusts’ expertise to feed into our habitat management plans

The partnership was a finalist in the 2012 Utility Industry Achievement awards in the Environment Award category

Questions

1. Does UK Power currently meet your expectations as a

Responsible Corporate Citizen?

2. Where can we improve?

3. How can UK Power Networks increase the amount of volunteering opportunities that are available to its staff?

Reducing the environmental impact of our operations

James Nicholl – Lead Environmental Adviser

Business Carbon Footprint Our target is to achieve an annual 2% reduction in Carbon emissions ~

1,509.8 tCO2e

6,092.1

22,579.4

29,533.5 5,060.9

2,647.0

9,577.2 75,490.2

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10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Offices & Depots Substations Operational Transport Business Transport SF6 loss Standby Generators Total Business CarbonFootprint

tco 2

e

Source of emissions

8.1%

29.9%

39.1%

6.7% 3.5%

12.7%

Chart shows carbon emissions and % attributed to total figure

Business Carbon Footprint 2012/13 3 DNO - Regulated only

Business Carbon Footprint

Revising building management systems

Installing more energy efficient air conditioning

Voltage optimisation

Condensing boilers

Double glazing

Energy efficiency audits of our main buildings

Reduction in Carbon emissions – Major Offices

Change in procurement policy from vehicles with emissions of 154g/km to

115g/km

Introduction of a plug-in hybrid in the range

Moving the commercial

fleet to EVO-v technology

Companywide low

carbon cash allowance introduced in lieu of a

company car

Reduction in Carbon emissions – Transport

Waste management • Recycling initiatives reduced

streetworks waste sent to landfill from 80% in 2006 to below 3%, achieved by:

• Development of processing facility in Silvertown

• Working with Local Authorities • Sharing information with

recycling agents

• Using new technology for discharging water pumped from excavations

• Refurbishing redundant electrical equipment

Sulphur Hexafluoride (SF6)

• We currently have 89,325kgs of SF6 on our network • This is anticipated to increase to 122,731 kgs by 2023 • SF6 leakage will go down from over 0.2% to 0.17%

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20

40

60

80

100

120

140

160

2009/10 2010/11 2011/12

SF6 leakage in kgs per annum

Environmental risk & remediation

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50

100

150

200

Breakdown of Environmental Incidents

EnvironmentHazardsNear MissesOtherProperty DamageQuality DefectThird Party Work

Aims Rating YTD Target

Very Serious Incident 0 <8

Serious Incident 2 <8

Incident 8 N/A

Not Classified 579 N/A

Environmental risk & remediation • Ensure compliance with all

environmental legislation

• Assess pollution potential of our sites

• Apply new polymer-membrane technology for bunding oil filled equipment

• Training across the business in environmental and sustainability issues

Questions

1. Is UK Power Networks doing enough to reduce its carbon emissions in its offices and in its transport?

2. Is UK Power Networks going far enough when addressing its environmental impact?

Our Sustainability Report 2012/13 will be published soon – if you would like a copy sent to you please contact sustainabilityreporting@ukpowernetworks.co.uk

Smart Meter Roll-Out

Brian Stratton – Head of Smart Metering Programme

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Smart metering business case

“UKPN does provide a clear breakdown of the costs and benefits of using smart meter data and we consider this area of its plan to represent good value to customers” Ofgem - Assessment of RIIO ED1 business plans 22nd November 2013

Key metrics • +154,000 additional smart meter interventions (2%) • Total costs during ED1 of £114.9m (£9.7m borne by UKPN) • Total benefits during ED1 of £67.2m • From the end of ED1 smart metering is broadly cost neutral to UKPN

Smart meter Interventions Income management

IT

Data privacy and security

Fault management benefits DCC costs

Network planning benefits

1 2 3

4

5 6

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Key Smart Metering Elements

Key benefit areas during ED1

Readings

Alerts

Logs

• Improvements in outage management capabilities • Smart meters can identify customers who have supply quality issues • How could our response to the St Jude storm on 28th October 2013 have

been different?

Short Cycle Processes Alerts can be used to: • Improve power out

management • Proactively manage supply

quality issues

Long Cycle Processes • Alerts provide a historic

record of service • Network operator can acquire

bulk time series data for areas of interest

Whose Responsibilities?

Electricity Interventions

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Intervention complexity challenge

• Tall building solution still to be developed by UK programme Distance, building fabric, space and signal availability Coordination of parties

• Multi-occupancy dwellings represent 21% of UK households (>50% in London)

• Disproportionate fuel poor representation

• Landlord and managing agents cooperation needed

• Ownership and responsibility need to be clearly defined

• Critical need for UK smart meter programme to identify solutions during Foundation phase and implement as soon as possible

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What's happening now?

Resource planning underway to match mass rollout profile

Moving towards agreed SLA’s on performance with suppliers

Improved data flows for monitoring of issues (cat A,B & C)

Close monitoring of interventions over next 12 to 18 months

Operational coordination between suppliers and network operators

Understanding what changes may be required for BAU processes e.g. Fault response associated with smart meters – rapid & consistent

Preparing for mass rollout

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015

Q2 Q3 Q4 Q1 2016

DECC Contract Awards

Pre-Integration Test

Mass Rollout

DCC Go live

Design Confirmation

SMETS2 Equipment Certified

Requirements / RFI / ITT / Sourcing

R2 – Development (Asset etc.)

DSP/CSPs Ready

DCC Infrastructure & Service Build Service Readiness

System Integration Test

User Integration Test / Enduring Test

DCC Ready

R1 - Development & Testing

Data Flow Changes

Interventions Prep

Foundation Phase

Mass Rollout

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UK

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Questions

1. What impact do you think the roll out of smart meters will have on fuel poverty?

2. How can UK Power Networks work with landlords and managing agents to address the complexities of installing smart meters in multi-occupancy dwellings?

3. What other CSR issues would you like to see being addressed through smart meters?

Join us again:

• Next Critical Friends Panel in February

Next steps

Before we finish

• Complete your feedback form

• Send us additional thoughts

• Invite a colleague to a session

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