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Prospect  EnergyEye  –  February 2015 Headline-grabbing politics dodge long-term solutions The professional voice of members must be heard in the run-up to the election, explains deputy general secretary Garry Graham AS WE move towards the May general election, UK energy policy is likely to be in the headlines and Prospect is determined to ensure an informed debate takes place. The Labour Party is likely to focus on its price freeze pledge – also more recently described as a cap – as wholesale prices have started to fall. Chancellor George Osborne has warned energy companies that he will be watching them like “a hawk” to see how they respond to changing wholesale prices, and minister Ed Davey has voiced concern about both positions. While the attention on prices is understandable, the struggle by households to meet energy costs is a symptom of broader economic challenges – the wider squeeze on living standards, declining wages and concerns over job security. The danger is that this detracts from, or ignores, the real challenges. Any debate about energy cannot ignore the structural challenges within the industry. Ofgem’s warnings about declining energy margins are a timely reminder of the need to invest in generating capacity. Investment Prospect has welcomed the strike price for new nuclear, and investment in other technologies to support low- carbon generation. However, the need to move forward is urgent. While optimistic, we are still waiting for the final investment decision on Hinkley Point C that will hopefully pave the way for the UK’s much-heralded nuclear renaissance. Investment in renewables is welcome, but challenges over intermittency and the long lead-in times for new nuclear build mean fossil fuels still have a significant contribution to make. But we have ageing plant and a pressing need for investment. How we bridge the energy gap has not featured highly in the political discourse, which appears more geared towards grabbing headlines than factual or long-term solutions. Take coal, for example. Prospect has long supported clean coal as part of a balanced energy policy. Carbon capture and storage provides a real opportunity, not only for energy generation but also in its application more widely in carbon- intensive industries. The main political parties support its development, but without careful planning and support, by the time the technology is deployable at scale, the UK coal industry will have died. This would be a severe blow – not only to local communities, but also the stated aims of UK energy policy in relation to capacity and security of supply. Politicians argue for market- based solutions, ignoring the danger that they do not provide long-term coherence. Price volatility, as seen in PROSPECT PREPARED TO HELP AN introduction to the trade union movement may not be what most scouts would expect during a hiking expedition, yet that it what happened recently when these intrepid explorers spent the night in Prospect HQ, thanks to their leader and UK Power Networks engineer, Paul Austin (inset). The group from Kent were in the capital to undertake a night hike along the south bank of the Thames, says Paul. “We always struggle to find locations in London that are priced to make this type of event affordable for our young people. Therefore it was fantastic to be able to use the Prospect headquarters for a sleepover.” The 14 to 18-year-olds visited a number of locations to hone key elements of their learning programme, including navigation and friendship. Time was also set aside to discuss Prospect and the UK trade union movement. Recruit a member – help a hero HELP for Heroes has been added to the charities supported by our Member Recruit Member scheme. If you recruit a new member, we’ll donate £10 to your chosen charity or give you a £10 gift voucher. If you have a colleague who is not already a member please encourage them to join – we are stronger in numbers. Visit www. prospect.org. uk/mrm ENERGY EYE Prospect members in energy and decommissioning www.prospect.org.uk • Issue 1, February 2015 q Continued over page STEFANO CAGNONI STEFANO CAGNONI

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Page 1: EnergyEye Feb 2015

Prospect • EnergyEye  – February 2015

Headline-grabbing politics dodge long-term solutionsThe professional voice of members must be heard in the run-up to the election, explains deputy general secretary Garry GrahamAS WE move towards the May general election, UK energy policy is likely to be in the headlines and Prospect is determined to ensure an informed debate takes place.

The Labour Party is likely to focus on its price freeze pledge – also more recently described as a cap – as wholesale prices have started to fall.

Chancellor George Osborne has warned energy companies that he will be watching them like “a hawk” to see how they respond to changing wholesale prices, and minister Ed Davey has voiced concern about both positions.

While the attention on prices is understandable, the struggle by households to meet energy costs

is a symptom of broader economic challenges – the wider squeeze on living standards, declining wages and concerns over job security.

The danger is that this detracts from, or ignores, the real challenges.

Any debate about energy cannot ignore the structural challenges within the industry. Ofgem’s warnings about declining energy margins are a timely reminder of the need to invest in generating capacity.

InvestmentProspect has welcomed the strike price for new nuclear, and investment in other technologies to support low-carbon generation.

However, the need to move forward is urgent. While optimistic, we are still waiting for the final investment decision on Hinkley Point C that will hopefully pave the way for the UK’s much-heralded nuclear renaissance.

Investment in renewables is welcome, but challenges over intermittency and the long lead-in times for new nuclear build mean fossil fuels still have a significant contribution to make. But we have

ageing plant and a pressing need for investment.

How we bridge the energy gap has not featured highly in the political discourse, which appears more geared towards grabbing headlines than factual or long-term solutions. Take coal, for example.

Prospect has long supported clean coal as part of a balanced energy policy. Carbon capture and storage provides a real opportunity, not only for energy generation but also in its application more widely in carbon-intensive industries.

The main political parties support its development, but without careful planning and support, by the time the technology is deployable at scale, the UK coal industry will have died. This would be a severe blow – not only to local communities, but also the stated aims of UK energy policy in relation to capacity and security of supply.

Politicians argue for market-based solutions, ignoring the danger that they do not provide long-term coherence. Price volatility, as seen in

PROSPECT PREPARED TO HELP AN introduction to the trade union movement may not be what most scouts would expect during a hiking expedition, yet that it what happened recently when these intrepid explorers spent the night in Prospect HQ, thanks to their leader and UK Power Networks engineer, Paul Austin (inset).

The group from Kent were in the capital to undertake a night hike along the south bank of the Thames, says Paul. “We always struggle to find locations in London that are priced to make this type of event affordable for our young people. Therefore it was fantastic to be able to use the Prospect

headquarters for a sleepover.”The 14 to 18-year-olds visited a number

of locations to hone key elements of their learning programme, including navigation and friendship. Time was also set aside to discuss Prospect and the UK trade union movement.

Recruit a member – help a heroHELP for Heroes has been added to the charities supported by our Member Recruit Member scheme.

If you recruit a new member, we’ll donate

£10 to your chosen charity or give you a £10 gift voucher.

If you have a colleague who is not already a member please encourage them to join – we are stronger in numbers. Visit www.prospect.org.uk/mrm

ENERGYEYEProspect members in energy and decommissioning

www.prospect.org.uk • Issue 1, February 2015

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Page 2: EnergyEye Feb 2015

Prospect • EnergyEye  – February 2015

2 NEWS

oil and coal, cannot be the excuse to avoid long-term strategic decisions. It would be a terrible irony and policy indictment if carbon capture and storage technology is only used on Russian and Colombian coal.

One of the strengths of Prospect is its political independence – we are not affiliated to any political party and do not advise members how to vote. In the run-up to the election we will, however, be putting a range of questions to the main political parties in relation to energy policy.

These get to the heart of the key challenges we face:

● the need for investment in capacity and infrastructure

● security of supply ● transition to low-carbon generation ● a long-term storage solution to

nuclear waste ● ensuring we have the skills for

the future.The professional voice of our

members needs to be heard. That means getting behind the headlines and soundbites, and asking key questions about the challenges we face. As we approach the oncoming election there has never been a more important time to be a Prospect member.

Published by Prospect. New Prospect House, 8 Leake Street, London SE1 7NN EnergyEye editor: Katherine Beirne e: [email protected] t 020 7902 6625Printed by College Hill Press

Prospect on alert as E.ON splits its UK business TURMOIL IN the German power sector has spread to the UK with last month’s news that E.ON plans to split its business here in two.

The company’s new strategy will see power generation, energy trading and upstream or exploration business in one half, and renewables, retail and customer solutions in the other.

The reason, it said, is that “technical innovation” and “more diverse customer expectations” have radically altered the global energy markets.

Chief executive Johannes Teyssen added: “E.ON’s broad business model can no longer properly address these new challenges.”

By spinning off power generation from the rest of its business, E.ON has separated the sector hardest hit by Germany’s decision to boost renewable energy at the expense of gas, coal and nuclear.

Prospect negotiator Steve Thomas (right)said: “The company has assured us that the reorganisation is not designed to be a new workforce reduction programme.

“Both halves of the business say they intend to avoid compulsory redundancies. We plan to hold them to that.”

Prospect will be raising a number of questions, not least about the impact on the union’s E.ON members.

Continuity vital as Sellafield rethinks private sector roleAS THE New Year began, members at Sellafield woke to a shock government announcement that the £9bn contract awarded to the consortium managing and operating the site was to be terminated.

The decision was taken on the advice of the Nuclear Decommissioning Authority which, in the face of rising costs, decided that the Cumbrian site is “too complicated” for private sector management.

Explaining the rationale, energy secretary Ed Davey said publicly funded work at Sellafield was simply not suited to private sector management because the “huge uncertainties” and complexities at the site made it “very difficult” to draw up contracts specifying what was required of management companies.

Instead private sector companies will be employed as strategic partners rather than

site owners. As the full implications of the announcement were still being assessed, Prospect maintained that any change must ensure that the continuity in operations was preserved.

In 2013 Prospect welcomed the extension of Nuclear Management Partners’ contract as the least disruptive option, given the vast costs associated with a new competition or re-nationalisation.

“Clearly that is no longer seen as feasible,” said Prospect national secretary Gill Wood.

“Change always brings challenges and concerns but we call on the NDA and government to ensure this does not raise fears among staff over their employment, spark concerns within the local community over promised development opportunities or detract from the planned decommissioning work programme.”

PRICES ‘MUST REFLECT INVESTMENT NEEDS’AS Energy EYE went to press, the outcome of Ofgem’s recent distribution network price review remained uncertain for all operators except Western Power Distribution.

Whatever the final figures, Prospect remains focused on the importance of safety; training; and maintaining and improving professional standards.

The union has reminded the regulator that fair prices

for consumers need to take account of increased technological sophistication, and the shift to a smart network.

Prospect also challenged Ofgem’s views on salary costs when the industry needs to increase the skills of its staff and address the shortage of engineers.

Negotiator Mike Macdonald said: “The opposition has

proposed significant reform to Ofgem if it wins the election. But any policy needs to consider the long-term impact networks will have on the lives and businesses of consumers.

“Further investment will be more beneficial than a small price cut if we want to see more renewable local generation, and a consistent service to modern homes and businesses.”

■■ Sellafield■is■looking■to■use■scallop-fishing■technology■to■help■clean■up■the■nuclear■reprocessing■plant,■reports■the■BBC.■Cumbrian■technology■company■Innovus■has■redesigned■trawling■equipment■(above)■to■lift■radioactive■material■from■the■site’s■storage■ponds.■The■prototype■was■developed■with■the■National■Nuclear■Laboratory■in■Workington■and■trawling■equipment■firm■Barrnon.

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Page 3: EnergyEye Feb 2015

Prospect • EnergyEye  – February 20153CONSTRUCTION

New branch for construction supervisorsA new Nuclear Construction Branch (H712) of Prospect has been launched to represent supervisors and trainee supervisors working on the construction of Hinkley Point C, the UK’s first new nuclear power station in a generation.

People employed by on-site contractors will also be eligible to join. Member Bobby Carson (right) has been appointed as the full-time union co-ordinator, with support from negotiator John Stevenson, who is based in the Bristol office.

Bobby has 30 years’ experience in a variety of roles across the nuclear industry.

He was previously employed in supervisory and engineering roles within projects, operations, fuel-handling and reactor services, spending time at Koeberg (South Africa), Torness, Hunterston A & B, and

now Hinkley Point C. He spent six years at Magnox Ltd as a full-time Prospect rep; was vice-chair of the Magnox branch and served one term on the Prospect national executive committee.

He said: “We are a union that works hard to ensure our members’ interests are taken care of and that they have all the support mechanisms, professional advice and information to hand to meet the challenges of the future.”

■ For more information contact [email protected] or [email protected]

Long-term tax rules threaten economy, warns ProspectPROSPECT HAS written to energy minister Matthew Hancock to highlight how the current tax treatment of workforce allowances is penalising employees on long-term construction projects.

Existing arrangements threaten to reduce the pool of skilled employees needed to complete major infrastructure projects that are crucial to the UK economy, the letter says.

Concern centres on allowances available to employees who are working away from home for more than two years as, after that, their accommodation and subsistence allowances face a different tax regime.

Barrier for membersNuclear new build at Hinkley Point C is likely to take ten years, and other major infrastructure projects are in the pipeline including High Speed 2 and eventual airport expansion. Prospect fears the tax rules could become a barrier for employers and members.

Deputy general secretary Garry Graham said: “The taxation system should support both flexibility and stability. We are concerned that under the current approach employees will not be willing to work away from home or will feel prompted to move away before a project is complete.

“It is normal on major developments to draw workers from across the country to achieve the necessary mix of skills.

“These employees incur genuine and legitimate expenses associated with working and lodging away from home and should be reimbursed. These allowances are not a benefit, but a means to repay subsistence costs.”

In the letter to Hancock, Graham highlighted how the current tax arrangements ignore:

● the duration of major projects such as nuclear new build

● the need to attract a skilled and specialist workforce from across the UK

● the fact that retention and upskilling of that workforce is critical to completing projects on time and to budget and specification.

● the finite duration of projects means it is not in the interests of local communities, or all those delivering a project, to relocate permanently.

Shared concernOther unions, industry and employers share Prospect’s concerns, said Graham.

“We fully understand and support the fact that the changes we seek should go hand in hand with not only ensuring compliance but setting new standards across the industry.

“There is genuine scope for a win-win, given that construction and the infrastructure sector contributes around £90bn to GDP and accounts for around three million jobs across the economy.”

■■ The■Crossrail■project■in■London■is■expected■to■be■completed■in■2018■–■nine■years■after■work■began■in■2009

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Page 4: EnergyEye Feb 2015

Prospect • EnergyEye  – February 2015

SKILLS4 FRACKING

A deep divideWith fracking constantly in the headlines these days, Katherine Beirne asks if this controversial process could have a role as part of a balanced energy policy

OPEN ANY newspaper and shale gas extraction, or fracking, seems to have usurped nuclear power as the energy issue guaranteed to divide the nation.

In a recent survey of 100 MPs by parliamentary monitoring firm Dods, three out of five supported its use (59%), with the remainder split evenly between opposition (20%), neutrality (18%), or uncertainty (3%).

And the picture is just as divided among the public. In the latest Department of Energy and Climate Change public survey, half of the respondents (47%) neither supported nor opposed shale gas extraction; a quarter (24%) supported the

practice, while a quarter (24%) opposed it.But could fracking have a part to play in a balanced energy

policy? As part of Prospect’s work to formulate a policy, the union

has heard from industry and government specialists in its bid to separate the myth from fact regarding feasibility, risks and regulatory hurdles.

The following is a précis of two presentations from Zoe Shipton (below), professor of geological engineering at the University of Strathclyde, and (right) Alex Doyle, a policy manager within the Office of Unconventional Gas and Oil.

OUGO is a new body set up within DECC in 2013 to look into shale gas exploration in the UK and devise an overarching framework to ensure the planning and permit processes covering the industry are simple but failsafe. The office is separate from the licensing unit within DECC that governs specific sites.

Prospect consults membersPROSPECT’S national executive committee discussed and amended a draft policy on shale gas (fracking) at its most recent meeting.

A discussion paper on the proposed policy will be sent to all branches in the coming weeks.

Get the fracks straightMANY OF the problems associated with the extraction of shale gas in the US were the result of bad practice that would not be allowed by any regulatory process in the UK.

That was a key message from Professor Zoe Shipton when she addressed a fringe meeting at Prospect’s national conference last year.

Shipton said fears associated with fracking are mainly based on the US experience, where the industry is largely unregulated and uses different methodology.

Shale is a low permeability rock made of between 20-25% air or hydro-carbons when underground, she explained. Drilling along the line of the shale deposit, and adding a high-pressure water mixture to hydraulically fracture the rock, creates cracks that allow this gas to flow to the head of the well.

Concerns that this could create earthquakes are exaggerated, she said. “The largest of the two or three UK earthquakes connected to fracking had a magnitude of 2.5 ML (local magnitude commonly referred to as Richter magnitude) – enough to shake glasses on a table.

“We get around 25-30 of those in Great Britain every year just as a result of background tectonic stresses. So seismicity is an inherent part of fracking but the risk of doing any harm is very low.

“When you ‘pop’ open a frack you do create a tiny earthquake. The size is about the same as the amount of energy generated if you dropped a US gallon of milk from waist height.

“Imagine trying to hear that energy through formations of rock. You are never going to notice it. In order to be able to feel it at the earth’s surface that energy has to go through a pre-existing crack in the rock.”

The amount of water involved is another criticism levelled at the process, but Shipton called for this to be viewed in context.

She contrasted the water used in a decade by one well – five million US gallons (19,000 cubic metres) with the amount UK water companies lose daily. Figures for 2012 show Anglia Water alone lost 212 million litres per day (around 56 million US gallons).

Waste water toxicity is another concern. Although most additives used in the process can be found in a typical

kitchen, Shipton said it is right that their use is managed.

Problems had arisen in the US where some operators sought to keep their additives secret – something the Environment Agency, and equivalents in the devolved administrations, would not permit.

Tackling claims about the risk of contaminating drinking water aquifers, Shipton explained that the distance between the top of the shortest frack and the bottom of the deepest aquifer was equivalent to the height of Ben Nevis, Britain’s highest mountain.

Plus, she said, if there was any risk to drinking water, industrial extraction of shale gas would not be permitted in the UK.

Cases for concern in the US were connected to “appalling practice” and the extraction of shallow methane or gas connected to peat, not the deep drilling that would be necessary in the UK.

“It some US states it is legal to spread the fracked goods that come out of the well on to roads as a de-icer. Now that’s just daft. Cattle and domestic pets like the salt and will go and lick the roads and then get traces of arsenic and other things out of those fluids.”

In fact, she said, her biggest concerns centred around the risks related to surface operations that are not unique to shale – for example, traffic accidents, site safety management etc.

Cases for concern in the US were connected to ‘appalling practice’ and the extraction of shallow methane or gas connected to peat, not the deep drilling that would be necessary in the UK

Page 5: EnergyEye Feb 2015

Prospect • EnergyEye  – February 2015SKILLS 5FRACKING

Energy security and jobs among potential benefits ALEX DOYLE of OUGO set out to explain some of the drivers behind the interest in shale gas when he addressed a meeting of Prospect’s energy supply industry sector committee.

He said that concern over the UK’s shift from being a net exporter of gas to the current position, where it imports nearly 50% of its requirements, had been key.

The UK still has reasonably secure gas sources from Norway and Qatar, but domestic sources are always more secure and have lower emissions than imported liquefied gas, he said.

Added to that are the potential economic rewards. A report from the Institute of Directors indicated that UK shale gas production could peak at 32 billion cubic metres a year.

Based on those findings, accountants Ernst and Young speculated that 100 drilling pads across the country could result in a £33bn spend and 64,500 jobs at peak, mostly in supply chain companies.

Communities with well sites would also stand to benefit, with upfront investment of £100,000 per well during exploration and testing and then 1% of any production revenues.

Scientific assessmentsDoyle outlined recent scientific assessments of the risks. The Royal Society and the Royal Academy of Engineering had concluded that if well regulated the risks associated with fracking in the UK are low.

In addition, Public Health England last year used evidence from the US to look at health risks associated with any emissions. It concluded that any risks were generally associated with operational or regulatory failures.

DECC’s then chief scientist, David MacKay, was asked report on any impact to the climate. His report in September 2013 found that the environmental footprint of shale gas is slightly more than conventional gas, but definitely lower than liquefied natural gas or coal in electricity generation.

He called for a monitoring programme to run alongside exploration and a scientific research programme, which the government has accepted.

RegulationDoyle gave an overview of the regulatory process. He said that on top of any license granted, a drilling application would require:

● planning permission ● DECC consent ● permits from the Environment Agency or its equivalents in devolved

regions and possibly mineral planning authorities ● sign-off from the Health and Safety Executive and an impartial well

design inspector ● the landowner(s) agreement.

He stressed that if a company fails to comply with any of the regulatory stages, including early engagement with the community, they are not allowed to proceed.

“If you have an exploratory well and you want to go to production but do not fill the criteria you have to go back through the whole process,” he said.

The Infrastructure Bill IN a bid to remove the barriers to deep underground drilling access, the coalition government introduced amendments to the Infrastructure Bill. It had noted that oil, gas and geothermal exploration projects at depths of around a mile beneath the ground could be significantly delayed if a landowner refused access.

Importantly this access right would also help the deep geothermal energy industry, which some predict could have more of an impact than shale gas extraction.

The amendments will allow oil, gas and geothermal companies to use underground land but only below 300m (1,000ft), provided they have the necessary regulatory permissions.

The Labour party also tabled amendments calling for a well-by-well disclosure of the frack fluid, baseline monitoring of methane levels in the groundwater and environmental impact assessments for all fracking sites, as well as the inclusion of water companies as consultees in the planning process.

The chief scientist’s report found that the environmental footprint of shale gas is slightly more than conventional gas, but lower than liquefied natural gas or coal in electricity generation

NOT TO SCALE

Page 6: EnergyEye Feb 2015

Prospect • EnergyEye  – February 2015

6 COAL

Grid’s CCS project moves a step forward A project that could help power stations in Yorkshire and the Humber capture up to 90% of their carbon dioxide emissions is entering the public hearings stage.

Site visits and public examinations will take place until early February.

These are part of the government’s examination of National Grid’s plans to build a new pipeline in the Yorkshire and Humber region.

If the new project goes ahead, a buried pipeline would be built to transport carbon dioxide produced

by power stations in the region – including the proposed White Rose CCS Project at Drax – to a point south of Bridlington, and then out to the North Sea to be permanently stored within natural porous rock formations beneath the seabed.

The UK’s continuing dependency on coal, its vast reserves and advances in carbon

capture and storage technology, provides a compelling case for state aid on a par with renewables and nuclear, argues Mike Macdonald, Prospect’s officer for coal

WHILE THE exact fuel mix of our balanced energy policy is always open to debate, the question for the rest of the decade is not whether we use coal, but whether we retain a coal industry.

Prospect believes that UK deep coal mining is a key part of the mix for the foreseeable future. We retain significant coal reserves and will continue to use more than we can produce.

Therefore, Prospect supports the bids for state aid to sustain the remaining three deep mines – Hatfield,in South Yorkshire, Kellingley in North Yorkshire and Thoresby in Nottinghamshire – until 2018. Without it, they are likely to close by mid-2016.

Despite significant effort, and subsidy to increase the use of renewable electricity, last year only 17% of UK electricity was generated by wind with a further 22% from nuclear.

Coal consumption may have halved in the past 20 years, but we still consume more than 45 million tonnes each year, mainly in coal-fired power stations that provide cheap, reliable and flexible electricity essential to the UK economy.

We cannot keep the lights on for the rest of this decade without coal-fired generation – even if we continue to pay major industrial users not to use electricity at peak times.

The coal industry has made significant environmental improvements. Further investment could improve power station efficiency by 10-15% through improved turbine efficiency. The development of carbon capture and storage technology could reduce emissions. If the industry dies, carbon emissions will still increase as we simply import to fill the gap.

With global consumption predicted to peak this decade coal remains a major fuel elsewhere in the world, meaning the long-term future points to CCS. Prospect has supported initiatives to give the UK a lead in this vital technology.

State aid and coal: death of an industry?We retain vast coal reserves

essential to our security of supply. It would be perverse to abandon coal mining and lose highly-skilled jobs while funding technology for the clean consumption of foreign coal.

UK Coal is only asking for the financial support other forms of electricity generation receive, and for a long-term energy policy that recognises the benefits of a secure domestic industry to protect consumers from sudden price fluctuations.

Government dithering has already increased the cost of state aid by creating a future gap in production. That is why the union is calling on members to support its campaign for state aid now.

Perceptions of the coal industry are outdated. It is a hazardous industry, but thanks to our members who manage the coalmines, it is also safe, efficient and highly-skilled. The government needs to act now before we lose this national asset.

■ See Prospect’s vision for the future of clean coal at bit.ly/ProspectCleanCoal

■ or the TUC’s report into the economic benefits of carbon capture and storage in the UK at bit.ly/TUCcleancoal

MARK PIN

DER/REPO

RTDIG

ITAL.CO.U

K

■■ Miners■going■on■shift■at■Kellingley■Colliery■in■North■Yorkshire■which■is■threatened■with■closure■by■2018

It would be perverse to abandon coal mining and lose highly-skilled jobs while funding technology for the clean consump-tion of foreign coal

Page 7: EnergyEye Feb 2015

Prospect • EnergyEye  – February 20157NEWS

CALL TO BUILD PARTNERSHIPS WITH CONTRACTORSCollaborating with contractors on health and safety is this year’s focus for the Powering Improvement initiative, says H&S officer Sarah PageA health and safety initiative that brings together energy companies, unions and the regulator will concentrate on building partnerships with contractors in 2015.

As Powering Improvement enters its second five-year phase, fragmentation of the industry has increased the involvement of contractors. This risks opening up potential new gaps in health and safety standards.

Prospect and its sister energy unions have backed measures to share risk management, good practice and feedback from any learning opportunities.

Is there more can we do? Yes!If you engage with supply chains in your professional

work, do what you can to ensure rigour in agreement and adherence to health and safety procedures.

A first step for Prospect health and safety reps is to find out how contractors’ staff are consulted. For instance, do they have reps you can link up with? Or do you need to offer your services to contractor workers? If so, raising Prospect’s profile and recruiting contract workers may help simplify matters.

Even where a contractor does not recognise unions, it does have duties to consult. All workers have the right to a say in decisions affecting their workplace health and safety, but those in non-union workplaces rely on far weaker law than the regulations that give us our health and safety reps. So alas, some contractors don’t take the trouble to consult.

■ For further advice, please contact your branch, full-time officer or email [email protected]

DECC unveils new auction results THE NEW Year saw the results of the first ever capacity market auction, a key strand of the government’s plans to meet peak electricity demand up to the end of the decade.

Power generation companies will receive close to £1bn to ensure enough plant stays open to prevent blackouts. This will add an extra £11 to the average household electricity bill, according to the Department of Energy and Climate Change.

Under the auction process companies guarantee to keep their plant available during periods of peak demand, and to back up intermittent wind generation. In return, they receive a steady payment on top of the electricity that they sell.

Around 50 firms took part in the process, which secured more than 49 GW of capacity for delivery in 2018-19 at a price of £19.40 per KW.

Energy secretary Ed Davey said the auction had not only guaranteed security “at the lowest cost for consumers”, but ensured that “we get the best out of our existing power stations and unlock new investment in flexible plant.”

Yet critics say it will keep

older polluting coal plants on the system for longer, potentially holding back investment in new, cleaner technologies.

Winners and losers EDF Energy was among the winners, with most of its nuclear and coal plants receiving contracts.

The company said it will invest to keep Cottam and West Burton power stations in Nottinghamshire operating until at least 2021. Plants run by Centrica, SSE, RWE and E.ON also received contracts.

One aim of the capacity market is to incentivise the construction of new efficient power stations, but only one new gas plant – the planned Trafford Power Station in Manchester – received a contract.

Advocates of demand-side response – an emerging industry in which customers reduce power demand at peak times – voiced disappointment at securing just 0.4% of the available capacity.

Contracts worth a total of up to £1.7bn were awarded, some lasting for several years. A further auction will be held in late 2017.

Drone threat to power linesTHE RISE in drones given as Christmas presents has raised fears that inexperienced pilots could hit power lines and cause blackouts.

Rodney Grubb, head of operations at Scottish Hydro Electric Power Distribution, said: “The model planes and drones that are on the market nowadays are really powerful and can fly really fast and high.

“If one of them strikes a power line or crashes into a substation, it can potentially damage an important piece of equipment and cause a power cut, or even serious injury to the pilot.”

JON

ATHAN

EELES

Page 8: EnergyEye Feb 2015

Prospect • EnergyEye  – February 2015

8 NEWS

New device to make savings that are not to be sniffed atA DEVICE that aims to save electricity companies over £154m a year in engineering costs has beaten 400 entries to win a top prize from the Institution of Engineering and Technology.

The 2014 Innovation Award for power and energy was given to the CableSniffer™, designed by EA Technology.

It works by sampling gas given off by underground low-voltage cable faults via

small drill holes to help identify where problems exist.

The highest reading shows the location of the fault to within

a metre, thereby cutting down on the amount of digging and road closures required.

It means faults can be found within an hour, greatly

reducing the associated costs.There are an estimated 60,000 underground low-voltage

cable faults in the UK each year, often causing loss of customer supply.

To date the device has been adopted by every UK electricity distribution network operator.

Women in nuclear growing in strengthWOMEN in Nuclear UK has had a productive first year. Its first conference in London in January sought to gain industry and political support for promoting gender diversity across the industry. WiN UK is part of a global movement drawing together women from all areas of the industry.

The conference reflected WiN UK’s three core themes: ● attracting more women into the sector ● keeping those already in it ● engaging with the public, especially women, about the

importance of nuclear as part of a balanced energy policy. Research shows 26% of women support nuclear power, compared to 57% of men.

So far WiN UK has attracted 500 professionals as members, including male and female senior executives in key UK nuclear businesses.

■ Full conference report: bit.ly/WiNlaunch

IN BRIEFNUCLEAR SKILLS HEAD – The new chair of the National Skills Academy for Nuclear is AREVA UK chief executive Robert Davies (right). He takes over from Neil Baldwin of Magnox Ltd, who held the post for three years.

Davies said that success for the organisation would come from meeting the needs of its clients. “The employers who fund NSAN look to the organisation to provide strategic leadership and support in nuclear skills,” he added.

“NSAN has gone through a period of development.

“Now is the time to consolidate that and ensure it is seen as being an integral industrial partner by all UK nuclear players.”

NSAN is a subsidiary of Cogent Sector Skills Council. See: www.nsan.co.uk

 SECTOR CONFERENCE – The fifth conference of Prospect’s energy

supply industry sector will take place on 8 June at Hamilton House, London. The key deadline to remember is

midday 9 March.By then branches should: ● submit their nominations for

the sector’s presidential team, executive and standing orders committee ● submit their motions to deputy

general secretary Garry Graham at Prospect headquarters

● email copies of the text of motions and nomination statements to [email protected]

Please download relevant forms from the website, where there is also more information and guidance, including advice on framing motions. See: bit.ly/ESIS_conf

FACILITIES GUIDE – Union reps who want to know their rights will find it useful to read Prospect’s updated guide to time off and facilities. Copies are available from [email protected] or download the guide at library.prospect.org.uk//download/2004/00013

Horizon clears first hurdleTHE REGULATORY justification process for Horizon Nuclear Power’s choice of the Hitachi-GE’s advanced boiling water reactor is complete, after approval by both houses of parliament. This marks the first of the major permissions required for Horizon to progress plans to build two new nuclear power stations at Wylfa, on the Isle of Anglesey, and Oldbury in south Gloucestershire. The Office for Nuclear Regulation is currently assessing the reactor design.