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NGN RIIO - GD1 Network Integrity Capital Sub Appendix A19:C NGN RIIO GD1 Network Integrity Capital Expenditure

Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

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Page 1: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

NGN RIIO-GD1 Network Integrity Capital

Sub Appendix A19:C

NGN RIIO GD1 Network Integrity Capital Expenditure

Page 2: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Conten

A19A-1:

1.1

1.2

1.3

A19A-2:

2.1

2.2

2.3

2.4

2.5

2.6

A19A-3:

3.1

3.2

3.3

3.4

3.5

3.6

3.7

A19A-4:

4.1

4.2

4.3

4.4

A19A-5:

5.1

5.2

5.3

5.4

5.5

5.6

A19A-6:

6.1

6.2

6.3

2

nts

Offtake and

Introductio

RIIO-GD1

The Investm

Pre-Heating

Introductio

RIIO-GD1

The Investm

Selection C

Innovation.

Output De

Electrical an

Introductio

Current Pri

RIIO-GD1

The Investm

Selection C

Innovation.

Output De

Pipeline Re-

Introductio

Investment

Selection C

Innovation.

Offtake Mete

The Specif

Investment

Current Pri

Cost Bene

Selection C

Innovation.

Energy Flow

The Specif

Current Ru

Investment

PRI Utilisatio

on .................

Investment R

ment Journey

...................

on .................

Investment R

ment Journey

Criteria .........

....................

liverables .....

d Instrument

on .................

ice Control R

Investment R

ment Journey

Criteria .........

....................

liverables .....

life ...............

on .................

t Driver ........

Criteria .........

....................

er Upgrades

fic Requireme

t Driver ........

ice Control R

efit Analysis ...

Criteria .........

....................

w Measureme

fic Requireme

un Rates ......

t Driver ........

on Capacity U

....................

Requirements

y ..................

....................

....................

Requirements

y ..................

....................

....................

....................

ation (E&I) Si

....................

Run Rates .....

Requirements

y ..................

....................

....................

....................

....................

....................

....................

....................

....................

Including Low

ent througho

....................

Run Rates .....

....................

....................

....................

ent ................

ent througho

....................

....................

Upgrading Pro

....................

s ...................

....................

....................

....................

s ...................

....................

....................

....................

....................

te Upgrades

....................

....................

s ...................

....................

....................

....................

....................

....................

....................

....................

....................

....................

w Flow Mete

ut RIIO-GD1

....................

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

ogramme ....

...................

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Page 3: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

6.4

6.5

6.6

A19A-7:

7.1

7.2

7.3

7.4

7.5

A19A-8:

8.1

8.2

8.3

8.4

8.5

8.6

A19A-9:

9.1

9.2

9.3

9.4

A19A-10

10.1

10.2

10.3

10.4

10.5

A19A-11

11.1

11.2

11.3

A19A-12

12.1

12.2

12.3

12.4

Cost Bene

Selection C

Innovation.

PRI Conditio

The Specif

Justificatio

Selection C

Innovation.

Benefits/O

Odorant Upg

The specifi

Asset Heal

Current Ru

Justificatio

Selection C

Innovation.

High Pressu

The Specif

Justificatio

Cost Bene

Innovation.

0: PIG Trap F

The Specif

Justificatio

Cost Bene

Selection C

Innovation.

1: River Bank

The Specif

Justificatio

Innovation:

2: Compensa

The Specif

Justificatio

Selection C

Innovation.

efit Analysis ...

Criteria .........

....................

on Upgrades

fic Requireme

n for Investm

Criteria .........

....................

utputs .........

grades .........

ic requiremen

lth ................

un Rates ......

n for Investm

Criteria .........

....................

re Storage ...

fic Requireme

n for Investm

efit Analysis ...

....................

acilities ........

fic Requireme

n for Investm

efit Analysis ...

Criteria .........

....................

k Erosion ......

fic Requireme

n for Investm

:...................

ation Paymen

fic Requireme

n for Investm

Criteria .........

....................

....................

....................

....................

....................

ent througho

ment ..............

....................

....................

....................

....................

nt throughou

....................

....................

ment ..............

....................

....................

....................

ent througho

ment ..............

....................

....................

....................

ent througho

ment ..............

....................

....................

....................

....................

ent througho

ment ..............

....................

ts .................

ent througho

ment ..............

....................

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

t RIIO-GD1 ..

....................

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

ut RIIO-GD1

....................

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Page 4: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A-13

13.1

13.2

13.3

A19A-14

14.1

14.2

14.3

14.4

A19A-15

15.1

15.2

15.3

15.4

15.5

A19A-16

16.1

16.2

16.3

16.4

16.5

A19A-17

17.1

17.2

17.3

A19A-18

18.1

18.2

18.3

18.4

A19A-19

19.1

19.2

19.3

A19A-20

20.1

4

3: Sleeves .....

The Specif

Justificatio

Innovation.

4: LTS Pipelin

The Specif

Justificatio

Selection C

Innovation.

5: Reinforcem

Introductio

RIIO-GD1

The Investm

Network R

Investment

6: Replaceme

Introductio

RIIO-GD1

The Investm

Selection C

Innovation.

7: Aggregated

The Specif

Justificatio

Innovation.

8: Rationalise

The Specif

Justificatio

Selection C

Innovation.

9: Gascoseek

The Specif

Justificatio

Innovation.

0: Over Cross

The Specif

....................

fic Requireme

n for Investm

....................

ne Replaceme

fic Requireme

n for Investm

Criteria .........

....................

ment Mains ...

on .................

Investment R

ment Journey

Risk ...............

t Decision ....

ent Governors

on .................

Investment R

ment Journey

Criteria .........

....................

d (Other Expe

fic Requireme

n for Investm

....................

Mains & Gov

fic Requireme

n for Investm

Criteria .........

....................

kers ..............

fic Requireme

n for Investm

....................

sings ............

fic Requireme

....................

ent througho

ment ..............

....................

ent ...............

ent througho

ment ..............

....................

....................

....................

....................

Requirements

y ..................

....................

....................

s ..................

....................

Requirements

y ..................

....................

....................

enditure) (Pro

ent througho

ment ..............

....................

vernors to Su

ent througho

ment ..............

....................

....................

....................

ent througho

ment ..............

....................

....................

ent througho

....................

ut RIIO-GD1

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

s ...................

....................

....................

....................

....................

....................

s ...................

....................

....................

....................

ojects <£0.5m

ut RIIO-GD1

....................

....................

upport Storag

ut RIIO-GD1

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

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ut RIIO-GD1

...................

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Page 5: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

20.2

A19A-21

21.1

21.2

21.3

21.4

A19A-22

22.1

22.2

22.3

A19A-23

23.1

23.2

23.3

23.4

23.5

A19A-24

24.1

24.2

24.3

24.4

24.5

24.6

A19A-25

25.1

25.2

25.3

25.4

25.5

25.6

25.7

A19A-26

26.1

26.2

26.3

26.4

Justificatio

1: Remote Pr

The Specif

Justificatio

Selection C

Innovation.

2: Replace Ne

The Specif

Justificatio

Selection C

3: Buildings/C

Introductio

RIIO-GD1

The Investm

Selection C

Innovation.

4: Gas Treatm

The Specif

Justificatio

Cost Bene

Other Optio

Selection C

Innovation.

5: Site Securit

Introductio

RIIO-GD1

The Investm

Network R

Investment

Selection C

Innovation.

6: Alarm Man

The Specif

Justificatio

Cost Bene

Selection C

n for Investm

essure Monit

fic Requireme

n for Investm

Criteria .........

....................

etwork Logge

fic Requireme

n for Investm

Criteria .........

Civils Rebuild

on .................

Investment R

ment Journey

Criteria .........

....................

ment .............

fic Requireme

n for Investm

efit Analysis ...

ons Conside

Criteria .........

....................

ty Rebuild an

on .................

Investment R

ment Journey

Risk ...............

t Decision: O

Criteria .........

....................

agement .....

fic Requireme

n for Investm

efit Analysis ...

Criteria .........

ment ..............

toring and Co

ent througho

ment ..............

....................

....................

ers ...............

ent througho

ment ..............

....................

and Refurbis

....................

Requirement .

y ..................

....................

....................

....................

ent througho

ment ..............

....................

red ...............

....................

....................

nd Refurbishm

....................

Requirement .

y ..................

....................

Option Three ..

....................

....................

....................

ent througho

ment ..............

....................

....................

....................

ontrol Proces

ut RIIO-GD1

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

shment ........

....................

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

ment ............

....................

....................

....................

....................

....................

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....................

....................

ut RIIO-GD1

....................

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ss ................

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Page 6: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

26.5

A19A-27

27.1

27.2

27.3

27.4

27.5

A19A-28

28.1

28.2

28.3

28.4

28.5

A19A-29

29.1

29.2

29.3

29.4

29.5

A19A-30

30.1

30.2

30.3

30.4

A19A-31

31.1

31.2

31.3

A19A-32

32.1

32.2

A19A-33

33.1

6

Innovation.

7: Project 12:

The Specif

Justificatio

Cost Bene

Selection C

Innovation.

8: Offtake Ref

The Specif

Justificatio

Cost Bene

Selection C

Innovation.

9: Telemetry &

The Specif

Justificatio

Cost Bene

Selection C

Innovation.

0: C28: Pla

The Specif

Justificatio

Cost Bene

Innovation.

1: Auxiliary Eq

The Specif

Justificatio

Innovation.

2: Land Reme

History ......

Forecast ...

3: Fuel Poor F

Summary ..

....................

Demand Ma

fic Requireme

n for Investm

efit Analysis ...

Criteria .........

....................

form ............

fic Requireme

n for Investm

efit Analysis ...

Criteria .........

....................

& Hilltop Upg

fic Requireme

n for Investm

efit Analysis ...

Criteria .........

....................

ant and Equip

fic Requireme

n for Investm

efit Analysis ...

....................

quipment .....

fic Requireme

n for Investm

....................

ediation Statu

....................

....................

Forecasts .....

....................

....................

anagement ...

ent througho

ment ..............

....................

....................

....................

....................

ent througho

ment ..............

....................

....................

....................

grades ..........

ent througho

ment ..............

....................

....................

....................

pment ...........

ent througho

ment ..............

....................

....................

....................

ent througho

ment ..............

....................

utory Liability

....................

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

....................

....................

....................

ut RIIO-GD1

....................

....................

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ut RIIO-GD1

....................

....................

y/Risk Expen

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Page 7: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

1.1 National

into NGN

into the n

impact o

• Th

w

ne

in

ap

• Th

ho

C

di

m

• Th

(s

do

de

The impa

changes

outputs.

1.2 Through

requiring

NGN wil

plan per

£m 20

Pri

Offtake &

Figure 1

Addition

LTS & St

1.3

a) Critic

Offtakes

NGN me

Offtake o

A-1: OfftProg

IntroductTransmissio

N’s high pres

network’s be

on the require

he introductio

which has incr

etwork. Interr

terruptible at

pproximately

he introductio

ow NGN take

ontractual ar

ctate that NG

manner withou

he removal o

torage) which

ownstream s

emands.

acts of UNC

s which impac

RIIO-GD1out GDPC1 t

g intervention

l undertake c

iod is detailed

009/10

ces 1

& PRI

.1: RIIO-GD1 Of

al details of s

torage and 3

The Inves

cality Asse

s and PRIs are

eets 1 in 20 s

or PRI capac

take andgramme

tion n System (NT

ssure pipeline

elow 7Bar pre

ements to inc

on of Unified

reased the pe

ruptible dema

t peak day inc

seven years

on of UNC m

es both flexib

rrangements

GN’s Offtakes

ut altering ag

of NGN’s LP g

h has to be e

system via the

mod 90, UN

ct on RIIO-G

Investmethe network h

. A new PRI

capacity upgr

d in Figure 1.

3/14 14/1

3.5 3.7

fftake and PRI u

sites, financia

3.16a Capacit

stment Jo

ssment

e critical asse

supply obligat

city is typically

d PRI Utile

TS) Offtakes

e network. Pr

essure tiers a

crease the ca

Network Cod

eak day flows

ands were, p

creases peak

normal grow

modification 0

ble capacity (s

with NTS are

s and PRIs h

reed contrac

gasholders w

entered into t

e PRIs. This e

C mod 0195

D1 compare

ent Requhas upgrade

at Tyresal is d

rading work a

.1 below.

5 15/16

3.9

pgrade expendi

al information

ty Utilisation.

ourney

ets; it is funda

tions and com

y determined

lisation

enable gas to

essure Regu

and ultimately

apacity of Offt

de (UNC) mo

s required to

prior to this U

k day deman

wth in peak da

195 AV ‘Offta

storage) and

e embodied in

ave the capa

ctual operatin

which has incr

he system at

equates to ap

5 AV and the

d with GDPC

irementsd 12 PRIs an

due for comp

at seven Offta

16/17

3.4

ture

and capacity

amental that

mplies with th

by any one o

Capacity

o be taken fr

lator Installat

y to customer

takes and PR

odification 90

be entered in

NC change,

d by approxi

ay demands.

ake Reform’

flat capacity

n the Offtake

acity to utilise

g parameters

reased the q

t the Offtakes

pproximately

gasholder de

CR1 in respec

nd four NTS O

pletion in 201

akes and 15

17/18 18/

3.4 4

y assessmen

they have th

his license co

or more of th

y Upgrad

om the Natio

tions (PRIs) e

rs. The follow

RIs:

‘Interruption

nto and utilise

not assessed

mately 10% e

.

in 2012/13 p

through the

e Capacity Pr

e gas supplied

s.

uantity of NT

s and distribu

10 years gro

emolition prog

ct of the capa

Offtakes whic

12. During the

PRIs. The ex

/19 19/20

.1 1.8

nts are record

e required ca

ondition.

he following:

7

ding

onal Grid NTS

nable transpo

wing areas ha

Reform’ in 2

ed through th

d at peak. Su

equating

presents chan

NTS Offtakes

ocedure (OC

d in the most

TS flexible cap

uted into the

owth in peak

gramme are

acity utilisatio

ch were ident

e RIIO-GD1 p

xpenditure ov

20/21

2.8

ded in templa

apacity to ens

S system

ortation

ave an

2011/12,

he NGN

upplying

nges in

s.

CS)

t efficient

pacity

day

the main

on

tified as

period

ver the

Total

26.7

ates 3.2

sure

Page 8: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

• Re

• M

• M

• Pi

• O

Outright

could res

of custo

installatio

could op

would in

and PRI

years fro

works pr

b) Heal

The prim

seconda

capacity

condition

has capa

Prism an

of this pl

Pressure

Maximum

percenta

planning

Forecast

reached

period. T

of a tota

Details o

minimum

8

egulator capa

Metered limit;

Meter capacity

ipework veloc

Outlet tempera

failure of eith

sult in a gas

mers being s

ons are desig

perate on two

dicate the un

upgrading an

om project ini

rogramme to

lth Assessm

mary driver for

ary driver. Wh

y requirement

n or has non

acity issues.

nd Graphical

lant over the

e are used to

m Capacity is

age. This data

g models for O

t demand gro

or were antic

This assessm

al population o

of the GF netw

m pressure ou

acity;

y;

cities (Filter in

ature.

her a high cap

supply emerg

supplied and

gned to opera

o streams (tw

nit is non-com

nd the long le

tiation to com

o be deliverab

ment

r this work is

here condition

ts. For examp

serviceable r

Falcon (GF) n

current GDP

determine th

s then compa

a generally o

Offtakes.

owth was con

cipated to re

ment identified

of 192 will re

work analysis

utput at the C

nlet, inlet hea

pacity Offtake

gency where

ensuring the

ate at full cap

winning). In te

mpliant and re

ead time for m

mpletion. Dec

ble.

capacity, wh

n/serviceabili

ple a site whi

regulators wo

network anal

PCR1 and RIIO

he maximum

ared against

btained from

nsidered and

ach in exces

d that seven O

quire interven

s outputs are

Carcroft PRI.

ader, outlet he

e or PRI coul

load sheddin

cessation of

pacity on one

rms of capac

equires upgra

materials and

cisions have t

hilst the being

ty is the prim

ch is showing

ould take prio

ysis modellin

O-GD1 perio

flow capacit

expected ma

m Pk6 data for

d showed tha

s of 90% of t

Offtakes out

ntion during t

e shown in Fig

eader); and

ld impact on

ng may be ne

f gas supplies

e of the two s

city utilisation

ading. Due to

d legal conse

to be taken in

g the conditio

mary driver, co

g restrictions

ority over a si

ng tools have

ods. Fixed pa

ty for each Of

aximum flow

r PRIs and Lo

at the selecte

their capacity

of the total p

the RIIO-GD1

gure 1.2. The

a large numb

ecessary to m

s to custome

streams. With

this may not

o the speciali

ents, projects

n a timely ma

on of the equ

onsideration

s in capacity w

te in good co

been used to

rameters of i

fftake or PRI.

data to give

ocal Transmi

d Offtakes an

y within the R

population of

1.

e screen disp

ber of end us

maximise the

ers is minimis

hout intervent

t affect supp

st nature of O

take three to

anner to enab

uipment is a

is given to ali

which is also

ondition whic

o assess cap

nlet and outle

.

a current util

ssion System

nd PRIs eithe

RIIO-GD1 pric

23 and 15 P

play shows th

sers. This

number

ed. The

tion units

lies but

Offtake

o four

ble a

igning

in poor

ch only

pacities

et

isation

ms (LTS)

er had

ce control

RIs out

e

Page 9: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 1

Details o

issues w

Figure 1

.2: Example of G

of Prism Netw

with high outle

.3: Network ana

Mi

GF network anal

work Analysis

et header velo

alysis outputs – h

in Pressure

ysis outputs.

s outputs are

ocities.

high outlet head

High Outle

Header

Velocity

shown in Fig

er velocities

et

gure 1.3 beloww. The scree

9

en display sho

ows

Page 10: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Details o

populate

Highlight

above or

principle

utilisation

Figure 1

c) Netw

In order

and PRIs

list is am

developm

upgradin

design a

complet

program

manner.

The follo

• PR

co

pr

10

of summary d

ed with analys

ted below are

r approachin

es of investing

n caused by

.4: Summary of

work Risk

to meet NGN

s needs to be

mended annua

ments such a

ng plan. Spec

assessment is

ion. It is esse

mme is contin

owing specific

RI/Offtake up

omplete this w

rogramme ha

data for all PR

sis results for

e the 22 sites

g 90% capac

g in upgrades

investing too

PRI & Offtake A

N’s 1 in 20 pe

e undertaken

ally and in the

as new factor

cific site upgr

s completed.

ential that upg

ually assesse

c risks are de

pgrading wor

work. NGN’s

as been set a

RIs and Offtak

r all PRIs and

s earmarked

city and are t

s and replace

o early but pre

Analysis

eak day supp

n. All PRIs and

e most part r

ries, urban de

rading work i

PRI/Offtake

grading plans

ed so the cap

etailed in the f

rk is highly sp

s proposals h

at a maximum

kes is shown

d Offtakes as

for upgrading

to be targeted

ement of asse

eventing loss

ply obligation

d Offtakes ar

remains unch

evelopments

s established

upgrading w

s are establis

pacity utilisati

following tab

pecialised and

have taken th

m of four sites

in Figure 1.4

part of the n

g. Above the

d for upgradi

ets at the late

s of supply by

s timely capa

re capacity as

hanged. How

and the like

d prior to the

work can take

hed as soon

on outputs c

le:

d there is limi

is into consid

s per annum.

4 below. The

normal LTS p

red line show

ng. This app

est opportun

y leaving the

acity upgradin

ssessed annu

wever, major in

could require

construction

e three/four ye

as possible a

can be deliver

ted availabilit

deration and

.

worksheet is

lanning proce

ws sites that

roach aligns

ity, avoiding u

investment la

ng of NTS Of

ually. The up

nfrastructure

e changes to

year when a

ears from init

and a rolling

red in a timely

ty of resource

the work out

s

ess.

are

to NGNs

under

ate.

fftakes

grading

o the

a detailed

tiation to

y

es to

tput

Page 11: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

• M

ha

• Th

de

ap

d) Inve

Do Noth

Succ

requi

Undertak

This i

proce

Undertak

Unde

to c.£

demo

Undertak

This w

90%

as be

Undertak

The p

gash

and t

optio

Measur

Recomme

Asset

Upgrades

RIIO-GD1

Financial

Safety

Security of

Supply

Most of the ma

as built this in

he assessme

etailed design

ppropriate.

estment Op

ing

cessful compl

rement. Ther

ke Optimum

is the preferre

eed.

ke Minimum

ertaking the m

£11.45m. Ho

olition progra

ke Full Upgra

would entail t

capacity. As

eing an over e

ke Minimum

possibility of i

older demolit

the construct

on has been d

re Optio

N

nded

1 in 20

supply

will n

Safety

f

1 in 2

supply

will not

the g

de

progra

not

aterials requi

nto the outpu

ent of the wor

n stage. Histo

ptions

letion of the u

refore the ‘do

Offtake and

ed option co

Offtake and

minimum amo

owever, this o

amme to proc

ading of Iden

the full upgra

ssociated cos

engineered s

Offtake and

installing HP

tion program

tion of one or

discarded on

on One (do

othing)

0

0 Peak Day

y obligations

not be met

is a principle driv

20 License

y obligations

t be met and

gasholder

emolition

amme could

proceed

red to suppo

uts delivery pl

rk involved at

oric costs ha

upgrade work

o nothing’ op

PRI Upgradin

sting c.£27.2

PRI Upgradin

ount of work

option has be

ceed over two

tified Offtake

ade of the Off

sts range from

solution.

PRI Upgradin

Storage Pipe

me was also

r several pipe

both costs a

Option 2

Optimum

Upgrading of

Offtakes and 1

PRI’s

Total investme

c.£27.25m

ver for this inves

is a fundam

Peak Day 1 in

supply obligati

will be met with

the gasholder

operating

ort the constr

lan.

t each locatio

ave been used

k will ensure

tion is not ac

ng Work

25m and will

ng Work

required wou

een discarded

o RIIO period

es and PRIs

ftakes and PR

m c.£27.25m

ng Work and

elines to repla

considered.

elines in the lo

and deliverab

Opt

7

15

Mini

Upgrad

Offtake

PR

ent Total inv

c.£11

stment as the sa

mental Gas Trans

20

on

hout

rs

Peak Da

supply o

would no

witho

gash

ope

uction work h

on can only b

d and NGN b

NGN meets

cceptable.

allow the gas

uld reduce as

d as it would

ds.

RIs which hav

m to c.£40.0m

Construct Sto

ace the lost s

This option w

ocations requ

bility.

tion 3

imum

ding of 7

s and 15

RI’s

Fu

O

vestment

1.45m

To

afe supply of gas

sporters License

ay 1 in 20

obligations

ot be met

out the

olders

rating

P

s

wi

t

havee long le

be accurately

believe this as

the 1 in 20 p

sholder demo

ssociated cos

not enable th

ve been iden

m. This option

orage Pipelin

storage conse

would cost in

uired may not

Option 4 (Full

Upgrading)

ull Upgrading of 7

Offtakes and 15

PRI’s

otal investement

c.£40m

s to end users at

e Obligation.

Peak Day 1 in 20

upply obligation

ill be met withou

the gasholders

operating

11

ead time item

determined

ssessment is

peak day sup

olition progra

sts from c.£2

he gasholder

ntified as exce

n has been di

nes

equential to t

n excess of £

t be possible

Option 5

Upgradi

Pipelin

7

Min upgrad

Offtakes a

PRIs and

several HP

pipelin

t Total invest

above £

t all demand con

0

ut

Peak Day

supply obl

will be met

the gasho

operati

ms. NGN

at

s

ply

amme to

27.25m

r

eeding

iscarded

the

£60.0m

e. This

5 (Min

ng +

es)

ding of 7

and 15

d lay

storage

nes

tment of

£60m

nditions

1 in 20

igation

without

olders

ng.

Page 12: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Measur

Environme

Level of Ri

Comments

Decision

Figure 1.5:

The chos

day supp

of the sit

Undertak

following

Undertak

Offtakes:

Undertak

Reductio

Undertak

Undertak

Figure 1

*The typ

works re

site rebu

upgradin

e) Sele

Network

necessa

12

re Optio

N

ental

Environ

would b

in resp

from H

PRIs/

addit

issues w

sk

Very

inc

throug

s

Not rec

– una

lev

: Investment Op

sen solution

ply conditions

te locations, s

ke Major * (see n

Offtakes:

ke Intermediate u

:

ke Major upgrad

on Installations (P

ke intermediate u

ke minor upgrad

.6: Site locations

e of upgradin

equired for m

uilding pipewo

ng work wou

ection Criter

k analysis tec

ary capacity to

on One (do

othing)

nmental risks

be significant

pect of noise

High flows at

/Offtakes in

tional to all

with holders.

y high and

creasing

ghout RIIO-

GD1

commended

acceptable

el of risk

N/A

ptions

is to underta

s are met and

scale of upgr

Details of the

note below) upgr

upgrading work

ing work at the f

PRI’s):

upgrading work

ding work at:

s, Upgrade Req

ng work is cla

inor work e.g

ork building h

ld fall somew

ria and Inn

hniques are u

o meet NGN

Option 2

Environmenta

risks presented

the gasholder

would be

removed.

Upgraded uni

would be desig

for min

environmenta

impact.

Acceptable ris

retained by

network

Acceptable

solution where

network retains

managable leve

risk

1

ke the optim

d enable the

rading work a

site locations, sc

rading work at th

of the following

following Pressu

at the following

quirements and C

assified as m

g. regulators

heating contr

where in betw

novation

used to deter

’s supply obl

Opt

al

d by

rs

ts

ned

al

Enviro

risks w

signifi

respect

with h

sk High risk

by ne

the

s a

el of

Unacce

the netw

gashold

not be

um level of u

gasholder de

and cost asse

cale of upgradin

he Wethe

Asselb

Melkin

ure Bullert

Chopw

PRI’s: Canal

Keigh

Whitb

Cost Assessmen

inor, major a

only may req

rols regulators

ween major an

rmine the abi

igations. This

tion 3

nmental

would be

icant in

all issues

holders.

ris

t

U

wo

k retained

etwork

eptable to

work as the

ers could

removed

A

ne

t

4

pgrading wo

emolition pro

essments are

ng work and cos

eral and Pickerin

by, Baldersby, B

nthorpe.

thorpe Lane, Ea

well, Leadgate a

Road, Carcroft

ley, Menston an

by (Guisborough

nt

and intermedi

quire changin

s and other e

nd minor wor

ility of the PR

s working list

Option 4 (Full

Upgrading)

Environmental

sks presented by

the gasholders

would be

removed.

Upgraded units

ould be designed

for min

environmental

impact.

Minimal risk

retained by

network

cceptable to the

etwork but not to

he customer as

this is an over

engineered

solution

2

orks which wi

ogramme to b

e shown in Fi

st assessments

ng.

Burley Bank Little

ast Bierley, Ward

and Meadow La

, Clay Flatts Sto

nd Penrith.

Road)

ate. This is b

g. Major wor

equipment. In

rks.

RIs and Offtak

is updated a

Option 5

Upgradi

Pipelin

y

d

Environm

risks prese

the gasho

would

removed.

would b

increas

environmen

by constr

pipelin

Minimal

retained

netwo

e

o

Acceptable

network bu

the custom

this is an

enginee

solutio

3

ll enable 1 in

be completed

igure 1.6 belo

e Burdon and

den Law, Whiteh

ne.

rage, Clay Flatts

based on the

rks would req

ntermediate

kes to provide

annually. The

5 (Min

ng +

es)

mental

nted by

olders

be

There

be an

sed

ntal risk

ucting

nes

risk

d by

ork

e to the

ut not to

mer as

n over

ered

on

20 peak

d. Details

ow.

hall Road,

s,

scale of

quire full

e the

scale of

Page 13: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

the upgr

year.

Conside

‘turbo ex

preheatin

f) Outp

Capacity

the start

The focu

and utilis

and end

takes int

plan.

4

No. of 

4

No. of le

3

4

No. of level a

rading work is

ration will be

xpanders’ or

ng costs.

put Delivera

y utilisation m

middle and e

us in RIIO-GD

sation. The ch

point of the

to considerat

54

5529

40

13

sites operating at eaclevel as at 1/4

51

5230

44

15

sites operating at eacevel as at 31/3/2021 w

interventi

53

5335

43

8

sites operating at eachas at 31/3/2017 with ne

s determined

given to all in

‘wind turbine

ables

measures – th

end of the RI

D1 will be imp

harts below s

plan period w

ion the dema

h capacity utilisation 4/2013

</= 50%

>50% to </=7

>70% to </=8

>80% to </=1

>100%

h capacity utilisation without network on

</= 50%

>50% to </=7

>70% to </=8

>80% to </=1

>100%

h capacity utilisation etwork intervention

</= 50%

>50% to </=7

>70% to </=8

>80% to </=1

>100%

d by detailed

nnovative op

es’ to genera

he following c

II0-GD1 witho

proving asset

show the cap

with the deta

and and grow

70%

80%

100%

4

No. oflevel a

70%

80%

100%

70%

80%

100%

No. of level a

design work

tions at the d

ate electricity

charts detail h

out undertak

t health and t

pacity utilisati

iled upgradin

wth forecasts

53

5328

43

15

f sites operating at eacs at 31/3/17 without n

51

5245

440

sites operating at eachas at 31/3/2021 with ne

which is und

detailed desig

and ‘ground

how the Offta

ing any work

o have full co

on at 31/03/

ng works und

s as laid out in

h capacity utilisation network intervention

</= 50%

>50% to </=7

>70% to </=8

>80% to </=1

>100%

h capacity utilisation etwork intervention

</= 50%

>50% to </=7

>70% to </=8

>80% to </=1

>100%

dertaken prior

gn stage for e

source heat

akes and PRIs

k.

ompliance in

/2017 and 31

dertaken. The

n the main bo

70%

80%

100%

70%

80%

100%

13

r to the cons

example insta

pumps’ to re

s are being u

terms of cap

/03/2021 at

e capacity util

ody of the bu

truction

alling

educe

utilised at

pacity

the mid

lisation

usiness

Page 14: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

2.1 Within th

are used

heating o

when the

A large n

deteriora

NGN hav

however

safe leve

and envi

package

performa

addition

life and r

Through

asset ou

six sites

WBHs w

at Panna

heating a

2.2 Within th

upgrade

pre-heat

7Bar PR

This tran

£m

(2009/10

Pre-Heat

Expendit

Figure 2

14

A-2: Pre-

Introducthe NGN netw

d for pre-heat

on gas press

e pressure is

number of pre

ation causing

ve made eve

r we have now

el. WBH are f

ironmental pe

e boiler and h

ance and effic

to the WBHs

require upgra

out GDPCR1

ut in IGEM/ IG

(Penrith, Halt

with a boiler p

al. Over the c

assets to ens

RIIO-GD1he RIIO-GD1

e/replace 26 b

ting investme

RIs’.

nslates to the

0 prices)

ting

ture

.1: RIIO-GD1 Pr

-Heating

tion work we curre

ting gas as d

sure reduction

reduced (the

e-heating pla

g condition an

ery effort to m

w exhausted

fairly crude in

erformance. R

heat exchang

ciency saving

s several of th

ading/replacin

1 the network

GE/TD/13. Th

twistle, Dalst

package on S

current price c

sure the netw

Investmeperiod NGN

boiler packag

ent is driven d

investment p

13/14 1

2.1

re Heating Expe

g

ently have 10

efined under

n stations is r

e Joules-Tho

ant on gas sit

nd reliability is

maintain these

all our spare

design with

Replacement

er, rather tha

gs, utilising m

he networks

ng.

k has focused

his has gener

on, Keswick,

Scremeston a

control NGN

work has optim

ent Requproposes to

ges (65%), an

directly by As

profile identifi

14/15 15/1

2.1 2.4

nditure

8 Waterbath

the requirem

required to m

ompson effec

tes are now a

ssues and lac

e assets by u

e parts stock

no provision

t of these WB

an a like for lik

modern burne

boiler packag

d on upgradi

ally involved

, Eltringham,

as part of a to

has a adopt

mised its use

irementsreplace 32 W

nd install thre

sset Health ca

ied below:

6 16/17

3.1

Heaters (WB

ments of the I

mitigate the ef

t).

approaching t

ck of spare p

sing spares f

and are una

to suit the m

BH units will n

ke replaceme

er manageme

ges have also

ng all its sites

the installatio

Gretham). N

otal site rebui

ed a strategy

e.

WBHs (30%)

ee new boiler

ategory 17 ’O

17/18 18

3.0 2

BH) and 40 b

GEM standa

ffects of gas

the end of th

parts driven b

from redunda

ble to repair t

modern requir

normally be b

ent. This will g

ent systems a

o reached the

s in line with

on of new pre

GN have also

ld and added

y of ‘sweating

of the popula

packages on

Offtakes’ and

8/19 19/20

2.9 2.3

oiler package

rd IGE/TD/13

temperature

heir useful life

y obsolescen

ant equipmen

to a satisfact

rements of ef

by the use of

give better

and controls.

e end of their

the requirem

e-heating sys

o replaced tw

d a single new

g’ the current

ation,

n existing site

category 18

20/21

2.0

es which

3. Pre-

loss

due to

nce.

nt,

tory and

fficiency

a

In

r useful

ment

stems on

wo

w WBH

t pre-

es. All the

‘above

Total

RIIO-GD1

20.1

Page 15: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

2.3

a) Critic

Pre-heat

be signif

of these

program

Consequ

Freezing

Freezing

freezing

Frost Hea

The long

become

the gas i

but also

Increase

If the PR

the grou

different

resulting

Example

b) Heal

NGN det

fault data

Fault Da

Analysis

used to

Based o

point’ fo

within a

asset.

The Inves

cality Asse

ting is a critic

ficant. If the p

assets can t

mme.

uences of fail

g of Outlet Pip

g of the outlet

of control pil

ave: Environm

ger the pre-he

. Frost heave

is below freez

pavements,

e PREs in MP/

RI is close eno

nd; cold gas

pipe materia

g in more esc

es of the cons

lth Assessm

termines the

a, age, physi

ta

of historic fa

develop assu

on this analys

r the asset he

five year peri

stment Jo

ssment

cal activity on

pre-heating fa

ake from 6 to

lure include p

pework: Loss

t pipework ca

ots.

mental Dama

eating on site

e results from

zing, if left the

roads and ot

/LP systems:

ough to the L

may enter th

als. For exam

apes.

sequence of

ment

health of its

cal condition

ault data of N

umptions on

is a threshold

ealth assessm

od are reach

ourney

gas pressure

ault is not abl

o 24 months

potential loss

s of Supply

an lead to a p

age

e is non-oper

m ice build-up

e consequen

ther third par

Safety

LP (Low Pres

he MP/LP ne

ple cast/duct

pre-heating f

pre-heating a

n, subject ma

GN’s pre-hea

asset health.

d against qua

ment. For all

hed. After this

e reduction fa

le to be rectif

based on the

of supply an

potential loss

rational the m

p around burie

nces can bec

rty land which

sure) system

twork. This w

tile iron beco

failures on NG

assets using

tter expert as

ating assets

antities of fau

pre-heating a

s point there

acilities and t

fied, i.e. fix on

e complexitie

nd environme

of gas to the

more significan

ed pipelines,

come catastro

h the pipeline

m, meaning ga

would affect t

ome more brit

GN assets ar

a wide range

ssessment an

identified som

lts was estab

assets this th

is an ongoing

the conseque

n fail is not po

es of a design

ental and safe

e downstream

nt the proble

i.e. on the ou

ophic not onl

e passes und

as cannot rec

the physical c

ttle at lower t

re demonstra

e of data and

nd manufactu

me clear tren

blished which

hreshold occu

g significant d

15

ences of failu

ossible, repla

n and build

ety impacts:

m system thro

ms of frost h

utlet of PRIs

y damaging t

er.

cover heat th

characteristic

temperatures

ated below:

d information

urer’s guideli

ds which cou

h acts as a ‘ti

urs when 40

deterioration

ure can

acement

ough

eave can

when

the site

rough

cs of

s

including

nes.

uld be

pping’

faults

in the

Page 16: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

For WBH

and rem

below). F

rate of a

Figure 2

Figure 2

Following

within th

Figure 2

0100200300400500600

200

y

y

0

50

100

150

200

200

16

Hs at this thre

edial action,

For package

n additional e

.2: Deterioration

.3: Deterioration

g this analysi

e last five yea

.4: Data Sample

y

y

05 2006 200

y = 7.4x - 147

y = 5.2x - 104

04 2006

eshold, histor

deterioration

boilers opera

eight faults pe

n Rates - WBH

n Rates Boiler Pa

s NGN has id

ars. An exam

e Example (PRI’s

= 37.8x - 754

y = 5.5x - 11

07 2008 200

734

416

2008

ric performan

n will increase

ating at the 4

er year.

ackages

dentified eac

mple of the da

s)

469

000

09 2010 201

2010 20

nce data indic

e at a rate of a

40 faults in fiv

h pre-heating

ata is provide

1

012

cates that, ev

an additional

e year thresh

g asset and t

ed in Figure 2

WBH with in five yea

WBH with faults in fiv

Boiler pacforty fault

Boiler pacthan forty

ven with ongo

40 faults eac

hold deteriora

he number o

.4 below.

over forty fars

less than fove years

ckages withs in five yea

ckages withy faults in fiv

oing mainten

ch year (Figu

ation will incre

of faults per a

faults

orty

h over ars

h less ve

nance

re 2.2

ease at a

asset

Page 17: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

When co

network

options a

Age/Obs

With the

NGN’s a

the asse

With the

replacem

solutions

It is wort

supplem

with diffic

a single

For the c

exceed 2

Physical

Other th

assessm

Subject M

There ar

maintena

maintain

prolong

have can

network

and failu

Manufac

All the ne

Potterton

c) Netw

Following

populate

onsidering ho

to optimise t

are detailed f

solescence

exception of

asset health a

et health indic

exception of

ment of a WB

s to pre-heat

th noting that

ment the pre-h

culties to get

or bank of W

current boiler

20 years old

Condition

an fault data

ment. This will

Matter Exper

re only 106 W

ance the ope

ned for severa

the life and e

nnibalised WB

engineers is

re to replace

cturers Guide

etwork boiler

ns guidelines

work Risk

g the criticalit

ed for PRIs an

ow to set the

the pre-heati

further on in t

f one WBH w

assumptions

ces.

f one Italian c

BH is not an o

ing are far mo

t within the c

heating alread

t the WBH fu

WBHs with like

r package po

over RIIO-GD

, physical con

l be supplem

t Opinion

WBHs on the

erational staff

al years to all

ensure replac

BH parts to e

that the opp

e will lead to a

lines

r packages a

s recommend

ty and asset

nd Offtakes.

fault thresho

ng asset life w

this report.

within the netw

we considere

company (Fio

option, they a

ore beneficia

urrent GDPC

dy on site. Th

lly functional.

e-for-like is n

opulation NGN

D1.

ndition of the

mented with fie

network and

are very fam

ow NGN to m

cement timesc

ensure these

portunities to

an exponentia

re currently p

d a design life

health asses

old NGN cons

whilst mainta

work all othe

ed any WBH

orentini) WBH

are inefficient

al from an env

CR1 the netw

his proved to

. From experi

ot an effectiv

N has record

e asset has b

eld surveys w

, as a result o

miliar with thes

maximise the

cales were o

assets are k

keep mainta

ally increasing

provided by P

e of 15 years

ssments unde

sidered sever

aining an acce

r WBH are ov

over 30 year

H are no longe

and unsupp

vironmental a

ork installed

o be an expen

ience NGN, c

ve option to th

s of all install

een determin

which are cur

of the high fa

se critical ass

asset life an

ptimised. Ov

kept operation

ining/fixing th

g risk to their

Pottertons (as

for one of th

ertaken by NG

ral options w

eptable level

ver 40 years

rs old to be c

er manufactu

orted items o

and safety po

a single WBH

nsive option a

considers rep

his pre-heatin

ation dates m

ned through s

rrently ongoin

ault frequenci

sets. Pre-hea

d effectively ‘

ver the years t

nal. The stron

hese assets a

r successful o

s is the case

eir boiler pac

GN the asset

17

hich would a

of risk. Thes

old. As part

categorised a

ured. Like-for

of plant and m

oint of view.

H at Pannal to

and has been

placement/ad

ng problem.

many of whic

subject matte

ng in 2012.

es and sched

ating has bee

‘sweat’ the a

the operation

ng view of the

are becoming

operation.

across the in

ckages.

t health table

allow the

e

of

as HI4 on

-like

modern

o

n fraught

ddition of

ch will

er expert

duled

n

asset to

nal staff

e

g limited

ndustry).

s were

Page 18: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Offtakes

Asset He

17 NT

Of

Asset He

17 NT

Of

NGN has

useful liv

In 2012,

package

rates thr

and six b

reflection

and six b

PRI’s

Asset He

18 PR

PR

18

s

ealth and Crit

Asset categorie

TS Offtakes

fftakes – Pre-he

ealth and Crit

Asset categorie

TS Offtakes

fftakes – Pre-he

s assumed, w

ves by the en

based on a

es in need of

roughout RIIO

boiler packag

n in reality. In

boiler packag

ealth and Crit

Asset categorie

RI’s above 7 Ba

RI’s – Pre-heatin

ticality - Curre

es

ating

ticality - With

es

ating

without inves

d of RIIO-GD

fault thresho

replacement

O-GD1 it wou

ges). Having c

stead NGN b

ges would be

ticality - Curre

es

r

ng

ent Condition

Criticality In

Low

Medium

High

Very Hig

hout Investm

Criticality In

Low

Medium

High

Very Hig

stment six bo

D1.

ld of 40 faults

. If the netwo

uld indicate a

consulted wit

believe that th

e beyond thei

ent Condition

Criticality In

Low

Medium

High

Very Hig

n

ndex As

H

m

h

ent

ndex Ass

H

m

h

iler packages

s in five years

ork extrapolat

ll Offtake pre

th the networ

hrough targe

r useful lives

n

ndex

H

m

h

set distribution b

HI1 HI2

1 1

set distribution b

HI1 HI2

1

s and 16 WB

s, NGN would

ted the curre

e-heating wou

rk engineers

ted replacem

without inves

Asset distributio

HI1 HI2

1

10

based on estima

31 March 20

Asset health i

HI3

3

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

BHs would be

d have 20 W

ent fault data

uld need to b

this is not fel

ment and mai

stment.

on based on est

31 March 20

Asset Health I

HI3

2

9

ated asset health

011

ndex

HI4

41

ted remaining us

011

eful Life

0%)

HI4

23

e at the end o

BHs and five

and deteriora

be replaced (3

t to be an ac

ntenance 16

timated asset he

011

Index

HI4

10

66

h index at

HI5

seful life at

HI5

22

of their

e boiler

ation

39 WBHs

ccurate

WBHs

ealth at

HI5

Page 19: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Asset He

18 PR

PR

NGN has

useful liv

In 2012,

package

througho

boiler pa

on reality

boiler pa

d) Inve

The inve

Option 1

The netw

of supply

Option 2

Setting t

deteriora

• W

• Bo

Option 3

Setting t

deteriora

• W

• Bo

Option 4

Setting t

deteriora

• W

• Bo

Each of

ealth and Crit

Asset categorie

RI’s above 7 Ba

RI’s – Pre Heatin

s assumed, w

ves by the en

based on a

es in the need

out RIIO-GD1

ackages). Hav

y. Instead NG

ackages wou

estment Op

estment optio

: Do Nothing

work conside

y, safety and

2: Set the Five

the fault thres

ation, the num

WBHs requirin

oiler package

3: Set the Five

the fault thres

ation, the num

WBHs requirin

oiler package

4: Set the Five

the fault thres

ation, the num

Water bath he

oiler package

the options h

ticality - With

es

r

ng

without inves

d of RIIO-GD

fault thresho

d of replacem

1 it would ind

ving consulte

GN believe th

ld be beyond

ptions

ons considere

g

ered a ‘do not

environment

e Year Fault T

shold at 40, b

mber of pre-h

ng replaceme

es requiring r

e Year Fault T

shold at 40, b

mber of pre-h

ng replaceme

es requiring r

e Year Fault T

shold at 100,

mber of pre-h

aters requirin

es requiring r

has been eva

hout Investm

Criticality In

Low

Medium

High

Very Hig

stment 20 bo

D1.

ld of 40 faults

ment. If the ne

dicate all PRI

ed with the ne

at through ta

d their useful

ed by NGN a

thing’ option

tal considera

Threshold at

based on act

heating replac

ent = 40

replacement

Threshold at

based on act

heating replac

ent = 34

replacement

Threshold at

based on ac

heating replac

ng replaceme

replacement

aluated in Figu

ent

ndex Ass

H

m

h

iler packages

s in five years

etwork extrap

pre-heating w

etwork engin

argeted repla

lives without

re summarise

for pre-heati

tions would b

40

ual fault data

cements wou

= 16

50

ual fault data

cements wou

= 12

100

ctual fault dat

cements wou

ent = 22

= 10

ure 2.5 below

set distribution b

HI1 HI2

s and 16 WB

s, NGN would

polated the fa

would need t

eers this is n

cement and

investment.

ed below.

ing but it con

be unaccepta

a this year an

uld be:

a this year an

uld be:

ta this year a

uld be:

w:

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

Hs would be

d have 27 W

ault data and

to be replace

ot felt to be a

maintenance

nsidered the l

able.

d taking no a

d taking no a

nd taking no

19

ted remaining us

011

eful Life

0%)

HI4

6

56

e at the end o

BHs and 12

deterioration

ed (69 WBHs

an accurate r

e 16 WBH an

evel of risk to

account of fut

account of fut

account of f

seful life at

HI5

7

29

of their

boiler

n rates

and 34

reflection

d 20

o security

ture

ture

uture

Page 20: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

e

R

(t

th

F

S

S

E

L

C

D

F

*

20

e) Investment D

Measure

Recommended Asset U

aking into account det

hroughout RIIO-GD1)

inancial

Safety

Security of Supply

Environmental

Level of Risk

Comments

Decision

igure 2.5

boiler packages re

Decision

Upgrades

terioration

Ong

cost

cost

unre

still n

the n

Safe

and

Sign

throu

critic

WBH

high

emm

Very

RIIO

Not

emain constant ba

Option One

(Do nothing)

0

oing increasing mainte

s and substantial unqu

s if a pre-heating asse

epairable. These assets

need replacing at some

near future.

ety is not the principle d

manual ‘relights’

nifiant increase in risk to

uogh catestropic failure

cal heater

H are highly inifficent re

gas use. Also signifiat

missions from extra fau

y High and increasing th

O-GD1

recommended – too m

N/A

ased on the curren

enance

uantifiable

t is

s will also

e point in

Total inv

driver for this investmet

o supply

e of a

Signifian

throuog

critical h

esulting in

CO2

lt call outs.

Signifian

gas use

fault ca

hroughout Minima

much risk

Ideal so

for the c

feels it c

through

nt age profile of all

Option 2

(40 Faults in five years

WBH – 40

Boiler Packages – 26*

vestment circa £25m

tn however failure to re

nt increase in risk to su

gh catestropic failure of

heater

nt reduction in WBH he

e and reduction in CO2

ll outs

l risk retain by network

olution for the network

customer. The netowrk

coudl manage this leve

hout RIIO-GD1.

2

boilers and the po

s) (50

* Bo

Total inves

eplace these asset cou

upply

f a

Signifiant in

throuogh c

critical hea

eater

2 from

Signifiant r

gas use an

fault call ou

k Accpetable

network

but not

k also

el of risk

Acceptable

netwrok re

risk

otential rapid deter

Option 3

0 Faults in five years)

WBH – 32

oiler Packages – 26*

stment circa £21m

udl have safety impact o

ncrease in risk to supp

catestropic failure of a

ater

reduction in WBH heate

nd reduction in CO2 fro

uts

e level of risk retained b

e solution where the

etains a managable leve

1

rioration throughou

(100 F

Boiler

Total investem

on operational staff thr

ply Signifiant incr

throuogh cate

critical heater

er

om

Signifiant redu

gas use and r

fault call outs

by Unacceptable

network

el of

Unaceptable

the network w

manage the r

would still be

catestropic fa

ut RIIO-GD1.

Option 4

Faults in five years)

WBH – 28

r Packages – 26*

ment circa £19m

rough night time call ou

ease in risk to supply

estropic failure of a

uction in WBH heater

reduction in CO2 from

e level of risk retained b

solution it is antipated

would not be able to

isk at this level and the

a signifiant chance of

ailure of the asset.

N/A

uts

by

ere

Page 21: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Investme

NGN be

of the pr

maintain

NGN be

continue

RIIO-GD

This solu

utilisation

solution.

Offtakes

17 NT

Of

16 WBH

PRI’s - W

18 PR

PR

16 WBH

2.4 In order

prioritisin

envisage

• Fa

• O

• Pr

ent Decision:

lieves the rec

re-heating as

ning enough r

lieves that ad

e to cannibalis

D1.

ution is a con

n of the skills

s - With Inves

Asset categorie

TS Offtakes

fftakes – pre-hea

H, six boiler pa

With Investme

Asset categorie

RI’s above 7 Ba

RI’s – Pre Heatin

H, 20 boiler pa

Selectionto manage th

ng heater rep

e that the follo

aults data;

Operating pres

ressure cut;

: Option 3

commended

sets. It allows

risk to benefit

dopting this s

se the parts t

nservative app

s of the netwo

stment

es

ating

ackages. (No

ent

es

r

ng

ackages. (Th

n Criteria he risk appro

placement ba

owing factors

ssure tier;

option is opt

s the network

t the custome

strategy will a

to ensure the

proach to the

ork engineers

Criticality In

Low

Medium

High

Very Hig

ote one new b

Criticality In

Low

Medium

High

Very Hig

ree new pac

opriately NGN

ased on a culm

s will be cons

tion 3 above

k to mitigate

er.

allow the netw

e retained WB

e pre-heating

s to sweat the

ndex Ass

H

m

h 2

boiler packag

ndex Ass

H

m

7

h 3

kage boilers

N is developin

mination of fa

sidered in the

being the opt

the risk to an

work to remov

BH populatio

g problem fac

ese assets, it

set distribution b

HI1 HI2

23

ge was instal

set distribution b

HI1 HI2

7

32

also need ins

ng a selection

actors. Althou

e criteria.

timum solutio

n acceptable

ve the highes

n will remain

cing the netw

t is considere

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

led during GD

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

stalling over R

n criteria meth

ugh the deta

21

on for manag

level whilst

st risk WBH a

operation th

ork and, thro

ed the optimu

ted remaining us

011

eful Life

0%)

HI4

23

DPCR1)

ted remaining us

011

eful Life

0%)

HI4

6

53

RIIO-GD1)

hodology for

il is not finalis

gement

and

roughout

ough

um

seful life at

HI5

seful life at

HI5

sed it is

Page 22: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

• Fl

• D

• N

The rem

managed

of these

2.5 NGN are

alternativ

requirem

• U

a

• B

• Pa

Au

• Tu

• G

• Id

2.6

Environm

Environm

Custome

Social ob

Custome

Safety

Reliability

Broad ap

Figure 2

22

ow;

istance to ne

umber of cus

aining WBH

d effectively t

assets will b

Innovatioe committed

ve options th

ments on site.

se of Anaero

small Combi

iomass boiler

artnering with

uckland);

urbo expande

round/air sou

dentify how w

Output D

mental (broad me

mental (narrow m

er Service

bligations

er Connections

y

pproach to asset

.6: Pre-heating O

ext pressure r

stomers.

population (7

through an o

e extended f

on to innovation

at use alterna

. These includ

obic Digestion

ned Heat and

r for pre-heat

h biomass pr

er technology

urce heat pum

we may decid

eliverable

Policy Area

easure)

measure)

t management

Output Deliverab

reduction sta

76%), which i

ngoing maint

or at least an

n and as part

ative technolo

de:

n (AD) plant to

d Power (CH

ting;

roduction fac

y;

mps/Photo V

e to take the

es

bles

ation; and

nclude many

tenance and

nother nine ye

of this invest

ogies to prov

o generate b

HP);

ilities to prov

Voltaic (PV) ce

se forward th

N/A

Increa

N/A

N/A

N/A

Increa

Secur

N/A

y assets of a

where requir

ears out to 20

tment we are

vide some or

iomethane to

ide heat requ

ells; and

hrough our in

ased efficiency o

ase safety of ma

rity of supply ma

similar age a

red, repair pr

021.

e currently co

all of the pre

o fuel boilers/

uirements to

nnovation stra

Primary Outpu

of new boiler pac

aintenance for op

aintained

and type, will

rogramme. U

onsidering a r

e-heating

/WBHs and p

sites (e.g. Bis

ategy.

uts

ckages over WB

perational engine

be

tilisation

range of

potentially

shop

BH’s

eers

Page 23: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

3.1 E&I syste

lighting,

NTS Offt

quality u

There ar

manage

ensure s

• 89

• 13

• 23

Basic E&

technolo

have had

last two

six sites

Many of

to a poin

to meet

be individ

upgrade

The drive

compon

given to

Example

A-3: Elec

Introductems and equ

communicat

takes to the c

sed for netw

re 250 sites w

the network

safe operation

9 below 7Bar

38 above 7B

3 Offtake site

&I equipment

ogy. They hav

d the E&I equ

years specifi

being refurbi

the systems

nt where ther

current legisl

dually redesig

e it is expecte

ers for this pr

ents and sta

methods of i

es of the curre

ctrical an

tion uipment are u

ions, meterin

consumer, pr

ork control a

with E&I equip

on a daily/ho

n within a haz

r sites;

ar sites; and

es.

and infrastru

ve not neede

uipment repla

c projects ha

ished/upgrad

and equipm

re is a potent

lative requirem

gned to minim

ed that sites w

roject are saf

ndardise des

installation an

ent condition

nd Instru

utilised across

ng to ensure s

roviding key

and customer

pment provid

ourly basis, m

zardous area

ucture on the

d much capit

aced during m

ave been dev

ded to the lat

ent have now

ial safety issu

ments, there

mise cost an

will not requir

fety and secu

sign. Due to i

nd protection

n of specific E

umentat

s the network

safe, secure

information o

r/shipper sup

ding a diverse

many of these

a. These sites

ese sites are o

tal investmen

major Above

veloped to ad

est legislative

w reached the

ue. It is intend

is no single s

d maximise t

re major inves

urity of supply

ncreased me

n to discourag

E&I installation

ion (E&I)

k to provide c

and complia

on odorisation

pport.

e range of ap

e systems uti

s are compris

over 35 years

nt over that p

Ground Insta

ddress the lon

e requiremen

e end of their

ded to assess

solution to ap

the future life

stment for a f

y, new design

etal theft from

ge attempted

ns are shown

) Site Up

control, telem

nt transporta

n, flow, press

plications an

lise specialist

sed of:

s old and use

period, a sma

allation (AGI)

ng term infras

ts.

r useful life an

s each site to

pply at each

of the equipm

further 30-40

ns will be don

m sites carefu

d theft.

n below:

23

pgrades

metry, heating

ation of gas fr

sure, energy a

d are crucial

t techniques

e outdated

all number of

rebuilds, and

structure issu

nd are deterio

o replace equ

location, eac

ment. Follow

0 years.

ne to minimis

l consideratio

g,

rom the

and gas

to

to

sites

d over the

ues with

orating

uipment

ch site will

wing

se

on will be

Page 24: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

3.2 Basic E&

investme

AGI rebu

infrastruc

3.3 Within th

sites and

directly b

and Con

This tran

(2009/10

Telemetr

Figure 3

3.4

a) Critic

Sites are

member

There ar

compati

systems

earthing

within ha

Basic mo

corrodin

network

a pressu

are in a m

NGN co

of the Ele

Regulatio

systems

b) Heal

Initial pla

Ongoing

are alrea

The elec

maintena

safety iss

site refur

compati

protect s

24

Current P&I equipment

ent over that

uilds, and ove

cture issues w

RIIO-GD1he RIIO-GD1

d replace/upg

by Asset Hea

ntrol Below 7B

nslates to the

0 prices)

ry & Control)

.1: RIIO-GD1 Te

The Inves

cality Asse

e now beginn

rs of the publ

re also issues

bility conflicts

. If CP system

is non-comp

azardous are

onitoring inst

g, these need

control issue

ure containing

moderate co

nsiders a ‘do

ectricity at W

on 4(3) requir

shall be carr

lth Assessm

ans have high

g site audits w

ady in NGN’s

ctrical assets

ance work. S

sues with ba

rbishments h

ble predomin

staff or maint

Price Cont and infrastru

period, a sm

er the last two

with six sites

Investmeperiod NGN

grade Instrum

alth Category

Bar”.

investment p

13/14

1.1

elemetry & Contr

stment Jo

ssment

ning to degrad

ic and also h

s associated w

s needs to be

ms are non-c

pliant the safe

as.

trumentation

d to be repla

es in managin

g part. A num

ndition and w

o nothing’ for

Work Regulatio

res that every

ried out as no

ment

hlighted sites

will clearly risk

Capex plan

have been as

Specific priorit

dly corroded

ave identified

nantly in the N

tain corrosion

trol Run Ructure on the

mall number o

o years spec

being refurb

ent Requproposes to

mentation sys

y 22 “Telemet

profile identifi

14/15 15

1.4 1

rol Expenditure

ourney

de to a point

have security

with the Cath

e addressed

compliant it c

ety of staff is

systems are

aced, failure c

ng the gas ne

mber of sites w

will not be rep

the specific

ons that NGN

y work activit

ot to give rise

with known

k assess rem

for 2012 and

ssessed by s

ty has been a

main site dis

d that the elec

North of the n

n protection,

Rates ese sites are o

of sites have h

cific projects h

bished/upgrad

irementsreplace and

stems on 94

try and Contr

ied in the follo

5/16 16/17

.3 1.2

where they c

of supply imp

hodic Protect

to ensure int

an lead to po

jeopardised

now obsolet

could lead to

etwork to opt

were upgrad

placed within

assets identif

N has a duty

ty, including o

e, so far as is

and immedia

maining sites t

d are part of t

subject matte

assigned to a

stribution cab

ctrical earthin

network. The

all relevant si

over 35 years

had the E&I e

have been de

ded to the lat

upgrade elec

out of 250 sit

rol Above 7Ba

ow asset hea

17/18 1

1.3

can be a pote

plications if p

tion (CP) syst

egrity of CP s

otential corro

and could lea

te on a numb

security of su

timise storag

ed between

the RIIO-GD

fied above is

holder role to

operation, us

reasonably p

ate safety req

to further prio

this ongoing

er experts wh

a number of s

binets which

ng system an

ese sites are n

ites will be up

s old and hav

equipment rep

eveloped to a

test legislative

ctrical system

tes. The E&I

ar” and Cate

alth tables an

18/19 19/20

1.1 1.1

ential safety r

power were to

tem and elec

system and s

sion problem

ad to potentia

ber of sites an

upply issues.

e and contro

20 and 25 ye

D1 period.

unacceptab

o maintain its

se and mainte

practicable, t

quirements an

oritise work. T

rolling progra

ho carry out s

sites where it

have direct p

nd site CP sys

not to the req

pgraded to co

ve had little c

placed during

address the lo

e requiremen

ms on 125 ou

investment is

gory 4 “Telem

nd Figure 3.1

0 20/21

1.1

risk to both s

o be lost to th

ctrical earthing

safety of elec

ms and if elec

al ignition sou

nd pressure f

. This will cau

ol or potential

ears ago, the

le. It is a requ

s sites in a sa

enance on or

to danger.

nd obsolesce

The most urg

amme of wor

site audit and

t is known the

public access

stems are no

quired standa

omply.

apital

g major

ong term

nts.

ut of 250

s driven

metry

below:

TOTAL

9.6

staff and

he site.

g where

ctrical

trical

urces

fittings

use

failure of

ese sites

uirement

afe state.

r near

ence.

gent sites

rk.

d

ere are

s. Recent

ot

ards to

Page 25: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

The upg

robust, m

legislativ

infrastruc

strategy

technolo

c) Netw

Following

populate

categorie

E&I belo

Asset He

4 Te

LT

Asset He

4 Te

LT

E&I belo

Asset He

4 Te

LT

rade of elect

maintainable,

ve compliance

cture meets c

may also de

ogy.

work Risk

g the criticalit

ed for E&I Be

es have been

w 7Bar Electr

ealth and Crit

Asset categorie

elemetry & Cont

TS – Electical Sy

ealth and Crit

Asset categorie

elemetry & Cont

TS – Electical Sy

w 7Bar - Inst

ealth and Crit

Asset categor

elemetry & Cont

TS – Instrumenta

rical and inst

compliant a

e. The propo

current desig

liver reductio

ty and asset

low 7Bar, E&

n based on s

rical Systems

ticality - Curre

es

rol

ystems

ticality – With

es

rol

ystems

trumentation

ticality - Curre

ries

rol

ation Systems

rumentation

nd safe, whil

osals allow for

gn criteria allo

on in maintena

health asses

&I Above 7Ba

ubject matte

s

ent Condition

Criticality In

Low

Medium

High

Very Hig

hout Investm

Criticality In

Low

Medium

High

Very Hig

n Systems

ent Condition

Criticality

Low

Mediu

High

Very Hi

assets will en

e ensuring th

r phased upg

owing rationa

ance activity

ssments unde

ar and E&I Off

r expert asse

n

ndex As

H

m

h

ent

ndex Ass

H

m

h

n

Index As

H

m

h

igh

nsure that the

he site infrastr

grade targetin

alisation of ou

by the install

ertaken by NG

ftakes. Deter

essment.

set distribution b

HI1 HI2

set distribution b

HI1 HI2

set distribution b

HI1 HI2

e network co

ructure is upg

ng higher risk

ur distribution

lation of new

GN the asset

ioration rates

based on estima

31 March 20

Asset health i

HI3

39

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

based on estima

31 March 20

Asset health i

HI3

54

25

ontrol system

graded to me

k sites first, en

system. This

and advance

t health table

s for all these

ated asset health

011

ndex

HI4

ted remaining us

011

eful Life

0%)

HI4

39

ated asset health

011

ndex

HI4

35

remains,

eet

nsuring

s

ed

s were

h index at

HI5

50

seful life at

HI5

50

h index at

HI5

Page 26: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Asset He

4 Te

LT

E&I abov

Asset He

22 Te

LT

Asset He

22 Te

LT

E&I abov

Asset He

22 Te

LT

26

ealth and Crit

Asset categor

elemetry & Cont

TS – Instrumenta

ve 7Bar - Elec

ealth and Crit

Asset categorie

elemetry & Cont

TS – Electrical S

ealth and Crit

Asset categorie

elemetry & Cont

TS – Electricl Sys

ve 7Bar - Inst

ealth and Crit

Asset categorie

elemetry & Cont

TS – Instrumenta

ticality - With

ries

rol

ation Systems

ctrical System

ticality - Curre

es

rol

ystems

ticality - With

es

rol

stems

trumentation

ticality - Curre

es

rol

al Systems

hout Investm

Criticality

Low

Mediu

High

Very Hi

ms

ent Condition

Criticality In

Low

Medium

High

Very Hig

hout Investm

Criticality In

Low

Medium

High

Very Hig

n Systems

ent Condition

Criticality In

Low

Medium

High

ent

Index Ass

H

m

h

igh

n

ndex Asse

H

m 1

h

ent

ndex Ass

H

m 1

h

n

ndex Asse

H

1

m

set distribution b

HI1 HI2

et distribution ba

HI1 HI2

0

set distribution b

HI1 HI2

0

et distribution ba

HI1 HI2

2

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

ased on estimate

March 201

Asset health i

HI3

78

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

ased on estimate

March 201

Asset health i

HI3

86

ted remaining us

011

eful Life

0%)

HI4

54

ed asset health

11

ndex

HI4

ted remaining us

011

eful Life

0%)

HI4

78

ed asset health

11

ndex

HI4

45

seful life at

HI5

35

index at 31

HI5

55

seful life at

HI5

55

index at 31

HI5

Page 27: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Asset He

22 Te

LT

Asset categorie

ealth and Crit

Asset categorie

elemetry & Cont

TS – Instrumenta

es

ticality - With

es

rol

al Systems

Criticality In

Very Hig

hout Investm

Criticality In

Low

Medium

High

Very Hig

ndex Asse

H

h

ent

ndex Ass

H

1

m

h

et distribution ba

HI1 HI2

set distribution b

HI1 HI2

2

ased on estimate

March 201

Asset health i

HI3

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

86

27

ed asset health

11

ndex

HI4

ted remaining us

011

eful Life

0%)

HI4

index at 31

HI5

seful life at

HI5

45

Page 28: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

E&I abov

Asset He

22 Te

Of

Asset He

22 Te

Of

E&I abov

Asset He

22 Te

Of

Sy

28

ve 7Bar - Offt

ealth and Crit

Asset categorie

elemetry & Cont

fftakes – Electric

ealth and Crit

Asset categorie

elemetry & Cont

fftakes – Electric

ve 7Bar - Offt

ealth and Crit

Asset categorie

elemetry & Cont

fftakes – Instrum

ystems

takes Electric

ticality - Curre

es

rol

cal Systems

ticality - With

es

rol

cal Systems

takes Instrum

ticality - Curre

es

rol

mental

cal Systems

ent Condition

Criticality In

Low

Medium

High

Very Hig

hout Investm

Criticality In

Low

Medium

High

Very Hig

mentation Sys

ent Condition

Criticality In

Low

Medium

High

Very Hig

n

ndex Asse

H

m

3

h

ent

ndex Ass

H

m

h

stems

n

ndex Asse

H

m 3

h

et distribution ba

HI1 HI2

3

set distribution b

HI1 HI2

3

et distribution ba

HI1 HI2

3

ased on estimate

March 201

Asset health i

HI3

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

ased on estimate

March 201

Asset health i

HI3

ed asset health

11

ndex

HI4

20

ted remaining us

011

eful Life

0%)

HI4

ed asset health

11

ndex

HI4

20

index at 31

HI5

seful life at

HI5

20

index at 31

HI5

Page 29: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Asset He

22 Te

Of

Sy

NGN has

useful liv

d) Inve

The inve

Below 7B

Offtakes

Above 7B

Figure 3

Option 1

The netw

requirem

a safe st

on or ne

Option 2

Reducin

upgrade

increasin

Option 3

Following

safety of

health su

extensive

ealth and Crit

Asset categorie

elemetry & Cont

fftakes – Instrum

ystems

s assumed, w

ves by the en

estment Op

estment optio

Bar

Bar

.2: Investment O

: Do Nothing

work conside

ment of the El

tate, Regulati

ear systems s

2: Reduce the

g the numbe

ed but would

ng risk.

3: Preferred O

g the asset h

f critical asse

urvey identify

e knowledge

ticality - With

es

rol

mental

without inves

d of RIIO-GD

ptions

ons considere

Electrical

Instrumentation

Electrical

Instrumentation

Electrical

Instrumentation

TOTAL

Options

g

ers a ‘do noth

ectricity at W

ion 4(3) requi

shall be carrie

e Number of S

er of total upg

leave some r

Option

health review

ts which are

y other sites b

e of these site

hout Investm

Criticality In

Low

Medium

High

Very Hig

stment 20 bo

D1.

ed by NGN a

n

n

n

hing’ for the s

Work Regulatio

ires that ever

ed out as not

Site Upgrade

grades is an o

risk, and sites

option three

known to be

by priority; su

es.

ent

ndex Ass

H

m

h

iler packages

re summarise

Option 1

0

0

0

0

0

0

0

specific asset

ons that NGN

ry work activit

to give rise,

es

option which

s not planned

is seen as th

e in a poor co

ubject matter

set distribution b

HI1 HI2

3

s and 16 WB

ed in Figure 3

Site

Option 2

40

10

15

14

45

30

154

ts identified a

N has a duty

ty, including

so far as is re

would allow

d would cont

he best comp

ondition and t

experts have

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

Hs would be

3.2 below.

e Upgrades

Option

50

35

20

14

55

45

219

above is unac

holder role to

operation, us

easonably pr

the highest r

tinue deterior

promise prog

through furth

e developed t

29

ted remaining us

011

eful Life

0%)

HI4

e at the end o

n 3 Op

2

cceptable. It i

o maintain its

se and mainte

racticable to d

risk sites to b

rating and ha

ram to ensur

er detailed as

the numbers

seful life at

HI5

20

of their

ption 4

65

50

15

14

70

65

279

is a

s sites in

enance

danger.

be

ve an

re the

sset

from

Page 30: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Option 4

Increasin

value, as

Each of

30

4: Increase th

ng the numbe

ssets above t

the options h

e Number of

er of sites ab

this number a

has been eva

f Site Upgrad

ove the prefe

are believed t

aluated in Figu

es

erred option i

to have a life

ure 3.3 below

s seen as un

greater than

w:

nnecessary an

this formula

nd does not

period.

add

Page 31: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

e

R

(t

th

F

S

S

E

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D

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Measure

Recommended asset u

aking into account det

hroughout RIIO-GD1)

inancial impacts

Safety

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Level of Risk

Comments

Decision

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pgrades

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T

rep

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will

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No

f Evaluation of Investm

Option 1 (do nothi

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me increase in maintena

These assets will also s

placing at some point i

future.

nimal risk to security of

be issues with network

electrical systems & te

systems fail

N/A

ry high safety to staff a

HSE intervention

ot recommended – too

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ent Options

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ance costs.

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supply but

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will be

elect

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n

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inte

much risk Ris

assess

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n 2 (reduce site upgrad

219 to 154)

150

nvestment reduced fro

to £7m

s work is safety and co

al risk to security of sup

issues with network co

rical & telemetry system

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safety to staff and publ

ervention but would rem

highest risk

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ms fail

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netwo

m

31

on 3 (upgrade 219 site)

219

investment circa £9.8m

s such safety risk is hig

sk to security of supply

tical sites to be prioratis

N/A

ble level of risk retained

network

table solution where th

orkcan demonstrate it i

managing the risk

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m Total inves

gh

y will

sed

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alow critica

ear

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he

s

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as sites with

be upgra

U

rease site upgrades fro

219 to 300)

279

stement circa £12.5m

to security of supply w

l sites to be prioratised

rlier in the plan

N/A

work risk reduced

is seen as unnessesa

h considerable life woul

aded unnessessarily.

Unacceptable

om

will

d

ry

d

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Investme

NGN be

network

complian

NGN be

extendin

Due to th

period a

optimum

E&I Belo

Electrica

4 Te

LT

Instrume

4 Te

LT

32

ent Decision:

lieves that op

to mitigate th

nce.

lieves that ad

ng the asset l

he nature of t

nd have been

m solution.

w 7Bar - LTS

l Site Upgrad

Asset categorie

elemetry & Cont

TS – Electrical S

entation Site

Asset categorie

elemetry & Cont

TS – Instrumenta

: Option 3

ption three is

he risk to an

dopting this s

ife considera

the gas infras

n sweated to

des

es

rol

ystems

Upgrades

es

rol

al Systems

the optimum

acceptable a

strategy will a

ably.

structure dev

o a point the a

Criticality In

Low

Medium

High

Very Hig

Criticality In

Low

Medium

High

Very Hig

m solution for

and demonst

allow the netw

velopment a l

assets are at

ndex Ass

H

m 5

h

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H

3

m

h

managemen

trable level w

work to remov

arge number

the end of th

set distribution b

HI1 HI2

50

set distribution b

HI1 HI2

35

nt of the E&I a

hilst maintain

ve the highes

r of assets we

heir life, this is

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

assets. It allow

ning legislative

st risk sites a

ere built in a

s considered

ted remaining us

011

eful Life

0%)

HI4

39

ted remaining us

011

eful Life

0%)

HI4

54

ws the

e

and

similar

d the

seful life at

HI5

seful life at

HI5

Page 33: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

E&I Abov

4 Te

LT

4 Te

LT

E&I Abov

4 Te

Of

4

ve 7Bar - LTS

Asset categorie

elemetry & Cont

TS – Electrical S

Asset categorie

elemetry & Cont

TS – Instrumenta

ve 7Bar Offta

Asset categorie

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fftakes – Electric

Asset cate

Telemetry & Co

Offtakes – Instru

es

rol

ystems

es

rol

al Systems

akes`

es

rol

cal Systems

egories

ontrol

umental System

Criticality In

Low

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Low

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Low

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H

ms

ndex Ass

H

m 6

h

ndex Ass

H

5

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h

ndex Ass

H

m

1

h

et distribution ba

HI1

20

set distribution b

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65

set distribution b

HI1 HI2

57

set distribution b

HI1 HI2

4 3

ased on estimat

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HI2

3

based on estimat31 March 20

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based on estimat31 March 20

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HI3

86

based on estimat31 March 20

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ted remaining us

ing Useful Life ected (50%)

HI3

33

ted remaining us011

eful Life 0%)

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78

ted remaining us011

eful Life 0%)

HI4

ted remaining us011

eful Life 0%)

HI4

seful life at 31 M

HI4

seful life at

HI5

seful life at

HI5

seful life at

HI5

6

arch 2011

HI5

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3.5 In order

priority w

develop

Although

• Ph

• C

• Sh

• RC

• C

• El

• O

• C

• Su

• Sa

3.6 Each site

standard

equipme

Where p

metal the

3.7

Environm

Environm

Custome

Social ob

Custome

Safety

Reliability

34

Asset cate

Selectionto manage th

work has bee

a risk scoring

h the detail is

hysical prote

ircuit protect

hort circuit pr

CD/Earthing

P compliance

lectrical conta

Obsolete;

orrosion;

upport struct

afety (access

Innovatioe will be desi

d types of eq

ent.

practical equip

eft.

Output D

Policy Area

mental (broad me

mental (narrow m

er Service

bligations

er Connections

y

egories

n Criteria he risk appro

en identified th

g mechanism

s not finalised

ction;

ive devices;

rotection;

standard;

e;

ainment;

tures; and

s/egress).

on gned individu

uipment will b

pment/cable

eliverable

easure) Less

measure) N/A

Relia

Relia

Netw

N/A

Ensu

Esse

site p

Asse

H

opriately NGN

hrough maint

m for prioritisin

it is envisage

ually to produ

be used and

will be desig

es

s power useage

able and accurat

able telemetry co

work manageme

ures safety of sta

ential for delivery

problems/condit

et distribution ba

HI1

N is developin

tenance and

ng E&I upgra

e that the foll

uce the most

rationalised

gned and inst

te Offtake meter

ommunications e

ent

aff and public, c

y of gas through

tions.

ased on estimat

RemainExpe

HI2

ng an asset h

audit visits, t

ades based o

lowing factor

cost effectiv

where possib

alled so as to

Primary Outp

ring and energy

ensures security

ompliance with

network Offtake

ted remaining us

ing Useful Life ected (50%)

HI3

health audit fr

the asset hea

on a culminati

rs will be cons

ve solution for

ble to minimis

o minimise th

puts

data for the ship

y of supply throu

Electricity at Wo

es & LTS, secur

seful life at 31 M

HI4

amework, im

alth framewor

ion of factors

sidered in the

r that particu

se the amoun

he increasing

pper comunity

ugh System Con

ork Regulations

ity of supply, vis

arch 2011

HI5

mmediate

rk will

s.

e criteria:

lar site,

nt of

risk of

ntrol

sibility of

Page 35: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Broad ap

managem

Figure 3

pproach to asse

ment

.4: Output Deliv

t N/A

erables

35

Page 36: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

4.1 Pipeline

provide f

Through

infringem

requirem

The inve

‘LTS and

£m 200

Pipeline R

Expendit

Figure 4

The proc

sections

a) IGEM

Pipeline

‘wayleav

including

Once ide

operated

NGN co

of this is

farms, so

maintain

out our p

Often the

slabs or

owner fo

the most

All of the

best valu

and eval

36

A-4: Pipe

Introductre-life is the t

fitness for pu

out the RIIO-

ments, CP, gr

ments or the n

estment requi

d storage inv

09/10 prices

Re-life

ture

.1: Pipeline Re-l

cess required

s:

M/TD/1 Pip

infringement

ve’ or easeme

g a requireme

entified, asse

d safely. Ofte

mplies with t

Edition 5. Th

ome of which

n our pipelines

pipeline audit

e assessmen

the risk is ac

or possible lo

t costly optio

ese factors ha

ue for money

uation of com

eline Re

tion term used to

urpose of our

-GD1 period,

round beds a

need to main

red to re-life

estment’ and

13/14 1

0.8

ife Expenditure

d to re-life the

peline Infrin

is when una

ent. Typically

ent by the lan

essment need

n this will inc

he industry s

his edition ha

h have been

s to these sta

ts.

nt can accept

ccepted ‘As L

ss of earning

on.

ave a trade-o

y option is sel

mpliance to n

-life

describe how

pipeline syst

a range of p

and transform

tain the effec

pipelines is s

d shows how

4/15 15/16

0.7 0.6

e pipelines co

ngements

authorised wo

y, this is the z

ndowner to n

ds to be carri

clude complic

standard IGE/

as proximity d

built for many

andards and

t the infringem

Low As Reas

gs. Worst cas

off and therefo

ected. Based

new standard

w NGN ensu

tems.

pipeline re-life

mer rectifiers.

ctiveness of e

shown in Figu

w the investme

6 16/17

0.6

onsist of the t

ork or building

zone within w

otify planned

ed out to dem

cated risk ana

/TD/1 for the

distances acc

y years now

therefore hav

ment with ad

onable Pract

se scenario is

ore the value

d on previous

ds, the table b

ures those pro

e works is req

The drivers f

equipment.

ure 4.1 which

ent is broken

17/18 1

0.6

three elemen

gs are carried

which the pipe

d work.

monstrate tha

alysis.

maintenance

ceptable for s

but new pipe

ve to address

ditional prote

ticable’ or we

s that we hav

e of good ass

s spend , fore

below shows

otective mea

quired, coveri

for this work

h sets out our

n down over t

8/19 19/20

0.6 0.6

ts set out in t

d out within t

eline operator

at the infringe

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such new tec

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ection measu

e may have to

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sessment is v

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sures continu

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the RIIO-GD1

0 20/21

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the following

he pipeline

r has legal rig

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chnologies as

ds mean that

gements as w

ures such as c

o compensat

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eline infringem

cipated spend

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pipeline

atutory

casts for

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t we now

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which is

ng the

ments

d on this

Page 37: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

element

independ

£m (2

TD1 Infrin

Expendit

Figure 4

b) Cath

To ensur

associat

to withst

protectiv

The main

maintain

either Sa

Sacrificia

electrica

having a

(connect

Impresse

on sites

protecte

for cross

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There ar

test facil

Figure 4

Both CP

charged

deteriora

longer co

of re-life as t

dent analysis

2009/10 prices)

ngements

ture

.2: RIIO-GD1 TD

hodic Prote

re a high leve

ed with the t

tand the pote

ve coatings, b

n advantage

ning a DC circ

acrificial Anod

al Anode (SA)

al interaction w

a limited surfa

tion in test po

ed Current: Im

with complex

ed by a single

s country pipe

mer Rectifier

re 208 TR’s in

ities on our C

.3: Typical air co

P systems wo

ions through

ate and requi

omplies.

the most effic

s to demonstr

2013

0.20

D1 Infringements

ction (CP)

el of safety an

ransmission

entially harmf

backed up by

of CP over o

cuit and its ef

de or Impress

A): SA system

with other ne

ace area. SA

ost). There is

mpressed Cu

x buried pipe

e ‘groundbed

elines.

rs (TR’s) chan

n the network

CP database

ooled TR unit in

ork on the pri

h the soil from

re renewal w

cient option a

rate legislativ

2014 2

0.20 0

s Expenditure

nd reliability in

and distribut

ul effects of c

y effective CP

other forms of

ffectiveness m

sed Current a

s are primari

earby buried s

systems invo

no requirem

urrent system

e arrays and e

’ with an exte

nge the curre

k providing im

that provide

need of upgrade

nciple of con

m the ‘anode

when signs of

and follows a

ve compliance

015 2016

0.10 0.10

n operation, i

ion of natura

corrosion. NG

P systems.

f anti-corrosio

may be monit

applied.

ly used in bu

structures/se

olve fitting ma

ent for an ex

ms are primar

extensive ear

ernal power s

ent from AC to

mpressed cur

information o

e

nverting the p

’. Because o

their current

minimal spe

e and accept

2017

0.10

it is essential

l gas is desig

GN’s approac

on treatment

tored continu

ilt-up areas t

ervices and fo

agnesium/zin

xternal power

rily used with

rthing system

source and th

o DC and pro

rrent CP to o

on the condit

pipeline to a ‘c

f this electro-

outputs drop

nd approach

table levels o

2018 201

0.10 0.1

that buried s

gned, installed

ch to this is t

t is that it is a

uously. These

o reduce the

or the protect

c anodes dir

source.

pipelines of s

ms. Many kms

herefore thes

ovide the pow

our steel pipe

tion of our CP

cathode’ whi

-chemical pro

p to a state w

37

h by using co

of risk.

19 2020

10 0.10

steel pipewor

d and comm

o apply good

applied simply

e CP systems

e likelihood of

tion of pipew

ectly to the p

significant len

s of pipeline c

se systems ar

wer for groun

lines and ove

P systems.

ch in turn rec

ocess, the an

where the pip

mplex

Total

1.00

rk

issioned

d quality

y by

s can be

f

ork

pipeline

ngth and

can be

re ideal

ndbeds.

er 14,000

ceives

nodes

peline no

Page 38: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Current R

Aging pi

equipme

Historica

this, new

regulatio

Addition

database

spend o

£m 2009

CP Expe

Figure 4

c) Othe

In order

ongoing

to separ

as ‘Othe

As AGI’s

overcom

Based o

£m (2009

prices)

Other Ex

Figure 4

4.2 LTS Pipe

reductio

These pi

The ope

requirem

Consequ

The two

requirem

managed

• Lo

• D

• Lo

38

Run Rates

peline coatin

ent, therefore

al spend has

w power supp

ons and to fac

al costs of an

e improveme

n CP to be:

9/10 prices

enditure

.4: RIIO-GD1 Ca

er

to achieve ef

investment s

ate various e

ers’.

s and pipe sy

me these add

on experience

9/10

xpenditure

.5: RIIO-GD1 ot

Investmeelines are NG

n onwards to

ipelines are in

ration of pipe

ments of the P

uence of Failu

biggest influ

ments in IGE/T

d efficiently to

oss of multip

estruction of

oss of gas su

gs require hig

e the re-life of

shown that a

plies are requ

cilitate remot

node replace

ents and othe

2013 20

0.50 0.3

athodic Protectio

ffective CP an

such as the p

electrical syste

ystems are up

itional ‘curren

e, the anticipa

2013 201

0.10 0.1

her pipeline exp

ent DriverGN’s link betw

o our custom

nspected per

elines is a com

Pipeline Safet

ure

ences on HP

TD/1 are to e

o ensure that

le life;

property; an

upply to custo

gher current

f this equipme

an average T

uired for these

e monitoring

ement, ground

er items, base

14 2015

30 0.30

on Expenditure

nd maintain s

protective coa

ems. These a

pdated with E

nt drain’ seen

ated spend o

14 2015

10 0.10

penditure

r ween the NTS

mers. There is

riodically, usin

mpliance issu

ty Regulation

P Pipeline failu

ensure that p

t pipeline inte

nd

omer.

outputs whic

ent is critical

R replaceme

e to incorpor

facilities.

dbeds, test p

ed on these a

2016

0.40

safe pipelines

atings, paint

additional ele

E&I equipmen

n on the anod

on these elem

2016

0.10

S and the net

currently 1,2

ng appropria

ues and the o

ns 1996.

ure are third p

ipeline infring

egrity is maint

ch in turn red

to the condit

ent at current

rate safety req

post remote m

assumptions

2017 20

0.40 0

s, there are o

systems and

ements have

nt, the need t

de supply.

ments is show

2017 20

0.10 0.

twork’s distri

200km of HP

ate inspection

operation of a

party damag

gements and

tained. Cons

uce the life o

tion of the pip

costs is c.£1

quirements u

monitoring un

, we anticipa

018 2019

.40 0.40

other measure

d electrical iso

been catego

to upgrade C

wn in Figure 4

018 2019

.10 0.10

bution system

pipelines (>7

n techniques.

all pipelines m

e and corros

corrosion co

equences of

of CP anodes

pelines.

13k. In additio

under electric

nits, cabling,

te the followi

2020

0.40

es that requir

olation that is

rised in this s

CP systems to

4.5 below:

2020

0.30

m for pressur

7Bar) in the n

must meet th

sion. The

ontrol techniq

failure includ

s and

on to

cal

ng

Total

3.10

re

s needed

section

o

Total

1.00

re

network.

e

ques are

de:

Page 39: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Conditio

LTS Pipe

pipelines

periodic

1 LT

Deteriora

Pipelines

due to c

coating t

construc

with regu

The large

effective

The life o

coatings

reduce in

and ensu

Introduc

operate

our HP p

b) Cost

The cost

renewal

The ben

• En

N

n Assessmen

elines are gen

s have excee

in-line or ove

Asset categorie

TS Pipelines

ation:

s are maintain

orrosion, the

type, effective

ction, most p

ular maintena

est risk to pip

application o

of CP system

s. Repairs are

nterference w

ure safety to

tion in new e

our pipelines

pipelines and

t Benefit An

t benefit to ca

of pipelines.

efits/outputs

nvironmental

o loss of con

nt

nerally in a go

ding 40 years

er ground ins

es

ned in accord

e deterioration

eness of the

ipelines have

ance and mo

pelines is by t

of IGE/TD/1.

ms and anode

e ongoing to

with other util

personnel m

energy source

s safely. Wind

require asse

nalysis

arry out this r

of investing

– No disrupt

ntainment from

ood condition

s continual se

spections.

Criticality In

Low

Medium

High

Very Hig

dance with IG

n rate due to

CP system a

e experienced

onitoring, inve

third party inf

es reduces as

maintain coa

ities. Aging T

maintain such

es and chang

d Farms are s

essment of th

re-life offers t

in these asse

tion to the en

m pipeline fa

n. The majori

ervice. Integr

ndex As

H

0

m 0

2

h 2

GE/TD/1. The

this factor va

and pressure

d some deter

estment in rem

fringement an

s current outp

atings to keep

TR’s require m

equipment.

ging planning

such an exam

his impact on

the most effic

ets are as foll

nvironment fro

ilure.

ty of them ar

rity of these a

sset distribution b

HI1 HI2

0 1

0 0

23 242

2 443

e main cause

aries depend

cycling fatigu

rioration but t

mote CP mon

nd damage, t

puts increase

p current outp

maintenance

g authorisatio

mple and thes

such pipelin

cient solution

ows:

om construct

re in the HI2 c

assets is man

based on estima

current reportin

Asset health i

HI3

0

0

25

277

e of deteriorat

ent upon gro

ue, among o

this has been

nitoring and C

this risk is ma

e in order to p

puts as low a

to satisfy ele

n continue to

se are often b

es.

to the altern

tion of a new

39

category. Mo

naged throug

ated asset healt

ng year

ndex

HI4

0

0

17

164

tion to pipelin

ound conditio

ther factors.

n managed ef

CP system u

anaged throu

protect deter

as possible in

ectrical regula

o affect how w

built in proxim

ative of expe

w pipeline in th

ost

h

h index in

HI5

0

0

0

0

nes is

on,

Since

ffectively,

pgrades.

ugh the

riorating

n order to

ations

we

mity to

ensive

he future.

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• N

tra

em

• C

• Sa

ar

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investment, m

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ave remote m

tor TR perform

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Page 41: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Criticality

Very H

4.3 The type

environm

custome

custome

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demonst

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manual m

faults as

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frequent

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er with the ov

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they occur.

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monitoring c

ly to enable u

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ed and that w

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set health index

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GN will apply

money.

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echnologies a

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31 March 2021

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Page 42: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 4

Remote

such iss

systems

best valu

42

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monitoring h

ues as powe

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ue for money

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has also been

er supply failu

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omers.

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tiveness of im

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Page 43: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

5.1 Within th

the UNC

a) Expe

Year

Offtake M

Upgrade

Including

Flow Met

Figure 5

Workloa

approxim

program

early pla

5.2 UNC req

recover t

Stakeho

acceptab

requirem

approxim

Flexibility

has resu

would no

Offtake C

NGN nee

paramet

change f

Meters) d

low flow

5.3 Up to the

by faults

was the

Ultrason

more ac

Humblet

Consequ

The failu

errors in

charges

with UNC

A-5: Offt

The Speche RIIO-GD1

C compliance

enditure Fo

13/1

Meter

s

g Low

tering

0.3

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d throughout

mately £0.5m

mme. Corbridg

an years.

Investmequirement: It

these costs f

lder Engagem

ble level of ac

ments. NGN h

mately two/th

y to change O

ulted in the ne

ormally be, b

Capacity Stat

eds to ensure

ters. In order

flows at Offta

do not have t

conditions.

Current Pe introduction

s or in associa

main driver a

ic meters US

curate over a

ton. Bishop A

uence of Failu

re of Meterin

the shipper

which they a

C requiremen

take Met

ific Requiperiod NGN

e in terms acc

orecast

14 14/15

3 0.5

fftake Meter Upg

t the RIIO-GD

m. Detailed de

ge has been

ent Driveris essential th

from their end

ment session

ccuracy and

has 23 Offtak

hree sites per

Offtake flows

eed to have m

but not confin

tements Proc

e that any ch

to comply w

akes. This co

the capacity

Price Contn of UNC mo

ation with inc

advantage wa

SM in most b

a wider range

Auckland will

ure

ng to accurate

billing and re

are unable to

nts.

ter Upgr

irement thas made a

curacy +/- 1%

15/16

0.6

grades Including

D1 plan perio

esign work w

identified alo

r hat Shippers

d users. This

ns. Ofgem req

Ofgem unde

kes which are

r year.

: The introdu

more flexibility

ed to, Summ

cess (OCS) p

hanges to flat

with the above

uld result in m

to record acc

trol Run Rod 0195AV w

creasing the c

as taken to c

ut not all cas

e of flows. US

commence i

ely measure v

conciliation p

recover from

rades Inc

throughouprovision of

% at all expec

16/17 1

0.5

g Low Flow Mete

od has been a

hich will be c

ong with Bald

are billed co

has continue

quires NGN t

ertake annual

e audited by O

uction in 2012

y within the n

mer periods. F

present a con

t and flex Offt

e conditions i

metering inac

curately whe

Rates work on Offtak

capacity of th

concurrently u

ses are used t

SM have bee

n 2012 and b

volumes at th

process. This

m the end use

cluding L

ut RIIO-GD6.2m to enab

cted flow rang

7/18 18/1

0.9 0.8

ering

assessed at 1

completed in

dersby and Co

rrectly by NG

ed to be mad

o ensure Offt

audits to ens

Ofgem over a

2/13 of Offtak

network to op

Flat and flex c

ntractual oblig

take flows are

t is essential

ccuracies as

n changing fl

ke Metering w

he Offtake. W

upgrade/repla

to replace or

n installed at

be completed

he NTS Offta

s could result

er metered en

Low Flow

D1 ble NTS Offta

ges.

19 19/20

8 1.2

13 sites with

2013/4 will e

oldstream to

GN and they i

de very clear

take Metering

sure UNC me

a ten year pe

ke Reform (U

perate Offtake

commitments

gation betwee

e within agre

to have max

some meters

lows (turndow

was condition

When Offtake

ace the Offta

rifice plate me

Pannal, Elto

d in the first y

kes could res

in shippers p

nergy. This is

43

w Meter

ake metering

20/21

1.3

a unit cost o

establish the f

be complete

in turn are ab

to NGN at th

g is within an

etering accur

riod equating

UNC Mod 019

es at Low Flo

s as detailed

en NGN and

ed contractu

ximum flexibili

s (Orifice Plat

wn ratio) or d

n driven, prom

capacity upg

ake Metering.

eters as they

n, Thrintoft a

year of the RI

sult in signific

paying transp

s in strong co

ing

to meet

Total

6.0

of

full plan

ed in the

ble to

he

n

racy

g to

95 AV)

ows. This

in the

NTS.

al

ity to

te

during

mpted

grading

are

and

IIO-GD1.

cant

portation

onflict

Page 44: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Cost Def

Sites are

• O

• D

to

• C

C

Supplier

costs wi

Auckland

A full det

work req

5.4 NGN nee

the targe

complete

metering

a) Othe

All the si

rejected

5.5 Specific

5.6 Every eff

Metering

changing

impacts.

RIIO-GD

44

inition

e identified fro

Ofgem audits;

ata analysis a

o examine the

orbridge, Ba

orbridge as a

costs are av

ll be extracte

d.

tailed assess

quired within

Cost Beneed to ensure

et population

ed in 2013 w

g (OPM), repla

er Options C

tes with OPM

as it would n

Selectionsites will be e

Innovatiofort will be m

g is UNC com

g NGN’s ope

. This will ens

D1 period.

om:

and extracts

e sites which

ldersby and C

a follow up to

vailable for me

ed from recen

sment of all si

the plan peri

efit Analythat the Offt

and ensure

will establish t

acement with

Considered

M could be re

not ensure th

n Criteria established f

on ade at the de

mpliant within

erating proced

sure the minim

from the HP

have operate

Coldstream h

o an Ofgem C

eters. An est

nt installation

tes will be un

od.

ysis ake Metering

compliance a

he minimum

h USM or no

d

eplaced with

e optimum u

ollowing com

etailed design

the current a

dures to ensu

mum workloa

Managemen

ed at below 2

have been ide

Category one

imate has be

costs for Pa

ndertaken ea

g is compliant

at minimum c

number of s

changes to t

USM. This w

use of resourc

mpletion of de

n stage to loo

and future op

ure best mat

ad/expenditu

nt Information

20% flow ran

entified to co

e audit finding

een made for

nnal, Elton, T

rly in 2013 to

t with UNC. S

cost. The des

ites which re

the existing m

would be at m

ces/finance.

etailed design

ok at innovati

perating envir

ch of Meterin

re on replaci

n System (HP

nges; and

ommence ear

g.

the associat

Thrintoft, Hum

o finalise the s

Sites are bein

sign assessm

quire alteratio

metering arra

much higher c

n work in 201

ive ways to e

ronment. This

ng, Low Flow

ng Offtake M

PMIS). This is

rly in the plan

ted labour an

mbleton and B

scale and co

ng selected to

ment which w

ons to orifice

angements.

cost and has

3/14.

ensure the Of

s may involve

ws and turn do

Meters throug

primarily

n period.

d E&I

Bishop

st of the

o reduce

will be

plate

been

fftake

e

own

hout the

Page 45: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

6.1 Across t

Compute

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approac

program

There ar

• C

be

• C

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a

up

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overall fo

over the

£m 2009

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Energy F

Measure

Figure 6

6.2 The vario

spares h

which re

6.3 Energy F

it must o

equipme

network

smell an

Consequ

Failure o

Calorific

System C

reconcili

systems

consume

can be s

Conditio

A-6: Ene

The Speche NTS Offta

ers which are

omplex syste

ching the end

m to ensure th

re three main

alorimeters –

efore the end

alorimeter Co

Omni Flow Co

total replace

pgrade as dir

rgy Flow mea

orecasts for ‘T

RIIO-GD1 pe

9/10 20

Flow

ment 0.

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Current Rous elements

have been ca

equire special

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operate 24/7

ent is also ess

and also a c

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uence of Failu

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ation proced

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er, due to the

shut down bu

n Assessmen

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ific Requiakes there are

e all critical fo

ems are over

of their oper

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elements to

– The Calorim

d of the regula

ontrollers – R

omputers – Ar

ment will be

rected by Ofg

asurement in

Telemetry &

eriod;

13 2014

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nergy Flow Meas

Run Ratess of the energ

annibalised bu

list contracto

ent Driverement equipm

to avoid pos

sential to allo

critical part of

safety critical

ure

se assets will

ss and odora

d not be able

ures would b

manual setti

e near obsole

ut only if dem

nt

w Measu

irement te 12 Calorim

or the accurat

17 years old

rable life, it is

systems rema

critical energ

meters on the

atory review

RIIO-GD1 are

re now obso

required tow

gem to upgra

nvestment req

Control (abov

2015

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surement Expen

s gy measurem

ut it is becom

ors to repair, f

r ment cannot

ssible meter e

ow System Co

the odorisat

application.

lead to failure

ant injection e

e to control th

be instigated

ng to ensure

escence such

mand in the ne

rement

throughoueters, 12 Ca

te compulso

and similar t

therefore inte

ain operationa

gy/flow meas

network are

all 12 calorim

now obsolet

lete, there are

wards the mid

ade the flow c

quired is show

ve 7Bar)’ and

2016

0.1

nditure

ment equipme

ming increasin

fault data is n

be maintaine

errors on gas

ontrol to mon

ion system w

e of the Offta

equipment.

he flow of ga

to try to calc

e safe levels o

h faults can ta

etwork of the

ut RIIO-GDlorimeter Con

ry measurem

to other elect

ended to imp

al and have a

surement:

approaching

meters will nee

te and unsup

e some spare

d-point of the

calculation to

wn in Figure

d shows how

2017 201

0.4 0.4

ent have inter

ngly difficult to

not collated a

ed on a ‘repla

entering the

nitor and con

which is used

ake Metering

as into the net

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of odorant are

ake time to re

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ment of energy

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a new asset l

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w the investme

18 2019

4 0.4

rmittent faults

o find spares

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ace on fail’ m

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and Flow We

twork correc

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esolve and to

uipment.

45

25 Omni Flow

y flow.

ment are at th

ased replace

ife.

nce. It is expe

ervention.

need replace

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eriod. This al

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hich sets out

ent is broken

2020

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s and failures

s for these sys

methodology b

he Offtake si

of gas into th

e gas has the

eighted Avera

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odorant inject

gas delivered

o mitigate this

w

he end or

ement

ect that

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All the as

contract

phased t

22 Te

Of

M

6.4 The Ene

of RIIO-G

structure

The ben

• C

• En

re

• Sa

• C

a) Othe

Do Noth

The optio

able to d

Long Ter

Phased

replaced

meet new

Long ter

46

ssets are of k

ors has been

to meet repla

Asset categorie

elemetry & Cont

fftakes – Energy

eaasurement

Cost Benergy Flow Mea

GD1, it is crit

ed program t

efits/outputs

ustomer – Se

nvironmental

educed vehic

afety – Ensur

ompliance –

er Options C

ing:

on to ‘do not

demonstrate

rm Phased Im

implementati

d equipment a

w accuracy r

rm phased im

known age an

n by suitable

acement by c

es

rol

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efit Analyasurement eq

ical to the ne

o mitigate the

of investing

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– Reduce th

le emissions)

re gas meets

Compliance

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plans to keep

mplementatio

ion over a lon

and cannot b

requirements

mplementation

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subject matt

criticality of sp

Criticality In

Low

Medium

High

Very Hig

ysis quipment ass

etworks contr

ese risks.

in these asse

pply, Shipper

he number of

), reduced us

s critical odor

with licence

d

viable option,

p the system

on

nger period h

be done for th

s set by Ofgem

n is not cons

, the assessm

er experts in

pares/functio

ndex As

H

m

h

sets are at th

rol and safety

ets are as foll

r data, Ofgem

faults and he

sage of helium

isation levels

obligations.

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s operationa

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sidered practi

ment of useab

determining

on.

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l.

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w Computers

cal for this sm

ble spares an

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at these asse

ts (reduced c

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s which are b

mall number

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d program, w

ated asset healt

ng year

ndex

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23

cted to be by

ets are replac

carbon footpr

meter;

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ire cannibalis

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of assets.

specialist

which is

h index in

HI5

y the end

ced in a

rint with

ust be

sation of

d to

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Asset He

Criticality

Low

Mediu

High

Very H

Asset He

Criticality

Low

Mediu

High

Very H

6.5 The repla

6.6 This is a

ealth and Crit

y Index Ass

HI

w 0

um 0

h 0

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y Index Ass

HI1

w 0

um 0

h 0

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ticality - With

set distribution b

index

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1 HI2

0

0

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ticality – With

set distribution b

index

Ass

1 HI2

0

0

0

0

n Criteria he equipmen

on ist market an

h Investment

based on estima

at 31 March 20

set health index

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0

0

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at 31 March 20

set health index

HI3

0

0

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nt has been p

d only Ofgem

ated asset health

017

HI4 HI5

0 0

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ent

ted asset health

17

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0 0

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phased based

m approved e

h Asset di

HI1

0

0

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23

h Asset di

HI1

0

0

0

0

d on immedia

equipment ca

stribution based

useful life at 3

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0 0

0 0

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stribution based

useful life at 3

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0 0

0 0

0 0

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ate obsolesce

an be used.

47

d on estimated re

31 March 2021

g useful life

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0 0

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0 0

d on estimated re

31 March 2021

g useful life

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0 0

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ence.

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0

23

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A19A

7.1 PRI Con

inspectio

based o

of only 7

based o

Offtakes

• Fi

• Sl

• Re

PRI’s ab

• Fi

• Sl

• Re

The cost

2009/10

£m

PRI con

upgra

Figure 7

This inve

capacity

large ass

Example

7.2

a) Curre

NGN are

mechani

work on

invested

48

A-7: PRI

The Specdition Upgrad

ons or have b

n current run

70 assets in to

n the followin

s:

lters x 4 (c.2

lamshuts x 2

egulators x 4

bove 7Bar:

lters x 22 (11

lamshuts x 1

egulators x 2

ts associated

Prices 20

ndition

ades 0.

.1: RIIO-GD1 P

estment profi

y drivers, it is

set base (bas

es of potentia

Justificati

ent Price C

e gathering as

ism for these

deterioration

an average c

Conditio

ific Requides cover tho

become obso

n rates and su

otal out of an

ng upgrade a

sites);

(c.1 site); an

4 (c.1 site).

1 sites);

0 (5 sites); an

28 (7 sites).

d with this sc

13 2014

.1 0.2

PRI condition upg

le shown abo

solely based

sed on individ

al condition u

ion for In

ontrol Run

sset health d

e assets. As s

n rate data an

c.£500k pa o

on Upgra

irement tose items of

olete or in a s

ubject matter

n asset base

assumptions:

nd

nd

hedule of wo

2015

0.9

grades Expendit

ove does not

on condition

dual units) co

pgrades are

vestment

Rates

data to suppo

such it is curr

nd methodolo

on this type o

ades

throughouplant on PRIs

state of disrep

r expert opini

of over 3,000

ork are shown

2016

0.7

ture

include thos

n and deterio

onservative as

shown below

t

ort a robust a

rently underta

ogy througho

of condition re

ut RIIO-GDs and Offtake

pair. The RIIO

on. The inves

0 individual u

n below:

2017 201

1.1 0.9

se sites/asset

ration driven

ssumptions h

w;

asset health m

aking surveys

out 2012/13.

eplacement.

D1 es that could

O-GD1 invest

stment includ

nits. In total t

18 2019

9 0.6

ts which are u

upgrades. A

have been ma

matrix and de

s of all its site

Currently the

The run rates

fail PSSR

tment has be

des the replac

the investme

2020

0.1

updated as a

As such, out o

ade.

eterioration ra

es and contin

e network ha

s forecast in

een

cement

nt is

Total

4.6

a result of

of such a

ate

ues to

s

RIIO-

Page 49: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

GD1 hav

assessm

Consequ

The critic

gas syst

stations

Should t

implicatio

lives prio

principle

7.3 NGN are

Once co

physical

7.4 NGN are

replacem

7.5 The ben

• Sa

• Re

• En

an

ve been base

ment.

uence of Failu

cality of these

em is mainta

and failure co

these assets

ons and long

or to failure. O

es of determin

Selectione currently un

omplete a cle

characteristi

Innovatioe committed

ment and we

Benefits/efits/outputs

afety – Comp

eliability – Se

nvironment –

nd maintenan

ed on extrapo

ure

e major asset

ained. All the

ould lead to l

fail, replacem

g lead items t

Our Offtakes

ning asset co

n Criteria ndertaking sit

ar methodolo

cs including,

on to innovation

continue to c

/Outputs of investing

pliance with t

ecurity of sup

– Replacemen

nce efficiencie

olation of exis

ts is importan

assets in this

loss of supply

ment can take

o delivery. As

and PRIs sup

ondition are c

te surveys to

ogy for priorit

number of c

n and as part

consider a ra

in these asse

the PSSR reg

ply to our cu

nt of aged W

es.

sting trends s

nt to ensure c

s category are

y and serious

e up to 12 mo

s such, it is v

pply between

critical to our

better under

tisation will be

customers an

of this invest

ange of altern

ets are as foll

gulations;

stomers; and

WBH, with effic

supported by

customer sup

e vital to the

s environmen

onths based

vital to replace

n 1,000 & 600

investment p

rstand the cu

e established

nd condition.

tment we will

ative options

ows:

d

cient package

y subject mat

pplies, safety

network is pr

ntal and safet

on availabilit

e assets at th

0,000 consum

program.

rrent conditio

d based on si

l challenge co

s.

e design boil

49

ter expert

y and integrity

ressure reduc

ty implication

y of parts, de

he end of the

mers and the

on of all these

te and equip

onventional

ers ensuring

y of the

ction

s.

esign

eir useful

e

e assets.

pment

running

Page 50: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

8.1 Gas deliv

gas a dis

injection

Key elec

years wit

Injection

number

replacem

8.2 Electron

no direct

Injection

undertak

outstand

has been

upgrade

The Odo

forecasts

period:

2009/10

£m

E&I od

system u

Figure 8

8.3 The Odo

compon

spares to

N200 Co

exhauste

8.4 The gas

custome

Controlle

a) Cons

Failure o

depends

allow rep

by a diffe

demand

50

A-8: Odo

The specivered from th

stinctive sme

system oper

ctronic compo

th no direct r

System and

of spares bu

ment of all Co

Asset Heaic equipment

t replacemen

System and

ken to ensure

ding. As a res

n classified a

ed sites.

orant Upgrad

s for ‘Teleme

Prices 20

dorant

upgrade 0.

.1: RIIO-GD1 E&

Current Rorant Injection

ents, most c

o meet opera

ontroller, the

ed.

Justificatientering the

er safety and

ers is essentia

sequence o

of Odorisation

s on the time

pair as mentio

erent design,

would clearl

orant Upg

ific requirhe NTS has n

ell. It is critical

rates correct

onents within

replacement.

is now obso

t these are n

ontrollers to e

alth t becomes ob

nt is available

is now obso

e continuity o

sult, from a te

as HI4 for the

e investment

etry & Contro

13 2014

.2 0.2

&I Odorant Syste

Run Ratesn Systems ar

omponents a

ational require

system has t

ion for InNetwork mu

as such mus

al to manage

of Failure

n equipment w

of year and c

oned above,

which as ou

y invoke an i

grades

rement thno smell, odo

l to the safe a

ly to precise

n the Odorisa

The N200 C

olete, four site

ow exhauste

ensure contin

bsolete as co

. The N200 C

olete, some s

of supply. To

elemetry & co

19 outstand

t required is s

l (above 7Bar

2015

0.2

em Upgrade Exp

s re complex e

are still availa

ements, as p

to be redesig

vestmentust be odorise

st be able to

e this risk in a

would lead to

criticality of th

the N200 Co

utlined would

ncident and c

hroughouorant is injecte

and efficient o

concentratio

ation Injection

Controller is a

es were upgr

ed within the

nuity of opera

omponents st

Controller is a

pares are ava

date four site

ontrols persp

ing sites and

shown in Ass

r)’ and details

2016

0.2

penditure

lectro/mecha

able or have d

parts fail in se

gned to fit a n

t ed to comply

maintain this

a demonstrab

o the gas not

he Offtake, if

ontroller simp

take a numb

consideration

ut RIIO-GDed at the 23

operation of t

n levels.

n System hav

critical comp

raded around

network. It is

ation moving f

top being ma

a critical com

ailable but a

es have been

ective, the O

d HI1 at this c

set Health 22

s the investm

2017 201

0.0 0.0

anical system

direct replace

ervice, there is

new controlle

y with our lice

equipment,

ble way.

t having a dis

possible the

ply cannot be

ber of months

n would have

D1 Offtakes (24

the network t

ve been obso

ponent within

d four years a

s proposed to

forwards.

anufactured a

ponent within

phased repla

n upgraded le

Odorant Tanks

current point

which sets o

ment required

18 2019

0 0.0

ms with nume

ements allowi

s no direct re

r as spares o

ence obligatio

replacement

stinct smell, c

e offtake can

e repaired and

s to impleme

e to be given

systems) to g

that this odo

olete for a num

n the Odorant

ago which pro

o start a phas

and supporte

n the Odoran

acement need

eaving 19 site

s asset health

in time for the

out our overa

over the RIIO

2020

0.0

rous critical

ing NGN to m

eplacement fo

of the N200 a

ons and ensu

of the N200

consequence

be shut dow

d must be re

nt, failure dur

to allow flow

give the

rant

mber of

t

ovided a

sed

ed and

nt

ds to be

es

h index

e four

all

O-GD1

Total

0.7

manage

or the

are now

ure

e

n to

placed

ring high

w of gas

Page 51: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

which is

clearly u

b) Asse

All the as

contract

Asset He

22 Te

Of

c) Cost

Given th

in a struc

The ben

• C

• En

• Sa

• C

d) Othe

Do Noth

The optio

able to d

Long Ter

Phased

equipme

number

Asset He

underused o

nacceptable.

et Health Co

ssets are of k

ors has been

ealth Current

Asset cate

elemetry & Contr

fftakes - Odoura

Benefit An

e Odorant N2

ctured progra

efits/outputs

ustomer – Se

nvironmental

afety – Ensur

ompliance –

er Options

ing

on to ‘do not

demonstrate

rm Phased Im

implementati

ent is obsolet

of assets

ealth and Crit

Asset cat

or risk losing

..

ondition

known age an

n made by su

Year

egories

rol

ant Tanks

nalysis

200 Controlle

am to mitigat

of investing

ecurity of sup

– Not applic

re gas has dis

With licence

Considered

thing’ is not v

plans to keep

mplementatio

ion over a lon

te and spares

ticality - With

tegories

gas to large

nd condition,

uitable subjec

Critic

M

V

ers are obsol

te these risks

in these asse

pply;

cable;

stinctive sme

obligations a

d

viable option,

p the system

on

nger period h

s are not ava

h Investment

Cr

parts of the N

, the assessm

ct matter exp

cality Index

Low

Medium

High

ery High

lete, it is critic

s.

ets are as foll

ell; and

and GSMR.

, this equipm

s operationa

has been con

ilable this is n

riticality Index

Network both

ment of useab

erts in determ

Asset distributio

HI1 HI2

4

cal to the safe

ows:

ent will fail at

l.

nsidered, but

not considere

Asset distribut

h are major sa

ble spares an

mining the pr

on based on est

at 31 March

Asset health

2 HI3

ety that these

t some point

discounted a

ed practical fo

tion based on es

at 31 Marc

Asset healt

Expected

51

afety issues w

nd available s

oposed prog

timated asset he

h 2011

h index

HI4

20

e assets are

and NGN mu

as the existin

or these sma

stimated asset h

ch 2021

th index

d (50%)

which is

specialist

gram.

ealth index

HI5

replaced

ust be

g

all

health index

Page 52: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

22 T

O

Asset He

22 T

O

8.5 The repla

8.6 This is a

52

Telemetry & Con

Offtakes - Odour

ealth and Crit

Asset ca

Telemetry & Con

Offtakes - Odour

Selectionacement of t

Innovatiovery speciali

ntrol

rant Tanks

ticality – With

ategories

ntrol

rant Tanks

n Criteria he equipmen

on ist market an

hout Investm

C

nt has been p

d only one m

Low

Medium

High

Very High

ent

Criticality Index

Low

Medium

High

Very High

phased based

manufacturer

HI1

24

Asset dist

HI1

d on immedia

is available.

HI2 HI3

ribution based o

index at 31 M

Asset Hea

Expecte

HI2 HI3

4

ate obsolesce

3 HI4

on estimated ass

March 2021

alth Index

d (50%)

3 HI4

ence.

HI5

set health

HI5

20

Page 53: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

9.1 Within th

network

The Carc

required

Clay Flat

in West C

in 2016 w

site by 2

propose

2009

High p

Figure 9

9.2

a) Curre

The Carc

revalidat

The Clay

subject t

full revali

Figure 9

Consequ

The Clay

maintain

assets fa

Other co

• Lo

A-9: High

The Speche RIIO-GD1

. There are o

croft site is n

.

tts supplies 3

Cumbria it is

with a risk th

25% creating

ed that additio

9/10 Prices £m

ressure storage

strategy

.1: RIIO-GD1 Hi

Justificati

ent price co

croft vessels

tion costs are

y Flatts vesse

to stress crac

idation in 201

.2: Clay Flats HP

uence of Failu

y Flatts HP st

ned in West C

ail.

onsequences

oss of life;

h Pressu

ific Requiperiod NGN

nly two HP s

o longer requ

39,000 scm o

critical to sec

at the vessel

a security of

onal line pack

13/14

0.0

gh pressure Sto

ion for In

ontrol run

will be no lon

e c.£400k for

els are 44 yea

ck corrosion.

16. The estim

P storage site

ure

torage vessel

Cumbria. The

s of failure inc

ure Stora

irement tproposes to

sites in the ne

uired and will

of usable stor

curity of supp

can no longe

f supply issue

k storage is c

14/15 15

0.2 6

orage Strategy E

vestment

rates

nger required

r the Carcroft

ars old and h

Vessel 2 has

mated revalida

ls are a very

cost of re-es

clude:

age

throughouremove all H

etwork.

be decomm

rage. Due its

ply. Vessel 2

er be used. T

e during peak

constructed t

5/16 16/17

6.0 0.1

Expenditure

t

d. The site req

t vessels alon

ave previous

s a known de

ation costs a

high critical s

stablishing cu

ut RIIO-GDHigh Pressure

missioned in 2

location, on

with known

This will reduc

k demand co

o facilitate th

17/18

0.0

quires a full re

ne which will t

sly held town

efect which re

re c.£880k fo

site to ensure

ustomer supp

D1 e (HP) storage

2013 before a

the extremity

internal flaws

ce the storag

nditions if no

e removal of

18/19 19/2

0.0 0.0

evalidation in

then be remo

gas and ther

educes its cy

or the Clay Fl

e customer su

ply is significa

53

e vessels from

a full revalidat

y of a supply

s requires rev

ge capability o

ot addressed.

the Clay Flat

20 20/21

0 0.0

n 2013. The e

oved during 2

refore could b

ycle life and re

atts vessels.

upplies are

ant should th

m the

tion is

system

validation

of the

It is

tts site.

TOTAL

6.4

estimated

2013.

be

equires a

ese

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• Si

• Si

• Re

• Re

Conditio

HP vess

• An

Pe

• D

in

The Con

• D

m

• D

an

• Pr

to

NGN ma

IGE/SR/

internal p

requires

• Ta

• Ta

fu

• An

GL Nobl

Clay Flat

Although

appropri

pressure

simple c

The prev

review p

flaws ass

experien

2016 du

inspectio

cap rath

There is

therefore

flaws.

Loss of v

54

ignificant dam

ignificant disr

eputational im

eputational im

n Assessmen

els are maint

nnual externa

erson; and

uty based (20

spection.

ntrol of Major

emonstration

mitigation in th

evelopment a

nd

roduction of

onnes of natu

aintains its ga

14– Safety R

procedures N

:

ask A - Week

ask C – Quar

unctionality ch

nnual inspect

e have also c

tts vessels ar

h it may be co

iate within UK

e vessel acco

calendar base

vious vessel e

process it has

sociated with

nced up to 20

ue to 25% of t

ons and the l

er than fatigu

an obvious r

e cannot be r

vessel 2 will c

mage to prop

ruption to the

mpact on NG

mpact on the

nt

tained in serv

al visual inspe

0 year maxim

Accident Ha

n that all reas

he form of a S

and three yea

a Major Accid

ural gas.

asholders in li

Recommenda

NGN/PR/MAI

kly visual insp

rterly valve op

heck of water

tions under P

carried out in

re currently a

onsidered tha

K safety reco

ording to the

ed approach.

examinations

s been determ

h internal stiff

011 for vesse

the fatigue lif

ikelihood of t

ue cycle duty

risk that the re

re-commissio

create the fol

perty;

e local area;

GN; and

e UK gas sup

viceable cond

ection of vess

mum) externa

azards (COMA

sonable meas

Safety Report

arly testing of

dent Prevent

ine with the in

ations: High P

NT/4 – Maint

pection;

peration, inte

r deluge syst

PSSR.

dependent in

round 44 yea

at the 40 yea

mmendation

condition of t

s were undert

mined that sto

ening structu

el 2 has conc

fe having elap

the next inspe

y.

evalidation ex

oned. This ris

lowing issues

pply industry.

dition as per t

sels, associa

al visual exam

AH) Regulatio

sures have be

t;

f emergency

tion Policy (M

nstitution of G

Pressure Gas

tenance of H

rlock check,

tem; and

ntegrity review

ars old. They

ar period has

s, (since 199

the vessel an

taken during

orage vessel

ures. A recen

luded that it

psed at this t

ections for ve

xercise may p

sk is greater f

s:

the PSSR. Th

ated pipework

mination plus i

ons sites requ

een taken for

plans in conj

MAPP) for site

Gas Engineer

s: Part 1: Abo

High Pressure

earthing che

ws of the Cla

were design

now passed

93) to determ

nd the remain

the period 20

2 is the princ

t review of ac

is expected t

ime. Due to t

essels 1, 3 an

prove if a ves

for vessel 2 g

he regulations

k and structu

nternal inspe

uire:

r major accid

junction with

es containing

rs and Manag

ove Ground S

e Storage Inst

eck, ground m

ay Flats site in

ed with a 40

d, it has been

ine the rema

ning fatigue lif

001 to 2004.

cipal life limiti

ctual pressur

to require exa

the phasing o

nd 4 being dr

ssel is at the

given that has

s require:

ures by a Com

ection and ful

ent preventio

the Local Au

between 50

gement docu

Storage Vesse

tallations. Thi

movement ch

n July 2011. T

year fatigue

considered

ining life of a

fe rather than

Within the c

ng vessel du

re cycle coun

amination du

of previous ve

riven by the 2

end of its life

s identified int

mpetent

l NDT

on and

uthority;

and 200

ument

els and

is policy

heck,

The four

life.

given

n a

current

ue to

ts

ring

essel

20 year

and

ternal

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• St

iss

• Re

w

• As

th

9.3 The prog

intervent

An assoc

costs es

revalidat

£1m.

The linep

efficiency

The “with

that broa

a) Othe

Do Noth

The netw

be non-c

Build Ne

This opti

site wou

enormou

Stakeho

and dela

coming o

risk wou

9.4 NGN are

option o

to the op

torage capac

sue in West C

emaining 3 v

would be signi

s the revalida

hree remainin

Cost Benegramme as p

tions and sign

ciated Opex

stimated at £0

tion or hydro

pack project

y outputs can

h investment

ad approach

er Options C

ing:

work conside

compliant wit

ew HP Storag

ion has been

ld have to be

us. Permissio

lder consulta

ays. As these

online could t

ld also remai

Innovatioe committed

f using an Ab

perating pres

city of the site

Cumbria duri

vessels would

ificantly reduc

ation period w

g vessels wo

efit Analyproposed rem

nificantly imp

efficiency sav

0.88m over R

tests should

is required b

n be delivere

t” option pres

to asset hea

Considered

ers a ‘do noth

th PSSR.

e Facility:

n discounted.

e built. The d

on to build a n

ation would h

vessels are a

therefore imp

in an issue.

on to innovation

bsorbed Natu

ssure of the s

e will be redu

ing the winte

d see an incre

ced; and

would be bro

ould be reduc

ysis moves risk, CO

proves securit

ving of c.£0.1

RIIO-GD1. Th

it be required

efore revalida

d.

sented is dire

alth now being

d

hing’ for the s

As the existi

ifficulties arou

new COMAH

ave to take p

aging assets

pact significa

n and as part

ural Gas stora

ite’s inlet pip

uced by 25%

r period;

ease in there

ught forward

ced or come

OMAH comp

ty of supply,

1m pa will be

his cost exclu

d, which cou

ation in 2016

ectly linked to

g pursued by

specific asset

ing site is crit

und gaining p

H site would h

place and this

the potentia

ntly the secu

of this invest

age solution.

eline.

therefore cre

cycling and t

d the likelihoo

to an end as

pliance, socie

benefiting ou

e delivered alo

udes any rem

uld push this o

commences

o our RIIO-GD

y NGN.

ts identified a

tical to the se

planning perm

have to be so

s could lead t

l risks for del

rity of supply

tment we hav

Unfortunatel

eating a majo

therefore the

od is that the

s similar type

etal risk, secu

ur customers

ong with tota

ediation requ

overall cost t

s to ensure o

D1 outputs, s

above is unac

ecurity of sup

mission for su

ought from th

to considerab

ays in the pro

y for West Cu

ve considered

ly this is now

55

or security of

e revalidation

remaining life

flaws could b

urity concerns

.

al vessel reva

uired, followin

o be in exces

ptimum cost

safety, reliabil

cceptable as

pply a comple

uch a site are

he HSE. Cons

ble public op

oject starting

umbria. The s

d an alternat

viewed unvia

supply

period

e of the

be found.

s, HSE

lidation

ng

ss of

t

ity and

it would

ete new

e

siderable

pposition

and

societal

ive

able due

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A19A

10.1 The pref

‘PIGS’. T

Develop

these pip

informat

they pro

inspectio

Funding

of 6” pip

being ins

This proj

pipe wor

A list of p

relevant

been und

2009/10

£m

Install pig

facilities o

high pres

pipelines

Figure 1

Figure 10

10.2 Legislatio

Industry

collected

pipeline.

56

A-10: PIG

The Specferred method

The techniqu

ments within

pelines are in

ion of the pip

vide more de

on frequencie

is proposed

pelines to hav

spected to al

ject will requi

rk has also b

pipelines hav

sites will be a

dertaken, PIG

Prices 20

g traps

on 6"

ssure

0.

0.1: RIIO-GD1 I

0.2: PIG Trap an

Justification requires N

standards su

d from an ILI

It may help s

G Trap Fa

ific Requid of Conditio

e is called “In

ILI capabilitie

nspected exte

pelines CP sy

etailed data o

es by a risk b

to install ‘PIG

ve in line inspe

low for launc

ire procuring

een included

ve been analy

assessed for

G Traps can t

13 2014

.1 0.1

nstall pig traps f

nd Inspection PI

ion for InNGN to inspe

uch as IGE/T

is more accu

save money,

acilities

irement ton Monitoring

n Line Inspec

es now mean

ernally by car

ystem and co

on the conditi

based approa

G’ Traps on s

ections. PIG

ch and receiv

PIG Traps su

d in our expen

ysed to deter

their ability t

then be insta

2015

0.1

facilities on 6" hi

G

vestmentect pipelines p

TD/1 as well a

urate and can

by not havin

throughou pipelines is b

ction (ILI)”.

n that 6” pipe

rrying out ove

oating conditio

ion of the pip

ach in NGN’s

sites that hav

Traps are fac

ving PIGs.

uitable for 6”

nditure foreca

mine if they h

o have PIG T

alled.

2016

0.1

gh pressure pip

t periodically th

as the HSE its

n give NGN a

ng to over inv

ut RIIO-GDby using inte

elines are cap

er the line sur

on. ILI are pr

peline. The an

internal data

ve been ident

cilities attach

inspection to

asts.

have the corr

Traps installed

2017 201

0.1 0.1

elines

hrough either

self, recomm

a better unde

est on a pipe

D1 rnal inspectio

pable of havin

rveys which r

eferred to ex

nalysed data

abase.

ified as suitab

ed to the end

ools. The sub

rect flow rate

d. When all p

18 2019

1 0.1

r above groun

mend ILI wher

rstanding of t

eline.

on gauges kn

ng an ILI. Cur

really only giv

xternal inspec

is used to se

ble to allow a

d of the pipel

bsequent fittin

to ILI. Follow

preliminary wo

2020

0.1

nd surveys IL

re possible. D

the condition

nown as

rrently

ve

ctions, as

et

a number

ines

ngs and

wing this,

ork has

Total

1.2

LI.

Data

n of the

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Figure 10

a) Curre

NGN has

number

Without

and coat

over acc

surveys

Addition

• D

• M

• G

• G

• M

• Ec

• Pi

• Pi

The data

Inspectio

feature d

• Ty

• O

• Ax

• C

• D

• Fe

0.3: Pig Trap ins

ent Run Ra

s not installed

of pipelines a

the ability to

ting surveys

cess and ofte

is very limited

al information

ata quality;

Metal Loss Fea

ouges & Den

irth Weld Ano

Metal Object R

ccentric Casi

ipeline Repai

ipeline Anom

a also include

on sheets are

description:

ype feature (e

Orientation;

xial length;

ircumferentia

epth – Peak;

eature Select

stallation

ates

d any PIG Tra

are unable to

inspect the p

at a maximum

en results in c

d.

n benefits are

atures;

nts;

omalies;

Report;

ing Report;

rs; and

malies.

es full details

e produced fo

e.g. Metal Lo

al width;

tion Rule;

aps on 6” pip

o be ILI due to

pipeline by IL

m of five year

compensation

e also provide

of any faults

or each of the

oss);

pelines in the

o insufficient

LI, NGN will ne

rs frequency.

n for damage

ed by ILI whic

and includes

e identified a

current GDP

flows.

eed to contin

. This involves

ed crops. The

ch include:

s in depth ana

nd reportable

PCR1 price c

nue to carry o

s negotiation

e information

alysis of the f

e features inc

57

ontrol period

out over the l

ns with land o

received from

faults reporte

cluding the fo

. A

ine CP

owners

m CP

ed.

ollowing

Page 58: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

• N

• Ab

• C

• Th

ne

• C

an

• Fu

an

b) Cons

When H

custome

ILI allows

continue

c) Cond

6” pipelin

indicates

of weld d

Figure 10

It is prop

10.4 abo

to the cu

the pipe

for custo

10.3 It is estim

cost for

The key

have for

assets g

0

100

200

300

400

500

600

700

800

Leng

th (km

)

58

ominal Pipe w

bsolute Dista

omments;

he Feature Lo

earby Girth W

ontour plots

nd

ull Pipeline lis

nalysis.

snsequence

P pipelines fa

ers and the as

s us to gain d

ed fitness for

dition Asses

nes currently

s that the pip

defects which

0.4: Deterioratio

posed that wi

ove. ILI will he

urrent limited

line with prov

omers.

Cost Benemated that to

the inspectio

benefits of th

these pipelin

going forward

0

0

0

0

0

0

0

0

0

HI1

wall thicknes

ance from Lau

ocation is als

Welds;

and depth ba

stings are incl

e of Failure

ail the conseq

ssociated ris

data that ena

purpose.

ssment

y have above

peline is prote

h we can get

on Rates

ithout investm

elp us preven

data we get

ven results le

efit Analyo install a PIG

on alone is c.£

he programm

nes and there

ds.

HI2

s for spool;

unch;

so quoted wit

ased Histogr

luded showin

e

quences are

k to life and p

ables the reva

ground surve

ected from co

t from ILI data

ment HP pipe

nt deterioratio

from over th

ading to exte

ysis Trap at a sit

£35K for a 15

me are improv

efore a more

HI3

th reference t

rams of each

ng features th

significant in

property.

alidation of th

eys to monito

orrosion by ha

a.

elines could d

on rates by b

e line inspect

ended life of t

te will cost ap

5km pipeline

ved inspectio

informed app

HI4

2013

to Strip Map

reported fea

hat have not

terms of loss

e condition o

or the level of

aving effectiv

deteriorate at

etter analysis

tions. ILI will

the asset, wh

pproximately

length.

on quality and

proach to mo

4 HI

Without Investm

Number and

ature are prov

been reporte

s of supply to

of the pipeline

f CP on the p

ve CP, but no

t the level sho

s of the data

further enabl

hich clearly re

c.£0.1m. The

d the improve

onitoring and

I5

ment

d references s

vided to aid a

ed but may ai

o thousands o

es and prove

pipeline. This

o indication o

own in the Fig

provided com

le the revalida

epresents bes

e associated

ement in data

managing th

such as

analysis;

id future

of

e their

f dents

gure

mpared

ation of

st value

Opex

a we

hese

Page 59: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Investme

Currently

identify t

a) Othe

Do Noth

It is a req

NGN not

pipeline

10.4 Currently

these ins

inspectio

10.5 ILI is a b

to prope

leakage

mapping

developm

ent for remed

y any potenti

the problem w

er Options C

ing:

quirement to

t complying w

failure which

Selectiony all HP pipel

spections has

on method of

Innovatioroad term us

el itself. It is p

capabilities. T

g capabilities

ments progre

dial work can

ally issue disc

which incurs

Considered

inspect and

with current l

could result

n Criteria ines above 6

s been used

f Industry exp

on sed for using

roposed that

There is pote

and strain an

ess we will ha

then be focu

covered thro

additional co

d

maintain our

egislation. Al

in loss of sup

6” have ILI in

for investme

perts and the

an intelligent

t initially the P

ential in the fu

nalysis. Some

ave the facilit

used on a sp

ough above g

osts.

r pipelines, th

so pipeline d

pply, loss of l

NGN’s netwo

nt decisions

e HSE.

t PIG to trave

PIG will be eq

uture to utilise

e of these are

ies to utilise t

ecific area w

round survey

us a ‘do noth

defects could

ife, damage t

ork. The data

for remedial w

el the length o

quipped with

e new techno

e not proven

them as they

here we disc

ys requires ex

hing’ approac

go unnoticed

to property a

a that has bee

work. ILI is th

of the pipeline

geometry an

ologies such

technologies

come online

59

cover an issue

xtra assessm

ch would res

d and result i

and such like

en received f

he preferred

e using the g

nd magnetic f

as ultrasonic

s as yet but a

e.

e.

ments to

sult in

in

.

from

as flow

flux

c,

as

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A19A

11.1 Within th

regards

Over the

was the

£1 billion

NGN car

banks. W

Figure 1

£m 20

River b

Figure 1

11.2 Many pip

submerg

regularly

risk of da

Increasin

pipelines

Figure 1

pipeline

denting

damage

Figure 1

60

A-11: Riv

The Speche RIIO-GD1

to river bank

e last 45 year

worst for 270

n pa.

rry out routin

We have seen

1.1 below sh

09/10 prices

bank erosion

1.1: RIIO-GD1R

Justificatipelines cross

ged beneath

y. These cond

amage and in

ng changes t

s that lie with

1.2 below sh

was left unco

into the pipel

d HP pipeline

1.2: Pipeline unc

ver Bank

ific Requiprocess, NG

erosion.

s there is evid

0 years in so

e inspections

n an increase

hows our anti

13/14 1

0.3

River Bank Erosio

ion for Ins a watercour

the river. Cha

ditions are ex

nterruption to

o the environ

in them. We

hows what wa

overed by the

line. The stre

e.

covered by flood

k Erosion

irement tGN will be req

dence that th

me areas in 2

s of HP pipel

e in river bank

cipated spen

4/15 15/16

0.3 0.3

on Expenditure

vestmentrse on their ro

anges in clim

xposing our p

o the supply o

nment have s

therefore nee

as once a dry

e force of the

am was dive

ding

n

throughouquired to inve

here have bee

2009, like Cu

ine river cros

k erosion ove

nd over the R

6 16/17

0.3

t oute. Rather

matic conditio

pipelines furth

our customer

shown a chan

ed to invest t

y fell-spring fo

e water, which

rted in order

ut RIIO-GDst in the effec

en more extr

umbria, flood

sings to ensu

er the last few

RIIO-GD1 per

17/18 18

0.3 0

than building

ns are affecti

her to the elem

rs.

nge in the rive

o counteract

ollowing the

h in turn carr

to allow repa

D1 cts of environ

reme rainfall e

damage now

ure stability o

w years.

iod.

8/19 19/20

0.3 0.3

g an over-cro

ng these cro

ments, theref

er bed and b

t the impact o

extreme flood

ied large bou

airs to be car

nment chang

events. UK flo

w costs the U

of river bed an

20/21

0.3

ssing, they a

ossings more

fore increasin

anks that pro

of erosion.

ds in Cumbri

ulders that ca

rried out to th

e with

ooding

UK about

nd

Total

2.3

are

ng the

otect our

a. The

aused

he

Page 61: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

a) Curre

River Cro

Lazonby

Wyke Be

Woringto

Figure 1

There ha

scoped a

evidence

There ar

frequenc

most effi

Consequ

River ero

pipelines

pipeline.

• Lo

• Lo

• D

• N

Conditio

Pipeline

determin

and to d

results o

Figure 1

ent Run Ra

ossing Erosion

Location

, Cumbria

eck, West Yorks

on, Cumbria

1.3: GDPCR 1 E

ave been a fu

and priced a

es our anticip

re over 60 HP

cy. Some of t

icient form of

uence of Failu

osion can rem

s span within

Failure of a p

oss of Supply

oss of Life;

estruction of

on Complian

n Assessmen

river crossing

ne changes o

determine the

of these surve

1.4: River Bank

ates

n - Asset Hea

Expenditure

urther three m

s schemes. T

pated spend o

P river crossin

the recognise

f ongoing ma

ure

move the surr

a river, great

pipeline can r

y;

Property; an

nce with Regu

nt

gs are subjec

of the river be

e precise loca

eys are used

Inspection

alth

Name of R

Rive Ede

Halifax

River Derw

major erosion

The historical

over the RIIO

ngs within ou

ed remedial a

aintenance fo

rounding eart

t stresses are

result in:

nd

ulation.

ct to inspectio

ed from the o

ation of the pi

to assess the

River

en

went

issues identi

l spend abov

O-GD1 period

ur network alo

actions consis

or some of the

th that gives

e placed upo

on by engine

riginal which

ipeline using

e criteria of p

Cost of Reme

£0.2

£0.0

£0.

ified in 2011/

ve coupled w

d.

one and thes

st of more fre

ese crossings

our pipelines

on the pipeline

ering divers w

may adverse

topographica

protection app

edial Work £m

26m

05m

3m

/12 which are

ith those iden

se are inspect

equent inspec

s.

s protection fr

e which can

who carry ou

ely affect the

al and hydrog

plied or requi

61

Yea

200

201

201

e currently be

ntified this ye

ted on a risk

ctions which

rom damage

result in failur

ut inspections

condition of

graphic surve

ired.

ar

08

10

11

eing

ear,

based

are the

e. When

re of the

s to

the pipe

eys. The

Page 62: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 1

b) Othe

Do Noth

The optio

they are

pipeline

welds an

Divert Pi

Pipeline

the main

custome

Benefits

The ben

• En

N

of

• C

• Sa

ar

• C

Sy

11.3 The lates

ensure th

62

1.5: Screenshot

er Options

ing:

on to ‘do not

laid in. When

is allowed to

nd ultimately,

ipeline:

diversions ar

n reason for c

ers.

/Outputs:

efits/outputs

nvironmental

o loss of con

f Environmen

ustomer – co

afety – Risk m

rea of the net

ompliance –

ystems Safet

Innovatiost technology

he least disru

t of Database us

Considered

thing’ is not a

n that environ

span in the f

failure could

re very costly

choosing the

of investing

– No disrupt

ntainment from

nt Agency.

ontinual secu

mitigation and

twork, in both

Pipelines mu

ty Regulation

on: y in materials

uption to wild

sed to Assess C

d

a viable optio

nment chang

fast flow of th

d occur.

y and are only

option above

in these asse

tion to the en

m pipeline fa

rity of supply

d reduction o

h rural and ur

ust be compli

s (PSSR) 200

and method

dlife, flora and

riteria for Inspec

on. Pipelines a

es, pipelines

he river, incre

y a viable opt

e and provide

ets are as foll

nvironment fro

ilure. River ba

y across the n

of major accid

rban location

iant with Pipe

00.

ds are used a

d fauna occur

ction Frequency

are protected

become vuln

eased stresse

tion when oth

es the most e

ows:

om construct

anks assesse

network.

dent hazard p

ns.

eline Safety R

and agreed w

rs.

& Maintenance

d by the surro

nerable to da

es are placed

her measures

efficient solut

tion of a new

ed and reinst

pipelines acro

Regulations 1

with Environm

Regime:

ounding earth

amage or if th

d on the pipe

s will not wor

tion for our

w pipeline in th

ated with ag

oss the geog

996 and Pre

ent Agencies

h that

he

and its

k. This is

he future.

reement

graphical

essure

s to

Page 63: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

NGN are

assist in

Figure 1

e working wit

determining

1.6: Flood plains

th Environme

at risk river c

s linked to datab

nt Agency to

crossings as

base

o apply known

shown below

n data of floo

w in Figure 11

od plains with

1.6.

63

hin a databasse to

Page 64: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

12.1 Within th

parties. T

data has

phasing

RIIO-GD

2009/10

Compen

Payment

Figure 1

12.2 Pipeline

frequent

landown

quarries/

solution

For valid

• In

• D

• Pa

• A

a) Curre

Historic

claims u

Consequ

HP Pipe

failure of

happen.

so they h

ensure th

How hav

NGN’s P

involves

with the

this stag

Historica

solution

The high

64

A-12: Co

The Speche RIIO-GD1p

This item is u

s been used t

throughout t

D1.

Prices £m

sation

ts

2.1: RIIO-GD1 C

Justificatieasement de

ly has to relo

ner/developer

/mines etc. A

is found, this

d claims whic

stall Barrier p

ivert the pipe

ay compensa

combination

ent Run Ra

data and cos

nder review i

uence of Failu

lines are critic

f a HP Pipelin

The paymen

have no mate

hird party wo

ve we assess

Property Func

examining th

assistance o

ge discussion

al costs are u

is chosen.

h level proces

mpensa

ific Requiperiod NGN h

usually assoc

to establish t

the plan perio

13/14 14/1

1.0 1.0

Compensation P

ion for Ineeds often co

ocate the pipe

r. Claims of th

An assessme

s is detailed in

h cannot be

protection on

eline;

ation; and

n of all of the

ates

st information

nclude four l

ure

cal assets an

ne would hav

nt of compen

erial impacts

orks are risk a

ed the value

ction with the

he deed and

of mineral ext

s could resul

used to estab

ss for the ass

ation Pay

irement thas made a p

iated with HP

he future valu

od is shown b

15 15/16

0 1.0

Payments Expen

vestmentontain “lift and

eline or pay a

his nature ca

nt is underta

n the flow ch

repudiated th

n the pipeline;

above.

n has been us

imestone qua

nd essential fo

ve severe safe

sation will res

on the pipeli

assessed so

e of these cla

e support of o

establishing

raction, or ho

lt in the claim

blish the cost

sessment is d

yments

throughouprovision of £

P Pipelines la

ue of compen

below in Figu

16/17

1.0

nditure

t d shift” and/o

a loss of deve

an be received

ken to validat

art shown in

he outcome o

;

sed to estima

arries, one de

or the safe su

ety and gas s

sult in develo

ne. As part o

the integrity o

ims?

our Legal Dep

if NGN has a

ousing develo

m progressing

of anticipate

detailed below

ut RIIO-GD£8.4m for com

aid in private l

nsation paym

ure 12.1 but h

17/18 18

1.0 1

or loss of dev

elopment com

d from a varie

te the claim a

Figure 12.2 o

of this assess

ate the future

eveloper and

upply of gas

supply impac

opments or m

of the assessm

of NGN’s HP

partment rev

a case to answ

opment expe

g, reduced in

d diversion w

w in Figure 12

D1 mpensation p

and under ea

ments. Details

has been stra

8/19 19/20

.0 1.0

velopment cla

mpensation p

ety of source

and ensure th

overleaf.

sment could

e liabilities in t

one wind far

under all dem

cts and NGN

mineral extrac

ment full con

P Pipelines ar

view each cla

wer. The nex

erts to then va

financial imp

work. The low

2.2.

payments to

asement. His

s of expenditu

aight-lined ac

20/21

1.0

auses. NGN

payment to th

es; builders/d

he minimum

be:

this area. Cur

rm.

mand conditio

cannot allow

ctions being r

sideration is

re not compro

im. The first s

xt stage woul

alidate the cla

pact or cance

west cost stab

third

storic

ure

cross

Total

8.2

he

eveloper,

cost

rrent

ons. The

w this to

restricted

given to

omised.

stage

d be

aim. At

elled.

ble

Page 65: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 12

b) Cost

The asse

work is m

c) Othe

The optio

compen

12.3 As above

12.4 At all sta

2.2: Process for

t Benefit An

essment is un

mandatory an

er Options C

ons are estab

sation is alwa

Selectione minimum c

Innovatioages within th

r Evaluating Claim

nalysis

ndertaken to

nd a legal req

Considered

blished at the

ays assessed

n Criteria cost solution

on he assessmen

ms

establish min

quirement wh

d

e assessmen

d against the

is selected w

nt stage full c

nimum cost s

hich NGN has

t stage and t

lowest cost

where viable.

consideration

solution that

s to comply w

the minimum

solution to be

n will be given

is acceptable

with.

cost solution

e given cons

n to using inn

65

e to all parties

n is chosen. P

ideration.

novative solut

s. The

Paying

tions.

Page 66: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

13.1 Sleeves

construc

sleeves.

construc

Through

investme

2009/10

Sleeves

Figure 1

a) Nitro

Investme

pressure

will allow

best pos

There wi

estimate

b) Non

Investme

appropri

vacant s

approxim

13.2 NGN is c

procedu

risk from

across th

vulnerab

section o

Nitrogen

maintena

explored

leak and

Non nitro

protect t

a) Curre

Nitrogen

There ar

undertak

66

A-13: Sle

The Spechave been us

ction purpose

Sleeves have

ction, the pre

out the RIIO-

ent is split be

Prices £m

3.1: RIIO-GD1 S

ogen Sleev

ent is being u

e to be monit

w us to determ

ssible conditio

ill also be inve

ed to be 12 s

-Nitrogen S

ent is being ta

iate remedial

sleeves and re

mately 80 slee

Justificaticurrently wor

re for sleeves

m these asset

he industry. I

ble locations s

of pipe.

n sleeves not

ance of a pos

d. The nitroge

d water and o

ogen sleeves

the parent pip

ent Run Ra

n Sleeves

re 96 nitrogen

ken to remed

eeves

ific Requised on pipeli

es. The main

e proved to b

ference now

-GD1 period,

etween nitrog

13/14 14/1

0.3 0.2

Sleeves Expendi

ves

used to instal

ored constan

mine any dec

on.

estment to u

leeves, reflec

Sleeves

argeted at ac

work to upg

e-wrapping. T

eves in total.

ion for Inrking in collab

s. This ‘best

s. Currently t

t is recognise

such as road

holding their

sitive nitrogen

en provides a

oxygen replac

s require a fill

pe and the sl

ates

n filled sleeve

diate nitrogen

irement tnes where th

types of slee

be problemat

being thicke

NGN has id

en and non-n

15 15/16

2 0.2

iture

l remote mon

ntly and alarm

cay and react

pgrade nitrog

cting historica

ccurately iden

rade them. T

This is estima

vestmentboration with

practice’ pro

there is no cle

ed that sleeve

and rail cros

r charge more

n pressure w

an inert atmos

ce the nitroge

of some con

eeve. It is oft

es in the netw

sleeves. £10

throughouhey cross ma

eve in use are

tic to maintain

er wall pipe.

entified an in

nitrogen sleev

16/17

0.2

nitoring on nit

med when the

t accordingly

gen sleeves t

al trends.

ntifying the co

This will involv

ated to cost c

t other networ

ocedure is new

ear managem

es are import

ssings and th

e frequent ch

within the ann

sphere where

en, corrosion

nductive mate

ten difficult to

work. In the la

00K was inve

ut RIIO-GDajor obstacles

e nitrogen fille

n and are ge

vestment of £

ves.

17/18 18

0.2 0

trogen sleeve

e pressure ch

to ensure th

that are ident

ondition of sle

ve excavating

c.£20K per s

rks to produc

w to the indu

ment procedu

tant for prote

hey are impor

hecks need to

ulus, or altern

e corrosion c

can occur a

erial and non-

o identify issu

ast 2 years pr

ested in 2010

D1 s such as roa

ed sleeves or

nerally not us

£1.9m for LT

8/19 19/20

0.2 0.2

es. This will a

hanges from

at they are m

tified, requirin

eeves and th

g to reveal the

sleeve (histori

ce a uniform

ustry and its a

ure for non-n

ecting mains a

rtant for prolo

o be made en

native solutio

cannot take p

nd is very diff

-pipe contac

ues with these

rogramme of

0 and £400K

ads, rails etc.

r non-nitrogen

sed in moder

TS sleeves. T

20/21

0.2

allow nitrogen

set paramete

maintained in

ng remediatio

hen implemen

e sleeves, gro

cal cost), wit

managemen

aim is to redu

itrogen sleev

and pipelines

onging the life

nsuring the

ons need to b

place. If nitrog

ficult to ident

t to allow CP

e.

works was

in 2011 repla

or for

n filled

rn day

his

Total

1.9

n

ers. This

their

on. This is

nting

outing of

h

t

uce the

ves

s at

e of this

be

gen seals

tify.

P to

acing

Page 67: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

these sle

Noble De

period.

Non-Nitr

There ar

sleeves,

Going fo

determin

Consequ

It is unlik

of supply

particula

pipe is m

Conditio

Nitrogen

NGN co

and prov

ensure th

NGN/PM

Non-Nitr

A comm

UKOPA.

gathering

condition

the route

Sleeves

rates wa

Figure 13

0

100

200

300

400

500

600

700

800

Leng

th (km

)eeves and up

enton. Ongo

rogen Sleeve

re 526 other s

other than w

orward, it is in

ne their cond

uence of Failu

kely that failur

y, however if

arly the rate o

more vulnerab

n Assessmen

n Sleeves

mmissioned

vide remedial

hey are holdi

M/MAINT5 in

rogen Sleeve

mon sleeve ma

Part of the in

g more inform

n of sleeves.

e of the pipel

are expected

as predicted b

3.2: Deterioratio

0

0

0

0

0

0

0

0

0

HI1

pgrading the s

ing investme

es

sleeves within

when a specif

ntended to gr

ition.

ure

re of a sleeve

water were a

of corrosion o

ble to third pa

nt

technical exp

l actions. The

ng pressure.

accordance

es

anagement p

nvestment no

mation on ou

Currently, ILI

ine incorpora

d to deteriora

based on his

on Rates

HI2

sleeves to a s

nt will be for

n the network

fic issue arise

rout more sle

e will result in

able to enter

on the pipeline

arty damage,

perts GL Nob

ese actions w

Nitrogen sle

with IGE/TD/

procedure is u

ow proposed

r sleeve popu

Is and CIPs s

ating the sleev

ate at a level s

torical data a

HI3

suitable stan

any issues th

k. There is no

es, this will th

eeves to reval

failure of the

the sleeve, it

e, as the wat

, particularly a

ble Denton to

were then com

eeves are also

/1.

under develo

d will be used

ulation. This w

surveys allow

ve.

similar to pipe

as shown bel

HI4

2013

dard, followin

hat are expec

o specific set

en be repaire

lidate them a

e carrier pipe

t could accele

ter becomes

at rail and roa

o analyse all n

mpleted and

o maintained

opment as pa

d for applying

will enable NG

w us to determ

elines. An es

ow without in

4 HI

Without Invest

ng an indepe

cted to arise o

t of works for

ed as part of

and excavatin

and as such

erate deterio

trapped in th

ad crossings

nitrogen sleev

the sleeves a

in accordanc

art of NGN’s i

this manage

GN to accura

mine if there a

timation of fu

nvestment.

5

tment

67

endent review

over the RIIO

r non-nitroge

Opex expend

ng more sleev

there will be

ration rates,

he sleeve. Als

.

ves in the net

are monitored

ce with NGN

involvement w

ement proced

ately assess t

are any issue

uture deterior

w by GL

O-GD1

n

diture.

ves to

no loss

so the

twork

d to

Policy

with

dure and

the

es along

ration

Page 68: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

b) Othe

Do Noth

Nitrogen

A ‘do no

by the n

protecte

Non-Nitr

It has be

pipeline

Figure 13

Grout or

parent p

corrosion

Replace

Replace

very exp

offering b

13.3 NGN hav

• Th

op

ca

• Re

pr

ra

pr

Remote

reports i

antenna)

68

er Options

ing:

n Sleeves

othing’ appro

itrogen is imp

ed by CP and

rogen Sleeve

een noted tha

as water acc

3.3: Pipe Sleeve

r other condu

pipe from corr

n.

Pipeline Sect

the section o

pensive and im

best value fo

Innovatiove considere

here are som

ption is enviro

arrier pipe.

emote monit

ressure in sle

ate of decay s

rotected.

monitoring m

mmediately i

) using the G

Considered

ach is consid

portant to pro

d relies on the

es

at if left to the

celerates corr

e Configuration

uctive materia

rosion. Any m

tion:

of pipe with t

mpractical fo

r money and

on ed other optio

me alternatives

onmentally fr

oring is a new

eeves, which

so that nitrog

measures the

f an alarm th

SM network

d

dered unacce

otect the pipe

e inert atmosp

eir own device

rosion and inc

al is required

metallic short

thick walled p

r a large num

efficiency fo

ons for upgra

s to grouting

iendly and it

w technology

gives confide

gen fill can be

e sleeve press

reshold is ex

and is install

eptable for nit

eline from co

phere to prev

es, some sle

creases dete

within the an

between pip

pipe, to prote

mber of sleeve

r our custom

ding sleeves

including ‘ge

has to be pro

y to the indus

ence that the

e maintained.

sure automat

ceeded. It co

ed in the sam

trogen sleeve

rrosion. This

vent corrosio

eves can bec

erioration of th

nnulus to ens

pe and sleeve

ect it from thir

es and this is

mers.

, these includ

els’ that can

oven that will

stry, allowing

e carrier pipe

This will ens

tically, checks

ommunicates

me way, simp

es. The inert

section of th

n.

come more o

he carrier pip

ure that CP c

e can leave th

rd party dam

s why we cho

de:

be used to fil

prevent dete

us to consta

is protected

sure our asse

s that it is wit

s (via either an

ply requiring a

atmosphere

he pipe will no

of a hindrance

pe.

can protect t

he pipe vulne

age. This opt

ose the option

ll some sleev

erioration of t

antly monitor

and determin

ts are better

thin specifica

n internal or e

a mobile pho

created

ot be

e to the

he

rable to

tion is

ns stated

ves. This

the

the

nes the

ation and

external

ne.

Page 69: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 133.4: Example of the front screenn used for monittoring nitrogen ppressures in sleeeves.

69

Page 70: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

14.1 HP Pipe

believe it

HP diver

shown b

requests

payment

low cost

2009/10

LTS Pipe

Replacem

Figure 1

14.2 NGN ma

• If

pi

de

• W

re

• W

de

ho

Th

in

av

m

HP Pipe

assessm

pipeline,

a) Curre

Historic

dating b

under re

Consequ

HP Pipe

failure of

happen.

so they h

ensure th

How hav

70

A-14: LTS

The Speclines are usu

t requires £10

rsion per yea

below in Figur

s and ensures

ts or physica

t risk mitigatio

Prices £m

eline

ment

4.1: RIIO-GD1 L

Justificatiay have to rel

the easemen

peline by NG

evelopment b

Where the pipe

easons e.g. la

Where Plannin

evelopment t

ousing (high r

his may chan

TD/1 the pip

vailable in this

main driver for

lines are critic

ment is undert

pay compen

ent Run Ra

data and cos

ack to 2001

eview include

uence of Failu

lines are critic

f a HP Pipelin

The paymen

have no mate

hird party wo

ve we assess

S Pipelin

ific Requially construct

0.9m to enab

r and a majo

re 14.1. NGN

s that all opti

l diversion, ris

on such as co

13/14 14/1

0.8 0.8

LTS Pipeline Rep

ion for Inlocate and fu

nt deed conta

GN. These cla

by the land ow

eline cannot

andslips.

ng Advise for

to proceed w

rise) which in

nge the class

peline design

s scenario wo

r identifying o

cal assets an

taken ensure

nsation or a c

ates

st information

have been us

four limeston

ure

cal assets an

ne would hav

nt of compen

erial impacts

orks are risk a

ed the value

ne Repla

irement tted in private

ble the const

r scheme at

N take a very

ons are explo

sks assessm

oncrete slab

15 15/16

8 0.9

placement Expe

vestmentund High Pres

ains clauses w

auses are kno

wner for hou

be operated

Developmen

which may co

ncreases the s

ification from

code. HP Pi

ould be at the

one large HP

nd essential fo

e the minimum

combination.

n has been us

sed this infor

ne quarries, o

nd essential fo

ve severe safe

sation will res

on the pipeli

assessed so

e of these cla

acement

throughoue land under e

ruction of HP

mid plan poin

proactive ap

ored with the

ments are alwa

protection ca

16/17

5.3

enditure

t ssure Diversio

which if invok

own as ‘lift an

sing or miner

because of s

nts near High

nflict with IGE

societal risk a

m Suburban to

pelines shou

e worst to re

diversion mid

or the safe su

m cost solutio

sed to estima

rmation is det

one develope

or the safe su

ety and gas s

sult in develo

ne. As part o

the integrity o

ims?

ut RIIO-GDeasement. W

P Pipeline Div

nt. Detail of th

pproach when

e land owner

ays undertak

an be installe

17/18 18

0.8 0

ons in the fol

ked would en

nd shift claus

ral extraction

safety issues

Pressure Ins

E/TD/1. This

and may resu

o Town enviro

ld not be con

locate or dow

d-term in the

upply of gas

on is found. T

ate the future

tailed in Figur

er and one w

upply of gas

supply impac

opments or m

of the assessm

of NGN’s HP

D1 Within the RIIO

versions. This

he expenditu

n negotiating

to mitigate e

king as the firs

ed.

8/19 19/20

0.8 0.8

lowing circum

nforce the rel

ses.’ This is u

n from a quar

. This could b

stallations (PA

is usually con

ult in the pipe

onment class

nstructed in T

wn-rate the p

RIIO-GD1 pl

under all dem

This could be

e liabilities in t

re 14.2 below

ind farm.

under all dem

cts and NGN

mineral extrac

ment full con

P Pipelines ar

O-GD1 period

s equates to o

ure and phasi

LTS diversio

ither compen

st priority to i

20/21

0.8

mstances:

ocation of th

usually promp

ry owner.

be for a num

ADHI) allows

nfined to high

eline being re

sification as d

T areas. The

pipeline. This

lan.

mand conditio

e to divert the

this area. Sch

w. Current cla

mand conditio

cannot allow

ctions being r

sideration is

re not compro

d NGN

one small

ing are

on

nsation

identify if

Total

10.9

e

pted by

ber of

a

h density

elocated.

detailed

options

is the

ons. An

e

hemes

aims

ons. The

w this to

restricted

given to

omised.

Page 71: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

NGN’s P

involves

with the

this stag

Historica

solution

When th

instance

Figure 14

An asses

detailed

base cos

NGN exp

impacts

density m

Figure 14

Property Func

examining th

assistance o

ge discussion

al costs are u

is chosen.

he scheme is

es at the earlie

4.2 below.

ssment of the

below in Figu

st for the plan

pects one lar

(landslips/riv

multi-occupa

4.2: Historic HP

ction with the

he deed and

of mineral ext

s could resul

used to estab

defined follow

er stages cos

e cost per an

ure 14.2. The

n period.

rge scheme t

ver bed erosio

ancy developm

diversions

e support of o

establishing

raction, or ho

lt in the claim

blish the cost

wing detailed

st curve data

nnum has bee

e major schem

to be required

on) or building

ments near H

our Legal Dep

if NGN has a

ousing develo

m progressing

of anticipate

d assessment

a may be used

en generated

mes have be

d during the

g encroachm

HP Pipelines.

partment rev

a case to answ

opment expe

g, reduced in

d diversion w

t, specific co

d. A print off

d by examinin

een removed

RIIO-GD1 pla

ment TD/1 or

view each cla

wer. The nex

erts to then va

financial imp

work. The low

osts are prepa

of a generic

ng past schem

to establish t

an period from

PADHI confli

71

im. The first s

xt stage woul

alidate the cla

pact or cance

west cost stab

ared in some

scheme is sh

mes which ar

the minimum

m either exte

cts in respec

stage

d be to

aim. At

elled.

ble

e

hown in

re

annual

ernal

ct of high

Page 72: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 14

b) Cost

The asse

legal req

propose

c) Othe

The optio

are repu

aforeme

14.3 As above

14.4 If a diver

appropri

near to t

72

4.3: Cost Curve

t Benefit An

essment is un

quirement wh

ed i.e. upsizin

er Options C

ons are estab

diate (if a los

ntioned.

Selectione minimum c

Innovatiorsion option is

iate to innova

the proposed

Generic Sample

nalysis (CB

ndertaken to

ich NGN has

g then a full d

Considered

blished at the

s claim), com

n Criteria cost solution

on s deemed the

ation in respe

d diversion ro

e Print out

A)

establish the

s to comply w

detailed CBA

d

e assessmen

mpensate, ins

is selected.

e minimum c

ect of constru

utes.

e minimum co

with. Where a

A is prepared

t stage and t

stall barrier pr

cost solution t

uction method

ost solution.

an enhancem

prior to Busi

the minimum

rotection, div

then conside

ds and poten

The work is m

ent to the mi

ness Case a

cost solution

vert or a comb

eration will be

ntial for new B

mandatory an

inimum cost

pproval.

n is chosen. O

bination of al

e given where

Bio-methane

nd a

option is

Options

l the

ever

sources

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A19A

15.1 Investme

econom

regulato

Reinforc

7bar net

have neg

demand

nature b

are those

example

subjecte

both cat

develope

environm

The simp

localised

pressure

Figure 15

Failing to

• Sy

cu

• So

in

its

on

Whilst th

under ou

reinforce

A= Netwodriven rei

B= Stratedriven rei

C= New Cdriven rei

D= InnovaNetwork Mdriven rei

A-15: Re

Introductent in networ

ic, efficient an

ry and legisla

ements are t

twork ,and re

gated the nee

and growth

ut are design

e schemes th

e new domes

ed to NGNs E

tegories NGN

ed to ensure

ment.

ple diagram b

d reinforceme

e managemen

5.1: Mains Reinf

o continue wi

ystem constr

ustomers, or

ource pressu

crease NGN

s networks. T

n the other ex

he 4 areas (A-

ur Total Netw

ement solutio

ork Validation nforcements

gy Replacement nforcements

Connections nforcements

ation and Total Management nforcements

einforcem

tion rk reinforcem

nd reliable ga

ative obligatio

ypically divid

einforcements

ed to underta

data. Therefo

ned to offset

hat are driven

stic housing b

Economic tes

N undertake E

outputs that

below details

ent stream. A

nt and leakag

forcement Inves

ith investmen

raints such as

ures increasin

could be in b

This will likely

xpenditure st

-D) in Figure

work Managem

on for the netw

R

LocalisedPressureConstraint

New Connections Including FuelPoor

A

C

ment Ma

ent ensures N

as transporta

ons placed up

ed between t

s are categor

ake wide spre

ore we will co

particular pre

n by third par

builds or indu

st model and

Engineering fo

deliver value

s the depende

And demonstr

ge control.

stment Drivers

nt in mains re

s extremity p

ng to ensure

breach of its

have the effe

treams.

15.1 above a

ment (TNM) p

work.

ReinforcemProjects

A B

C

ains

NGN operate

ation system t

pon it.

the below 7b

rised as gene

ead below 7B

oncentrate on

essure constr

rty connectio

strial and com

may require

or Value app

e for money, s

encies and in

rates the inte

einforcements

pressures bein

system cons

Policies and/

ect of increas

are discrete p

philosophy to

Combining Replacement with Reinforcement

ment s

Pressure Management &Leakage Reduction

B

D

es, and contin

thereby meet

bar network a

eral or specific

Barreinforcem

n localised sc

raints on the

n requests o

mmercial dev

funding in fu

roach where

security of su

ntegrated pro

eractions betw

s will result in

ng breached

straints are sa

/or see a high

sing the volum

processes wi

o provide inte

nues to oper

ting the requ

and the highe

c . Within the

ment scheme

chemes whic

network. Sp

r increase in

velopments, t

ll or part by t

by the optim

upply and min

ocesses attrib

ween reinforc

either:

resulting in p

atisfied. As th

her average s

me of gas esc

th NGN, they

egrated fit for

73

ate, a safe,

irements of re

er pressure, a

e general cate

es by analysin

ch are still gen

ecific reinforc

demands for

these project

he requester

um solution i

nimise impac

butable to the

cement, repla

poor pressure

hese source p

system press

capes thus im

y combine to

r purpose

elevant

above

egory we

ng future

neral in

cements

r

ts are

r. For

s

ct on the

e

acement,

es to

pressures

sure on

mpacting

gether

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Under cu

be creat

models m

ensuring

design a

Furtherm

Distribut

Each net

pressure

order no

declared

Exceedin

and their

The valid

but also

constrain

to remed

During th

ensure th

with max

process

extremity

maintain

validation

In additio

enhance

offer ma

replacem

New con

reinforce

existing

whether

Upon ac

that are

and effic

affect the

Integrate

purely ta

measure

our TNM

All four e

74

urrent NGN p

ed to determ

must underg

g the models

and system m

more NGN/PL

ion Systems

twork has a d

es above whic

ot to exceed t

d, and record

ng MOP’s in

r associated

dation proces

the Year five

nts cannot be

dy the situatio

he mains rep

hat the annua

ximum efficie

. Typically thi

y pressures.

ned with sour

n process wi

on and within

e the project t

ximum benef

ment and rein

nnections driv

ements that n

supply point/

any of the re

cceptance of

needed to th

cient network

e network e.g

ed with the ab

arget reductio

ed against red

M approach to

elements inte

policy for <7B

mine whether

o a revalidati

provide an a

modification s

L/NP16 sets

Operating at

declared Max

ch NGN is no

these pressu

ded”.

preference to

repair costs w

ss not only en

e winter perio

e met even w

on.

placement pro

al replaceme

ency, NGN m

s can introdu

Whilst individ

ce pressures

ll be as a res

n the Strategy

to incorporat

fit to the netw

nforcement so

ven reinforce

need to be bu

/site. NGN po

esultant reinfo

any quotatio

he original rein

k and must ta

g. future main

bove process

ons in averag

ductions in lo

o reinforceme

ract to ensur

Bar Network A

a reinforcem

on every thre

accurate repre

simulations.

out policies w

t Pressures N

ximum Opera

ot prepared t

res. The max

o investment

will increase.

nsures that s

d (increasing

with sources s

ogramme (str

ent targets are

aximise the u

uce a mains d

dual project a

s not exceedi

sult of the ma

y pipe replac

te a reinforce

work with min

olution).

ements (also r

uilt in order to

olicy docume

orcement wo

on, further net

nforcement s

ake into accou

ns replaceme

ses, NGN are

e system pre

ost gas due to

ent.

re the optimu

Analysis (NG

ent strategy

ee years at a

esentation of

which are con

Not Exceedin

ating Pressur

to operate, an

ximum opera

in reinforcem

In addition a

ystem constr

g to 10 years

set at MOP t

rategy) NGN

e achieved w

use of “no-dig

downsizing w

analysis ensu

ng MOP’s, a

ains replacem

ement design

ment option.

nimal investm

referred to as

o supply a ne

ent NGN/SP/

orks are recha

twork analysi

scheme. NGN

unt future po

ents. Any enh

e also identify

essures. Thes

o leakage an

um reinforcem

N/PL/NP/16)

is required d

maximum. T

f the live asse

nsistent with

g 7Bar”.

re (MOP) “this

nd at which it

ting pressure

ment will gene

average syste

raints can be

for more com

hen a reinforc

face major d

with minimal im

g” techniques

with a resultan

res that minim

an element of

ment program

ns, opportun

Taking a TN

ment (one pro

s specific rein

ew load reque

NP/14 details

argeable to th

is is carried o

N has a requi

otential loads

hancement c

ying additiona

se schemes r

d repairs. Th

ment solution

), Network A

uring the nex

This validation

ets thus giving

IGE/GL/1 “P

s is the set of

t is prepared

e for each net

erate increas

em pressures

e met during t

mplex design

cement solut

elivery and sa

mpact on cus

s to expedite

nt gradual de

mum extremi

f the schemes

me.

ities present

NM approach

oject will prov

nforcements)

est or an incr

s tables that

he end custo

out to identify

rement to de

and other ch

osts are fund

al reinforcem

return favoura

ey provide a

s are prepare

nalysis mode

xt five years. T

n process inv

g confidence

Planning of Ga

f maximum s

to fund inves

twork must b

sed costs as l

s will increase

the next wint

s). Where sys

tion must be

afety challeng

stomer disrup

e the replacem

eterioration of

ity pressures

s designed w

themselves t

these oppor

ide both a

are those

reased load t

are used to b

omer.

y any enhance

evelop an eco

hanges that m

ded by NGN.

ent schemes

able CBA’s w

further exam

ed and imple

els must

These

olves

e in all

as

source

stment in

be

leakage

e.

er period

stem

devised

ges. To

ption and

ment

f

are

within the

to

rtunities

o an

base

ements

onomic

may

s that

when

mple of

mented.

Page 75: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

15.2

2009/10

Reinforce

Governo

Figure 1

Reductio

requirem

of dema

continue

reinforce

Howeve

RIIO-GD

even wit

£5.11m

meet ou

15.3 The princ

have bee

platform

position.

As such

category

Figure 15

£m 2009

Mains an

Figure 1

GDPCR1

Average

15.4 Under N

are man

period a

• A

m

N

ac

• An

pr

th

R

M

RIIO-GD1

Prices £m

ement Mains &

rs

5.2: RIIO-GD1 R

ons in annual

ment for locali

nd. We are c

e to evaluate

ement.

r, as many pa

D1 will require

hin an overal

pa) on localis

r capacity ob

The Invesciples within

en in place fo

to operate a

.

, historical co

y over the RII

5.3 below fro

9/10 prices

nd Governors

5.3: GDPCR1 M

Total Capital

annual inves

Network GN Policy th

datory. A num

s follows:

“do nothing”

maintain syste

GN Policy an

ctivity expend

nnual Investm

reviously redu

hese have not

IIO-GD1 peri

Management a

Investme

13/14

5.4

Reinforcement M

l and peak de

ised network

currently carry

the most cos

arts of our ne

e ongoing rein

l profile of fal

sed reinforce

bligations dur

stment JoNGN Policies

or many years

a safe, secure

osts for Cape

O-GD1 perio

om the RIIO-G

200

4

Mains and Gover

Investment

stment over t

Risk he requiremen

mber of optio

” option. This

em extremity

nd would also

diture.

ment in line w

uctions in an

t led to signif

od its impact

and effectivel

ent Requ

14/15 15/

5.3 5

Mains & Governo

emand in GD

k reinforceme

ying out arou

st effective so

etwork are op

nforcement o

ling demand

ment project

ring 1 in 20 w

ourney s surrounding

s in their pres

e and efficien

ex mains prov

od.

GD1 busines

08/9 200

4.0

rnors Expenditur

his five year p

nt to maintain

ons are consi

s will require a

pressures ab

o have a nega

with historical

nual and pea

ficant reductio

t will be visibl

ly manage re

irements

/16 16/17

.2 5.2

ors

DPCR1 have n

nt to ensure

und 60-100 re

olution betwe

perating at or

of the network

. We forecas

ts including a

winter demand

g network pla

sent form. NG

t gas networ

vide an accur

s plan details

09/10 2

6.9

re

period equate

n system con

idered to the

associated in

bove the mini

ative impact

averages un

ak demand ov

ons in localis

le. Added to

einforcement

17/18

5.0

not led to sig

security of su

einforcement

een increasing

r close to the

k to meet loc

st to invest c.

a number of g

d conditions.

anning, netwo

GN are satisf

rk. There are

rate predictor

s NGN expen

2010/11

4.8

es to £5.8m/

nstraints witho

reinforceme

ncreases in so

mum. This ap

on the lost g

der GDPCR1

ver GDPCR1

sed reinforcem

this, NGN ha

from a holist

18/19 19/2

4.8 4.7

gnificant redu

upply during

t projects a y

g pressures a

e maximum o

calised load p

£40m during

governors wh

.

ork analysis a

ied that they

no proposals

r of future co

nditure over G

2011/12

4.9

/pa.

out exceedin

nt investmen

ource pressu

pproach doe

as emissions

1 of c.£5.82m

have been e

ment, it is ant

ave embraced

ic perspectiv

75

20 20/21

7 4.5

ctions in the

1 in 20 winte

ear of this na

and system

perating pres

pressure restr

g the period (

hich will ensur

and model va

provide a rob

s to move aw

osts likely in th

GDPCR.

2012/13

8.5

g the system

nt over the RII

ures above M

es not comply

s and leakage

m/pa. As disc

experienced.

ticipated that

d Total Netw

ve thereby en

Total

40.1

er levels

ature. We

ssure,

rictions

(average

re we

alidation

bust

way from

his

Total

29.1

m MOP

IO-GD1

OP to

y with

e repair

cussed

Whilst

t over the

work

suring

Page 76: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

th

ca

pe

15.5 Reinforc

teams. S

solution

Strategy

program

NGN Po

approac

to ensur

Reinforc

most effe

TNM app

76

he most efficie

an have an ef

eriod.

Investmeement design

Subject matte

for the projec

y team to ens

mme.

olicy states th

ch taking due

e that the mo

ement projec

ective schem

proach acros

ent investme

fficiency app

ent Decisins are derive

er experts are

ct in hand. As

sure the prop

at; replacem

account of t

ost efficient a

cts are review

me with regard

ss all design t

nts are made

lied to reflect

on ed from within

e involved in

s a further ch

osals comple

ent and reinf

he way the s

and economic

wed within the

ds to future r

teams.

e. In summar

t the propose

n the Validatio

ensuring the

heck all schem

ement the TN

orcement pro

system has an

c design is id

e Distribution

replacement

ry NGN’s futu

ed investmen

on, Connectio

schemes de

mes are revie

NM approach

ojects must b

nd will be op

entified.

n Strategy sec

plans within t

ure investmen

t of c.£5.11m

ons or Distrib

erived deliver

ewed within t

h being applie

be developed

erated. It mu

ction to ensu

that area. Th

nt within this

m/pa over RII

bution Strateg

the best/opt

the Distributio

ed to the repl

d using a holis

ust also be as

ure that repre

is helps unde

category

O-GD1

gy

imal

on

acement

stic

ssessed

esent the

erpin the

Page 77: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

16.1 NGN op

• 2,

op

• 24

• 2,

Of the Dthrough The drivemaintenabut is no

• In

• Si

• C

• Ph

• Po

• O

Within thearly devSome ofsafety. W

For the Son fail m2021 50

District a

A-16: Re

Introducterates and m

,355 District G

perate at a p

40 Industrial

,968 Service

District Governasset health ers for replacance frequenot limited to:

crease fault f

ingle feed go

apacity of the

hysical condi

olicy complia

Obsolescence

he Governor pveloped modf these modu

Within RIIO-G

Service Govemaintenance s0% of the pop

and I&C Gove

eplaceme

tion maintains a la

Governors, o

ressure abov

and Comme

Governors.

nor and I&C Gassessment

cement are pncies have be

frequency;

overnors, i.e.

e unit;

ition of the un

ance; and

e of equipmen

population thdules (1980’s)ules are also sGD1 the netwo

ernor populatstrategy. Currpulation will b

ernors

ent Gove

rge range of

of these 2,221

ve 2Bar;

rcial (I&C) Go

Governor pop, the networkrimarily increa

een required b

not twin strea

nit;

nt.

he network op) now requiresituated in floork is targetin

ion NGN hasrently, only 6

be over 30 ye

ernors

Governors, t

1 operate at

overnors; and

pulation therek has determased RCM mbased on an

am;

perates a nume specialist mood plains whng the remov

s adopted the.5% of the po

ears old.

hese include

a pressure b

d

e are a conseined will need

maintenance fanalysis of ri

mber of buriemaintenance which creates aval of all high

e policy of repopulation of S

S

e:

elow 2Bar an

ervative numbd replacing thfrequencies. sk to the net

ed ERS moduwhich is ineffiadditional riskrisk ‘out of d

placement afService Gove

ervice Gover

77

nd the remain

ber of units thhrough RIIO-GIncreased twork which i

ules. Many ofcient and expk on gas sup

date’ ERS mo

fter 30 years ernors are new

nors

ning 134

hat, GD1.

ncludes,

f the pensive. ply and

odules.

with a fix w and by

Page 78: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

16.2 Within th

directly b

number

Replacem

District G

ERS mod

District G

Industria

Domestic

Total

Figure 1

Expendit

(in 2009/

<2Bar Di

>2 - <7B

I&C Gove

Domestic

Total

Figure 1

16.3

a) Critic

Criticality

category

District G

District G

a single

District G

a single

consider

establish

This allow

for repla

Industria

78

RIIO-GD1he RIIO-GD1

by Asset Hea

of Governors

ment Governor

Governor below 2

dules)

Governor above

l & Commercial

c Service Govern

6.1: Replaceme

ture (£M)

/10 prices)

istrict Governors

Bar District Gove

ernors

c Service Govern

6.2: Investment

The Inves

cality Asse

y assessmen

y, these inclu

Governors

Governor criti

feed network

Governor sup

feed network

red against th

hing single or

ws the netwo

cement.

al & Commerc

Investmeperiod NGN

alth Category

s that will be

2Bar (including

2Bar below 7ba

Governors

nors

ent Summary

13/

s 1.4

ernors 0.

0.

nors 0.2

1.8

Forecast – RIIO

stment Jo

ssment

nts for District

de;

icality assess

k as determin

pplies could b

k there is no a

he actual phy

r multi-fee crit

ork to target t

cial I&C Gove

ent Requproposes to

y e.g. 19, 20 a

replaced dur

Total

Populatio

2,221

ar 134

240

2,968

14 14/15

4 1.4

1 0.1

1 0.1

2 0.2

8 1.8

O-GD1 Governor

ourney

t Governors h

sment varies

ned by netwo

be supported

alternative to

ysical quantiti

teria.

the highest p

ernors

irementsreplace a sig

and 21. Figur

ring the RIIO-

on

RIIO-G

Perio

240

16

24

1,200

1,480

15/16 16/

1.3 1.

0.1 0.

0.1 0.

0.2 0.

1.8 1.

r expenditure for

has been con

based on wh

ork analysis m

d via other Go

supplying ga

ies of custom

priority (single

gnificant num

re 16.1 below

-GD1 period:

D1

d Per Y

30

2

3

0 15

0 18

/17 17/18

.3 1.3

.1 0.1

.1 0.1

.2 0.2

.8 1.8

recast

nsidered agai

hether they ar

modelling. In a

overnors for a

as to the area

mers relating t

e feed, large n

mber of Gover

w provides a

Year % o

pop

0 1

2 1

3 1

50 4

85 N

18/19 19

1.4 1

0.1 0

0.1 0

0.2 0

1.8 1

inst the releva

re part of a m

a multi-feed n

a short period

a. Criticality h

to specific Go

numbers of c

rnors, this is d

breakdown o

of total

ulation

%

Inv

1%

2%

0%

40%

N/A

9/20 20/21

.3 1.3

0.1 0.1

0.1 0.1

0.2 0.2

.7 1.7

ant classes w

multi-feed net

network the a

d in an emerg

has then been

overnors afte

customers) G

driven

of the

of total

vestment

77%

5%

6%

12%

100%

Total

10.7

0.7

0.8

1.8

14.0

within this

work or

area the

gency. In

n

er

overnors

Page 79: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Security

supply c

relations

Domesti

Service G

the netw

maintena

both a fin

The cons

b) Heal

District G

NGN has

predomi

approac

• In

• Si

• C

• Ph

• Po

• O

Figure 16

Figure 16.3

Above 2

Asset He

quantifie

240 RIIO

replacement

priorities

of supply for

could affect p

s implications

c Service Gov

Governors ge

work consider

ance policy a

nancial and s

sequence of

lth Assessm

Governors

s determined

nantly based

ch to health c

crease fault f

ingle feed go

apacity of the

hysical condi

olicy complia

Obsolescence

6.3 below su

3: RCM distribut

Bar Governo

ealth of the a

ed by PSSR f

r I&C Govern

processes and

consequenc

vernors

enerally supp

rs them low r

and a replace

safety perspe

failure of all t

ment

d the health o

d on its RCM

ategorisation

frequency;

overnors, i.e.

e unit;

ition of the un

ance; and

e of equipmen

ummarises th

Maintenance Fr

RCM G

RCM G

RCM G

RCM Go

RCM Go

RCM Go

RCM Go

RCM Go

RCM Go

RCM Go

tion

rs and I&C Go

above 2Bar D

requencies a

ors is vital as

d production

ces to both th

ply single cust

risk assets. A

e after thirty y

ective.

these assets

of its below 2

maintenance

n as it takes a

not twin strea

nit;

nt.

e current RC

requency below

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

ov Maintenance

Grand Total

overnors

District Govern

and obsolesce

s they feed im

and have se

he network a

tomers up to

As a result the

years policy w

is a loss of s

Bar District G

e frequencies

account of all

am;

CM frequencie

2Bar

e - 4M

e - 6M

e - 8M

- 10M

- 11M

- 12M

- 15M

- 18M

- 21M

- 24M

nors (134 uni

e data. The n

mportant com

erious reputat

nd its custom

o a maximum

e network has

which is cons

supply to the

Governor pop

s. The networ

the factors a

es within the

Total Nu

15

7

18

8

49

473

14

40

57

1,540

2,221

its) and I&C G

numbers esta

mmercial oper

tional, financi

mers.

of 10, they f

s adopted a

idered the op

customer.

pulation (2,22

rk considers

affecting RCM

network:

umber in Catego

40

544

97

1,540

2,221

Governors (24

ablished for re

79

rations. Loss

ial and public

fail safe and a

fix on fail

ptimum solut

21 units)

this to be a r

M namely:

ory Obsolete

40

29

0

122

191

40) is current

eplacement a

of

c

as such

ion from

robust

tly

are

Page 80: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

based o

of subjec

NGN is u

methodo

Service G

NGN has

the optim

independ

Global re

Indepen

“Initially d

life as 50

with long

consider

that is ba

appropri

“In Enze

broadly f

c) Inve

Service g

all option

Option O

This will

security

District G

District G

Industria

Domestic

Total

Figure 1

Option T

Replace

requirem

District G

District G

Industria

80

n historic run

ct matter exp

undertaking a

ology for prio

Governors

s adopted a

mum solution

dent review c

eport is includ

dent Report

design lives a

0 years as pro

g term assets

rably shorter.

ased upon N

iate flow rate

n’s experienc

fits with that

stment Op

governor rep

ns.

One: Do Noth

lead to incre

of supply and

Replac

Governor below 2

Governor above

l & Commercial

c Service Govern

6.4: Option 1 W

Two: Maximu

ment assump

ments for I&C

Replac

Governor below 2

Governor above

l & Commercial

n rates, consi

pert assessm

a survey of al

ritisation of th

fix on fail ma

n from both a

commissione

ded below.

by Enzen Glo

and technical

oduct testing

s used in gas

Enzen recom

NGN’s require

and pressur

ce a technica

used in other

tions

lacement is b

ing

ased mainten

d high risk of

cement Governo

2Bar (including E

2Bar below 7ba

Governors

nors

Workload Volume

m Below 2Ba

ptions – repla

and District

cement Governo

2Bar (including E

2Bar below 7Ba

Governors

deration for l

ents.

ll its District G

hese assets t

intenance po

a financial and

ed by NGN an

obal

l asset lives m

g to simulate

s transportatio

mmends that

ements in term

re coupled to

al asset life of

r countries.”

based on cur

nance freque

f non complia

or

ERS modules)

ar

es

ar Governors

ace all below

Governors.

or

ERS modules)

ar

ocalised cap

Governor pop

throughout R

olicy and a re

d safety persp

nd undertake

may be consi

ageing for lo

on networks

t NGN define

ms of service

minimum int

f 25 to 30 yea

rrent policy co

encies and a s

ance with hea

Total P

2,

1

2

2,

12 month R

Total P

2,

1

2

pacity increas

pulation in 20

RIIO-GD1.

place after 30

pective. This

en by Enzen G

dered identic

nger service

actual techn

e a technical a

eability i.e. co

tervention ma

ars may be c

ompliance so

significant inc

alth and safet

opulation R

221

34

240

968

CM governor

opulation R

221

34

240

e requiremen

012 to help es

0 years policy

policy was s

Global. A sho

cal. A norm is

lives is not w

ical asset live

asset life for i

ontinuance of

aintenance.”

considered re

o the figure re

crease in risk

ty legislation.

RIIO-GD1 Period

0

0

0

1,200

1,200

rs, and assum

RIIO-GD1 Period

584

5

10

nts and interp

stablish a cle

y which is co

supported by

ort exert from

s to consider

well defined. H

es can be

its Service Re

gas supply a

easonable and

emains const

k to the netwo

d Per Y

0

0

0

15

15

me minimum

d Per Y

73

2

3

pretation

ar

onsidered

an

m Enzen

design

However

egulators

at an

d

tant for

ork to

Year

0

0

Year

3

Page 81: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Domestic

Total

Figure 1

Option T2Bar and

District G

District G

Industria

Domestic

Total

Figure 1

Option F

District G

District G

Industria

Domestic

Total

Figure 1

Option Fand I&C

District G

District G

Industria

Domestic

Total

Figure 1

c Service Govern

6.5: Option 2 W

Three: Conserd I&C Govern

Replac

Governor below 2

Governor above

l & Commercial

c Service Govern

6.6: Option 3 W

our: Minimum

Replac

Governor below 2

Governor above

l & Commercial

c Service Govern

6.7: Optio

ive: ConservaGovernors

Replac

Governor below 2

Governor above

l & Commercial

c Service Govern

6.8: Option 5 W

nors

Workload Volume

rvative Assumors

cement Governo

2Bar (including E

2Bar below 7Ba

Governors

nors

Workload Volume

m Assumptio

cement Governo

2Bar (including E

2Bar below 7Ba

Governors

nors

on 4 Workload V

ative Assump

cement Governo

2Bar (including E

2Bar below 7Ba

Governors

nors

Workload Volume

es

mption for Dis

or

ERS modules)

ar

es

ons for all Gov

or

ERS modules)

ar

Volumes

ption for Dist

or

ERS modules)

ar

es

2,

strict Govern

Total P

2,

1

2

2,

vernors

Total P

22

1

2

29

rict Governor

Total P

2,

1

2

2,

968

ors and Mini

opulation R

221

34

240

968

opulation R

221

34

240

968

rs and Minim

opulation R

221

34

240

968

1,200

1,799

mum Assump

RIIO-GD1 Period

240

5

10

1,200

1,480

RIIO-GD1 Period

240

30

16

24

1200

mum Assumpt

RIIO-GD1 Period

160

5

10

1,200

1,375

81

15

22

ptions for Ab

d Per Y

30

2

3

15

18

d Per Y

2

3

15

tions for Abo

d Per Y

20

2

3

15

17

0

8

bove

Year

0

0

5

Year

0

ve 2Bar

Year

0

0

5

Page 82: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

d

T

F

S

S

E

L

C

D

82

d) Investment D

Measure

Total Asset Upgrades

inancial

Safety

Security of Supply

Environmental

Level of Risk

Comments

Decision

Decision

1,200

Total

Signifian

supply

Environ

Very H

throu

Not recom

N

Option One

(Do nothing)

Service Governors

investment £1.8m

nt increase in risk to

through failure of a

governor

nment is not the princip

High and increasing

ughout RIIO-GD1

mmended – too much

risk

Not acceptable

Option

(Maximum invest

minimal ot

584 DG’s, 5 >2B

Governors, 10 I&

Service Gove

Total investment c

Minimal risk to b

District Governors

high risk above 2B

governo

ple driver for this invest

Minima

Over engineering s

unachievable prog

no risk retained by

Not accept

2

ment DG’s

ther)

(Co

Bar District

&C, 1,200

ernors

24

Gov

circa £24m Total

Safety is not the p

elow 2Bar

s average to

Bar and I&C

rs

Mana

Distric

high r

ment although reductio

al

solution also

gramme and

the network

P

consid

for n

2Ba

table

Option 3

onservative & minimal

investment)

40 €, 5 >2Bar District

vernors, 10 I&C, 1,200

Service Governors

investment circa £12m

principle driver for this i

ageable risk below 2Ba

ct Governors medium t

risk above 2Bar and I&

District Governors

ons in CO2 emmission

governors.

Medium

Potential solution but

dered high risk retentio

network against above

ar and I&C customers

2

Optio

(Conservative

240 District G

>2Bar District G

I&C, 1200 Serv

m Total investeme

nvestment

ar

to

&C

Manageable ris

Gove

ns will be achieved thro

Medium ten

on

e

Optimal solutio

appripriate leve

the asse

1

on 4

e investment)

Governors, 16

Governors, 24

vice Governors

16

>2

ent circa £14m Tot

sk for all District

rnors

Me

ough removal of high fr

nding to low M

on retianing an

el of risk across

et base.

Acc

net

Option 5

(Minimal investment)

60 District Governors,

2Bar District Governors

10 I&C, 1,200 Service

Governors

tal investment Circa £9

edium to high risk for a

District Governors

equnecy maintenance

Medium tending to high

ceptable solution but t

twork considers it wou

retain too much risk

3

5

s,

9m

all

h

he

uld

Page 83: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Investme

NGN be

risk whils

This opti

Governo

16.4 In order

Governo

appraisin

of each i

(for I&C c

16.5 Whilst re

as those

required

network

effective

As part o

appropri

enable ra

a) Outp

The ben

District G

• En

un

• Sa

in

• Re

pr

Fa

m

• Al

im

ne

at

of

le

fre

Industria

• En

re

ent Decision:

lieves option

st replacing t

ion is a conse

or population

Selectionto manage th

ors which pos

ng the curren

individual Go

customers), a

Innovatioeplacing these

e which are m

to maintain t

in minimising

ly.

of our TNM a

iate solution.

ationalisation

put Deliver

efits/outputs

Governor Ben

nvironment –

nnecessary in

afety – Remo

cidents occu

eliability – Se

ressure netw

ault data gath

more frequent

lthough there

mmediate sav

etwork curren

t frequencies

ften as 4 mon

ss robust and

equently.

al & Commerc

nvironment –

equired to und

: Option Four

four is the op

he highest ris

ervative appr

over the eigh

n Criteria he risk appro

se the highes

nt RCM data

overnor. For e

and operation

on e Governors

more reliable a

them, this wi

g pressures c

approach an a

This could in

n of network a

ables

of investing

nefits

– As faults oc

ncreases in n

oving non-sta

urring.

ecurity of sup

works failure to

hered over tim

maintenance

e are significa

vings in opera

ntly has over

less than the

nthly, as the

d of less well

cial Governor

– As faults oc

dertaken ma

r

ptimal solutio

sk assets to b

roach that on

ht year RIIO-G

opriately NGN

st risk to be p

and overlayin

example this c

nal assessme

we will ensu

and consiste

ll in also mea

can be more

assessment

nclude reinfor

and optimisat

in these asse

cur, this type

network press

andard or lim

ply via these

o have readily

me highlights

e to prevent f

ant costs in th

ational, legisla

1,200 Distric

e current max

RCM risk tem

l defined failu

r Benefits

cur, increase

intenance an

on which allow

benefit the cu

nly requires th

GD1 period.

N is developin

prioritised for

ng this with a

could include

ent of conditi

re that we us

nt with a sma

an that any co

consistent, w

will be made

rcement and

tion of pressu

ets are as foll

e of equipmen

sures, increa

ited type equ

district gove

y available sp

s regulators th

failure.

he replaceme

ative complia

ct Governors

ximum of 24

mplate has th

ure reasons th

ed venting to

nd repair.

ws the netwo

ustomer.

he network to

ng selection c

replacement

an assessmen

e number of c

on.

se manufactu

aller amount

ontrol equipm

with again les

across the w

removal, rep

ures.

ows:

nt is designed

sing leakage

uipment will re

ernors is vital

pare parts wi

hat may fail in

ent of these d

ance, mainten

that are main

months, som

he mean time

hen those wh

atmosphere

ork to retain a

o update/repl

criteria that w

. This will ess

nt on the phy

customers, c

urers that use

of spares and

ment required

ss spares req

whole networ

positioning to

d to fail safe

for the syste

esult the likel

as these feed

ll delay restor

n the near fut

district govern

nance and pa

ntained due t

me of these a

e between fail

hich are main

and possible

83

an acceptable

lace 10% of

will allow the

sentially invol

ysical charact

commercial se

e the same eq

d less diverse

d to assist the

quired to main

rk as to the m

new location

that could re

em.

ihood of hum

d directly into

ration of supp

ture these req

nor sites ther

ainting costs.

to their config

are maintaine

lures for thes

ntained less

e purging of s

e level of

its

ve

teristics

ensitivity

quipment

e skills

e

ntain

most

n to

esult in

man error

o the low

plies.

quire

re is also

The

guration

d as

se units

supply is

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• Sa

re

• Re

co

ha

ga

m

Domesti

• C

lo

• Sa

m

• Re

an

du

84

afety – Loss

equirements.

eliability – Se

ommercial op

ave serious re

athered over

maintenance t

c Service Gov

ustomer – Ex

ocations and s

afety – Loss

meet requirem

eliability – Se

n alternative t

ue to the low

of supply to a

ecurity of sup

perations loss

eputation and

time highligh

o prevent fai

vernor Benef

xpectations t

single source

of supply to a

ments.

ecurity of sup

to lay low pre

w cost of a ne

a major custo

ply via above

s of supply co

d media expo

hts regulators

lure.

fits

hat supply w

e supply and

a remote ven

ply via these

essure mains

ew asset as o

omer could le

e 2bar I&C Go

ould affect pr

osure implica

s that may fai

would be cont

will take long

nerable custo

small Govern

s. Replaceme

opposed to th

ead to a fatal

overnors are

rocesses and

ations leading

l in the near f

tinuous. Thes

ger to restore

omer could le

nors is vital to

ent is a more

he time spent

ity due to fail

vital as they

d production.

g to substanti

future these r

se can often b

e than norma

ead to a fatalit

o small numb

realistic optio

t maintaining

lure to meet

feed importa

. Loss of sup

ial costs. Fau

require more

be in remote

l LP supply.

ty due to failu

bers of custo

on than main

on a regular

ant

pply could

ult data

frequent

ure to

mers as

tenance

basis.

Page 85: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

17.1 This sec

been ide

( 2009/10

Block Va

PIG Trap

<7 Bar S

E&I Telem

High Rise

Total

Figure 1

17.2 For each

over the

a) Bloc

Block Va

for plann

RIIO-GD

sure they

construc

distribute

Civils wo

of a new

Criticality

Criticality

Valve, bu

Asset He

There ha

categoris

A-17: Ag

The Spection is made

entified as be

0 prices £m)

alve (Civils)

ps (Civils)

Sleeves

metry Communic

e Building Valves

7.1: RIIO-

Justificatih of the asset

RIIO-GD1 pe

k Valves

alves are an e

ned work and

D1 will be targ

y are access

ction of a cha

ed evenly thr

ork associate

w chamber to

y

y for Civils on

ut is necessa

ealth

as been no m

sed as HI3.

ggregate

ific Requiup of a num

neficial to the

cations (<7 bar)

s

-GD1 Aggregate

ion for Ints above NGN

eriod:

essential part

d emergencie

geted at asso

ible and func

amber to hou

roughout the

d with Block

house the B

n block valves

ary to maintai

major work on

ed (Othe

irement tber of lines w

e network to

13/14 14/

0.05 0.

0.04 0.

0.04 0.

0.00 0.

0.10 0.

0.2 0

ed (Other Expend

vestmentN has justified

t of being abl

es to enable s

ociated Civils

ction correctly

se the Block

period to allo

Valves includ

Block Valve, o

s has been c

n the Block V

n Block Valve

r Expend

throughouwith all for pro

be carried ou

/15 15/16

05 0.05

04 0.04

04 0.04

00 0.22

10 0.00

.2 0.3

diture) (Projects

t d the drivers

e to operate

sections of p

work with 10

y. This will inv

k Valve at a un

ow for a rollin

de; excavatin

or new covers

lassed as me

Valve in the fu

es in the past

diture) (

ut RIIO-GDojects costing

ut.

16/17 17/1

0.05 0.05

0.04 0.04

0.04 0.04

0.22 0.00

0.00 0.00

0.3 0.1

<£0.5m)

for needing t

the network

ipe to be isol

0 (20% of pop

volve excavat

nit cost of £4

ng programm

ng a pit to rev

s for protectio

edium, as it h

uture.

10 years. As

(Projects

D1 g less than £5

8 18/19 1

5 0.05

4 0.04

4 0.04

0 0.00

0 0.00

0.1

this investme

safely, as the

ated. Investm

pulation) Bloc

ting to reveal

40K. This exp

me of work.

veal the Block

on.

has no direct

s such Block

85

s <£0.5m

500K, but wh

19/20 20/21

0.05 0.05

0.04 0.04

0.04 0.04

0.00 0.00

0.00 0.00

0.1 0.1

ent to be carr

ey allow shut

ment of £400

ck Valves to

the Block Va

penditure will

k Valve, cons

impact on th

Valve Civils h

m)

hich have

TOTAL

0.4

0.3

0.3

0.4

0.2

1.6

ried out

tdowns

0K over

make

alve and

be

struction

he Block

has been

Page 86: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Expendit

2009/10

Block Va

Figure 1

It is estimexcavatiobe as exvalve, co

RIIO-GD1

The ben

• En

• C

of

• Sa

Capital E

b) PIG T

Some ofand therthe replaetc.

Criticality

All Civils

Asset He

PIG Trapcategoris

Asset He

Without

Financia

It is estim

2009/10

Civils Ref

Figure 1

86

ture Forecast

prices £m

alve

7.2: RIIO-GD1 B

mated 20% oons at an ave

xtensive as thonstruction of

1 Benefits/Ou

efits/outputs

nvironmental

ustomer Serv

f pipeline to b

afety – Allows

Expenditure o

Traps

f the Civils worefore are clasacement of co

y

associated w

ealth

p site Civils thsed as HI3.

ealth and Crit

investment 2

l

mated that a

prices £m

furbishment – P

7.3: Civils Refur

ts

13/

0.0

Block Valve Expe

of Block Valveerage cost ofhat on the pipf new chamb

utputs

of investing

– Reduction

vice – Block V

be isolated if

s sections of

on Block Valv

ork associatessed as deteoncrete pipe

with PIG Trap

hat have not

ticality – Curre

20% of the sit

full site Civils

13

igh Traps 0.

rbishment – Pigh

14 14/15

05 0.05

enditure

es (10) will nef £40K each. peline. The exbers and new

in these asse

n in leakage th

Valves enabl

required. Thi

f pipeline to b

ves equipmen

ed with the Periorating, req

supports, ro

p sites have b

been replace

ently in GDPC

tes would de

s refurbishme

3/14 14/15

05 0.05

h Traps Expendi

15/16 16/

0.05 0.0

eed major CivThe work to

xpenditure wiw covers to pr

ets are as foll

hrough valve

e pipelines to

s can result i

be safely isola

nt is included

IG Trap sitesquiring assessoadway acces

been classifie

ed or significa

CR1

egenerated to

ent on a PIG t

15/16 16

0.05 0.

ture

/17 17/18

05 0.05

vils work such improve the ill be targetedrotect the val

ows:

.

o be split into

n less disrup

ated in event

d in Pipeline R

have not besment or moss, and hard

ed as low on t

antly modified

o HI4.

trap site wou

6/17 17/18

.05 0.05

18/19 19

0.05 0.

h as; valve pihealth of a B

d at excavatiove and preve

o sections, th

ption to suppl

of an emerge

Re-life section

en upgradednitoring. Thisstanding for

the criticality

d in the last te

ld cost £40k

18/19 19

0.05 0

9/20 20/21

05 0.05

its, covers anBlock Valve mons to reveal ent it from floo

erefore allow

y.

ency

n of this subm

d in the past 1s would typica

inspection ve

index.

en years have

per site.

9/20 20/21

.05 0.05

TOTAL

0.4

nd may not

the oding.

wing part

mission.

10 years ally entail ehicles,

e been

TOTAL

0.4

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RIIO-GD1

• Se

c) <7Ba

It is estim

collabora

of c.£0.3

work and

resistive

The cond

Criticality

Sleeves

custome

Therefor

Financia

2009/10

<7 Bar S

Figure 1

£40K pe

nitrogen

sleeve.

Investme

appropri

and re w

wrapping

RIIO-GD1

• Sa

of

• Re

d) Tele

Telemetr

functiona

way of c

review th

is found

undertak

is sched

Criticality

This ass

environm

1 Outputs

ecurity of sup

ar Non-Nitr

mated there a

ation with oth

3m over the R

d implementa

bonds betwe

dition of non

y

are critical to

ers; however

re sleeves hav

l

prices £m

Sleeves

7.4: RIIO-GD1 <

er year has be

sleeves will n

ent will be tar

iate remedial

wrapping. This

g and being r

1 Outputs

afety – sleeve

f the pipeline

eliability – Se

metry

ry exists on 8

al it is outdate

communicatio

he existing sy

to be an opt

ken in line wit

uled for only

y

et has been c

ment or supp

pply

rogen Sleev

are 16 <7Bar

her networks

RIIO-GD1 pe

ation. This inc

een pipes an

N2 sleeves i

o maintain the

if a sleeve we

ve been assig

13/

0.0

<& Bar Sleeves E

een allocated

need remedia

rgeted at acc

work. This w

s is estimated

reinforced.

es protect pip

; and

ecurity of sup

89 below 7Ba

ed. The netw

ons is availab

ystem and ide

tion it is antic

th the above

a two year p

categorised a

ly while it is b

ves

r non nitrogen

to produce a

riod will be u

cludes grouti

nd sleeves.

s expected to

e integrity of a

ere to fail the

gned a mediu

14 14/15

04 0.04

Expenditure

d for non-nitro

ating over the

curately ident

will involve exc

d to cost £20

pes at vulner

ply through in

ar sites acros

work would lik

ble. In the first

entify if a tota

ipated this w

7Bar telecom

period to coin

as C4 as loss

being repaired

n sleeves in t

a uniform ma

sed to accur

ng sleeves w

o deteriorate

a pipeline and

ere would be

um criticality.

15/16 16/

0.04 0.0

ogen sleeves

e RIIO-GD1 p

ifying the con

cavating to re

0K per sleeve

able crossing

ntegrity of the

ss the networ

ke to review c

t half of RIIO-

al system upg

would cost circ

mmunications

ncide with oth

s of telemetry

d.

the network.

anagement pr

rately identify

which are curr

at a similar l

d thus allow

no direct los

.

/17 17/18

04 0.04

s. According t

period, with a

ndition of slee

eveal the slee

e. Overcrossi

gs, they are t

e pipeline.

rk. Although t

current telem

-GD1, a feasi

grade would

ca £5k per s

s section in o

her surveys.

y would have

NGN are cur

rocedure for

sleeves whic

rently vacant

evel to pipelin

it to continue

s of supply c

18/19 19

0.04 0.

to asset heal

an estimated

eves and the

eves, grouting

ngs may req

herefore esse

the current sy

metry operatio

ibility study w

add significa

ite. This sche

our Asset Hea

e no detrimen

87

rrently workin

sleeves. Inve

ch need reme

and restorin

nes with corr

e transporting

consequence

9/20 20/21

04 0.04

th indices 16

cost of £20K

n implementi

g of vacant s

uire re paintin

ential to the i

ystem is fully

ons to see if a

will be underta

ant benefit. If

eme would on

alth Category

ntal effect on

ng in

estment

edial

g

rosion.

g gas to

.

TOTAL

0.3

6 non

K per

ing

sleeves

ng, re

ntegrity

a smarter

aken to

upgrade

nly be

y 22, and

safety,

Page 88: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Asset He

The syst

Financia

In the firs

identify if

anticipat

covered

2009/10

E&I Telem

Figure 1

RIIO-GD1

The sugg

• En

fo

• Re

e) High

It has be

Rise Bui

to quickl

These bu

service v

installed

In order

Consequ

In the ma

the items

deteriora

enhance

Medium

Conditio

Other th

assessm

f) Othe

Do Noth

The optio

Howeve

program

88

ealth

tem is curren

l

st half of RIIO

f a total syste

ted this would

in Asset Hea

prices £m

metry Communic

7.5: RIIO-GD1 E

1 Outputs

gested option

nvironmental

ootprint; and

eliability – sec

h Rise Build

een identified

lding exist wi

ly close off th

uildings were

valves need t

at a total cos

to comply w

uence of Failu

ajority of thes

s listed, they

ating and hav

e the network

or Low critic

n Assessmen

an fault data

ment. This will

er Options C

ing:

on to ‘do not

r, the assets

mme aims to p

tly fully functi

O-GD1, a feas

em upgrade w

d cost circa £

alth Category

cations (<7 bar)

E&I Telemetry Co

ns cover the

– better tele

curity of supp

ding Valves

following an

ithin the netw

he gas supply

e mainly cons

o be fitted. T

st of £200K.

ith IGE/G/5 t

ure

se cases then

would contin

ve not been fu

k, as well as a

cality.

nt

physical con

l be supplem

Considered

thing’ in thes

will continue

plan this as a

ional but agin

sibility study

would add si

£5k per site.

y 22. Total co

13/14 14/

0.00 0.

ommunications

following prim

communicat

ply.

s

extensive su

work that do n

y to the build

structed in the

This strategy h

his work will

n no immedia

nue to be rep

ully addresse

allowing curre

ndition of the

mented with fie

e cases is a v

to deteriorat

a phased exp

ng. As such it

will be under

gnificant ben

The feasibility

ost for this inv

/15 15/16

00 0.22

(<7 bar)

mary outputs

ions should le

urvey of these

not have satis

ing.

e 1960’s era

has been agr

be necessary

ate effect will

paired on an a

es for some t

ent operating

asset has be

eld surveys w

viable one, a

te until such t

penditure on a

t has been ca

rtaken to revie

nefit. If upgrad

y study is exp

vestment wou

16/17 17/1

0.22 0.00

s:

ead to reduc

e types of pro

sfactory serv

, and surveys

reed with the

y to meet the

be seen on t

as required b

ime. It is felt t

g requirement

een determine

which are cur

nd has been

time as expe

a proportion o

ategorised as

ew the existin

de is found to

pected to co

uld be £445K

8 18/19 1

0 0.00

ced visits redu

operties that

vice valves sh

s have identif

e HSE and the

e requirement

the network

basis. Howev

this expendit

ts to be met.

ed through s

rrently ongoin

adopted for

enditure will b

of these over

s H12.

ng system an

o be an optio

st £50K, but

K.

19/20 20/21

0.00 0.00

ucing the car

a number of

hould it be ne

fied that a nu

ese valves w

ts.

by failure of a

ver, they are a

ure will signif

All are class

subject matte

ng in 2012.

a number of

be necessary.

r this period.

nd

on it is

is

TOTAL

0.4

rbon

High

cessary

umber of

ill be

any of

all

ficantly

ed as

er expert

years.

. This

Page 89: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

17.3 Innovatio

nitrogen

Remote

reports i

antenna)

Innovatioon in how we

sleeves with

monitoring o

mmediately i

) using the G

on e tackle these

h remote mon

on sleeves me

f an alarm th

SM network

e remedial wo

nitoring and th

easures pres

reshold is ex

and is install

orks will be c

he E&I teleme

sure automa

ceeded. It co

ed in the sam

onsidered, p

etry works id

atically, check

ommunicates

me way, simp

articularly in t

dentified.

ks that it is wi

s (via either an

ply requiring a

89

the cases of

ithin specifica

n internal or e

a mobile pho

the

ation and

external

ne.

Page 90: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

18.1 Within R

for demo

on the w

physicall

surround

absence

replacem

2009/10

Rationa

govern

stor

Figure 1

18.2

a) Curre

Demolitio

equipme

Consequ

The infra

that it inc

township

supply a

Conditio

A deskto

remove e

around w

increase

This is b

accessib

Out of o

rationalis

90

A-18: RaStra

The SpecRIIO-GD1, NG

olition of the H

whole network

ly disconnect

ding distributi

e of the diurna

ment of existin

Prices £m

alise mains and

nors to support

age strategy

8.1: RIIO-GD1 R

Justificati

ent Contro

on has only t

ent has rema

uence of Failu

astructure aro

corporates th

p. Therefore f

and safety of t

n Assessmen

op assessme

equipment an

which sites w

e through the

ased on the

bility to equip

ur 35 sites, w

sation.

tionaliseategy

ific RequiGN plans to ra

Holder. As pa

k and adopt

ted from the

ion network i

al storage fac

ng infrastruct

13/14

0.4

Rationalise main

ion for In

l Run Rates

aken place re

ined within th

ure

ound gas hold

he larger diam

failure within

the general p

nt

ent has been

nd maintain e

will be made a

RIIO-GD1 pe

assumption t

ment and for

we believe 15

e Mains

irement tationalise the

art of NGN’s

innovative ap

system and t

s capable of

cility. This wil

ture which w

14/15 15/

0.4 0

s and governors

vestment

s

ecently where

he existing lan

der’s sites is

meter trunk m

this part of th

public.

undertaken o

existing dema

available and

eriod.

that early rem

recast chang

5 will not requ

& Gover

throughoue local networ

TNM approa

pproaches wh

then demolis

meeting gas

l require ratio

ill be unique t

/16 16/17

.5 0.6

s to support stor

t

e the gashold

nd footprint.

deemed to b

mains that fee

he network w

on the likely r

and. As this i

when at this

moval will be

es on the wh

uire off site ad

rnors to

ut RIIO-GDrk surroundin

ach this ration

here appropr

shed it will be

s demands an

onalisation, up

to each indiv

17/18

0.7

rage strategy Ex

der has been

be at the high

ed through to

will have a ma

rationalisation

s a desktop

s early stage N

done on thos

hole network.

djustments an

Support

D1 ng gasholders

nalisation will

riate. Before g

necessary to

nd flow requi

pgrading and

vidual site loc

18/19 19/2

0.7 0.8

xpenditure

n structurally u

her end of the

o the sub netw

aterial impact

n needed aro

exercise and

NGN believe

se with less e

.

nd 20 will req

t Storage

s either in pre

l assess the i

gasholders a

o ensure the

rements in th

d on occasion

ation.

20 20/21

8 0.8

unsound and

e criticality ind

works within

t on both sec

ound the site

d uncertainty

the costs are

engineering d

quire some le

e

eparation

mpact

are

he

ns

Total

4.9

d

dex in

a

curity of

to

exists

e likely to

difficulty

evel of

Page 91: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 188.2: Assessmennt of gasholder ssites requiring M&G investment

91

Page 92: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

b) Cost

The CBA

• Ef

• Ab

• Re

• M

• C

c) Othe

Do Noth

Site rem

optimise

18.3 Expert k

remove e

18.4 To form

92

t Benefit An

A undertaken

fficiency of th

bility to reduc

educed Main

Minimise future

ombine with

er Options C

ing:

ains a gas ha

ed.

Selectionknowledge of

equipment of

Innovatiopart of the T

nalysis

n has taken fu

he Network;

ce average sy

ntenance & R

e possible re

other Netwo

Considered

azard site situ

n Criteria gasholder lo

ff site.

on NM approac

ull considerat

ystem pressu

Repair Costs;

inforcement;

ork Managem

d

uated in an in

ocations, surr

h.

tion of:

ure;

and

ment Process.

nappropriate

rounding size

.

location. Net

es and flows o

twork pressu

of network. L

res and flows

Likely requirem

s are not

ments to

Page 93: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

19.1 The exis

as they h

spare pa

replace t

natural g

capabilit

replace a

Carbon

RIIO-GD

£m 2009

Gascose

CO detec

Figure 1

19.2

a) Envi

The envi

it creates

30/01/12

have bee

b) Safe

Presently

property

the curre

adding fu

carbon m

Currently

business

approac

primary

requiring

towards

• Ac

• In

so

• Ba

FA

• N

pr

What ha

A-19: Ga

The Specting Gascose

have been in

arts, replacem

them with eq

gas. There wa

y and are cu

all current Ga

Monoxide rea

D1 business p

9/10 prices

eeker replaceme

ction capability

9.1: RIO-GD1 G

Justificati

ronment

ronmental be

s an instant s

2 where we s

en a total sav

ety

y operatives

y is safe to en

ent issue GAS

urther capab

monoxide (CO

y we are com

s within the n

ch by NGN to

purpose of th

g amendment

the full imple

ctive Alarm –

active Alarm

ounding;

attery Fail – T

AIL; and

o Alarm – Th

roperty.

ppens if one

ascoseek

ific Requieekers used b

operation sin

ments etc. As

quipment whic

as strong fee

rrently trialling

ascoseekers

adings. All th

plan:

13/14

nt with 1.2

Gascoseeker rep

ion for In

enefit of this p

saving on bat

saved a total

ving of £4,80

rely on the sk

nter when res

SCO detectio

bilities to the n

O) and oxyge

mpleting a gas

network which

o ensure a mo

he trial is to id

t or not being

ementation of

– This is wher

– This is whe

This is where

his is where a

of these ass

kers

irement tby our workfo

nce 1983 and

s set out in S

ch incorporat

edback from o

g suitable eq

with a newer

e Gascoseek

4 14/15

1.2

placement with C

vestment

proposed rep

ttery waste. A

of 1040 batt

0 for the sam

kills and com

sponding to p

on equipmen

new equipme

en (O2) in the

s detection e

h has a highe

ore customer

dentify any op

g feasible. In

f our proposa

re a PRE with

ere PRE with

a PRE with C

a PRE with CO

sets fails?

throughouorce are due

d are becom

ection six of

tes the capa

our stakehold

uipment. Wit

r model that m

ker investmen

15/16 16/1

0.0 0.0

CO detection ca

t

placement pr

Analysis on th

teries. If rolled

me reporting p

mpetence as r

public reporte

t. This equip

ent, engineers

e atmosphere

equipment tria

er than avera

r focused sol

perational iss

the absence

als during RII

h CO has bee

h CO has bee

CO has been

O has been r

ut RIIO-GDfor replacem

ing obsolete

the RIIO-GD

bility to unde

ders that our

thin the RIIO-

monitors not

nt is driven d

17 17/18

0 0.0

apability Expendi

rogramme is

his has been

d out across

period.

responding e

ed escapes (P

ment current

s will be able

e as well as m

al that involve

ge number o

ution is being

sues which w

of any conte

O-GD1.

en reported a

en reported b

n reported as

reported whe

D1 ment early in t

due to not b

1 Business P

rtake CO det

emergency s

-GD1 period

only gas but

irectly by Sec

18/19 19/

0.0 0

ture

with the unit

done for the

the whole ne

engineers to d

PRE), this is a

tly only detec

to assess th

methane.

es one opera

of CO inciden

g applied to C

would result in

entious issues

and the CO A

but the CO Al

s the result of

ere NO CO AL

93

the RIIO-GD1

eing able to g

Plan, we plan

tection along

staff should h

NGN propos

t also Oxygen

ction 7.5.6 w

/20 20/21

.0 0.0

being re-cha

period 01/11

etwork this w

determine if a

aided by the

cts methane.

he content of

ational area of

ts. This is a p

CO detection

n NGN’s prop

s we will wor

Alarm IS soun

arm IS NOT

f a Alarm BAT

LARM fitted i

1 period

get

to

side

have this

ses to

n and

within the

Total

2.4

argeable

1/2011 –

would

a

use of

By

both

f the

proactive

n. The

posal

rk

nding;

TTERY

in the

Page 94: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

We have

process

operative

safety co

Conditio

NGN det

including

deliverab

in the RI

with equ

c) Cost

The tech

by cold w

recharge

and drai

d) Fina

Roll the

• 12

• 80

• Ve

Total Co

e) Othe

Do Noth

• D

w

an

• N

Summar

To Summ

following

• In

• O

• D

• In

• In

pr

ap

an

94

e already acc

would still be

es in all areas

omprehensive

n Assessmen

termines the

g Age, Model

bles. The exis

IO-GD1 perio

uipment whic

Benefit An

hnology offers

weather, and

e as they trav

ning standard

ncial Analy

new equipme

200 extra Ga

00 engineers

ehicle Upgrad

ost = £2,186,

er Options

ing

o nothing. Th

with aging and

nd

ot meeting st

ry

marise, we b

g points:

crease the sa

Offer custome

eliver additio

crease aware

crease the a

rovide the op

ppropriate ste

nd

counted for an

e followed sh

s are able to

e service pos

nt

health of eac

l, Operating C

sting Gascos

od. As set ou

h incorporate

nalysis

s the potentia

d usage times

vel between jo

d battery cell

ysis

ent out acros

ascoseekers a

s training = £2

des (Fit Char

480

Considered

his would res

d well-used e

takeholder ex

elieve there a

afety of our e

ers additional

nal confidenc

eness in our

mount of acc

pportunity for

eps to be tak

ny Gascosee

hould this be

use the same

ssible.

ch Gascosee

Conditions, C

eekers used

ut in Section 6

es the capab

al to reduce t

s. The use of

obs, also neg

s currently us

ss the networ

at £1,400 pe

266,480

ging Unit) = £

d

sult in no chan

equipment so

xpectations.

are significant

engineers wh

confidence i

ce in our eng

own enginee

curate inform

more thorou

ken by NGN a

ekers failures

rolled out ac

e Gascoseek

eker by using

Calibration Da

by our emerg

6 of the RIIO-

ility to undert

the use of thr

rechargeable

gating the ne

sed.

rk the followin

er unit = £1,68

£240,000

nge to existin

me of which

t advantages

en entering p

n our actions

ineers’ asses

ers of CO wh

mation availab

ugh data anal

and/or other

by carrying s

ross the who

ker model in o

a wide range

ate and Impa

gency workfo

-GD1 Busine

take CO dete

rowaway batt

e units will us

gative effects

ng costs wou

80,000

ng process an

is approxima

s to the propo

potentially ha

s in their prop

ssment that p

ich will be pa

le on the exte

lysis which ca

agencies to

spares within

ole network, e

order to cont

e of data and

act of Failure o

orce are due

ess Plan, we p

ection alongs

tery detector

se the operat

s cold weathe

uld be incurre

nd could incu

ately 25 years

osed initiative

rmful atmosp

perties;

properties are

assed to cust

ent of CO in

an be used to

address issu

the trial area

ensuring that

tinually give th

d information

on key outpu

for replacem

plan to replac

ide natural ga

rs, which are

tor’s vehicles

er temperatu

ed:

ur cost assoc

s old and use

e, as detailed

pheres;

e free from C

tomers;

properties. T

o inform furth

ues surroundi

a, this

t all

he most

ut

ment early

ce them

as.

effected

to

res have

ciated

ed daily;

with the

CO;

This will

her

ng CO;

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• N

ye

fin

19.3 We plan

have ind

including

custome

NGN’s s

develope

Our activ

• Pr

ge

th

• W

M

• W

di

Recogni

a) Alte

The curr

model ha

more an

technolo

Gasurvey

The rugg

Gasurvey

The Gas

similar p

carbon m

Gasurvey

The Gas

instrume

with the

purging,

After rev

• Re

• Fu

Conside

and func

o duplication

ear. We plan

ndings.

Innovatioto continue t

dicated very c

g the distribut

ers when atte

strategy and a

ed a Smartph

vities include

ress releases

enerated 12 a

han 164,000;

We continue to

Monoxide Awa

We continue to

stribute them

se our role in

rnatives Co

rent Gascose

as been in se

d more obso

ogy. The othe

yor 3-500

ged design e

yor 6-500

surveyor 6-50

erformance,

monoxide.

yor 11-500

surveyor 11-5

ents with a sim

addition of o

with the abil

view NGN dec

e-chargeable

unctionality o

ration to trial

ctionality of av

n of monitorin

to carry out t

on to play an ac

clearly that th

tion of inform

ending a gas

approach to

hone applicat

the following

s across the y

articles in new

o provide fun

areness Grou

o provide CO

m as part of th

n promoting C

onsidered

eeker equipm

ervice since 1

olete. Therefo

er models wh

nables the G

00 complimen

measuring %

500 complime

milar perform

oxygen. The G

ity of the Gas

cided to trial

e batteries; an

of being able t

other units h

vailable units

ng equipment

tests for CO,

ctive role in ra

ey believe we

mation and ad

emergency.

delivering ga

tion relating t

g:

year with a se

wspapers ac

nding and res

up (KCOAG);

O information

heir public inf

CO awarenes

ment used by

1983 and is in

ore, NGN con

hich NGN rev

asurveyor 3-

nts both the G

% LEL and %

ents both the

mance, measu

Gasurveyor 1

scoseeker an

the 7B-500R

nd

to measure f

has not been

s.

t, NGN attend

as appropria

aising the awa

e have a grea

dvice and the

Raising the a

as safety advi

to gas safety

easonal cam

cross our regi

sources to ca

and

leaflets to fire

formation roa

ss and agree

NGN Operat

ncreasingly h

nsulted GMI a

iewed and co

500 to be us

Gascoseeker

volume flam

e Gascoseeke

uring % LEL a

1-500 is des

nd the additio

R with the ben

for Carbon M

discounted a

ds around 12

ate, and annu

areness of th

ater role to pl

e provision of

awareness of

ce to our cus

which is due

paign. The se

on with a co

ampaigns del

e and rescue

ad shows.

that it is a cr

tion engineers

hard to find sp

are one of the

onsidered we

sed in harsh e

r and the Gas

mmable hydro

er, Gasurvey

and % volum

signed for eith

on to measur

nefits of

Monoxide.

and will be ba

20,000 gas e

ually publish t

he risks of CO

lay in address

CO monitors

f CO continue

stomers and

e for release i

easonal cam

mbined circu

ivered by the

e services in o

ritical output f

s is up for ren

pare parts gr

e network lea

ere:

environments

surveyor 3-50

ocarbons, but

or 3-500 and

me flammable

her gas/air or

e oxygen dur

ased on ope

95

emergencies e

the results of

O. Our stakeh

sing the issue

s to vulnerab

es to be a ke

to aid this ha

n 2012

paign in 2010

ulation figure

e Kirklees Car

our region wh

for RIIO-GD1

newal as the

radually beco

ader is Gasco

s.

00 instrumen

t with the add

d the Oxygas

e hydrocarbon

r gas/nitrogen

ring a nitroge

rational requi

each

f our

holders

e,

le

ey part of

ave

0

of more

rbon

ho

1.

current

oming

oseeker

nt with a

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A19A

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acceptable le

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Over cro

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Figure 20

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A19A

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A19A

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e benefits of

r period.

ogramme ea

nts currently c

or

(governor

works;

without

y be

ar rather

tings be

wing

)

he price

ended.

esult in

ove and

oggers

Remote

ch

capture

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the data

condition

New tec

data. It w

network

on actua

Pressure

routine o

one or tw

differenti

possible

104

purely for Ne

ns to ensure

chnology is be

will also remo

analysis mod

al pressures b

es can be adj

or non-routine

wo remote pr

iator over sel

.

etwork Valida

compliance w

eing develope

ove the need

dels can be u

being experie

justed more a

e operations.

ressure mana

f-learning pro

ation at a sing

with licence c

ed that would

to install and

used to mode

enced on a d

accurately re

. By having a

agement bec

ofiling system

gle point ove

conditions.

d remove the

d remove twic

el network un

aily basis rath

emoving the n

a large numbe

comes propo

m as “whole n

r the winter w

e need to visit

ce a year. By

nder very diffe

her than theo

need to estim

er of available

rtionally more

network” pres

when at its m

t these points

having these

erent demand

oretical condi

mate governo

e monitoring

e sophisticate

ssure manage

most extreme

s to downloa

e permanentl

d conditions

tions.

r pressures d

points rather

ed. This wou

ement becom

ad the

y fitted

based

during

r than

ld be a

mes

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A19A

23.1 Every op

installatio

• 23

• 14

• 2,

• 24

• 32

• 2

• 25

• 48

These si

civil struc

categoris

• B

• ‘O

st

Figure 23

Figure 23

a) Curre

A-23: Bu

Introductperational site

ons (AGI’s) in

3 Offtakes;

43 Above 7B

,595 Domest

40 I&C Gove

2 gasholder S

High Pressu

5 PIG Trap S

8 Block Valve

tes all contai

ctures require

sed into two

uildings

Other Civils’ w

tandings, pip

3.1: Examples o

3.2: Examples o

ent Price C

uildings/

tion e within the n

n the network

Bar PRI Sites;

tic Governors

rnors;

Sites;

re Bullet Site

Sites; and

e Sites.

n equipment

ed for suppo

areas:

which compri

e supports, d

of Poor Condition

of Poor Condition

ontrol Run

/Civils Re

etwork is imp

k. These inclu

s;

s;

essential for

ort, protection

se non-build

ductwork, roa

n Buildings

n Other Civils

Rates

ebuild a

pacted by Civ

ude:

r the safe tran

n and access

ing or fence

adways, drain

nd Refu

vils. There ar

nsportation o

to the gas e

line Civils on

nage etc.

Deteriorat

brickwork

rbishme

e over 3000

of gas. Each s

equipment. C

site. For exa

ting

k

105

ent

above groun

site contains

ivils have bee

mple, valve p

nd

various

en

pits, hard

Page 106: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

NGN’s a

below 7B

doors an

has been

roofs or

Over the

assets. F

reports b

replacem

• Le

• Ag

• As

• N

• Sa

23.2 Within R

identified

will allow

Most of

NGN be

grouping

Conside

be highly

Civils

Civils – B

Civils – O

Civils – B

Civils – O

Below 7B

TOTAL

Figure 2

23.3 Criticality

The two

the critic

classified

assets c

impact to

It is wort

range of

developm

106

average yearly

Bars PRIs an

nd roofs, repl

n almost exc

a replaceme

e last few dec

Following sev

back from the

ment/modifica

egislative com

geing assets

sbestos on b

oise reductio

afety and sec

RIIO-GD1RIIO-GD1 NGN

d for below 7

w NGN to initi

NGN’s above

lieve deliverin

g these asset

ring the over

y conservativ

Buildings(Offtake

Other (Offtakes)

Buildings (PRI >7

Other (PRI >7Bar

Bar civils

3.3:RIIO-GD1 B

The Inves

y Assessmen

categories fo

cality index re

d as medium

ontained with

o safety for o

th noting that

f assets as a

ment NGN w

y investment

nd district gov

lacement of k

lusively targe

nt GRP kiosk

cades NGN h

veral indepen

e field NGN n

ation strategy

mpliance, DS

with deterior

buildings;

on; and

curity.

InvestmeN has propos

Bar Civil wor

iate a targete

e seven bar s

ng the recom

ts into efficien

all significanc

ve programme

es)

7Bar)

r)

Buildings & Civils

stment Jo

nt

or Civils on s

espectively. T

criticality as

hin them. Oth

operatives wo

t NGN does n

true reflectio

will be assessi

in below 7Ba

vernors and r

kiosks, upgra

eted at below

k installed wh

has adopted a

ndent surveys

now recognis

y. The key dr

SEAR;

rating conditi

ent Reqused to invest

rks and is in li

ed above 7Ba

site were uilt

mmended civil

nt projects an

ce and range

e.

Expenditure Su

ourney

ite, buildings

This is based

a result of th

hers have be

orking on site

not consider

n of risk. As s

ing criticality

ar civil works

ranges from p

ade of duct w

w 7Bar assets

here appropri

a strategy to

s undertaken

se the need to

rivers behind

on;

irement £15.4m on c

ine with curre

arcivil program

40 to 50 yea

programme

nd ensuring t

e of civil aspec

ummary

and ‘Other’,

on an averag

he security im

en categorise

e.

applying a g

such as part

based on ea

s is currently c

pipe supports

work etc. With

s and often in

ate.

repair and m

by Advantica

o adopt a mo

this change

civil based pr

ent price con

mme as sum

ars ago and a

will take acc

he longevity

cts on every

Total (£M

2.0

1.6

1.0

2.0

8.6

15.1

have been c

ge assessme

mpact and the

ed as low ba

eneric/averag

of the netwo

ch individual

c.£1m. This i

s modificatio

hin the curren

volves the re

maintain abov

a and Faithfu

ore proactive

in strategy ar

rojects. 57%

trol run rates

marised in Fi

as such are in

count of econ

of NGN’s civ

site, the netw

M)

In l

classified as m

nt of risk. Sp

e protection t

sed on the p

ge criticality a

orks ongoing

asset charac

ncludes work

ns, replacem

nt PCR invest

eplacement o

ve seven bar

l and Gould a

re:

of this invest

s. The remain

igure 23.3 be

n a similar co

nomies of sca

vil asset base

work conside

Number of Upg

11

8

40

40

ine with current

N/A

medium and

ecifically build

hey provide t

perceived min

across such a

asset health

cteristics. For

k on

ment of

tment

of doors/

civil

and

tment is

ning 43%

elow.

ndition.

ale

.

ers this to

rades

run rate

low on

dings are

to the

nimal

a diverse

r

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example

theft risk

b) Heal

Health a

• Le

• Ag

• As

• N

• Sa

Legislati

When un

brought

explosio

buildings

equipme

Ageing a

Most of

NGN rec

maintena

‘repair’ t

Asbestos

NGN has

asbestos

upgradin

damage

cases th

built and

Noise re

Over tim

following

proofing

existing

mitigatio

Safety/s

Accesse

on the s

example

sites are

Field bas

In additioNGN hasassessm

e, what is con

k etc.

lth Assessm

assessment h

egislative com

geing assets

sbestos on b

oise reductio

afety (particu

ve complianc

ndertaking m

in line with c

n relief roofs,

s on NGN’s s

ent within bui

assets with d

NGN’s above

cognises the

ance is no lon

hese assets.

s on building

s several buil

s register. Ma

ng and/or relo

d and as suc

he issue is so

d parallel equ

duction

me regulators

g these upgra

and noise le

buildings will

on measures w

security

es on site and

ite. In additio

e buildings, va

e now falling t

sed health ev

on to the indes multiple so

ment. NGN ar

ntained within

ment

has been bas

mpliance;

with deterior

buildings iden

on; and

ularly at above

ce

odifications t

urrent DSEA

, inserting new

sites need bri

lding s is bein

deteriorating

e seven bar s

network has

nger conside

s identified o

ldings on abo

any of these

ocating. Whe

ch NGN will n

significant (fo

ipment instal

have been u

ades the build

evels have rea

be designed

will be introd

d good condi

on in many ca

alve covers, d

to below acce

vidence

ependent siteurces of fieldre also engag

n each buildin

ed on the fol

rating conditi

ntified on abo

e 7Bar sites,

to buildings a

R legislation.

w ventilation

inging up to s

ng modified t

condition

site were buil

reached a ti

ered the best

on above 7Ba

ove seven ba

buildings nee

en undertakin

need specialis

or example a

led before th

psized as a r

dings housing

ached unacce

d to allow the

uced such as

tion of gener

ases Civils pro

ductwork etc

eptable levels

e surveys und information

ging on series

ng, what is th

lowing areas

on;

ove 7Bar sites

with valve pit

and/or equipm

This often re

or replaceme

standard and

the building it

t 40 to 50 ye

pping point in

option. In m

ar sites

ar PRIs conta

ed modificatio

ng work in the

st contractors

asbestos E&I

e old building

result of incre

g the regulato

eptable levels

e correct leve

s padding an

ral site Civils i

ovide the ma

c. Independen

s.

dertaken by fwhich suppos of site surve

he area like w

:

s;

ts, roadways

ment within th

equires remov

ent with mod

d as a part of

tself will requ

ears ago and

n its approac

any instance

aining asbesto

ons or the eq

ese building t

s to facilitate

Kiosks) that

g and equipm

eased capacit

ors no longer

s. New buildi

l of noise sup

nd sound pro

is important t

ain security m

nt surveys ha

faithful and Gorts its appraieys in 2012 to

where the PRI

s and curbing

hem, the buil

ving roofs, to

dern GRP kio

f other projec

uire modificati

as such are

ch to these as

s it is no long

os as indicate

quipment with

the asbestos

its safe remo

a new buildin

ment can be r

ty requiremen

r provide ade

ings and/or m

ppression and

oof kiosks wh

to the safety

measure for th

ave found tha

Gould and presal of its curro further defi

107

is situated i.

g).

lding must be

o replace with

sks. Many of

cts i.e. where

ion.

in a similar c

ssets and as

ger possible t

ed on the net

hin them nee

will become

oval. In the m

ng will need t

removed/dem

nts. In some

equate sound

modifications

d retrospectiv

ere appropria

of operatives

he site equipm

at general Civ

eviously Advarent asset hene asset hea

e. high

e

h

f the

ondition.

such

to

tworks

ds

majority of

to be

molished.

cases

d

to

ve

ate.

s working

ment for

vils on

antica ealth alth and

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allow it tinclude:

Modus:

On a daiphotos oas well aOfftakes

VS02 Ins

All sites Systemspipe stanof gas.

Indepen

NGN havintendedsame tim

Subject m

Consultathese as

c) Netw

Followingwere pocategorie

Offtakes

Civils onpits, ductwo civil

Asset He

17 N

(C

108

o establish a

ily basis photof sites are caas doors, roos have been id

spection:

receive a visus Regulationsnds on Offtak

dent surveys

ve had a numd as a sampleme and as su

matter exper

ation with opessets. It is the

work Risk

g the criticalitpulated for Pes. Civils wor

s

Offtakes havctwork, curbinassets per s

ealth & Critica

Asset catego

NTS Offtakes

Civils)

clear prioritis

tos are uploaan be used tofs and pathwdentified for c

ual inspections and is part okes and PRIs

s

mber of sites e of the sites ch can be as

rt opinion

eratives worke opinion of th

ty and asset PRIs and Offtarks associate

ve been consng etc.) at onite.

ality – Curren

ries

sation metho

aded to a servo support inv

ways/ducting.complete ren

n in line with of NGN’s mas as well as a

assessed byacross the n

ssumed to be

king on site dhe SME’s tha

health assesakes. Civils wed with distric

sidered to incne per site. Th

t Condition

Criticality In

Low

Medium

High

Very High

odology for th

ver using the vestment dec. Subsequent

newal.

the VS02 staaintenance poaspects of Civ

y constructionnetwork. Mane in a similar c

daily and contat these asse

ssments undewere a sub cact governors

clude buildingherefore for t

dex Asset dis

HI1

h

his work. The

MODUS mocisions. Kiosktly a number

andard. It is aolicy. This wilvils which dire

n consultantsny of the sitescondition.

tractors help ets are in need

ertaken by thategory of theis not include

gs (one per sithe purposes

stribution based

HI2

methods use

obile phone teks in bad con

of larger buil

a requirementl highlight issectly affect th

s Faithful ands were constr

to build up ad of intervent

e NGN the aese two primaed within the

ite) and others of this repor

d on estimated a

reporting year

Asset health ind

HI3

21

23

ed to assess

echnology. Rdition are idedings on PR

t of the Presssues with corrhe safe transp

Gould. This ructed around

a better pictution.

sset health taary asset heaasset health

r Civils (roadsrt this gives a

asset health inde

r

dex

HI4

health

Real time entified Is and

sure roded portation

was d the

re of

ables alth tables.

s, valve a count of

ex in current

HI5

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Asset He

17 N

(C

Investme

sites. Bu

are expe

cost of £

assumpt

d) PRI’s

There ar

site) and

of this re

Asset He

18 P

C

Asset He

18 P

C

ealth and Crit

Asset catego

NTS Offtakes

Civils)

ent on Offtak

uilding upgrad

ected to cost

£200K per sit

tions on a pro

s

re 143 above

d other Civils

eport this give

ealth & Critica

Asset catego

PRI’s above 7 ba

Civils

ealth 7Bar Cri

Asset catego

PRI’s above 7 ba

Civils

ticality - With

ries

kes will includ

des are estim

£582K and £

te. Deteriorat

ofile of deteri

7Bar PRI sit

(roads, valve

es a count of

ality - Curren

ries

ar

iticality - Wit

ries

ar

hout Investm

Criticality In

Low

Medium

High

Very High

e 11 building

mated at a un

£684K respe

ion has been

oration.

es. Civils on

pits, ductwo

f two civil ass

t Condition

Criticality In

Low

Medium

High

Very High

hout Investm

Criticality In

Low

Medium

High

Very High

ent

dex Asset d

HI1

h

gs (this is likel

it cost of £20

ectively. ‘Othe

n based on an

PRIs have be

ork, curbing e

sets per site.

dex Asset dis

HI1

h

ment

dex Asset d

HI1

h

distribution base

HI2

ly to be 6 site

00k per build

er Civil Works

n assessmen

een consider

etc.) at one p

stribution based

HI2

distribution base

HI2

ed on estimated

March 2021

Asset health ind

HI3

13

17

es) and, eight

ing; Cowpen

s’ per site are

nt of current c

ed to include

er site. There

d on estimated a

reporting year

Asset health ind

HI3

143

143

ed on estimated

March 2021

Asset health ind

HI3

63

63

109

remaining usefu

dex

HI4

8

t ‘other Civils

Bewley and

e estimated a

condition and

e, buildings (o

efore for the p

asset health inde

r

dex

HI4

remaining usefu

dex

HI4

80

80

ul life at 31

HI5

6

s’ on

Elton

at a unit

d

one per

purposes

ex in current

HI5

ul life at 31

HI5

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Building

estimate

investme

to upgra

NGN rec

very con

Building

estimate

investme

to upgra

NGN rec

very con

e) Inve

Option O

The n

Build

cond

Costs

quan

mana

risk.

Option T

Inves

sites.

There

perio

This w

Option T

Inves

sites.

There

perio

This w

Option F

Inves

sites.

There

perio

This w

110

upgrades ar

ed at a unit co

ent, however

ade 40 buildin

cognises that

nfident in its a

upgrades ar

ed at a unit co

ent, however

ade 40 buildin

cognises that

nfident in its a

estment Op

One: Do Noth

network cons

ings another

dition and sec

s associated

tify. A simple

aging the risk

Two: Top Tier

stment to upg

. Also upgrad

e will be cont

d.

would require

Three: Middle

stment to upg

. Also upgrad

e will be cont

d.

would require

our: Low Tier

stment to upg

. Also upgrad

e will be cont

d.

would require

e estimated a

ost of £50k p

with more ac

ngs across P

t the asset he

assessment o

e estimated a

ost of £50k p

with more ac

ngs across P

t the asset he

assessment o

ptions

ing

siders a ‘do n

Civils are no

curity reasons

with any of t

e CBA analys

k of asset failu

Approach

grade/replace

de/replaceme

tinued investm

e £28m inves

e Tier Approa

grade/replace

de/replaceme

tinued investm

e £15.4m inv

r Approach

grade/replace

de/replaceme

tinued investm

e £13m inves

at a unit cost

per site. Asse

ccurate data

RIs and 28 ‘o

ealth tables fo

of requiremen

at a unit cost

per site. Asse

ccurate data

RIs and 28 ‘o

ealth tables fo

of requiremen

nothing’ appr

ow at a point

s as sited abo

the catastrop

is for this typ

ure. This inve

e buildings on

ent of all ‘othe

ment on sma

stment.

ch

e buildings on

ent of 11 build

ment on sma

vestment.

e buildings on

ent of eight b

ment on sma

stment.

t of £25k per

et health table

collection, w

other’ civils o

or civil works

nts for RIIO-G

t of £25k per

et health table

collection, w

other’ Civils o

or civil works

nts for RIIO-G

roach for the

where capita

ove.

phic failure me

pe of equipme

estment has b

n 80 PRI sites

er’ Civils and

aller District G

n 40 PRI sites

dings on Offt

aller District G

n 20 PRI sites

uildings on O

aller District G

building and

es indicate th

we feel this fig

on sites.

need more d

GD1.

building and

es indicate th

we feel this fig

on sites.

need more d

GD1

specific asse

al investment

echanisms ar

ent is not pra

been driven b

s and upgrad

buildings on

Governors in l

s and upgrad

takes and ‘ot

Governors in l

s and upgrad

Offtakes and ‘

Governors in l

d other civil w

at 80 sites w

gure is conse

development

d other civil w

at 80 sites w

gure is conse

development

ets identified

is required fo

re very subje

actical as the

by the netwo

de/replace ‘o

n Offtakes.

ine with the c

de/replace ‘o

her’ Civils on

ine with the c

de/replace ‘o

‘other’ Civils

ine with the c

works per site

would need

rvative. NGN

but the netw

works per site

would need

rvative. NGN

but the netw

unacceptabl

or legislative,

ctive and diff

key driver is

rks managem

other’ Civils o

current price

other’ Civils o

n eight Offtak

current price

other’ Civils o

on four Offta

current price

are

intend

work is

are

intend

work is

e.

safety,

ficult to

ment of

n 80 PRI

control

n 40 PRI

e sites.

control

n 20 PRI

ake sites.

control

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f

R

(t

th

F

S

S

E

L

C

D

) Investment D

Measure

Recommended Asset U

aking into account det

hroughout RIIO-GD1)

inancial

Safety

Security of Supply

Environmental

Level of Risk

Comments

Decision

Figure 23.4: Investme

Decision

Upgrades

terioration

O

co

thr

NG

S

sup

st

im

Rea

No

an

after

leg

ent decision for A19A-2

Option 1 (do Noth

0

Ongoing increasing main

osts and potential indir

rough theft and damag

equiement.

N’s Health & Safety po

Slight increase in risk o

pply, particularly deterio

tands and housing whi

mpact the gas supply eq

N/A

asonably High, increasi

RIIO-GD1.

ot recommended – too

d would result in extra

r RIIO-GD1. Potential b

geslation and H&S imp

N/A

23: Buildings/Civils Re

ing) Op

80 P

Buil

Gover

ntenance

ect costs

ge to toher

T

olicy is reduce risk to a

of loss of

orating pipe

ich could

quipment

Security

civils o

ng through R

much risk

workload

breeches of

plications.

Ideal so

for the

feels it

through

ebuild and Refurbishme

111

ption 2 (Top Tier Appro

PRI sites (‘Other’ Civils

ldings), All Offtakes. Di

rnors in line with curren

Total investment: £28m

s low as reasonably pr

y of supply maintained

on major sites improved

new’ condition

N/A

Risk as low as possible

olution for the network

e customer. The netwo

could manage this leve

hout RIIO-GD1. High w

2

ent

ach) Option

s and

strict

nt PCR

40 buildin

civils on

Offtakes

Offtakes

m Tota

ractible. Some areas ne

upgrades. (DSEAR).

d, with all

d to ‘as

Security

critical civ

to

e. Accpetab

network.

k but not

ork also

el of risk

workload.

Satisfies c

risk redcu

not impac

o

3 (Middle Tier Approac

ngs on PRI sites, 40 ‘ot

PRI sites. 11 buildings

and eight ‘other’ civils

s. District governors in

with current PCR

al Investment: £15.4m

eed improving to achie

of supply maintained, w

vils on major sites impro

o ‘as new’ condition

N/A

ble level of risk retained

Risk level reduced thro

RIIO-GD1.

customer and network

ued, but at a cost whic

t customer. Considere

optimum solution.

1

ch) Option 4

ther’

s on

s on

line

20 buildings

civils on PRI

Offtakes an

Offtakes. D

wit

Total i

eve this. Legislative com

with

oved

Security of

critical sites. O

deteriorati

d by

ough

Unacceptable

network, inc

with

h will

ed the

This is unac

and security

allow leg

buildin

(Low Tier Approach)

on PRI sites, 20 ‘othe

sites. eight buildings o

nd four ‘other’ civils on

District governors in line

h current PCR

nvestment: £13m

mpliance requires safet

f supply maintained at

Other sites monitored f

ion. Failure can affect

supply.

N/A

e level of risk retained b

creasing through RIIO-

GD1.

cceptable from a safety

y aspect and would no

eslative upgrades to

ngs to take place.

3

r’

on

e

ty

for

by

-

y

ot

Page 112: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Investme

The netw

allow the

safety an

g) Offta

With Inv

18 P

O

h) PRI’s

With Inv

18 P

P

23.4 A selecti

with the

the build

departm

Data gat

23.5 NGN are

alternativ

requirem

• Sm

nu

• Pl

112

ent Decision:

work believes

e network to

nd security of

akes

vestment

Asset catego

PRI’s above 7 ba

Offtakes – Civils

s

vestment

Asset catego

PRI’s above 7 ba

PRI’s – Civils

Selectionion criteria wi

criticality of t

dings on Offta

ment, this can

thered from M

Innovatioe committed

ve options th

ments on site.

mart Water to

umber of our

lastic pipe sta

: Option Thre

s that this is t

bring sites in

f sites and w

ries

ar

ries

ar

n Criteria ill be used to

the site will be

akes is determ

be used by t

Modus and V

on to innovation

at use alterna

. These includ

o deter entry

r sites with se

ands, to prev

e

he best optio

n line with leg

ill allow the re

Criticality In

Low

Medium

High

Very High

Criticality In

Low

Medium

High

Very High

prioritise wo

e used to ass

mined from s

the Asset Ris

Visual inspect

n and as part

ative technolo

de:

y to the site. W

ecurity risks;

vent corrosio

on for the cus

islation where

emoval and u

dex Asset dis

HI1

8

11

h 16

dex Asset d

HI1

40

40

h 90

ork. A combin

sign workload

surveys under

sk Manageme

tions will be u

of this invest

ogies to prov

We have cont

n spreading t

stomer and fo

e applicable,

upgrade of cr

stribution based

R

HI2

distribution base

R

HI2

nation of the c

ds . For exam

rtaken by NG

ent team to p

used to suppo

tment we are

vide some or

tract negotiat

to the pipelin

or the networ

provide critic

ritical equipm

d on estimated a

reporting yea

emaining Usefu

Expected (50%

HI3

13

22

ed on estimated

March 2011

emaining Usefu

Expected (50%

HI3

63

63

11

condition of t

mple, analysis

GN’s Asset H

prioritise the w

ort these dec

e currently co

all of the pre

ted with sma

ne;

rk. This optio

cal updates t

ment.

asset health inde

r

l Life

%)

HI4

5

5

remaining usefu

l Life

%)

HI4

40

40

42

the asset, co

s of the cond

ealth and Da

work.

cisions.

onsidering a r

e-heating

art water to co

on will

to ensure

ex in current

HI5

ul life at 31

HI5

ombined

dition of

ata

range of

over a

Page 113: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

• D

w

• Va

Offtake

Coldstream

Humbleton

Guyzance

Saltwick

Corbridge

Thrintoft

Wetheral

Melkinthor

Keld

Bishop Au

Cowpen B

Little Burd

Elton

Tow Law

Baldersby

Pickering

Burley ban

Pannal

Towton

Asselby

Rawcliffe

Paull

Ganstead

Total

Figure 23.5

ifferent manu

weather; and

arious types

Location

m

n

rpe

ckland N

Bewley

en

nk

N

5: Offtake buildin

ufacturers of G

of ducting to

Size

S

S

S

L

M

M

M

M

S

NG LOCATION

L

L

L

S

M

L

S

L

L

L

M

NG LOCATION

L

ngs know to con

GRP Kiosks

o prevent cop

Kiosk

1

1

1

1

1

1

6

ntain asbestos

to determine

pper theft.

Buildings

Small Me

1

2

1

1

1

2

1

1

1

4

2

17

e which can w

edium Larg

2

1

2

1

1

1

2

2 1

1

2

1

1

1

2

15 6

withstand incr

e

4 (s

5 (3 -

2 (L

4 (2 -

113

reasingly haz

Bund covers

2

2 (11m long)

small rolling tent

4 (8m long)

2 (10m long)

- 8m long, 2 - 6m

Large rolling tent

12m long, 2 - 9

zardous

type)

m long)

t type)

9m long)

Page 114: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

24.1 Within R

equipme

reductio

Gashold

2009/10

Gas t

Figure 2

24.2

a) Curre

Gas con

introduct

require t

Monoeth

effective

better un

review.

Consequ

These ag

iron syst

Conditio

• M

an

• Th

th

le

• W

te

• W

• Fi

co

re

• C

A

• PE

un

• G

m

in

• Re

sa

114

A-24: Ga

The SpecRIIO, NGN pla

ent to ensure

n from the le

er demolition

0 prices £m

treatment

4.1: RIIO-

Justificati

ent Price C

nditioning trea

tion of Natura

reatment, a w

hylene Glycol

ness on the n

nderstand flo

uence of Failu

ging assets o

tem leading to

n Assessmen

Monoethylene

nd the optimu

he aim would

hese levels ar

akage?

Would increas

erm low level

What would be

xed condition

ompliance wi

eplacement, r

urrent mainte

through finan

E installation

ndertake a ne

as Condition

maximising eff

centive;

esearch cond

aturation, leak

as Treatm

ific Requians to upgrad

the optimum

ad/yarn joints

n strategy wil

13/14 14

0.1 0

-GD1 Gas Treatm

ion for In

ontrol Run

atment has p

al Gas. Howe

wholesale rev

l (MEG) units

network has

ows and drop

ure

often fail or be

o increased l

nt

Glycol (MEG

um average s

d be to review

re or were ac

sed saturation

saturation on

e the environ

nings are agi

ith maintenan

refurbishmen

enance costs

ncial assessm

has an impa

etwork analys

ning currently

fective gas tre

dition of exist

kage prevent

ment

irement tde existing ga

m level of MEG

s in the iron m

l require equi

4/15 15/16

0.1 0.1

ment Expenditu

vestment

Rates

roved an effe

ever, since a

view of condi

have remain

reduced, dev

pout rates pro

ecome ineffe

eakage and

G) has leakage

saturation lev

w how these

hieved how e

n levels actua

n lead yarn jo

nmental bene

ng assets ful

nce regimes.

t, relocation

s are not fully

ment must be

act on the flow

sis assessme

attracts regu

eatment to e

ting joints rem

tion and seala

throughouas treatment

G saturation

mains popula

ipment to be

16/17

0.1

re

t

ective method

large section

tioning is now

ed in place fo

velopments a

ovide NGN w

ctive the resu

possible exte

e reduction p

vel is deemed

levels are ach

effective are t

ally reduce lea

oint and were

fits in using a

l assessment

Consideratio

and effective

understood

e undertaken

w of gas as d

ent on flow le

ulatory incent

nsure reduct

moved as par

ant effectiven

ut RIIO-GDplant and eq

levels and co

ation. In addit

relocated.

17/18 18

0.1 0

d of leakage

ns of network

w required.

or a consider

and innovatio

with an opport

ult is reductio

ernal PRE’s.

properties wh

d to be 40%;

hieved, maint

they in a mixe

akage? What

e would it be e

an alternative

t is required o

on into what w

eness of this e

to a sufficien

n covering this

does low dem

evels for exist

tives investiga

ion in emissio

rt of mains re

ness;

D1 uipment and

ontinued succ

tion the imple

8/19 19/20

0.1 0.1

control for ov

ks are now PE

rable amount

on in equipme

tunity to unde

on of percent

hen saturation

tained or ach

ed material n

t has been th

economical t

to MEG;

on maintenan

would be the

equipment;

nt level to und

s and alterna

mand levels re

ing equipmen

ation will take

ons while still

eplacement p

d install new

cessful leaka

ementation of

0 20/21

0.1

ver 40 years

E, which doe

t of time and

ent our ability

ertake a deta

age MEG in t

n levels exce

hievable. Give

network in red

he impact of l

to reseal joint

nce costs an

e implications

dertake a full

ative approac

esulting in “d

nt;

e place into

l achieving th

programme to

age

f the

Total

0.8

since the

es not

their

y to

ailed

the cast

ed 50%

en that

ducing

long

ts;

d

s of

financial.

ches;

rop out”

he

o assess

Page 115: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

• Ta

lo

• D

on

24.3

Requirem

Installatio

Road Sid

Mobile S

Move sam

Total cos

Figure 2

Out of 26

MEG can

with a hi

small bu

allow effe

• Se

• Sa

• Re

• Le

24.4 Do Noth

Cost effe

increase

24.5 Wholesa

24.6 As part o

technolo

We will a

2 G

(M

G

s

an

th

argeted main

onger purely M

elivery system

n increasing t

Cost Bene

ments

on of new Fogge

de Fogger Unit

pray Unit

mple points

st:

4.2: Cost Benef

65 Low Pres

n have a sign

gh populatio

t leak hotspo

ective planne

ecurity of sup

afety, Reduc

eliability, effe

eakage reduc

Other Op

ing

ectiveness of

ed leakage.

Selectionale review will

Innovatioof the Total N

ogy and the d

also look at th

Gas Conditioning

MEG) – To optim

use of Monoethy

Glycol (MEG) as

swellent on the n

nd maximise the

hat is achieved th

the use of ME

ns spraying ha

MEG based,

ms have also

the use of thi

efit Analy

er Units

fit Analysis

ssure Network

nificant impac

n of larger dia

ots around th

ed replaceme

pply to our cu

ed leakage;

ctive manage

ction incentiv

tions Con

f current prac

n Criteria l inform NGN

on Network Man

development

he most effec

Study

mize the

ylene

a joint

netork

benefit

hrough

EG

Apr 1

yea

as undergon

more environ

o much impro

is technology

ysis

Networks

30

30

30

ks NGN prop

ct. These will

ameter pipes

he whole netw

ent.

ustomers;

ement of agin

ves.

nsidered

ctice become

N on focused

agement app

of roadside u

ctive use of m

13/2

ars

Environm

of waste

by the N

to redu

Safety

Efficien

cost

e some signi

nmental friend

oved over the

y as an altern

Numb

pose only to a

be the large

s. We also wi

work this will

ng mains; and

es less and im

approach.

proach a revie

units without

mobile units a

mental – reduce

e MEG disposed

Network. Optimi

uce leakage and

environment

y – reduction in

ncy Benefits – re

assoicaited with

ficant develo

dly and less h

e past 20 yea

native to whol

ber Per Network

2

1

3

7

assess aroun

r network wit

sh to deploy

have an imm

d

mpact of MEG

ew will also t

the need for

adopting new

the amount

d of annually

sing its use

impact on

.

escapes.

eduction in

h repairs.

M

op over recen

harmful to sta

rs. Investigat

lesale MEG c

k Unit

5,5

7,0

8,0

1,1

nd 30 of the le

th significant

3 mobile spr

mediate impac

G becomes n

ake place on

electricity su

w or innovative

Safety

Asset

Management

Environment

115

nt years and is

aff; and

tion is to take

conditioning.

Cost Tot

500 33

000 21

000 2

100 23

£7

eakiest netwo

CI lead yarn

ray units to ta

ct on escape

negligible lead

n the use of n

upplies being

e materials.

£50,000 S

Eq

M

Int

s no

e place

tal Cost

30,000

10,000

4,000

31,000

95,000

orks that

joints

arget

s and

ding to

new

need.

uppliers of

quipment &

Material, UK

and

ernationally

Page 116: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

25.1 The netw

rural loca

activities

risk of inj

and cont

in are inc

or deter

NGN has

predomi

security

formal co

equipme

Pannal a

the Cent

Departm

possible

would in

need to

2009/10

Site

Figure 2

a) CPNI

Following

has two

(Offtakes

further re

the CPN

counter

(ARC) to

b) CCTV

Discussi

the risk o

effective

(Offtakes

network

locations

images f

116

A-25: Sit

Introductwork has a la

ations. Due to

s in and aroun

juring themse

trol of the ga

creasing acro

such attacks

s maintained

nately focuse

has increase

ommunicatio

ent to install.

and Bishop A

tre for Protec

ment for Energ

terrorist atta

clude the ins

be monitored

0 prices £m

security

5.1: RIIO-

I locations

g the nationa

locations wit

s) Bishop Auc

equirements

NI visits the sit

terrorism me

o monitor site

V

ons with poli

of third party

measure sho

s). This progr

and assessin

s after RIIO-G

from the CCT

te Securi

tion arge number o

o this spread

nd the locatio

elves, but als

as distribution

oss all industr

s on our asse

its security e

ed on standa

ed the concer

ons and advic

Auckland Offta

ction of Natio

gy and Clima

ack. Security

stallation of pa

d and mainta

13/14 14

2.0 5

-GD1 Site Secur

al categorisat

th the networ

ckland is who

for additiona

te annually. T

easures signif

-specific alar

ce and secur

entry and the

ould be taken

ramme is aim

ng the impac

GD1. This pro

TV system.

ity Rebu

of sites sprea

d of assets, lo

ons. Should p

so pose a risk

n system. Wit

ries, to deter

ets.

equipment th

ard perimeter

rns on gas in

ce from CPNI

akes have be

nal Infrastruc

ate Change (D

Strategy for a

assive detect

ained.

4/15 15/16

5.0 0.9

rity Expenditure

ion of all loca

rk designated

olly contained

al work by NG

This visit has

ficantly, includ

rms and threa

rity forces ha

eft from site.

n to reduce in

med at fitting s

ct with possib

ogramme will

ild and R

ad over a larg

ocations are u

people succe

k to the publi

th increased v

this, the bus

hroughout PC

fencing. How

frastructure s

I on the both

een listed and

cture (CPNI) a

DECC) interes

all sites is to

tion devices a

16/17

0.9

ations in the U

d as category

d within a hig

GN. Pannal is

resulted in a

ding the desi

ats.

ave indicated

NGN has ac

ntrusion, thef

suitable devic

bilities of cont

utilise the ca

Refurbis

ge geographi

under varying

eed in breach

c at large and

value of meta

siness is cont

CR1 using exi

wever in rece

sites and sub

the level of s

d recognised

and as such f

st to improve

reduce perim

and surveillan

17/18 18

0.9 0

UK critical to

y three sites (

gher category

an NGN ass

recommend

gn and build

that the use

cknowledged

ft and damag

ces to all of th

tinued roll ou

apabilities of t

shment

cal area inclu

g levels of thr

hing security

d a very real

als random a

tinually invest

isting industry

ent years the

bsequently we

security meas

as a Catego

fall under the

e security and

meter breache

nce equipme

8/19 19/20

0.9 0.9

National Infra

(Pannal and B

y National Gri

set. As part o

ation to upgr

of an Alarm

of CCTV dev

that a more

ge from its cr

he Offtake loc

t throughout

the ARC inst

uding both ur

reat from illeg

measures the

threat to the

and opportun

tigating ways

y standards t

national focu

e have receiv

sures and the

ory three loca

remit of The

d deterrent to

es and theft.

ent to site. Th

0 20/21

0.9

astructure (C

Bishop Auckl

d location so

of the CNI pro

rade security

Receiving Ce

vices could d

proactive an

itical location

cations acros

other vulnera

allation to mo

rban and

gal

ey are at

supply

e break-

to stop

this

us on

ved

e type of

ations by

e

o

This

his would

Total

12.6

CNI) NGN

land

o has no

ocess,

and

entre

decrease

d cost

ns

ss the

able

onitor

Page 117: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 25

c) Curre

NGN has

levels. A

as recog

reviewed

25.2 Within R

the repla

No.

1 P

2 S

3 3

4 B

Total:

Figure 2

This exp

Phasing

Cat 3 DE

Requirem

(Pannal o

Civils – fe

(Offtakes

Civils – fe

(>7Bar P

Civils – fe

(<7Bar) a

Capex

Figure 2

The Pan

upgradin

criteria:

5.2: Fencing con

ent Price Co

s been worki

As the fence li

gnition of incr

d and sites ev

RIIO-GD1RIIO-GD1 NGN

acement/upg

Pannal Offtake in

Seven fences on

35 fences on abo

Below 7Bar PRIs

5.3: Security Up

penditure will

ECC

ment

offtake Site)

ences

s)

ences

PRI)

ences

and CCTV

5.4: RIIO-GD1 S

nal CNI secu

ng a site of th

ndition example

ontrol Run

ng over prev

nes have det

reased threat

valuated by o

InvestmeN has propos

rade of the fo

n line with CNI re

Offtake sites un

ove 7Bar PRI’s,

s and CCTV prov

pgrades Summa

be phased in

2013/14 20

2.0

2.0

Security Upgrad

urity upgrade

his size under

s

Rates

vious years to

teriorated du

t of damage a

operational st

ent Reqused to invest

ollowing:

equirements and

nit cost £100k p

unit cost £50k p

vision

ary

n line with the

014/15 2015

4.0

0.1 0.

0.25 0.2

0.25 0.6

5.0 0.

e Expenditure B

project finan

rtaken by Nat

o renew its pe

e to repeated

and theft from

taff (and secu

irement £12.8m on s

Description

d including the a

er fence

per site

e following be

5/16 2016/1

.1 0.10

20 0.20

60 0.60

.9 0.9

Brekadown

nce has been

tional Grid. T

erimeter fenc

d repairs and

m locations. P

urity advisers

security impr

larm response c

elow;

17 2017/18

0 0.10

0 0.20

0 0.60

0.9

established

These costs b

ing stock to c

d exposure to

Policies and s

if required).

rovement pro

centre:

2018/19

0.10

0.20

0.60

0.9

based on the

break down a

117

current appro

o the element

site requirem

ojects. This in

2019/20

0.10

0.20

0.60

0.9

e previous co

against the fo

oved

s, and

ents are

cludes

Cost

£6.5m

£0.7m

£1.7m

£3.7m

£12.6m

2020/21

0.10

0.20

0.60

0.9

osts of

ollowing

Page 118: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Cat 3 DE

TOTAL

Figure 2

Only 30%

this inves

25.3 The pred

health on

a) Critic

Fencing

boundar

unautho

of opera

b) Heal

Health a

matter e

c) Agei

Many of

significan

the netw

upgrade

discussio

The infor

supporte

MODUS

be used

25.4 Following

were po

categorie

and inve

118

ECC Requiremen

5.5: Typical CN

% of this inve

stment are th

The Invesdominant driv

nly account f

cality Asse

on sites has

ry for security

rised individu

ational equipm

lth Assessm

assessments

expert assess

ng Assets w

the fence lin

nt signs of de

work as a resu

ed to a high s

ons with exte

rmation gathe

ed by indepe

system. This

to support in

Network g the criticalit

pulated for P

es. Fencing a

estmetn shas

nt (Pannal Offtak

T

AR

I Site Security U

estment is ba

hird part drive

stment Jover behind th

for approxima

ssment

been classifi

y, failure of th

uals gaining a

ment.

ment

for this asset

sment.

with Deter

es within the

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ult of the curr

security speci

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nvestment de

Risk ty and asset

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ased on cond

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ately 30%.

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access to site

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network are

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experts.

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vides daily re

ecisions.

health asses

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with belwo sev

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sign

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ruction

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struction

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ced.

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igh on the cri

can lead to s

e and loss of

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ondition

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ic climate and

e with NGN’s

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ased evidenc

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iticality index

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gas supply th

reports rece

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d price of me

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ce. Field base

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ategory of the

is not include

fence lines.

k and the CC

. Fencing form

oblems throug

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eived from the

seful lives an

ty threat bein

etal many of t

rements and

ject matter e

ed evidence

ed via mobile

e NGN the a

ese two prima

ed within the

Costs

£140,0

£160,0

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£6,500,

All other asp

CTV work. Ass

ms the prima

gh danger to

age, theft and

e field and su

nd are showin

ng experience

the fences ne

d advise gain

xpert assess

provided via

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sset health ta

ary asset hea

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s

000

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ects of

set

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ch can

ables

alth

h tables

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a) Offta

Current C

18 Of

Of

Without

18 Of

Of

Deteriora

current c

b) PRI’s

Current C

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PR

akes

Condition

Asset categorie

fftakes

fftakes – Civils

Investment

Asset categorie

fftakes

fftakes – Civils

ation rates ha

condition.

s

Condition

Asset categorie

RI’s above 7Bar

RI’s – Civils

es

es

ave been bas

es

r

Criticality In

Low

Medium

High

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Criticality In

Low

Medium

High

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sed on subjec

Criticality In

Low

Medium

High

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ndex As

H

m

h 1

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H

m

h 1

ct matter exp

ndex As

H

m

h 5

sset distribution b

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0

set distribution b

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0

pert assessm

sset distribution b

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50

based on estima

current reportin

Asset health i

HI3

based on estimat

31 March 20

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ent based on

based on estima

current reportin

Asset health i

HI3

51

119

ated asset healt

ng year

ndex

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11

ted remaining us

011

eful Life

0%)

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3

n historical tre

ated asset healt

ng year

ndex

HI4

42

h index in

HI5

seful life at

HI5

8

ends and

h index in

HI5

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Without

18 PR

PR

Deteriora

current c

c) Inve

Option O

This w

and d

confo

Option T

• 10

• Pa

• 50

• In

en

• Re

Inves

Option T

• Se

• Pa

• 35

• Re

• Re

Inves

Option F

• Th

• 15

• Re

• Re

Inves

120

Investment

Asset categorie

RI’s above 7Bar

RI’s – Civils

ation rates ha

condition.

stment Op

One: Do Noth

would result

damages and

ormance of re

Two: Upgrade

0 Offtake fen

annal CNI;

0 above 7Ba

crease the c

nhanced stan

etain CCTV p

stment cost: c

Three: Upgrad

even Offtake

annal CNI;

5 above 7Ba

etain the curr

etain CCTV p

stment cost: c

our: Upgrade

hree Offtake

5 above 7Ba

etain the curr

etain CCTV p

stment cost: c

es

r

ave been bas

tions

ing

in an unacce

d a possible i

ecommendat

e:

ces to ensure

r PRI fences;

urrent below

ndard; and

provision.

circa £17m

de:

fences to en

r PRI fences;

rent below 7B

povision.

circa £12.8m

e:

fences to ens

r PRI fences;

rent below 7B

povision.

circa £10m

Criticality In

Low

Medium

High

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eptable level o

ncrease entr

tions from Go

e all are in th

7Bar run rat

nsure all are in

Bar run rate;

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sure all are in

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m

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ct matter exp

of risk on the

ry by unautho

overnment Se

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e to upgrade

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and

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pert assessm

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31 March 20

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ent based on

d no reductio

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ces in relation

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acket at the e

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ted remaining us

011

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47

n historical tre

on in intrusion

also mean non

n to assets of

of RIIO-GD1

ences to an

end of RIIO-G

nd of RIIO-G

seful life at

HI5

35

ends and

n, theft

n-

f CNI.

;

GD1;

D1;

Page 121: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

d) Inv

Recomm

(taking i

through

Financia

Safety

Security

Environm

Level of

Comme

Decision

Figure

vestment decis

Measure

mended Asset Upgrad

nto account deteriorat

out RIIO-GD1)

al

y of Supply

mental

f Risk

ents

n

e 25.6: Investment dec

ion

es

ion

Significant

through th

Increase th

equipme

gover

Not recomm

cision A19A-25: Site S

Option 1

(Do Nothing)

0

t increase to loss of su

hird party damage thef

interference.

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eft and potential dama

ent, non compliance w

rnment CNI standard.

mended – too much ris

non compliance

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ecurity Rebuild and Re

10 Offtake

increase belo

If this investment is

pply

ft or

Minimal p

age to

with

sk and Ideal solu

customer. T

this level

efurbishment

Option 2

es, Panal CNI, 50 abov

ow 7Bar run rate, retain

Total investment: £17

s not adequate there ar

potential to impact secu

N/A

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ution for the network b

The network also feels

of risk throughout RIIO

workload.

2

ve 7Bar PRI’s,

n CCTV provision 7

7m

re significant safety imp

urity of supply

ut not for the

it could manage

O-GD1. High

121

Option 3

7 Offtakes, Panal CNI

7Bar PRI’s, retain belo

rate, retain CCTV p

Total Investment:

plication from insufficie

Risk to security of

manageable

N/A

Medium

Risk can be manage

acceptable lev

1

, 35 above

ow 7Bar run

provision

Three

7Bar

£12.8

ent security on site.

supply

e

Signi

thro

ed to an

vel.

his is

Option 4

e Offtakes, Panal CNI,

r PRI’s, increase below

rate, retain CCTV prov

Total investment: £1

ificant increase to loss

ugh third party damag

interference.

N/A

High

unacceptable from a s

security aspect.

3

15 above

w 7Bar run

vision

0m

of supply

e theft or

safety and

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25.5 The netw

allow the

from the

a) Offta

With Inv

18 Of

Of

b) PRI’s

With Inv

18 PR

PR

25.6 A selecti

with the

surveys

individua

criticality

NGN cu

enhance

25.7 NGN are

appropri

122

Investmework believes

e network to

eft and site br

akes

vestment

Asset categorie

fftakes

fftakes – Civils

s

vestment

Asset categorie

RI’s above 7 bar

RI’s – Civils

Selectionion criteria wi

criticality of t

on all it’s abo

al site caracte

y of the site (h

rrently has a

e the current

Innovatioe committed

iate technolo

ent Decisis that this is t

ensure secur

reakins. It will

es

es

r

n Criteria ill be used to

the site will be

ove 7Bar site

eristics. For e

how many cu

rolling progra

selection me

on to innovation

gy for fencing

on: Optiohe best optio

rity of the site

l also allow th

Criticality In

Low

Medium

High

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Criticality In

Low

Medium

High

Very Hig

prioritise wo

e used to ass

s to better de

example the a

ustomers, the

amme for fen

ethodology.

n and as part

g upgrades.

on Threeon for the cus

es are mainta

he network to

ndex Ass

H

m

h 1

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H

m

h 8

ork. A combin

sign workload

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are the sites i

e equipment o

ncing upgrade

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stomer and fo

anced as wee

o undertake t

set distribution b

HI1 HI2

8

set distribution b

HI1 HI2

85

nation of the c

ds. The netw

et condition.

s located in (

on the site (O

es and it is e

tment the net

or the networ

el as detering

the CNI upgra

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

based on estimat

31 March 20

Remaining Use

Expected (50

HI3

11

condition of t

work is curren

This will then

(vanaddlisum

Offtake vs PR

nvisaged tha

twork will con

rk. This optio

g the increasi

ade works.

ted remaining us

011

eful Life

0%)

HI4

3

ted remaining us

011

eful Life

0%)

HI4

47

the asset, co

ntly undertakin

n be coupled

m/theft risk), th

RI etc).

at this proces

nsider the lat

on will

ng risk

seful life at

HI5

seful life at

HI5

ombined

ng site

with the

he

s will

test most

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A19A

26.1 Within th

System C

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Figure 26

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The focu

alarms in

complete

optimum

workload

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not integ

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manage

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action by

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negative

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to alarm and

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t expenditure

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system and

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EEMUA 191

eveloper of th

signed the bu

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performance

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ation and prio

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gement inform

remely time c

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125

s expected to

ding to the ne

alarms to ach

ion to manag

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ments.

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26.5 EEMUA

recognis

coorpora

committ

compan

member

proposa

material

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when the

applicati

responsi

stages b

126

Innovatiohave produc

sed as indust

ate members

ee has review

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rs of EEMUA

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and taken pa

m manageme

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on could aut

ible engineer

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sion forums .

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od alarm man

ts for alarm m

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are a membe

latest edition

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ased on oper

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er of the tech

n includes sp

al chemical pr

n the field of

sessions at w

alarms on the

ce. It is feasi

rator actions

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t, EEMUA 19

d to each pub

hnical standa

ecific guidelin

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alarm manag

which NGN ha

e asset which

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and issue a t

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ontinue with

1 and 201, w

blication. NG

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ave presente

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novel

d

business,

ement

l to

early

ment.

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A19A

27.1 Within th

Control a

Howeve

Interrupt

2009/10

Demand

Managem

Figure 2

27.2

a) Curre

The curr

in their C

risk durin

Time to

Consequ

The man

a major

Time to

insufficie

required

Previous

manage

the exist

interrupt

from tha

NGN hav

and aske

unlikely t

Consequ

The sign

heighten

platform

Conditio

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develope

docume

on a sup

and exit

shedding

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The Speche RIIO-GD1

and develop

r the applicat

tion and Exit.

0 prices £m

ment

7.1: RIIO-

Justificati

ent Price C

rent applicatio

Control Room

ng SOMSA E

Fail applicatio

uence of Failu

nagement of

local or natio

Fail, uses a d

ent gas to me

to ensure th

sly the netwo

this demand

ting sites with

tible gas volu

at manageme

ve procured

ed to stop us

to provide su

uently, firm lo

nificance of th

ned because

is not accep

n Assessmen

e to Fail prod

ed by Nationa

ntation for th

pported platfo

reform. The

g needs to be

oject 12

ific Requiperiod NGN

a new integr

tion will also c

13/14 14

0.60 0

-GD1 Demand M

ion for In

ontrol Run

on used by S

m. The produc

Exit and no al

on in the curr

ure

reduction in g

onal emergen

data file from

eet forecasted

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rk had a larg

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h interruptible

me, previous

ent process.

interruptible c

sing gas. How

ufficient reduc

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of Interruptio

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nt

duct is 15 yea

al Grid Gas (N

he offline, uns

orm and will n

reputational i

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irement tproposes to

ated applicat

consider the

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Management Ex

vestment

Rates

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ct was adopt

lowance was

rent PCR.

gas demand

cy, is carried

the control s

d demand. T

tion of the ga

e number of

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e contracts be

sly used at th

contracts at

wever, these

ction during e

g is required a

ent of deman

on Reform an

ars old and is

NGG) and it h

supported, ex

need to take

impact to NG

also taking a

nd Mana

throughoureplace the c

tion. The prim

cost implicat

16/17

0.40

penditure

t

rol is product

ted by NGN S

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out by Syste

system to fore

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as network.

interruptible

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ecame firm s

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locations of L

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has not been

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ccount of the

gement

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mary driver is

tions of new

17/18 18

0.20 0

previously u

System Cont

cilitate develo

20 peak day

em Control. T

ecast when,

can then calc

contracts wh

ntroduced in

supplies and

manage dema

LDZ capacity

hically disper

emand or em

arlier stage in

under these

the existing o

a complete up

n possible to

heets. A new

t the new com

essary interru

e isolation an

t

D1 to Fail softw

the safe ope

commercial r

8/19 19/20

0.00 0.00

sed by Natio

trol (NGNSC)

opment or rep

demand is a

The existing o

during the da

culate the gas

hich could be

October 201

a significant a

and reduction

y constraint w

rsed and few

ergency cond

the demand

circumstance

off line Time t

pgrade. It wa

receive any s

w integrated a

mmercial asp

ption and pre

d restoration

127

ware used in S

eration of the

regimes of

0 20/21

0.00

onal Grid Gas

to reduce bu

placement of

approached, o

offline progra

ay, there wou

s volume red

e used to initia

1 whereby m

amount of

n, was effect

who can be c

in number a

ditions.

reduction pr

es will therefo

to Fail spread

as designed a

supporting

application is

pects of interr

eventable firm

n costs, nece

System

network.

Total

2.1

s (NGG)

usiness

f the

or under

amme,

uld be

duction

ally

many of

ively lost

ontacted

and

rocess.

ore be

dsheet

and

required

ruption

m load

ssary to

Page 128: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

maintain

scrutiny

27.3 The netw

be signif

business

decision

Firm load

recognis

contactin

significan

has to b

significan

a) Othe

Enhance

disperse

program

discount

Do Noth

Discount

exists as

27.4 It will be

detailed

complete

27.5 The new

reductio

minimisin

somethin

taken wi

128

n a safe syste

by external p

Cost Benework only has

ficant. One co

s is £3.8M. T

and have th

d shedding is

se that it is th

ng to stop us

nt sums of m

e one made

nt.

er Options C

e the existing

ed team withi

mme and it is

ted.

ing:

ted because

s an unsuppo

Selectionnecessary to

design spec

e the work.

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n by providin

ng the need f

ng new to the

th greater cla

em. Decisions

parties.

efit Analys a small num

ontract has a

herefore whe

e manageme

s, because of

ose compan

sing gas, und

money to conv

with busines

Considered

product. The

n National Gr

unclear whet

the existing s

orted program

n Criteria o carry out a

ification for th

on application wi

ng a decision

for firm load s

e manageme

arity, improvin

s taken must

ysis mber of interru

an associated

en calling for

ent informatio

f the Interrup

ies which we

der the firm lo

vert to a firm

s confidence

d

e current Tim

rid. Documen

ther suitable e

spreadsheet

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ill improve Sy

support tool

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ent of deman

ng overall effi

be based on

uptible contra

d cost of £17

interruption t

on available to

tion Reform,

ere interruptib

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supply and c

e. The reputat

me to Fail is a

ntation is not

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udy to define

to Fail Applic

ystem Contro

to mitigate t

cluding the a

d reduction a

iciency.

n accurate inf

acts. Howeve

5K per day. T

the network h

o defend the

by definition

ble before the

g process. Th

consequently

tional cost of

legacy sprea

available to

nts could be d

purpose and

nal control so

the business

cation before

ol’s effectiven

he cost of un

pplication wit

and by using

formation and

er the cost of

The total con

has to be con

decision if re

more likely.

e reform, that

hese compan

y the decision

f a wrong dec

adsheet deve

understand t

developed. T

excludes co

oftware.

s requirement

e selecting a s

ness in manag

nnecessary in

thin the oper

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d be able to s

f interruption

ntract risk to t

nfident in that

equired to do

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t NGN will be

ies have paid

n to firm load

cision will be

eloped by a n

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mmercial imp

ts and produ

suitable deve

ging demand

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decisions can

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the

t

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lity of the

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eloper to

d

nd by

ware is

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Page 129: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

28.1 Within th

applicati

2009/10

Offtake re

Figure 2

28.2 The proc

ensure o

maintain

of the Of

Revision

between

paramet

The new

a) Curre

No allow

Consequ

Each yea

to meet

Notificat

incentive

in accord

In additio

excursio

Flex cap

The char

the impa

results a

The char

period.

To comp

Offtake R

Conditio

To fully u

a 3rd par

Budget c

SOMSA

A-28: Off

The Speche RIIO-GD1

on to manag

0 prices £m

eform

8.1: RIIO-

Justificaticedures and

operational sa

ned that posit

fftake Reform

s to Section

n NGN and N

ters. These sp

w application

ent Price C

wance was m

uence of Failu

ar NGN Syste

forecasted L

ions (OPN), h

e rules about

dance with th

on, the comm

ons above the

pacity which is

rges for NTS

act to the bus

are shown in t

rges for NTS

ply with Secti

Reform, it is n

n Assessmen

understand th

rty developer

costs have b

Exit. The pha

ftake Re

ific Requiperiod NGN

ge the compli

13/14 14

0.60 0

-GD1 Offtake Re

ion for Incontrol softw

afety and effic

tion but did n

m, Flat and Fle

I and J of the

National Grid G

pecifically rela

is required to

ontrol Run

ade to facilita

ure

em Control (N

LDZ demands

how they inte

both the con

hese rules is

mercial aspec

e agreed qua

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siness, if the

the financial a

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ions I and J o

necessary to

nt

he implication

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een compiled

asing is plann

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irement tproposes to

ance and co

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.90 0.00

eform Expenditu

vestmentware applicati

ciently. The b

not take into a

ex Capacity a

e Uniform Ne

Gas with rega

ate to NGN’s

o manage the

Rates

ate developm

NGNSC) neg

s and on a da

end to physic

ntent and the

viewed as no

ct of this relat

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n from the fla

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charges had

analysis sect

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of the UNC, a

develop the

ns of these n

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ned to take in

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mmercial imp

16/17

0.40

ure

t ions used in S

business app

account the n

arrangement

etwork Code

ard to the ex

s managemen

ese obligation

ment of the ab

gotiate to rece

aily basis info

ally take the

e timings of e

on-complianc

tionship invol

o products. F

at volume up

d will be in pla

been in plac

ion of the do

nown but exp

and mitigate t

existing Syst

ew commerc

party contrac

nto account t

ut RIIO-GDexisting cont

plications of O

17/18 18

0.20 0

System Cont

lications deve

new complian

s.

now docume

xchange of inf

nt of gas offta

ns.

bove applicat

eive capacity

orm NGG, by

gas through

ach OPN sub

ce and report

ves the daily

lat Capacity w

to 22:00hrs

ace in Octobe

ce over the la

cument.

pected to be

the cost of ov

tem Control f

cial arrangem

ct rates from

the introduct

D1 trol software

Offtake Refor

8/19 19/20

0.00 0.00

trol are curren

eloped as pa

nce and com

ent the comm

formation and

aken from th

tions in the c

, flows and p

way of Offta

each offtake

bmitted to NG

ted to Ofgem

charges to b

which is the d

in any one da

er 2012. NGN

st two years

introduced w

verrun charg

functionality.

ments it will be

recent proje

ion of NTS Ex

129

to provide an

rm.

0 20/21

0.00

ntly designed

art of SOMSA

mmercial impl

mercial relatio

d agreed ope

e National Sy

urrent PCR.

pressures from

ke Profile

. There are a

GG and not o

m.

be imposed fo

daily quantity

ay.

NSC have ca

of operation.

within the PC

es proposed

e necessary t

cts associate

xit (Flex) char

n

Total

2.1

d to

A Exit

ications

onship

erational

ystem.

m NGG,

agreed

operating

or

y and

alculated

. The

CR

by

to involve

ed with

rges.

Page 130: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

This will

NGN bu

28.3 Any Ove

• 8

• 8

• 1.

Recent a

NGN, if t

• 20

• 20

a) Othe

Develop

in-house

wish to s

describe

Do Noth

Discount

business

28.4 It will be

detailed

the work

28.5 It is envis

the cons

be chang

performa

allowing

130

ensure a com

siness.

Cost Beneerruns in NTS

* highest pric

* highest res

.1 * the highe

analysis of his

the proposed

009/10 - £2.2

010/11 - £0.9

er Options C

offline solutio

e software de

see integrate

ed in the indu

ing

ted because

s.

Selectionnecessary to

design spec

k.

Innovatiosaged that th

sequential ch

ged to avoid

ance against

a proactive i

mplete solutio

efit AnalyS Exit (Flat) bo

ce paid in any

serve price at

est price paid

storical date

d Offtake Ref

2M;

9M.

Considered

ons outside t

esign capabili

d system wit

ustry guideline

of the cost r

n Criteria o carry out a

ification for th

on his application

arge to the b

the cost imp

agreed Flat a

ntervention t

on to the Net

ysis ookings will b

y of the relea

that Exit Poi

d for Exit Cap

has indicated

form charges

d

the existing c

ty and an ex

h a consisten

e EMMUA 20

isk to the inc

feasibility stu

he new applic

n will inform t

business. With

pact. Currentl

and Flex qua

o moderate t

twork Code o

be charged ba

ase mechanis

nt; and

pacity through

d that the foll

s had been in

control softwa

pectation fro

nt user interfa

01.

curring overru

udy to define

cation before

the operator

h this informa

ly NGNSC ca

antities, but th

the daily ope

obligations an

ased on the h

sms at that Ex

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owing charge

place.

are. This has

m recent disc

ace. This is th

un charges w

the business

e selecting a s

to the likeliho

ation the ope

arry out after

he new applic

rational strate

nd commerci

highest of the

xit Point;

pacity Manag

es would hav

been discou

cussion with

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s requirement

suitable deve

ood of a flat c

erational strat

the day analy

cation will pro

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ial impact on

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ement Action

ve been incur

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best practice

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capacity over

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ysis of Offtak

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t they

e as

to the

ce a

mplete

rrun and

day can

ke

ormation

Page 131: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

29.1 Telemetr

manage

There ar

Outstatio

The Site

compon

outstatio

outstatio

philosop

The Com

to “Hillto

but signi

review th

latest tec

The Tele

sets out

broken d

2009/10

E&I Com

E&I Outs

TOTAL

Figure 2

a) Curre

All Electr

replacem

are a sm

but there

stock of

ensuring

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more diff

existing

29.2 NGN mu

key to th

long term

confiden

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Failure o

critical to

A-29: Te

The Specry is used on

ment of gas f

re two main a

on” and the “

Telemetry O

ent and we m

ons on these

ons on the be

phy.

mmunication

op” hubs or sa

ificant chang

he existing co

chnologies.

emetry Outsta

our overall fo

down over th

Prices £m

mms

tations

9.1: RIIO-GD1 T

ent Run Ra

ronic equipm

ment is availa

mall number o

e are small nu

spares can b

g the more cr

op communic

ficult to supp

system and l

Justificatiust be able to

his, by ensurin

m to comply w

nce.

uence of Failu

of a telemetry

o allow Syste

lemetry

ific Requi148 above 7

flows and mo

areas of the te

“Communicat

Outstation is o

must be able

sites which w

elow 7Bar net

system links

atellite. The U

es have evolv

ommunicatio

ation and Co

orecasts for ‘

e RIIO-GD1 p

13/14

0.05

0

0.05

Telemetry & Hillto

ates

ment becomes

able. The Ulys

of different su

umber of failu

be kept to su

itical sites uti

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port, this equi

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ion for Ino monitor and

ng NGN has

with our licen

ure

outstation ca

em Control to

& Hillto

irement t7Bar sites to

onitoring of th

elemetry syst

tions System

obsolete but c

to demonstr

will free up sp

twork to ensu

the site outs

UHF scanning

ved with com

ns system to

mmunication

Telemetry &

period:

14/15

0.05

0

0.05

op Upgrade Exp

s obsolete as

sses outstatio

ppliers of new

ures each yea

upport below

lise a suppor

m utilises very

ipment will ne

echnologies

vestmentd control gas

a structured

nce obligation

an lead to ga

o manage the

op Upgra

throughouprovide key i

he network fo

tem (not inclu

m”.

considered q

rate long term

pare units wh

ure NGN has

station to NGN

g system is 3

mmunication s

o see if a sma

ns investment

Control (abov

15/16 16/

0.037 0.0

0.15 0.

0.187 0.1

penditure

s component

on was a bes

w equipment

ar, it is propo

7Bar sites w

rted current p

y old radio co

eed replacing

to replace it.

t distribution t

philosophy t

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as supply issu

e networks flo

ades

ut RIIO-GDinformation to

or faults.

uding System

quite reliable,

m viability, it is

hich will then

s a long term

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30 years old a

systems over

arter system c

t required is s

ve 7Bar)’ and

/17 17/18

037 0

14 0.15

177 0.15

s stop being

spoke system

t on the mark

osed to replac

well beyond th

product.

ommunication

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through Syst

to ensure the

re security of

ues and safet

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the outstatio

s proposed to

be used to s

viable struct

ontrol and uti

and currently

r this time an

could be intro

shown in Ass

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8 18/19

0

0.15

0.15

manufacture

m and is now

ket. The outst

ce all above 7

he next regula

ns equipment

ention is to co

em Control t

ese key asset

supply, site s

ty concerns,

e and storage

131

ontrol, allowin

e site “Telem

on is a critical

o replace all

upport the

ured replace

lises UHF rad

y serves its pu

nd it is propos

oduced to uti

set Health 22

w the investm

19/20

0

0

ed and no dir

not supporte

tation is quite

7Bar sites so

atory period,

t which is be

ompletely rev

hese elemen

ts are manag

safety and sh

the Offtake d

e, failure of a

ng

metry

the

ment

dio links

urpose

sed to

ilise the

which

ent is

20/21

0

0

rect

ed, there

e reliable

o a large

while

coming

iew the

nts are

ed in the

hipper

data is

n

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outstatio

monitorin

Conditio

All the as

has been

Asset He

22 Te

E&

22 Te

Ou

29.3 The equ

be consi

program

The ben

• C

• En

• Sa

• C

a) Othe

132

on leads to no

ng of the odo

n Assessmen

ssets are of k

n done by su

ealth Current

Asset catego

lemetry & Contr

&I Telemetry com

Asset catego

lemetry & Contr

utstations

Cost Beneipment is obs

idered to utili

m to mitigate r

efits/outputs

ustomer – Se

nvironmental

afety – Secur

ompliance –

er Options C

o site data be

orant injection

nt

known age an

uitable subjec

Year

ries

ol

mms

ries

ol

efit Analysolete and co

se new techn

risks.

of investing

ecurity of sup

– NA;

rity of supply

Compliance

Considered

eing available

n is critical sa

nd condition,

ct matter expe

Criticality

Low

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Hig

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Criticality

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Medi

Hig

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ysis onsidered crit

nologies and

in these asse

pply;

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with licence

d

e, faults not b

afety informat

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y Index A

w

um

gh

High

y Index A

w

um

gh

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tical to opera

ensure that t

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uipment; and

obligations a

being detecte

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ment of useab

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HI1 HI

12

23

sset distribution

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ate the Netwo

these assets

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d

and GSMR.

ed and requiri

ould be lost.

ble spares, m

oposed prog

based on estim

31 March 2

Asset Health

Expected (5

2 HI3

25

3

n based on estim

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Asset Health

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2 HI3

ork safely, op

are replaced

ing site visits

manufacturers

gram.

mated asset heal

2021

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50%)

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mated asset heal

ng year

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125

23

pportunity are

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th index at

HI5

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HI5

e now to

red

Page 133: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Do Noth

The optio

able to d

Long Ter

Phased

to be up

long term

Asset He

22 Te

E&

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demonstrate

rm Phased Im

implementati

pgraded all to

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ealth and Crit

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lemetry & Contr

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Asset catego

lemetry & Contr

utstations

ealth and Crit

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lemetry & Contr

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hing is not via

plans to keep

mplementatio

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ogether, thoug

hout any cos

ticality – With

ries

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mms

ries

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ticality - With

ries

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able option, t

p the system

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nger period h

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this equipme

s operationa

has been con

ll be made av

t

y Index A

w

um

gh

High

y Index A

w

um

gh

High

ent

y Index A

w

um

gh

High

nt will fail at s

l.

nsidered, but

vailable for be

sset distribution

HI1 HI

125

23

Asset distribution

HI1 HI

125

23

sset distribution

HI1 HI

some point a

discounted a

elow 7Bar sit

based on estim

31 March 2

Asset Health

Expected (5

2 HI3

n based on estim

current reporti

Asset Health

Expected (5

2 HI3

based on estim

31 March 2

Asset Health

Expected (5

2 HI3

125

23

133

and NGN mus

as the system

tes to ensure

mated asset heal

2021

Index

50%)

HI4

mated asset heal

ng year

Index

50%)

HI4

mated asset heal

2021

Index

50%)

HI4

st be

ms need

e there

th index at

HI5

lth index in

HI5

th index at

HI5

Page 134: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

22 Te

Ou

29.4 The repla

obtain th

29.5 This is a

up with t

134

Asset catego

lemetry & Contr

utstations

Selectionacement of t

he best long t

Innovatiovery speciali

the most cos

ries

ol

n Criteria he equipmen

term solution

on ist market all

st effective so

Criticality

Low

Medi

Hig

Very H

nt has been p

n and identify

available com

olution.

y Index A

w

um

gh

High

phased based

the best fit e

mmunication

Asset distribution

HI1 HI

d on an intial

equipment.

s systems/st

n based on estim

current reporti

Asset Health

Expected (5

2 HI3

system revie

rategy’s will b

mated asset heal

ng year

Index

50%)

HI4

ew/design rep

be reviewed

lth index in

HI5

125

23

port to

to come

Page 135: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

30.1 Plant and

activities

metering

The inve

£m 20

Plant and

Figure 3

30.2 In order

the gas s

typically

This cate

distributi

It does n

equipme

Typically

and asso

stopping

regulato

replacem

repair, th

Apprenti

tools, an

employe

New tec

replacem

a) Curre

To suitab

& 2011 t

Year

2009

2010

2011

2012

Figure 3

Based o

describe

annum.

A-30: C2

The Specd equipment

s, and include

g gauges, etc

estment ident

009/10 prices

d equipment

0: RIIO-GD1 Pla

Justificatito maintain t

supply system

include mob

egory of equi

ion network,

not include th

ent used by th

y this equipm

ociated items

g equipment,

r maintenanc

ment on a reg

hey are replac

ices over the

nd equipment

ed.

chnologies an

ment through

ent Price C

bly assess th

to identify an

0.1: GDPCR1 P

on the historic

ed in the prev

8: Plant

ific Requi will typically

e water pump

c.

tified is £600,

13/14

0.6

ant & Equipment

ion for Inhe network in

m will be req

bile assets and

pment cover

and includes

he major item

he operatives

ent would inc

s of plant to e

joint fusion e

ce, as well as

gular basis as

ced. As well

coming year

t, to enable th

nd ways of wo

wear and te

ontrol Run

e amount of

accurate 20

Plant & Equipme

cal data provi

vious section,

t and Equ

irement tinclude thos

ps, pressure

,000 per year

14/15 15/

0.6 0

t Expenditure

vestmentn a fit for pur

uired to be re

d tools used

rs all aspects

s Installation,

ms of operatio

s on the netw

clude hand to

enable them t

equipment, p

s some items

s they becom

as this the ne

rs. As these A

hem to carry

orking often i

ear.

Rates

investment r

12 figure:

nt Expenditure

ided, the exp

, once they a

uipment

throughoue mobile ass

gauges, hand

r over the per

/16 16/17

.6 0.6

t pose conditio

eplaced as th

to support o

of the netwo

Operation, E

onal plant on t

work, and any

ools such as

to carry out w

pressure gaug

to monitor e

me worn or da

etwork has re

Apprentices b

out their dut

involve invest

required for th

penditure on r

are past econ

t

ut RIIO-GDets and tools

d tools, flow

riod to replac

17/18

0.6

on, items of p

hey wear out

operational ac

ork’s activities

Emergency, R

the network,

y related item

may be foun

work safely o

ges, specialis

quipment pe

amaged in us

ecently emba

become qua

ties in the var

tment in new

his sector we

Total Spen

£338,788.0

£273,809.0

£350,000.0

£660,000 (Bud

replacement

nomical repair

D1 s used to sup

stopping equ

ce items iden

18/19 19/

0.6 0.

plant not dire

or break dow

ctivities.

s in running a

Repair and M

but rather th

ms to assist th

nd in a craftsm

on the networ

st maintenanc

erformance. T

se, and when

arked on a pr

lified, they wi

rious function

w plant and eq

e reviewed sp

d

00

00

00

dget)

of plant & eq

r, is the order

135

pport operatio

uipment, and

tified as othe

/20 20/21

.6 0.6

ectly associat

wn. These ite

a modern gas

aintenance a

he tools and

hem in their ta

man’s posses

rk, such as flo

ce equipmen

These tools d

n beyond eco

rocess of rec

ll require sets

ns where they

quipment as

pends in 2009

quipment as

r of £600K p

onal

d

er Capex.

Total

4.8

ed with

ems will

s

activities.

asks.

ssion,

ow

t for

o require

onomical

ruiting

s of

y will be

well as

9, 2010

er

Page 136: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

This incr

• Re

• Re

• H

Consequ

If an item

a replace

having to

jobs may

may resu

Conditio

These as

Howeve

effective

30.3 The cost

repair ve

any “one

a) Reso

Purchas

out by in

training o

Do Noth

As indica

replaced

needed.

demonst

30.4 New too

innovatio

to do so

136

rease to circa

ecent appren

eplace obsol

igher specific

uence of Failu

m fails, then it

ement is sou

o be put in pl

y have to be

ult in injury to

n Assessmen

ssets are insp

r, all assets w

in their use.

Cost Benet benefit will b

ersus costs o

e-off” mainten

ources and

ing will be via

ndividual supp

on items of p

ing:

ated above, a

d, then this w

For this reas

trate value fo

Innovatiools and impro

on process. I

, and new te

Data cap

work an

equipme

it replace

pace wit

a £600,000 b

ntice intake p

ete equipme

cation equipm

ure

t could mean

ght. If one fa

lace. For non

rescheduled

o operatives.

nt

pected as pa

will require re

efit Analybe assessing

f replacment

nance or inst

Purchasing

a the Procure

pliers owing t

plant and equ

assets will ev

will result in job

son, then a d

or money for o

on oved ways of

n some insta

chniques hav

pture in the fi

d is seen as

ent does tend

es, and requ

th developme

budget each y

program there

ent within the

ment required

n that it is una

ils in service,

n-gas items, f

once a repla

The network

art of a mainte

placement at

ysis g the criticality

. Also, the op

allation work

g

ement section

to the numbe

uipment to en

ventually fail, e

bs being can

o nothing op

our custome

working are

ances, plant m

ve been intro

ield with PDA

a way of gett

d to become

ires update a

ents.

year during R

efore all will re

current work

d due to more

available for u

this could re

failures usual

acement is av

k does not ge

enance regim

t some point,

y of the item

ption of hiring

k.

n using only a

ers of certain

nsure its safe

even when m

celled and to

ption is consid

rs.

always being

may be replac

oduced to sup

A’s and mobi

ting data bac

outdated qu

and replacem

RIIO-GD1 is b

equire to be f

kforce; and

e Innovative w

use, and may

esult in leakag

ly result in th

vailable. In so

enerally carry

me, and repai

, to prevent fa

to be availab

g equipment w

approved sup

items purcha

and efficient

maintained at

ools and equi

dered as not

g considered

ced where it

pport the driv

le technology

ck to support

uicker than m

ment of items

because of th

fully equippe

working meth

y prolong jobs

ge or an eme

e item not be

ome cases, fa

a stock of sp

ired where ec

ailures in serv

ble when need

will be consid

ppliers. Any t

ased, and the

use in the fie

a high level.

pment not be

acceptable a

by NGN as p

is found to b

ve to higher c

y is at the ver

t office as qui

echanical or

to enable tec

he following re

d once traine

hods.

s unnecessar

ergency proce

eing available

ailure of items

pare items fo

conomically v

vice, and be

ded, and the

dered when d

training will b

e need for sp

eld by the op

If they are no

eing available

and does not

part of their

be more econ

cost efficienc

ry forefront o

ick as possib

legacy syste

chnology to k

easons:

ed;

rily whilst

edure

e and

s of plant

r use.

viable.

cost

costs of

doing

e carried

pecialist

eratives..

ot

e when

t

nomical

ies.

f our field

ble. IT

ms that

keep

Page 137: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

31.1 Through

distributi

and requ

to be fit f

Coatings

below gr

resistanc

applied w

Pipe sys

require a

become

Where d

joints or

fitted and

Anticipat

£m 2009

Auxillary

Figure 3

31.2 To ensur

associat

potentia

NGN ph

Protectio

As coatin

is reduce

assets a

Pipe stan

ground p

Electrica

isolation

Due to o

Our curr

A-31: Au

The Specout the RIIO-

ion network c

uire ongoing

for purpose.

s need to be

round coating

ce to corrosio

where benefi

stems are sup

attention to e

corrosion tra

different mate

kits and whe

d effective.

ted spend ov

9/10 prices

equipment

1.1: RIIO-GD1 A

Justificatire a high leve

ed with the d

lly harmful eff

ilosophy for t

on (CP) syste

ngs age they

ed as CP cur

age.

nds corrode

pipe open to

al legislation r

and decoup

ongoing inves

rent assessm

uxiliary E

ific Requi-GD1 period,

consisting of

upgrading of

maintained a

g or above g

on. Where we

cial.

pported abov

nsure that th

aps.

erials are in di

ere isolation is

ver the RIIO-G

13/14

0.3

Auxiliary Equipm

ion for Inel of safety an

distribution of

fects of corro

this is to app

ems.

y deteriorate t

rrent increase

and become

the elements

equires equa

plers need to

stment in this

ment of > 2Ba

Equipme

irement t NGN will ne

mains >2Ba

f Cathodic Pr

and improved

round paint s

e have CP sy

ve ground by

ey move whe

rect contact,

s not possibl

GD1 period is

14/15 15/

0.3 0

ment Expenditure

vestmentnd reliability in

f natural gas

osion.

ly good quali

thus the prot

es to protect

e water traps

s requires reg

al potential bo

be fitted whe

s asset catego

ar mains is sh

ent

throughoueed to invest i

r (Intermediat

rotection (CP

d to ensure th

systems, to e

ystems install

pipe stands

en required a

, we need to

e for safety re

s:

/16 16/17

.3 0.3

e

t n operation, i

is designed,

ty protective

ective measu

the coatings

under the pip

gular paint m

onding betwe

ere appropria

ory these ass

own below.

ut RIIO-GDin various pro

te Pipelines) w

) systems to

hat they prote

ensure that th

ed then remo

and these ar

and to ensure

ensure elect

easons, we n

17/18

0.3

it is essential

installed and

coatings, ba

ures such as

s. The ongoin

pe and beco

aintenance.

een metals an

ate.

sets are in a g

D1 otective meas

which are pre

ensure that t

ect the asset

he CP remain

ote monitorin

re exposed to

e that they do

rical isolation

need to ensu

18/19 19/

0.3 0.

that buried s

d commission

acked up by e

CP systems

g investment

me corrosion

nd this drains

good and se

137

sures of its

edominately

these assets

t whether this

ns effective in

ng systems w

o the elemen

o not hold wa

n through Isol

re CP insulat

/20 20/21

.3 0.3

steel pipewor

ned to withsta

effective Cath

and equipme

t cycle increa

n hot spots. A

s the CP syst

rviceable con

Steel

continue

s is

n

will be

nts and

ater and

ation

tors are

Total

2.1

rk

and the

hodic

ent’s life

ases as

Above

tem so

ndition.

Page 138: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

11 Ma

Consequ

These as

• Lo

• D

• D

Deteriora

Without

effective

TR’s and

needs to

Asset He

11 Dis

With inve

138

Asset Catego

ains above 2Bar

uence of Failu

ssets usually

oss of life;

amage to pro

isruption to li

ation

effective CP,

CP and kee

d anodes nee

o be maintain

ealth and Crit

Asset categorie

stribution Mains

estment over

ories

r

ure

fail as a leak

operty; and

fe.

, steel system

p Current Ou

ed replacing a

ned and moni

ticality - With

es

> 2Bar

V

r the RIIO-GD

Criticality

Low

Medi

Hig

Very H

k. The conseq

ms will corrod

utputs at acce

as they end t

itored to ensu

h Investment

Criticality

Index

H

Low

Medium

High 1

Very High 7

D1 period the

y Index As

w

um

gh

High

quences of w

de. Coatings

eptable levels

their life and e

ure their effec

Asset distribu

estimated asse

31 Mar

Asset he

Expecte

HI1 HI2 H

32 283

75 187

e steel mains

sset distribution

HI1 HI2

0 0

0 0

132 28

75 18

which can be:

need to be m

s.

electrical isol

ctiveness.

ution based on

et health index at

ch 2017

ealth index

ed (50%)

HI3 HI4 H

population w

based on estim

31 March 2

Asset Health

2 HI3

0 0

0 0

3 0

7 0

maintained in

ation from ot

t

Asset

estimated

Re

HI5 HI1 H

132 2

75 1

will remain wit

mated asset heal

2021

Index

HI4

0

0

0

0

order to have

ther metals/m

t distribution bas

d remaining usef

March 2021

emaining useful

Expected (50%

HI2 HI3 H

83

87

thin the HI2 c

th index at

HI5

0

0

0

0

e

materials

sed on

ul life at 31

life

%)

HI4 HI5

category.

Page 139: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Asset He

11 Dis

Conditio

Steel pip

CP data

assets.

Figure 3

When th

produce

expensiv

Paint sys

is used t

ealth and Crit

Asset categorie

stribution Mains

n Assessmen

peline system

base store an

1.2: CP monitor

hese assets fa

e effective ma

ve work or re

stems, coatin

to assess futu

ticality - With

es

> 2Bar

V

nt

ms are monito

nd report on

ring Database

ail, an except

aintenance an

placemnt at

ng faults and

ure maintena

hout Investm

Criticality

Index

H

Low

Medium

High 13

Very High 75

ored for effect

non-complia

tion report is

nd monitoring

a later date.

pipe stands

ance requirem

ent

Asset distribu

estimated asse

31 Mar

Asset he

Expecte

HI1 HI2 H

2 26

17

tive CP to en

ance, from th

produced wi

g regimes. Of

are picked u

ments.

ution based on

et health index at

ch 2017

ealth index

ed (50%)

HI3 HI4 H

0 23

2 15

sure complia

is data, we c

ithin the data

ften early det

p during insp

t

Asset

estimate

Re

HI5 HI1 H

132

75

ance with Pol

can assess th

abase. The da

tection and s

pections and

139

t distribution bas

ed remaining use

31 March 2021

emaining useful

Expected (50%

HI2 HI3 H

24

16

licies & Proce

he condition o

ata is analyse

imple action

audits and fa

sed on

eful life at

life

%)

HI4 HI5

3 40

1 26

edures.

of these

ed to

will save

ault data

Page 140: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

Figure 3

b) Othe

Do Noth

The Do N

pipeline

• Lo

• Lo

• D

• N

This is th

31.3 NGN wil

allow pro

which re

Remote

manual m

Safety is

more vu

Figure 3

140

1.3: Typical seiz

er Options

ing:

Nothing optio

failure resulti

oss of Supply

oss of Life;

amage to Bu

on Complian

he reason for

Innovatiol deploy remo

oactive monit

epresents bes

monitoring re

monitoring of

s another fact

lnerable to ac

1.4: Typical test

zed pipe stand

Considered

on is not viab

ng in:

y;

uildings & Pro

nce with regu

r chosing the

on ote monitorin

toring enablin

st value to the

educes our C

f CP systems

tor as most o

ccidents.

t post remote mo

d

ble because w

operty; and

lation.

option above

ng where a be

ng us to reac

e customer.

Carbon Footp

s.

of these test f

onitoring unit.

without effect

e.

enefit is reco

ct instantly to

print as vast d

facilities are a

tive CP, steel

gnised. Rem

faults as they

distances are

at road side lo

systems will

ote monitorin

y occur, savi

e driven by te

ocations leav

corrode and

ng of CP syst

ng time and

echnicians to

ving ‘lone wo

d lead to

tems

money

carry out

rkers’

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A19A

32.1 Since the

to mana

expectat

32.2 The mos

investiga

a) Curre

NGN for

incurred

managin

b) RIIO

Expendit

The brea

• £8

• £2

• £1

• £1

Expendit

Year

Expendit

Figure 3

A-32: LanExp

History e formation o

ging its land

tions, avoidin

Forecast st recent regu

ation being un

ent Formul

recast, during

. This is in res

ng the risk as

-GD1

ture identified

ak-down of th

8.5m for the

2m for statut

1m for monito

1m for decom

ture will be sp

ture

2.1: RIIO-GD1 S

nd Remependitur

of NGN in 20

portfolio. To

ng statutory re

ulatory conta

ndertaken by

la Period

g the remainin

sponse to inc

sociated with

d for RIIO-GD

his expenditu

statutory rem

ory remediat

oring; and

mmissioning/

pread evenly

13/14

£1.5

Statutory Land R

ediationre

05, NGN has

date we hav

emediation a

ct related to

y the regulato

ng years of th

creased regu

h the statutor

D1 is £12.5 m

ure consists o

mediation of h

ion of any low

/re-commissio

y across the fo

14/15

£1.5

Remediation Exp

n Statuto

s taken a resp

e been succe

and hence mi

the NGN site

or. Results an

he current for

ulatory action

ry liability of th

million.

of:

high and med

wer risk sites

oning of plan

ormula period

15/16 1

£1.5 £

penditure

ory Liabil

ponsible, tho

essful in man

nimised expe

e at Penrith. T

nd decisions a

rmula period

and reflects

he contamina

dium/high risk

identified an

nt associated

d.

6/17 17/1

£1.6 £1.6

lity/Risk

ough principa

naging the reg

enditure.

This resulted

are awaited.

, a further co

a more proa

ated land por

k environmen

d ‘forced’ by

with remedia

8 18/19

6 £1.6

141

k

ally reactive, a

gulators

in an intrusiv

st of £1 millio

active approa

rtfolio.

ntally sensitive

y the regulato

ation projects

19/20

£1.6

approach

ve site

on will be

ch to

e sites;

ors;

s.

20/21

£1.6

Page 142: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

A19A

33.1 We have

RIIO-GD

current a

these ch

a) Nove

When w

surround

processe

the pres

work.

As set o

Compan

correlatio

demonst

of the co

premises

Year

“Off Gas”

“Mixed O

“On Gas

Overall

Figure 3

This ana

connect

uncertain

populatio

of the ap

Given th

fuel poor

obliged t

connect

voucher

risk. Any

efficiency

b) Deve

Towards

one-off f

custome

to expan

As a res

142

A-33: Fu

Summarye increased th

D1 period from

actual costs r

hanges is that

ember Bus

e prepared o

ding our futur

es for identify

ent economic

ut in our bus

ny which com

on with the p

trated signific

ontributory fa

s.

” Areas

Off/On Gas” Area

3.1: Fuel poor fo

alysis showed

ion to gas ma

nties that exis

on during RII

pproach we w

e change to

r voucher to

to fund for ea

ion for fuel po

value, this w

y difference b

y incentive an

elopments

s the end of 2

fuel poor cus

ers we have b

nd geographi

ult we are no

el Poor F

y he number of

m 6,500 to 12

rather than th

t our forecas

siness Plan

our Novembe

re poor work

ying our one-

c climate and

iness plan in

mpared at a p

presence of th

cantly higher

actors is that g

as

orecasts

d a potential p

ains and eligi

sted we took

O-GD1. We w

were taking to

the price con

derive the un

ach connectio

oor custome

was not in our

between our a

nd shared wi

since Nov

2011 we mad

tomers. As a

been able to

cally across p

ow forecasting

Forecast

f fuel poor cu

2,000. We ha

he maximum

t costs rema

Forecasts

er Business P

. These inclu

-off fuel poor

d the future o

2010 we com

post code leve

he gas netwo

instances of

gas clearly re

Households

142,661

247,103

2,396,846

2,786,610

population of

ible for the fu

k a conservat

were also mi

o the forecas

ntrol treatmen

nit cost of con

on. This value

rs. We took t

r direct contro

actual costs a

th customers

ember

de changes t

a result we ha

connect. In a

parts of our a

g that during

ts

ustomers we

ave reduced

potential valu

in largely unc

Plan submissi

ded changes

customers, d

of various fun

mmissioned

el and local a

ork. The resu

fuel poverty

emains the ch

f 120,000 fue

uel poor vouc

tive view that

ndful of the o

st unit costs o

nt of fuel poo

nnection as t

e significantly

the view that

ol and therefo

and the vouc

s.

o the delivery

ave seen a sig

addition, dem

area where w

the 2011/12

will aim to co

the unit cost

ue of the fuel

changed at £

on there wer

s to our prima

demand from

ding mechan

a detailed su

authority leve

lts of this sur

in areas with

heapest sour

In Fuel Poverty

55,094

65,668

541,845

662,607

el poor custom

cher to fund th

we would ta

overall costs o

of connection

or connection

his is the ma

y exceeds ou

as we were

ore it was no

cher value wo

y partner and

gnificant incre

mand for com

we have neve

2 and 2012/1

onnect to ma

of connectio

l poor vouche

£14m.

re a number o

ary partner an

m social hous

nisms used to

urvey from the

l the incidenc

rvey (shown b

out gas than

rce of heating

y

mers that co

his connectio

arget connect

of the schem

n.

ns Capex we

aximum amou

ur current act

obligated to f

ot appropriate

ould be subje

d processes f

ease in the vo

mmunity based

r previously u

3 we will con

ains gas durin

on based on o

er. The net re

of uncertainti

nd the under

ing providers

o support fue

e Energy Aud

ce of fuel pov

below) clearly

n areas with g

g for domesti

%

38.6

26.6

22.6

23.8

uld be consid

on. With the

ting around 5

me particularly

used the valu

unt NGN wou

ual unit costs

fund up to th

e for us to ca

ected to the IQ

for identifying

olumes of su

d schemes c

undertaken p

nnect 1,500 a

ng the

our

esult of

es

rlying

s given

el poverty

dit

verty and

y

gas. One

c

dered for

5% of this

y in light

ue of the

uld be

s of

he

rry this

QI

g eligible

uch

continues

projects.

and

Page 143: Sub Appendix A19C - NGN RIIO-GD1 Network Integrity Capex · Introductio RIIO-GD1 The Investm Network R Investment Selection C Innovation.: Alarm Man The Specif Justificatio Cost Bene

1,800 cu

years.

We have

forecast

East has

Whilst un

program

Commun

demand

c) April

In light o

populatio

period in

schemes

2011/12

towards

CERT an

The brea

No. of F

Poor

Connect

Commun

Based

Connect

One Off

Connect

UIP/IGT

Connect

Total

Figure 3

To reduc

cost of c

voucher

rise over

value. W

physicall

We still r

would no

incentive

being un

ustomers res

e also compa

to connect t

s the highest

ncertainties r

mmes it is clea

nity Energy S

under the sc

l 2012 Busi

of these deve

on resulting i

ncreasing from

s as the dead

2 and 2012/1

more one-of

nd CESP.

akdown of th

Fuel

r

ions

11/12

nity

ions

731

ions 668

ions 168

1567

3.2: Fuel poor c

ce the overall

connection fro

value. For co

r time as mor

We don’t expe

ly these sche

remain conce

ot be fully rec

e rate to any

ndertaken for

pectfully, up

ared our Nove

he fewest am

proportion fu

emain amoun

ar this still rem

Solutions and

cheme for the

iness Plan

lopments we

n the forecas

m 6,500 to 1

dline for CES

3. Going forw

ff connection

is forecast w

12/13 13

1024 3

738 1

100 1

1862 1

connections sum

l cost to cust

om £2,190 to

ommunity ba

re challenging

ect the unit co

emes involve

erned that an

coverable by

overspend in

the full vouc

from our Nov

ember busine

mount of fuel

uel poverty in

nt the future

mains an area

discussion w

e foreseeable

Forecasts

e have now in

st number of

2,000. We a

P funding ap

ward into the

s and fewer

workload is sh

3/14 14/15

350 350

000 1000

150 150

500 1500

mmary

tomers of the

o £1,180 bas

ased connect

g schemes ar

osts associat

far less onsit

y movement

NGN and be

n this area if t

cher value.

vember forec

ess plan to th

poor custom

England.

of certain ele

a of focus. M

with gas supp

e future.

ncreased our

fuel poor cus

re currently s

pproaches. Th

RIIO-GD1 p

community b

hown below:

15/16 16

350 3

1000 10

150 1

1500 15

e programme

sed on our ac

ions and UIP

re undertake

ted with one-

te works and

towards the

elieve conside

he sole reaso

casts of just o

hose of the ot

mers of any G

ements of gov

Market intellige

pliers indicate

target from 5

stomers to be

seeing an incr

his is reflecte

eriod we are

based progra

6/17 17/18

350 350

000 1000

50 150

500 1500

e we have red

ctual costs of

P/IGT connec

n and cost w

-offs will follow

do not involv

voucher valu

eration should

on was due t

over 1,200 fo

ther GDNs a

GDN despite t

vernment fun

ence from ou

es there will c

5% to 10% o

e connected

rease in dem

d in our incre

forecasting t

ammes as a r

18/19 19

350 3

1000 10

150 1

1500 15

duced our ave

f connection

tions we fore

will move towa

w the same t

ve laying new

ue above wha

d be given to

o the eligibilit

143

or each of the

nd noted tha

the fact that t

nded fuel pov

ur fuel poor p

continue to b

of the potentia

in the RIIO-G

mand for com

eased forecas

there will be a

esult of the e

9/20 20/21

350 350

000 1000

50 150

500 1500

erage forecas

rather than t

ecast the unit

ards the vouc

trajectory as

w gas mains.

at we have fo

o not applying

ty of the sche

ese two

at NGN

the North

verty

rovider

be strong

al

GD1

munity

sts for

a move

ending of

Total

for

RIIO-

GD1

2800

8000

1200

12000

st unit

he

t cost will

cher

orecast

g the IQI

emes