Unavoidable Impacts of Streetworks Legislation

Jon Butterworth MBE Director, National Operations

National Grid in the UK/US

UK: Owns high-voltage electricity transmission network in England and Wales and operates system across Great Britain

UK: Owns and operates high pressure gas transmission system in Britain. Distribution business delivers gas to 11

million homes and businesses

Distributes electricity to 3.3 million customers and provides natural gas to 3.5 million customers

Services 1.1 million customers of Long Island Power Authority (LIPA)

Currently owns over 4,000MW of generation

3

National Grid’s Distribution Operations Opex - £180m Capex - £70m Repex - £450m

Miles of pipe: 82,000

Customers: 11 million

Staff: 5300 (Direct Labour and Contractors)

Metering: 616,000 jobs

Emergency: 533,000 jobs

Gas Escapes: 70,000 jobs (7000 interference damage jobs)

Relay after escape: 20,000 jobs

Mains replacement/reinforcement: 2000km

Connections: 24,000 jobs

Winter / Trigger Survey: Full Network

High Rise Flats: 400 projects, 6,000 meter points

Diversions Major: 45km

20 major Incidents

Our job is to SAFEGUARD….

LIFE PROPERTY SECURITY OF SUPPLY

•Gas Emergency Service, 30/30 Mains Replacement Programme, Pass55 Asset Maintenance Programme, Domestic Connections,

Roadworks/Diversions and 3rd Party Activities

Range of Legislation and Governance• Pipeline Safety Regulation (Regulation

13) 1996

• Pipeline Safety Regulation ( Regulation 13A) 2003

• Traffic Management Act

• New Roads and Streetworks Act (NRSWA) 1991

• Construction Design and Management Regulations

• Control of Major Accident Hazards Regulations

• Corporate Manslaughter Legislation

• PAS-55 Asset Maintenance

• Streetworks Authorities (SA’s) Traffic Managers

• Permits – Ability to apply conditions

• Traffic Management Design

• Section 58 & 58A – Power to restrict

• Section 56 – Power to direct

• Section 54 – Advance notice

Poor Planning Poor Coordination

Legislation and its Impact on StreetworksA Constantly Moving Feast

S74 Charging

COP for Inspection’s

COP for Safety

Yorkshire Permits

LoPS – Tranche 2

Lane Rental

Northamptn Permits

Gtr Man Permits Scheme

2010-2011 2011-2012

Legislation changes currently being considered and may land soon?

“Every time there is a change to legislation it takes time to understand, implement and

embed these in to an organisation.

Some changes have also led to reduced productivity,

increased duration of works and increased customer

costs”

Legislation and the Cost Impact

0

30

60

Year

Mill

ion

s (

£)

S73/78 Legislation

Proposed Lane Rental

Permits (National)

Permits (London)Inspections

Increased costs from legislation changes - worst case costs assuming current levels of performance

Impact of London Permit Scheme on Productivity

Key Message

Central London productivity on mains replacement has reduced by 38% since the introduction of the Permit Scheme in the LA’s

which have implemented LPS.

Planned Works

National Grid - we are not sitting still…..Lean/Six Sigma Review has reduced unoccupied time on site

KPI 1 performance is as follow:-

NationalKPI 1 Banding Apr-10 May-10 Jun-10 Jul-10 Aug-100-2 7% 8% 9% 9% 14%2-4 22% 25% 24% 29% 39%4-5 31% 34% 34% 42% 52%5-7 56% 63% 64% 72% 75%7-10 78% 83% 82% 85% 88%10-20 93% 94% 94% 94% 96%20-30 97% 97% 96% 96% 98%>=30 100% 100% 100% 100% 100% KPI 2:-

NationalKPI 2 Banding Apr-10 May-10 Jun-10 Jul-10 Aug-100-2 49% 68% 69% 72% 72%2-4 57% 80% 82% 84% 86%4-6 63% 87% 87% 89% 91%6-10 69% 94% 94% 95% 95%10-20 73% 98% 98% 98% 99%20-30 74% 99% 99% 100% 100%>=30 100% 100% 100% 100% 100% KPI 3:-

NationalKPI 3 Banding Apr-10 May-10 Jun-10 Jul-10 Aug-100-1 1% 1% 1% 1% 4%1-2 5% 7% 9% 9% 21%2-3 14% 20% 22% 27% 44%3-5 34% 50% 49% 58% 72%5-7 58% 86% 86% 90% 92%7-10 73% 98% 97% 98% 98%10-20 76% 100% 99% 100% 100%>=20 100% 100% 100% 100% 100%

42% improvement

40% improvement

53% improvement

Duration in days of end to end repair process; open

notice to job closure

Duration in days of repair make safe process; measure

of time between notice request and request for reinstatement

team

Duration in days of reinstatement process; request

reinstatement to physical completion of reinstatement

work

Emergency Works

We are not sitting still….Committed to our Customers

National Grid takes Customer inconvenience seriously and is committed to finding solutions that minimise disruption to our stakeholders

Customer Communication

No Dig Solutions

Core & Vac, Trenchlink

and Forge

We are not sitting still…...Good Practise Becomes Common Practise

”

Digfest – Upper Thames

Street 14 Dec 08

Committed to the Code of Conduct

Summary

• Pipeline Safety Regulation (Regulation

13) 1996• Pipeline Safety

Regulation ( Regulation 13A) 2003• Traffic Management

Act• New Roads and

Streetworks Act (NRSWA) 1991• Construction Design

and Management Regulations• Control of Major

Accident Hazards Regulations• Corporate Manslaughter

Legislation• PAS-55 Asset Maintenance• Streetworks Authorities (SA’s) Traffic Managers• Permits – Ability to

apply conditions• Traffic Management Design

• Section 58 & 58A – Power to restrict• Section 56 – Power to

direct• Section 54 – Advance

notice

S74 Charging

COP for

Inspection’s

COP for Safety

Yorkshire Permits

LoPS – Tranche 2

Lane Rental

Northamptn

Permits

Gtr Man Permits

Scheme

Our job is to safeguard life

We are heavily codifiedLegislation changes present our

business with significant challenges

We are committed to the Code of Conduct