ASSET MANAGEMENT STRATEGY 2013

Transcription

1 ASSET MANAGEMENT STRATEGY 2013

2 FOREWARD As a Transmission and Distribution business, Northern Ireland Electricity s network assets are in every part of Northern Ireland, from the remotest rural hills, to every street and home. Our electricity network forms the arteries and veins that deliver the lifeblood of electrical energy to our domestic and business customers across Northern Ireland. Our assets are therefore essential to supporting the economy and everyday life across Northern Ireland. Asset Management is at the core of NIE s business. Good stewardship of our asset base delivers long term value for electricity customers throughout Northern Ireland, and keeps our business strong. The decisions we make, and how we manage the asset base, have an impact not only today, but decades into the future. NIE s Asset Management Strategy is the link from our Corporate Objectives and Asset Management Policy, to the detailed plans that define how we specify, procure, construct, operate and maintain our asset base. Robert Wasson Asset Management Director May 2013 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY CONTEXT INTRODUCTION Purpose The Asset Management System Corporate Objectives Regulatory environment Scope of the assets covered ASSET MANAGEMENT DRIVERS Health and safety Ageing asset base Integration of renewable generation New and changing customer electrical demands Technological change ASSET MANAGEMENT PROCESSES Health and safety management Risk management Asset lifecycle management Network resilience Programme delivery Environment Design and construction Customer service Best practice and innovation Stakeholder Engagement RESOURCES Asset knowledge Skills and competencies CONTINUAL IMPROVEMENT, AUDIT AND REVIEW Certification and Audit Review of Asset Management Strategy...21 APPENDIX 1 NIE ASSET MANAGEMENT POLICY...22

3 ASSET MANAGEMENT STRATEGY 1 EXECUTIVE SUMMARY The Asset Management Policy is endorsed by the NIE Executive Committee, with everyone in NIE responsible for its implementation. Northern Ireland Electricity is committed to the development and maintenance of a safe and secure electricity network. In undertaking our Asset Management Policy we aim to comply with all legal, environmental and regulatory requirements in all our activities. The Asset Management Policy is endorsed by the NIE Executive Committee, with everyone in NIE responsible for its implementation. Our Asset Management Strategy seeks to fulfil two primary requirements: The delivery of our corporate objectives and regulatory obligations We will engage proactively with our Regulator and other stakeholders with a view to ensuring that NIE continues to provide a safe, reliable, cost-effective and environmentally responsible network. The delivery of asset management excellence This will be achieved through identification of, and benchmarking against, best practice and innovation. Our strategy document defines the path that will lead us towards best asset management practice within our industry. We will gain validation of our Asset Management System through an internationally recognised certification. Engagement of the organisation will be assisted through our branding of this path as Route 55. A continual improvement programme will ensure that our asset management strategy is integrated within our corporate objectives and implemented on the ground. This strategy will ensure that there is a co-ordinated and planned approach to asset management, with all decisions and investments being driven by our asset management policy, strategy, objectives and plans. NIE is committed to reviewing this strategy document to ensure that our assets are managed in an efficient and effective way, integrated with our risk, health and safety, environmental and quality management system requirements, whilst reflecting the evolving needs of all our customers and stakeholders. This strategy document is available to all our stakeholders. 5

4 ASSET MANAGEMENT STRATEGY 2 CONTEXT 3 INTRODUCTION The Asset Management Strategy and associated plans will address the need for increasing levels of asset replacement over the coming years. Northern Ireland Electricity Limited (NIE), owns the electricity transmission and distribution (T&D) networks in Northern Ireland (NI) and is responsible for the planning, development, construction and maintenance of the entire network, as well as the operation of the distribution network. NIE works within a regulatory framework defined principally by the licensing regime in NI, and by a five-yearly price control process. NIE is regulated by the Utility Regulator for Northern Ireland (The Regulator). The NIE network is an interconnected system of overhead lines, underground cables and substations, which transfer electricity to over 840,000 customers across Northern Ireland. There are approximately 2,200km of transmission circuits, 43,000km of distribution circuits, 290 major substations and 7,000 distribution substations. NIE s transmission system is connected to the Republic of Ireland through a 275kV interconnector and to Scotland via the HVDC Moyle Interconnector. Alongside the overarching requirement to provide T&D networks that are safe, reliable, cost-effective and environmentally responsible, there are two specific key challenges. Firstly, the NI Assembly has a stated objective that, by 2020, 40% of Northern Ireland s electricity needs should come from renewable sources. NIE has a pivotal role to play in helping to achieve this target; leveraging the existing asset base and planning and constructing significant new infrastructure to facilitate the connection of all types of renewable generation. Secondly, NIE s T&D assets, the bulk of which were installed from 1950s to the 1970s, are becoming aged and less reliable. The Asset Management Strategy and associated plans will address the need for increasing levels of asset replacement over the coming years. This section provides information on: The purpose of the Asset Management Strategy The Asset Management System NIE s Corporate Objectives The regulatory environment The scope of the assets covered. 3.1 PURPOSE The purpose of this Asset Management Strategy is: To provide a link between NIE s Corporate Objectives and Asset Management Policy, and downstream Asset Management objectives and plans To provide transparency of the above to NIE s various stakeholders. 3.2 THE ASSET MANAGEMENT SYSTEM Our Asset Management System is a set of interrelated elements used to: Establish Asset Management Policy, Asset Management Strategy and Asset Management Objectives Achieve these objectives through the implementation of Asset Management Plans Manage the activities, processes and resources necessary for their development, implementation and continual improvement. NIE s Asset Management System is principally designed to support the delivery of NIE s Corporate Objectives, which provide the starting point for the development of NIE s Asset Management Policy, Strategy, Objectives and Plans. These key building blocks provide overall direction, across the combination of lifecycle activities that are applied to NIE s asset base. Figure 1 illustrates this. The Asset Management System will align with other relevant NIE management processes, in particular our Risk, Health and Safety, Environmental and Quality Management systems. 3.3 CORPORATE OBJECTIVES Our Asset Management Policy and this underlying Strategy are guided by and support a series of Corporate Objectives as outlined below. REGULATION AND LICENCE OBLIGATIONS NIE will continue to comply with its regulatory and licence obligations. HEALTH AND SAFETY NIE will seek to ensure the safety of employees, contractors and the general public through the promotion of a positive health and safety culture and adherence to legislation and recognised safety standards. NIE s Health and Safety Policy aims to promote high standards and is supported by specific safety principles, rules and procedures, designed to achieve zero Lost Time Incidents. FINANCIAL Our Asset Management Strategy will support the following financial objectives: To deliver value to our shareholder, through achievement of our annual corporate objectives as defined for capital and operational expenditure To maintain NIE as a frontier company from an efficiency perspective and to continue to provide value for money across all areas To maintain NIE s strong investment grade credit rating To agree capital and operational expenditure with the Regulator on a five year cycle. DELIVERY OF INFRASTRUCTURE Our strategy will ensure that all relevant processes and documentation are in place to facilitate successful certification of our Asset Management System. Our strategy will develop Asset Management Objectives and Plans, which will ensure that our network delivers safe, reliable and costeffective performance to meet the requirements of our stakeholder and customers. Appendix 1 NIE s Asset Management Policy 6 7

5 NIE CORPORATE OBJECTIVES 3.3 NIE ASSET MANAGEMENT POLICY NIE ASSET MANAGEMENT STRATEGY DRIVERS PROCESSES RESOURCES ASSET MANAGEMENT OBJECTIVES CONTINUAL IMPROVEMENT ASSET MANAGEMENT PLANS LIFECYCLE ACTIVITIES ASSET REGISTER NIE ASSET MANAGEMENT SYSTEM Figure 1 NIE Asset Management System WE WILL: Consider short and long term projections of load growth, and analysis of how that growth can be met Use risk-based methodologies to determine and prioritise investment in asset replacement, which will include consideration of the full asset lifecycle, from procurement to disposal Develop the system to facilitate the connection of renewable generation, in support of NI Assembly targets Support our commitment to customer service excellence and adherence to standards. RESOURCES Our Asset Management Strategy will help ensure the company maintains a working environment in which personal and employment rights are upheld; which ensures equality of opportunity for all employees and job applicants; and which enables employees to realise their maximum potential with opportunities for skills enhancement and personal development. NIE will provide staff with the necessary knowledge and ability to operate the network effectively. All training will be audited to ensure safe and reliable operation. All skilled craft training will be carried out to nationally accredited standards, while professional training will be accredited by the relevant professional bodies. 3.4 REGULATORY ENVIRONMENT In conjunction with the Regulator, NIE will assess the needs of our infrastructure on an ongoing and timely basis, using the approaches outlined in this strategy and the underlying objectives and plans, within the overall context of our licence regime, price control, and other relevant legislative obligations. Where appropriate, we will agree key performance indices with the Regulator. These indices may change, as demands on the network change, and as new methods and solutions develop. We will agree the necessary programmes for capital and operational expenditure, and will measure our delivery against these programmes, both in terms of outputs and delivery cost. Where new technologies emerge for more effective network management, we may engage with the Regulator to seek the necessary investment or incentives to implement these technologies. Our overriding aim will be to ensure that our network provides our customers with a safe, secure and cost-effective electricity supply, for both the short and long terms. 3.5 SCOPE OF THE ASSETS COVERED The scope of NIE s Asset Management Strategy is the electricity transmission and distribution assets which NIE has responsibility for, and includes all associated metering assets. The scope does not extend to non network assets such as IT systems, vehicles and buildings. 8

6 4 ASSET MANAGEMENT DRIVERS By assessing asset condition and performance, we will minimise risk, identify opportunities for life extension, prioritise replacement and smooth the effects of any resulting bow wave of replacement. This section sets out the key drivers of our Asset Management Strategy, which are: Health and Safety Ageing asset base Integration of renewable generation New and changing customer electrical demands Technological change. 4.1 HEALTH AND SAFETY Due to the nature of electrical power systems, they must be carefully managed so that risks are assessed and properly controlled. As many assets are customer facing, the NIE system is designed to be inherently safe during normal operation, ensuring risks to the general public are controlled by design. When work or testing is required on the T&D system, robust safety rules and safe systems of work are applied by NIE staff and contractors to ensure their safety. 4.2 AGEING ASSET BASE Due to the rapid manner in which the Northern Ireland rural network developed and new housing developments expanded around towns and villages, many network assets were installed over a relatively short period from the 1950s to the 1970s. As a result, high volumes of assets are reaching the end of, or have exceeded, their typical asset lives. By assessing asset condition and performance, we will manage this situation in a manner which minimises risk, identifies opportunities for life extension, prioritises replacement and smoothes the effects of any resulting bow wave of replacement. 4.3 INTEGRATION OF RENEWABLE GENERATION NIE will continue to work with DETI and the Regulator on a long-term strategy for the development of the electricity network to support the connection of additional renewable generation, in support of the NI Assembly target of 40% of electricity consumption from renewable sources by As a result of this target, the electricity network in Northern Ireland is facing an unprecedented demand for the connection of new sources of power generation, and the development of the associated transmission and distribution infrastructure. The primary driver for this requirement has been the strong economic incentive for renewable energy production, underpinned by the Northern Ireland Renewables Obligation (NIRO). NIE s response to this challenge at transmission level has been to develop a co-ordinated network development plan incorporating short, medium and longer term measures to increase network capacity over the coming years. These are illustrated in Figure 2. Initial short term measures, to address critical bottlenecks in the network, are now complete. The current Medium Term Plan (MTP) provides for a series of phased 110kV network reinforcements to further increase capacity. 10

7 ASSET MANAGEMENT STRATEGY CAPACITY % RENEWABLE Figure 2 Overview of projected transmission reinforcements The longer term plan will require substantial expansion of the 275kV transmission grid. This has been the focus of a joint study with EirGrid and the System Operator for Northern Ireland (SONI), the Renewable Integration Development Project (RIDP). This will be taken forward through our Network 25 Plan, which is currently under preparation, and which will set out our overall transmission development strategy to A further essential requirement for the achievement of the 2020 NI renewables target is the completion of the proposed 400kV interconnector with the Republic of Ireland. This project is currently in the planning process. Due to the significant increase in small scale renewable generation, access to the 11kV network for small scale renewable generators has become very challenging in a number of locations across Northern Ireland. As the generation capacity embedded in the distribution networks continues to rise, so too does the technical challenges in managing this network, which was not originally designed for this purpose. The network strategy will develop greater ability to transfer energy between a SHORT TERM PLAN 300 MW MEDIUM TERM PLAN MAR MW 14% OF TARGET diverse range of dynamic embedded generators and consumers, whilst maintaining the balance between supply and demand at multiple levels within the network. To achieve this, significant developments will be required in integrated and intelligent monitoring and control of the network. The resulting network will migrate towards what is commonly referred to as a Smart Grid. 4.4 NEW AND CHANGING CUSTOMER ELECTRICAL DEMANDS Between the winters of 2008 and 2012, the system maximum demand on the Northern Ireland electricity network increased by an average of 0.4% per annum. This was at a time of economic recession and during a period when NIE experienced an unprecedented level of distributed generation connections. At a micro level, NIE has experienced a drop off in load at a number of primary substations in localised areas, but this is countered by continued load growth at a significant number of sites. NIE will strategically target capital investment in specific areas of the network to meet licence and statutory obligations and to support NI s economic development MW LONG TERM PLAN 4.5 TECHNOLOGICAL CHANGE MW 7% 20% 40% Technological advances offer opportunities to ensure that existing assets reach or exceed their expected asset lives through better monitoring and knowledge, and also to enable life extension through modifications or enhancements. When replacement is necessary, new assets should be specified to take full advantage of the latest proven technological advancements. NIE will continue to keep abreast of future technological changes through its membership of and representation on key industry fora and working groups. We will also monitor the development and adoption of emerging technologies into new product ranges through our contact with a wide range of manufacturers and suppliers. We will remain cautious about the pioneering of new developments but will become early adopters of technologies where the advantages and risks can be clearly established. NIE is committed to successfully managing our exposure to risk to minimise its impact on the achievement of business objectives 5 ASSET MANAGEMENT PROCESSES This section sets out NIE s key asset management processes. 5.1 HEALTH AND SAFETY MANAGEMENT In terms of existing assets, especially those that are customer facing, the NIE network is designed to be inherently safe during normal operation, ensuring risks to the general public are controlled by design. When work or testing is required to the NIE network robust Safety Rules, in compliance with relevant health and safety legislation, are applied to NIE staff and contractors to ensure their safety. In relation to new construction, all work on or in the vicinity of the NIE system shall comply with the CDM (Construction, Design and Management Regulations) RISK MANAGEMENT Risk, or criticality, is an active element of the environment within which NIE operates. NIE is committed to successfully managing our exposure to risk to minimise its impact on the achievement of business objectives, and to prevent damage to the reputation of NIE. In line with accepted risk management practice, we will consider both the probability of an event and the consequences of that event. Asset risk will be managed within the context of the overall NIE Risk Management Framework. NIE s Asset Management Director is a member of NIE s Risk Management Committee. NIE will continually identify new opportunities to improve operational performance and to control the risks associated with its operations. Assets that operate more efficiently, reliably and safely will be more successful in the longer term. Risk management processes specifically relevant to assets are included, inter alia, in the following sections. 5.3 ASSET LIFECYCLE MANAGEMENT Following the identification of need, the asset lifecycle (see figure 3) begins with a specification of requirements and ends with the decommissioning and disposal of the asset. In NIE, the steps in the asset lifecycle are the following: Specification Technical Assessment Procurement Construction/Commissioning Operation Maintenance/Repair/Defect Management Refurbishment/Life Extension Replacement/Removal Decommissioning/Disposal. Within NIE cradle to grave asset lifecycle decision making is kept within one group, ensuring that knowledge gained through the ownership, maintenance and operation of assets informs the specification of new assets coming onto the network. This continuous improvement process will assist in meeting the objective of improving network availability and reliability. We will also consider the principles of lifecycle costing and life value optimisation when assessing new assets coming onto the network, to ensure that investments are efficient

8 REPLACEMENT / REMOVAL / DECOMMISSIONING / DISPOSAL SPECIFICATION / TECHNICAL ASSESSMENT / PROCUREMENT MAINTENANCE / REPAIR / DEFECT MANAGEMENT / REFURBISHMENT / LIFE EXTENSION CONSTRUCTION / COMMISSIONING / OPERATION Figure 3 Asset lifecycle PROCUREMENT NIE will ensure that its assets are specified in accordance with industry best practice. Where possible, assets should conform to Electricity Networks Association Technical Specifications which are deemed to be best practice within the UK electricity sector. We will take advantage of recent technological advancements in assessing new assets for use on the network and, where appropriate and practical, we will: Model whole-life costs, anticipating spend throughout the asset lifetime Use whole-life costs as the financial measure for assessing new equipment Include engineering judgment, technical due diligence, asset failure risk and associated statistical analysis in all technical evaluations Ensure that specifications recognise environmental impact Audit manufacturers for their environmental impact OPERATION AND MAINTENANCE NIE will operate and maintain the network in a manner that ensures safe, reliable and cost-effective operation. We will seek to investigate and understand all failure modes, and their potential impacts on the network. In understanding these failures, we will develop maintenance processes which consider criticality and the root causes of failure. In developing maintenance policy, we will use Cost-Risk Optimisation techniques to optimise the balance between the cost of maintenance and the risk of extending maintenance periods. As in all examples of asset management excellence, understanding risk is key. A quantitative analysis, supported by a qualitative assessment, will be applied in each case. 14

9 ASSET MANAGEMENT STRATEGY CONDITION MONITORING AND ASSESSMENT Condition monitoring and assessment enables better asset lifecycle management by providing knowledge which informs maintenance, refurbishment, life extension and end of life investment decision making. It can involve several approaches including: Visual inspection and assessment (eg corrosion) Assessment by periodic measurement or testing (eg partial discharge) Trending of duty-cycle or test result data (eg transformer oil testing) Continuous on-board monitoring (eg transformer on-line gas analysis). NIE will continue to adopt appropriate condition monitoring and assessment techniques to enable us to make informed end of life investment decisions and to continue our progress from a frequency-based maintenance strategy towards more condition-based approaches END OF LIFE DECISIONS NIE will procure assets based on an assumed asset life expectancy. As part of the operation and maintenance of assets, NIE will assess the risk as each asset progresses through its life. As risk increases, decisions will need to be made, to determine whether or not the asset requires refurbishment, life extension or replacement. These decisions will be based on the assessed risk of failure of the asset. Cost-Risk Optimisation techniques will be used to determine whether refurbishment, life extension or replacement is the correct approach. In making this assessment, we will take into account the direct and indirect costs of any failure, criticality, the current and anticipated future condition of the asset, and the level of refurbishment which is practical. A quantitative analysis, supported by a qualitative assessment, will be applied in each case REFURBISHMENT Refurbishment is generally applicable to perpetual assets, where components are replaced continuously in cycles, rather than the complete asset being replaced at end of life. NIE will continue to adopt a refurbishment approach on appropriate assets, such as overhead lines, and the extent of the refurbishment will be driven by risk based inspection together with knowledge of network performance and reliability LIFE EXTENSION / DEFERRAL OF REPLACEMENT Asset life extension is appropriate for assets where intervention during their assigned life can economically enable the asset to deliver further safe and reliable operation beyond the normal expected retirement date. This can be achieved by rebuilding, modification or by the retrofitting of new technologies where the majority of the original asset remains and the active components, which are dictating the end of life, can be replaced. NIE will continue to defer replacement of assets where life extension is a viable, economic and safe option REPLACEMENT As NIE assets approach the end of their useful life, their decommissioning and/ or replacement will be planned. Not all assets will deteriorate at the same rate; therefore NIE will take assetspecific risk based decisions on asset replacement. A quantitative analysis, supported by a qualitative assessment, will be applied in each case. Whilst NIE uses asset age profiles and assigned asset lives for the long-term modelling of asset replacement, assets are not replaced solely on age grounds. When the condition of an asset reaches a stage where further maintenance or life-extension is not appropriate, then replacement is considered. When a decision is made to replace any asset, consideration is given to the block replacement of groups of similar assets and their associated equipment within a common site. This approach ensures efficiency, and avoids piecemeal replacement. Additionally, having assets of common types and vintage on a particular site aids operation and maintenance planning CAPITAL PRIORITISATION Within regulatory constraints, NIE must prioritise capital expenditure for asset replacement to ensure that the expenditure is targeted towards areas of maximum benefit. To achieve this, within asset categories, replacement is prioritised on the basis of criticality, considering both the consequences and probability of failure DECOMMISSIONING Asset disposal will address the proper decommissioning, removal and recycling of assets, while ensuring compliance with all local and/or national legislation and environmental regulations. All asset decommissioning projects will be managed as cost-efficiently as possible. 5.4 NETWORK RESILIENCE Improving network resilience, from an asset management perspective, focuses primarily on ensuring that networks are resilient to extreme weather events. An additional focus is on improving restoration times when unplanned outages have occurred. Ensuring the network is resilient to the effects of damage by extreme weather events is an important driver of network investment. During Regulatory Period 5 (RP5) there are plans for several streams of investment to deal with this; in particular programmes to deal with older sections of the 11kV network in rural areas, and the mitigation of flood risk at key substation locations. It is also intended to continue a programme of installing remote control facilities and fault passage indicators on the networks to reduce restoration times. 5.5 PROGRAMME DELIVERY NIE s Programme Management function will: Manage the overall control and reporting of the capital and operational work programme In line with the Regulatory allowance, define a 5 year Capital Investment Plan and annual Capital programme for each incoming year of the Price Control Issue the necessary capital approvals and asset management instructions to the Construction and Operations functions Monitor and produce monthly and annual reports of programme delivery in terms of physical delivery and cost Engage with internal and external auditors with regard to work programme delivery. 5.6 ENVIRONMENT NIE is committed to protecting the environment by integrating environmental issues into all of our business activities, setting high standards and continuously improving through our Environmental Management System (EMS). Our starting point is to comply fully with the requirements of our ISO certification and all relevant legislation. All employees and contractors will be kept aware of our requirements to: Manage waste and recycling levels Store materials correctly Use energy efficiently Control and prevent pollution Protect lands and wildlife Us sympathetic approaches to working in the vicinity of sensitive built heritage sites

10 6 RESOURCES 5.7 DESIGN AND CONSTRUCTION NIE will apply recognised standards in designing our network. These standards will be supplemented by internal construction standards and method statements. This will ensure that the network is built to a consistent standard, and will assist training, fault response and operation. Where new asset types or requirements are identified, the appropriate external standards will be applied, and internal standards updated and rolled out. 5.8 CUSTOMER SERVICE NIE will remain committed to meet customer service expectations and will seek to deliver against internally and externally agreed standards of service. Adherence to customer standards will be measured and reported. 5.9 BEST PRACTICE AND INNOVATION NIE intends to manage a programme of research and development to investigate how innovative technologies can be applied to our networks, to achieve better utilisation of network assets and to enable customers to use their energy more efficiently. We will take an early adopters approach and will learn from global research and development programmes, such as GB s Low Carbon Networks Fund, which trial new technologies, operating and commercial arrangements to provide value for money in a low carbon economy. NIE is currently conducting a trial involving 200 homes in Northern Ireland to investigate how Smart meters and Smart grid technology could change homeowners energy usage patterns, particularly at times of peak demand in the early evening, to reduce and flatten demands on the network. NIE will retain membership of the primary industry body, the Energy Networks Association (ENA). We will seek to maintain an active involvement in all relevant aspects of ENA work. In addition, we will interact with and will contribute to bodies and programmes including the Strategic Technology Programme (STP), CIGRE (the International Council on Large Electric Systems), CIRED (the leading forum for the electricity distribution community), the Institute of Asset Management and Eurelectric STAKEHOLDER ENGAGEMENT NIE operates a comprehensive strategy to engage with key external stakeholders across a range of issues. With respect to asset management, the key topic is asset investment to deal with asset replacement needs, enabling connection of customer loads and enabling connection of renewable generation. Regular interaction on these matters occurs with: The Utility Regulator The Department of Enterprise, Trade and Investment The Department of Agriculture and Rural Development The Department of the Environment, including the Planning Service The Ulster Farmers Union The Confederation of British Industry / Large Electricity Users Group The Consumer Council Other Government ministers and senior civil servants Public representatives at Parliamentary, Assembly and Local Council level. Management of this process is through the MD s office/ NIE Communications, with the Asset Management directorate contributing to asset management related matters as required. NIE s overall financial and business plans are approved by its shareholder ESB, and senior ESB management are kept aware of key developments in relation to asset management. The asset management functions in ESB Networks and NIE work collaboratively on a range of topics, within the processes as defined in NIE s compliance plan. Asset management matters are fed into the monthly staff briefing process as required, and also feature in management / union briefing sessions. NIE s relationship with SONI is governed by the Transmission Interface Agreement (TIA) and the associated processes, ranging from the planning of, and connection to, the transmission network through to the operation of the transmission network to the ratings as defined by NIE. In addition to significant day-to-day interaction on a wide range of TIA related issues, there are several significant areas of strategic interaction with both SONI and EirGrid. NIE and Eirgrid are responsible for their respective sections of the proposed North-South interconnector, the project teams working closely together under a joint steering committee. NIE, SONI and EirGrid are jointly developing the RIDP plan described earlier and finally NIE is engaging with SONI / EirGrid s DS3 programme, which is considering strategies whereby the two TSOs can help increase the level of penetration of renewable generation. Asset decisions need to be based on reliable data. Gathering the correct data in a timely and accurate manner is key to delivering good asset management. 6.1 ASSET KNOWLEDGE Accurate asset information is essential to the asset management process. The capture of relevant data, and the meaningful interpretation of this data, will provide the information necessary to make timely and effective decisions on our asset base. Our strategy for Asset Management Knowledge Systems outlines the requirements that future IT systems should deliver. The policy defines principles and objectives that all future IT development should be measured against. This strategy also aligns with the NIE Corporate Technology Strategy INFORMATION SYSTEMS NIE, in conjunction with our managed service provider, will identify the criticality of each asset management IT system. This will define the level of support and expected response to IT system faults. Each system will have a sponsor within the relevant business unit, who will champion and co-ordinate development activities in that system. The sponsor will work in conjunction with the IT Steering Group, to ensure that developments are in line with both our Asset Management Knowledge Strategy and the NIE Corporate Technology Strategy. Where practicable NIE will seek to consolidate data from non-supported systems onto enterprise systems. Locally developed systems will, where possible, be avoided as key repositories. No formal support exists for such bespoke solutions, and therefore data in these systems is not secure DATA Asset decisions need to be based on reliable data. Gathering the correct data in a timely and accurate manner is key to delivering good asset management. The first step in this process is to determine what data to capture. This will be via a critical review of our asset management processes, to identify only the relevant data requirements. Once identified, this data should be captured using documented processes to ensure consistency. Where practical, mobile field technology should be utilised to ensure that data collected is timely, validated and accurate INTEGRATION NIE will seek to integrate systems where clear benefit is derived from information sharing. In order to minimise error and workload, data will be mastered in one system, with integration providing the means to sharing this data. Where stand alone systems are necessary (for example, where suppliers provide bespoke systems for capturing information from field devices), these systems will be centrally hosted, with the data made available to all relevant staff. Where necessary, these systems will be integrated with the key systems above. All data is the property of NIE. Individual employees may have responsibilities for elements of data, but they will make that information freely available to the business as a whole. Data silos will be avoided where possible KNOWLEDGE MANAGEMENT AND REPORTING Providing the correct reporting structure will ensure that all relevant data is presented as useful information to the appropriate audience. Suitable tools should be provided to allow a range of reporting capability: Ad-hoc reporting by end users Business Intelligence level reporting for trending and analysis Automated reporting

11 ASSET MANAGEMENT STRATEGY 7 CONTINUAL IMPROVEMENT, AUDIT AND REVIEW NIE will continually compare NIE s asset management processes and performance metrics to industry leaders and best practice. NIE s asset management benchmarking analysis will establish why and where improvements are required. 6.2 SKILLS AND COMPETENCIES Overall, our HR strategy is focused on the need to achieve three high-level objectives: Ensuring sufficient resources are recruited and developed to facilitate the delivery of NIE s objectives, business plan and statutory obligations Embedding efficiency and productivity Focusing NIE employees on effectively and efficiently delivering relevant outputs. We seek to ensure that individuals operate efficiently and maximise their potential within a culture of continuous improvement. We will also seek to ensure that our employees function in a flexible, respectful and safe working environment. Clear lines of communication, an open approach to career progression and incentives to motivate high levels of performance will all continue to form key elements of our strategy and allow us to maintain a motivated and committed workforce. Employees have the opportunity to discuss their career development annually as a key element of the PPR process (Personal Performance Review). NIE and its staff will need to continue to operate flexibly to adapt to changing business needs and the economic environment. In particular, additional challenges will be posed by the need to continue to deliver effectively and efficiently into the RP5 period. This resourcing challenge is exacerbated by the fact that a number of NIE s employees are approaching retirement, and by an increasingly difficult market for labour with the relevant skills and experience. Current statistics state there will be 125,000 new jobs in NI in the next 10 years with 60% being within STEM, (Science, Technology, Engineering & Maths) related job areas. There are currently only 30% of resources available in this area. In order to ensure a targeted and efficient approach to recruiting and managing the resources required at RP5, we have developed a separate workforce renewal plan. NIE will continue to partner with the Institute of Engineering and Technology (IET) in the Power Academy scheme, which establishes a unique partnership between industry and academia to address the skills shortage in power engineering through a combination of financial support and workplace mentoring for students. This is further supported with our increased outreach initiatives to ensure that STEM is integrated into primary and post primary education. These initiatives include the Lego League, teacher placements in industry, interview skills days and careers fairs. This also offers excellent ongoing development for our graduates, apprentices and many other staff. NIE has also launched a scholarship programme in partnership with Queen s University Belfast for Electrical Engineering Students. NIE will also continue to support CIGRE, CIRED, ENA, Institute of Asset Management and further development opportunities for staff, for example members of or chairing industry fora such as NIRAUC. 7.1 CERTIFICATION AND AUDIT NIE will achieve and maintain certification of its Asset Management System to a recognised international standard. Initial certification will be to the PAS 55 standard. Once PAS 55 is superseded by ISO 55000, subsequent re-certifications will be to that standard. Other formal audit processes will also continue to play a part, in particular: ISO in respect of environmental management ISO 9001 in respect of certain key business processes Health and safety audits. 7.2 REVIEW OF ASSET MANAGEMENT STRATEGY This NIE Asset Management Strategy will be reviewed as required, but at a minimum of every three years, to ensure that it is still fit for purpose

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13 Northern Ireland Electricity Ltd