Stakeholder Engagement: Working to grow ideas together

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1 01 SGN Stakeholder engaement: Working to grow ideas together Stakeholder Engagement: Working to grow ideas together 2014/15

2 02 SGN Stakeholder engaement: Working to grow ideas together Contents Welcome by John Morea, CEO About us Bringing gas to you... how it all works Stakeholder strategy themes Keeping the gas flowing Safe and efficient streetworks Future of gas Acting responsibly Contact us It s only by listening to our customers, understanding their needs and keeping our promises, we can deliver an excellent service that people can trust John Morea, Chief Executive Officer, SGN

3 03 SGN Stakeholder engaement: Working to grow ideas together Welcome Dear Stakeholder We re dedicated to keeping our customers safe and warm by leading the way in energy delivery. This is our vision and in order to deliver this our values are in our DNA. These are the values we believe in - safety first, driving performance, putting people at the heart, looking after customers and sustaining our world. Stakeholder engagement underpins all this. It s only by listening to our customers, understanding their needs and keeping our promises, we can deliver an excellent service that people can trust. Last year we received feedback that you want to see more proactive engagement on wider strategic issues and a more robust mechanism for ensuring that feedback is incorporated into our business decisions and we ve taken that on board. That s why we recognise our stakeholder engagement strategy needs to support the delivery of our company strategy, engaging with and responding to stakeholder needs. We ll consult with you each year to understand your priorities and how we can improve our service to you. During the past year you ve given us feedback to help us deliver what outcomes you want to see and we ve put actions in place to make this happen. We re also keen to understand what s important to you in the next 12 months. We promise to listen to your feedback. John Morea, Chief Executive Officer, SGN

4 04 SGN Stakeholder engaement: Working to grow ideas together About us SGN operates over 74,000km of gas mains and services in Scotland and the south of England. Whoever your supplier is, we have a responsibility to deliver gas safely, reliably and efficiently to every one of our 5.8 million customers. It s your gas, in our network. Our vision Dedicated to keeping our customers safe and warm by leading the way in energy delivery. Our values Safety first We take responsibility for our own safety and the safety of those around us Driving performance Efficiency, innovation and continuous improvement will help us deliver excellence and achieve commercial success Putting people at the heart We always work together, talk honestly and treat people with respect Looking after customers By listening to our customers, understanding their needs and keeping our promises we can deliver an excellent service that people trust Sustaining our world We maximise our effect on local communities and minimise our impact on the world

5 05 SGN Stakeholder engaement: Working to grow ideas together How it all works m 3 Emergency control valve Gas meter Gas appliances Our gas mains pipe Our service pipe Gas Your supplier s gas 1. Bringing gas to you We own most of the pipes which transport gas around Scotland and the south of England to your homes. However we don t own the gas. We look after the pipe up to the Emergency Control Valve (ECV), which is located before your meter and allows you to turn off gas in an emergency. 2. Your gas supplier 3. The property owner The property owners are responsible for maintaining internal pipes leading from the meter to their gas appliances such as boilers, cookers and heaters and for making sure all gas appliances in the home are checked and serviced annually. A Gas Safe TM registered engineer must be used to do any safety checks or work on internal gas pipes or appliances. Your gas supplier owns the gas transported through our pipes, is responsible for the maintenance of your gas meter and for sending you bills for the gas you use in your home.

6 06 SGN Stakeholder engaement: Working to grow ideas together The principles of our approach to engagement with our stakeholders: Inclusive ensuring a broad range of stakeholders are identified and their views are sought Targeted ensuring engagement is targeted to relevant stakeholders to maximise efficiency Transparent ensuring our stakeholders are clear about engagement objectives, process and outcomes Accessible ensuring various forms of engagement and communication are used to suit the audience and remove any barrier to involvement Measureable ensuring stakeholder engagement is continuously monitored and captured to ensure that the engagement approach is appropriate, efficient and value for money Responsive ensuring we develop and deliver appropriate responses to the issues and opportunities raised through our engagement work Flexible ensuring our stakeholder engagement strategy and plan is flexible and learns from the feedback and issues generated How we engaged with you We held stakeholder engagement sessions with external stakeholders, covering a diverse range of our activities. For example, fuel poverty seminars were held to engage with key stakeholders to help us shape and inform our fuel poverty strategy. We ve engaged with UK and Scottish governments, working with suppliers to find out what matters to you.

7 07 7 SGN SGN Stakeholder engaement: Working Working to to grow grow ideas ideas together together Evaluating and acting on your feedback We act on feedback immediately if it is practical to do so Where it has not been possible to act on the feedback from stakeholders we provide the rationale for this We report back to our stakeholders on what we do Our Stakeholder Advisory Panel Our Stakeholder Advisory Panel exists to act as our critical friends to help influence and support the delivery of better services for our customers and stakeholders. To improve accountability we have added new members ensuring the issues discussed in the panels are those that are important to our stakeholders. Oli Howard (Chair) Senior Internal Communications Business Partner Civil Aviation Authority Lucy McTernan Deputy Chief Executive Officer Scottish Council for Voluntary Organisations (SCVO) Maria Wardrobe Director of External Affairs National Energy Action (NEA) Ollie Pendered Director of Communities Matter

8 08 SGN Stakeholder engaement: Working to grow ideas together Stakeholder strategy themes What we do Our vision How we deliver it Our overall company strategy aligned to our vision, values and goals is demonstrated across our four stakeholder strategy themes: Our strategy The SGN Way our values our personality Keeping the gas flowing Safe and efficient streetworks Future of gas Acting responsibly Keeping the gas flowing Safe and efficient streetworks Future of gas Acting responsibly our behaviours our goals Our performance Keeping the gas flowing Continue to support better communications and support for vulnerable customers in gas outages We continue to review our communications for customers during incidents. As part of this we have mock incidents to learn from and improve how we communicate the difficult situation of a loss of supply for our vulnerable customers. We ve introduced a dedicated incident freephone helpline number for customers to find out the latest update information. We ve also introduced a support vehicle that we can take to sites and have access to the latest communication tools again all with the aim of improving how we deal with this situation for our customers. Provide an enduring solution to maintain supplies to Scottish Independent Undertakings (SIUs) The gas we use in GB is made up of a mix of components which must comply with national regulations. Since the announcement of the closure of the National Grid LNG Plant in Avonmouth in 2018, we ve been developing an enduring solution to maintain energy supplies for the mainland SIUs. All alternative supply options have been evaluated in terms of cost and ability to meet the timescale and an alternative LNG is the only solution which will meet the timeline to ensure continuity of supply. However in late 2014 National Grid announced the intention to close the Avonmouth plant two years earlier in April 2016 which means that we have sought an exemption to Gas Safety Management Regulations from the Health and Safety Executive (HSE) during the period until nitrogen ballasting plants are built. been engaging with the HSE, DECC and Ofgem on these issues as we continue to pursue a formal exemption to these regulations which will allow us to use alternative sources of gas from LNG terminals and ensure continuity of supply for customers in these areas.

9 09 SGN Stakeholder engaement: Working to grow ideas together Keeping the gas flowing cont. Put greater emphasis on reducing theft of gas, shipperless and unregistered sites which impact the overall cost of energy bills When a new site is connected to the network whether by the gas distribution network (GDN) or utility infrastructure provider (UIP) it should be registered by a shipper, on behalf of a supplier, before any gas is taken. Sometimes a site can be physically connected to the gas network and a meter is fitted, meaning that gas is flowing, or is capable of flowing, but it is unregistered. This means these sites are not paying for the gas they use and costs are likely to be spread across customers who have sites that are registered with a shipper. Since 2013 we ve been working tirelessly with other GDNs to redress this situation on behalf of the energy industry. By ensuring that customers are paying for the gas they are using they are less likely to be wasteful reducing the impact on our environment. If sites are fully registered this also means that the customer has regular visits to check for safety. Test the use of new gas sources and reduce the need for expensive processing We ve been carrying out an innovative project in Oban funded by our regulator Ofgem which, if successful, could lead to more secure, affordable gas supplies for everyone in GB. The gas we use in GB is made up of a mix of components which must comply with national regulations. These days our gas comes from places other than the North Sea and the gas has to be processed to change its composition to meet our national regulations which is expensive. Other sources are perfectly safe and are already used successfully in some other European countries. The project involves visiting every gas customer in Oban to test three different mixtures of bottled Liquified Natural Gas (LNG) on their appliances.

10 10 SGN Stakeholder engaement: Working to grow ideas together Safe and efficient streetworks We re committed to upgrading our network to ensure gas is a sustainable and green energy source for many years to come. We re using the latest technology to minimise disruption as we replace, renew and maintain our pipes. By improving the gas network, we will continue to keep homes and businesses safe and warm long into the future. Our stakeholders want us to speed up repair work and reduce traffic disruption, co-ordinating with other utilities to minimise disruption for the travelling public. Share planned work programmes and co-ordinate work with other utilities Adopted an eight year model for planning projects across our network and continue to liaise with local authorities prior to and during our construction works with particular focus on major or complex works. The way we plan and carry out our works has a direct effect on the public, and road users. We want to demonstrate that we care about the communities that we operate in and that we have robust planning processes in place to reduce the impact of our street work activities. This helps us to reduce the inconvenience to our stakeholders by enabling us to identify areas of conflict and opportunities to co-ordinate on planned and potential projects. We do this through Roads Authorities and Utilities Committee meetings and regular meetings with local authorities to ensure we dovetail with the local authorities own road resurfacing programmes. We also collaborate with other utilities and highway authorities through registering our works on the Scottish Roadworks Register, a system for all utilities set up by the Scottish Roadworks Commissioner. This collaboration has led to works either being postponed or brought forward to co-ordinate with other activities taking place. Collaborate with National Grid and other utilities in London initiated a joint working group for London with National Grid, the operator of the North London network to share best practice.

11 11 SGN Stakeholder engaement: Working to grow ideas together Safe and efficient streetworks cont. Speed up repair work and reduce traffic disruption Used a number of innovative techniques to reduce disruption. For example, CISBOT is a robotic technology that offers a step change in the methods used to repair and prolong the life of the ageing cast iron network. We carried out an assessment of available technology and identified ULC Robotics as the best placed partner to develop the technology further following its utilisation of robotic technology in the US on 16, 20 and 24 cast iron mains. ULC has developed a cast iron joint sealing robot known as Large CISBOT. This advanced robotic technology can repair cast iron pipe by internally injecting all of the joints in a given area with an anaerobic sealant. This operation is performed live through one small excavation, from the rear of a single box truck, greatly reducing inconvenience to the public, and decreasing the amount of excavation required by other joint replacement methods. This also provides potentially significant cost savings by decreasing the expenditure necessary for taking the main out of service, multiple excavations, restoration and permitting required for these activities. Share best practice and innovative techniques Through the Gas Innovation Governance Group (GIGG) which SGN has chaired since January 2015, we share innovation ideas and best practice across all the GDNs often working on projects collaboratively. Through the group members work closely to explore what technological, operational and commercial projects best suit the needs of the gas networks to provide ultimately a better service for our customers.

12 12 SGN Stakeholder engaement: Working to grow ideas together Future of gas Our stakeholders want us to continue to invest in alternative, greener, cleaner energy sources and integrate into our existing network. Continue to invest in alternative, greener, cleaner energy sources and integrate into our existing network connected six sites supplying 46,700 customers homes this year. Work with wider industry to create a future proof workforce We realise that our business is always changing and developing to meet new challenges and have put succession plans in place to meet these changing needs and identify skills gaps. We chair the Gas Network Skills Forum, a collaborative group with EU Skills and other GDNs. As well as new trainees we have a programme in place to re-train front line engineers on different types of activities to allow greater flexibility. Continue with our apprenticeship and graduate schemes We currently have 147 trainees on our apprenticeship programme. In addition we have 24 new graduates and trainees. Minimise the impact of the smart meter roll-out on our customers, particularly the most vulnerable engaged with suppliers to support roll-out plans on smart metering. Engaged with DECC on our responsibilities as GDNs.

13 13 SGN Stakeholder engaement: Working to grow ideas together Acting responsibly Build partnerships with local community and parish councils, charity organisations and suppliers to identify vulnerable customers and better meet their needs We ve been building on our relationships with a number of organisations supporting vulnerable customers including Royal Voluntary Service (RVS), Age UK London, Macmillan Cancer Care Support and the Blue Lamp Trust. We re also proud to have joined Age Action Alliance. Engage with local authorities, gas suppliers, independent gas transporters (igt) and gas distribution networks to agree how to reach the right people to tackle fuel poverty We continue to deliver projects with local authorities. We ve provided support through our Help to Heat scheme for vulnerable customers living in an igt network area. We re identifying initiatives with other GDNs to tackle the issue of fuel poverty collaboratively including innovative projects to support off-gas grid households. Review our fuel poverty strategy to include district heating, park homes Held two Help to Heat seminars with key stakeholders to review and inform our fuel poverty strategy. Providing support for district heating schemes and park homes is a key deliverable of our Help to Heat strategy. Lobby Ofgem and DECC to ensure funding for the most vulnerable The fuel poor network extension scheme is currently under regulatory review. In our response we have urged Ofgem to ensure the criteria targets the worst affected fuel poor households. We anticipate a final outcome on the consultation by mid-2015.

14 14 SGN Stakeholder engaement: Working to grow ideas together Acting responsibly cont. More collaborative work with other GDNs on raising awareness of the dangers of CO. Focus on how to measure behavioural change We ve co-sponsored a home safety comic book with the other GDNs teaching children about home safety and CO. We also jointly sponsored the IGEM CO Conference Knowledge is Power which brought together a large group of experts in this field. Target groups most at risk from CO poisoning Students living away from home in rented accommodation are often identified as a group most at-risk. We targeted student fresher s weeks at Reading University and Strathclyde University to raise awareness of CO poisoning. Develop a community action strategy aligned to our core skills committed through our community strategy to maximise our effect on the local communities affected by our works by volunteering through our Community Action Programme understanding community needs and, lending our skills to build practical community interaction opportunities and support. Engage with our employees and nurture talent Engaged employees go beyond their basic job role, driving our business forward and delighting customers. Our Employee Engagement Survey shows we have an Employee Engagement level of 83%.

15 15 SGN Stakeholder engaement: Working to grow ideas together Contact us If you d like to be part of the conversation to ensure your views count or if you have any questions on our stakeholder engagement activities please get in lets.chat@sgn.co.uk w Find out more sgn.co.uk Phone Write to us Margaret Hunter, SGN, Axis House 5 Lonehead Drive Newbridge, EH28 8TG Smell gas?

16 16 SGN Stakeholder engaement: Working to grow ideas together

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