Powering the region. Our business plan Our plan in brief. March 2014

Transcription

1 Powering the region Our business plan Our plan in brief March 2014

2 Our plan in brief: Welcome Welcome Who we are and what we do Northern Powergrid runs the only major electricity distribution network that provides power to customers in the Northeast, Yorkshire and northern Lincolnshire. We move electricity to and from homes and businesses over our network. We don t sell electricity, neither do we operate power stations. We operate a network of more than 61,000 substations and around 91,000 kilometres of overhead power lines and underground cables that takes electricity from National Grid s transmission network and from smaller generators and delivers it to the 3.9 million homes and businesses throughout the region. Keeping that network running safely, reliably and efficiently is our business. We are open for business every hour of every day of the year no matter what the circumstances. As a customer, you pay an energy supplier for the electricity that you use. Your bill includes an amount that we charge suppliers for using our network to deliver your power. This covers the cost of running, maintaining and investing in our network. We operate as one company but we are regulated by the energy regulator, Ofgem, as two licensed businesses: Northern Powergrid (Northeast) Ltd and Northern Powergrid (Yorkshire) plc. Our region Where we fit in the electricity industry 1

3 Our plan in brief: Welcome Our plan presents customers with the best possible deal: better services at a lower price. We are planning to do more for less and we will achieve this through efficiency, innovation and long-term commitment that supports the vital service we provide. Phil Jones, Chief Executive Introducing our business plan Thank you for taking the time to look at our plan, which explains the commitments we make for the next regulatory period, covering 2015 to 2023 and known as ED1 by our regulator. We have listened to a very wide range of views as we put this plan together and I believe the result is a wellbalanced set of proposals that offer excellent value. Our regulator, Ofgem, gave us clear feedback on our June 2013 plan: it endorsed all of the outputs we had proposed and singled out a number of aspects of our plan as being the best in the industry. However, it also decided that there were some elements of our cost projections that needed to be supported by more detailed justification. As a result of all that, this March 2014 plan is even stronger. We have created a range of documents that describe our plan this one provides a very brief overview. All the supporting information is available on our website at Compared with previous price control periods, our plan offers customers more for less. We know that we have a special responsibility in providing such an essential service to make sure that we do it as safely, reliably and efficiently as possible. From 2015, we will see prices come down, yet investment in our region s electricity infrastructure will continue over 3bn will be injected into the regional economy between 2015 and Some of the highlights of the plan are: improved performance in all output areas, particularly shorter power cuts and faster connection times; many commitments that exceed the standards set by our regulator; an immediate 10% price reduction; lower like-for-like costs that build on an already strong comparative efficiency position; innovation, particularly in the areas of smarter grids and smart meters, web services and our contribution to the affordability challenge; we take on the risks that we are best placed to manage, with no extra uncertainty protections added to the ones already provided by our regulator; and the opportunity for around 1,000 people to make a career with a growing company that provides an essential service to our part of the north of England. I am proud to lead an organisation that is innovating, improving its service to its customers and doing all this with a lower underlying cost base. We have had great feedback from stakeholders as we have explained our proposals and we will continue to value the links we have made with people and groups who have, on behalf of our customers, a strong vested interest in our plan s success. We have enjoyed putting this plan together and we would relish the opportunity to deliver more for customers as soon as we get the go-ahead from our regulator. Phil Jones, Chief Executive 2

4 Our plan in brief: What you say What you say You said: We will: Keep costs down Invest over 3bn in the regional economy whilst reducing like-for-like costs by 3.1% to keep downward pressure on a cost base that already ranks as industry-leading Make some targeted cost increases to support improved services, more than offset by the other reductions Run a safe operation Retain safety as our number one priority. We aim to reduce accident rates by 50%, building on an industryleading performance Improve flood defences Reduce the number and duration of power cuts Improve the level of customer satisfaction Enable the transition to low carbon technologies Improve the deal for connections customers Provide transparent and predictable charges Invest in the workforce Support vulnerable customers Continue to support our people with the best equipment, training and management techniques to keep them and the public safe Invest over 41m to construct more than 130 new flood defences in an extension to the programme that has already seen 23m invested in our high-risk sites Bring forward our flood defence work to complete it by 2019, in recognition of the importance our stakeholders have attached to this issue Reduce the average length of power cuts by 20% by 2023 by relocating our delivery capability closer to our urban centres Reduce the number of power cuts by 8% by 2023 by investing in technology to improve reliability and network control capability Guarantee power restoration in 12 hours and make an enhanced payment of 100 if we fail Make all aspects of customer service more reliable, better communicated, and backed by slicker processes, so we get things done faster, but at no extra cost Give customers more options so they can choose how they want to stay in touch and transact with us: internet, mobile technology, on-site meetings, telephone, , social media, or text Use our experience of putting together this business plan to sustain stronger, more open relationships with all our stakeholders Invest 139m in preparations for a smarter powergrid, reinforcing the network to allow new technologies to thrive and paving the way for more widespread consumer take-up of low carbon applications Support the roll-out of smart meters and use the data they generate to improve and automate more of our services Reduce connection lead-times from enquiry to delivery by more than 30% Introduce online self-service for straightforward connections work Provide account management support for complex connections work Publish our prices further in advance to give energy supply companies greater certainty and reduce the risk they pass to consumers Recruit around 1,000 new starters by 2023 Boost our support for vulnerable customers, with help from external agencies Work with communities and agencies to make vulnerable customers aware of low-cost energy solutions Double our power cut performance guarantee payments to vulnerable customers 3

5 Our plan in brief: What you say Our four-stage stakeholder engagement process reached 85,000 people and gathered views from 4,800 of them, representing a wide range of interests and specialisms. We built our plan around this input and have confirmed that stakeholders approve of the proposals we have made and the price we ve arrived at. Tom Fielden, Finance Director We are proposing an immediate price cut of about 10% (in real terms) followed by flat prices for the rest of the eight-year price control period. We plan to reduce costs by 3.1% on a like-for-like basis whilst still delivering enhanced outputs. We will deliver improvements across the board. We plan to invest over 3bn in our region s economy and infrastructure between 2015 and The chart below shows that electricity distribution accounts for 16% or 85 per year of a typical average household bill of 531. The composition of our proposed charges to customers, compared with charges in Wholesale energy supply costs and profit margin Distribution charges Transmission charges VAT Environmental charges Other costs Source: Ofgem factsheet 98 issued 16 January Average domestiic bill Growth in recent investment Low-carbon technologies Smart metering Proportiionate treatment reward Lower like-for-like costs Remove any DPCR5 adjustments Extend asset lives to 45 years Reductiion in the cost of debt from 3.6% to 2.72% Reductiion in corporatiion tax rate Reductiion in pension defiicit Average domestiic bill

6 Our plan in brief: Reliability Reliability Keeping the lights on fewer and shorter power cuts for our customers Our reliability and availability proposition for % reduction in the average length of unplanned power cuts by % fewer unplanned power cuts by 2023 Maintain the underlying health of the asset base and report on it annually Ensure adequate electrical capacity for customers wanting to connect Increase the resilience of the network to surface water flooding Guaranteed restoration of supply within 12 hours If we fail we will make enhanced compensation payments with further enhancement for customers who are vulnerable in power cut situations Payments to be made automatically from 2015, whenever we know of a failure, to save customers having to claim them Planned work will leave customers without power for less time, particularly during the winter months Smart meter alarm information to be used as soon as it becomes available to improve network performance and the information we provide to customers Targeted improvements in areas of localised underperformance to improve reliability for worst-served customers Measuring success Unplanned customer interruptions (CI) 1 Yorkshire 60 CI by 2023 Northeast 58 CI by 2023 Unplanned customer minutes lost (CML) 1 Yorkshire 51 mins by 2023 Northeast 47 mins by 2023 Key money-back guarantees Power cuts Power restored 12 hours Check service fuse 3 hours Maximum number of 3 p.a. power cuts over 3 hours Customer minutes lost (CML) measures the average time that a customer is without power in a year; and customer interruptions (CI) is a measure of the average number of power cuts.

7 Our plan in brief: Reliability Our stakeholders made it clear that improved reliability is a high priority for them, but not so high that they would support the major increases in investment that would be required to deliver a step change in performance. We plan to reduce the duration of power cuts by 20% and will restore supplies within 12 hours or pay compensation if we don t. Mark Drye, Director of Asset Management What we will do invest in the replacement, reinforcement and refurbishment of ageing network assets. This will deliver capacity to match 0.5% peak demand growth (while maintaining the option to cater for slower than expected load growth if it arises); invest in equipment that allows us to control the network remotely and automatically. This will enable us to quickly reconfigure the network following a fault and ensure long-run efficient outcomes by adopting assetlight solutions, where replacement is carried out only when appropriate; improve our property portfolio to locate our technicians closer to likely areas of fault; install new IT systems that will allow us to dispatch our staff to faults more quickly, and improve the processes for identifying fault locations (e.g. using helicopters); deliver a more resilient network, by: improving the health of 300,000 substation assets and 9,300km of circuit; accelerating investment in more than 130 flood defences to the first half of the plan period; and make more use of generators and round-the-clock working. Our stakeholders said Do you agree with our proposals? Yes Don t know No 79% 18% 3% What it will cost spend 227.1m p.a. Share of our costs 55.2% Domestic charge Business charge p.a p.a. 6

8 Our plan in brief: Safety Safety Running a safe operation be a leading safety performer Our safety proposition for Measuring success Be a leading safety performer in our industry, aiming to reduce accident rates by 50% Meet or beat all legislative requirements Increase awareness in our communities of the dangers associated with electricity if it is not handled properly Recordable incident rates: OSHA by 2023 RIDDOR 3 <0.10 from 2015 Take prompt action on any network safety issues that the smart meter roll-out reveals Continue to work to reduce the impact of metal theft, including making improvements in substation security Keep safety as a central driver of investment decisions and appraisals What we will do equip our employees with the highest standard of safety equipment available; improve safety reporting for our staff and service providers using mobile technology; enhance security at sites where there is a vulnerability to metal theft; execute, review and improve our plan for health and safety improvement; deliver our excellent record of compliance with health and safety legislation; deliver our programme of safety education, particularly in schools, with a targeted audience of 40,000 children each year; and build on our current constructive and positive relationship with the HSE. 2 OSHA stands for Occupational Safety and Health Administration, the safety regulator in the USA. 3 RIDDOR stands for Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995, the standard UK protocol for reporting safety performance. 7

9 Our plan in brief: Safety We are proud to be a leading safety performer and we intend to continue to make further significant improvements, including mitigating increased safety risks such as metal theft and the roll-out of smart meters. Geoff Earl, Head of Safety, Health & Environment Our stakeholders said Do you agree with our proposals? Yes Don t know No 85% 13% 2% What it will cost spend 9.9m p.a. Share of our costs 2.4% Domestic charge Business charge 0.80 p.a p.a. 8

10 Our plan in brief: Environment Environment Protecting the environment keep reducing our direct impact Our environmental protection proposition for Narrow environmental impacts Replace 134km of fluid-filled cables and use perfluorocarbon tracers (PCTs) to identify oil leaks this will reduce oil lost to the ground by 15% Reducing electrical losses will be explicitly factored into investment decisions for a wider range of assets than today Reduce our business carbon footprint by 10% Faster and higher-quality reinstatement of surfaces when we dig up the street Continue to operate our full revenue protection service Minimise sulphur hexafluoride (SF 6 ) losses Broad environmental impacts Facilitate the low carbon economy and the roll-out of smart meters Around 100km of undergrounding in protected landscapes Measuring success Carbon reduction & energy efficiency: Carbon 53,730 by 2023 footprint tonnes Streetworks reinstatement: Quality standard >90% by 2015 Leakage: Oil lost to <47,000 by 2023 the ground litres p.a. SF 6 lost 112kg p.a. by 2023 to atmosphere 9

11 Our plan in brief: Environment Our impact on the environment will also be kept to a minimum and the Environment Agency has endorsed our approach to environmental management. Geoff Earl, Head of Safety, Health & Environment What we will do replace 134km of fluid-filled cables with solid cables at a cost of approximately 65m; invest 15m to place 100km of overhead line underground in protected landscapes; establish methods to obtain more accurate data on electrical losses; include more detailed engineering plans in our standards and design work to identify options to reduce electrical losses, and factor the level of electrical losses into our procurement decisions; complete 36 projects at a cost of 1.2m to reduce or eliminate noise from our equipment; reinstate the surfaces we disturb (including roads) faster and to a better standard; reduce our carbon footprint by improving our building energyconsumption management systems, and upgrade our transport fleet with modern fuel-efficient vehicles; and operate a 24-hour fast-response service to support the police with technical assistance in cases of electricity theft. Our stakeholders said Do you agree with our proposals? Yes Don t know No 81% 14% 5% What it will cost spend 10.2m p.a. Share of our costs 2.5% Domestic charge 0.83 p.a. Business charge p.a. 10

12 Our plan in brief: Customer satisfaction Customer satisfaction Improving every service more information, more easily accessed and more choice Our customer service proposition for All aspects of customer service will become more reliable, better communicated and backed by slicker processes, so we get things done faster, but at no extra cost Customers experiencing power cuts will receive better information through voice or digital communication channels Connections customers will experience an improved service that is tailored to suit their needs We will use web-based technology to upgrade our process for general enquiries and minor engineering works We will continue to improve the quality and speed of our complaint resolution We will use our experience of putting together this business plan to sustain stronger, more open relationships with all our stakeholders Customers will be given more options so they can choose how they want to stay in touch and transact with us: internet, mobile technology, on-site meetings, telephone, , social media, or text Our use of technology will enable our contact centre to move from being largely reactive to mostly proactive, potentially making around 10 million proactive customer contacts a year by 2023 a tenfold increase on today Measuring success Customer satisfaction: BMCS score >85% by 2018 Resolving complaints: within 1 day 80% from 2015 within 31 days 95% from 2015 at first contact 95% from 2015 Key money-back guarantees Timely service: Notification of outages 2 days Appointment time bands 2 hours 11

13 Our plan in brief: Customer satisfaction We will improve every customer service we provide. Each service will be more reliable and better communicated, and our processes improved so we get things done faster for you. We will do all this whilst reducing the overall amount that we spend on running the business and holding our cost overheads flat. John Barnett, Commercial Director What we will do direct our efforts towards the areas where our customers tell us we were weakest; continue with our substantial programme of modernisation and redesign of all of the customerfacing aspects of our business; significantly expand the quality of data available to customers; make much more use of webbased and social-media channels to improve communication; complete a major IT and communications technology upgrade; remodel business processes to deliver innovative services, such as web-based connections services and improved communications when there is a power cut; and develop a customer-focused culture whereby staff throughout our organisation know they are mutually responsible for customer satisfaction. Our stakeholders said Do you agree with our proposals? Yes Don t know No 82% 14% 4% What it will cost spend 9.0m p.a. Share of our costs 2.2% Domestic charge Business charge 0.73 p.a p.a. 12

14 Our plan in brief: Social obligations Social obligations Supporting the wider agenda innovations will benefit those who need help the most Our social obligations proposition for Engage more closely with our stakeholders and share more information More frequent engagement with expert groups, local authorities, health services, and non-governmental organisations at a higher level of detail Work with our expert panel to develop a care-quality survey and publish the results Share more information to identify vulnerable customers Promote other organisations support services to the 350,000 customers on our Priority Services Register and create effective referral networks Communicate more effectively with our vulnerable customers Enhanced training for all front-line staff about the different types of vulnerability and what they can do to help Routing calls from Priority Services Register customers directly to an agent, bypassing automated messaging Provide more information before power cuts and better support during them Enhanced compensation of 200 for vulnerable customers if we fail the routine power cut guarantees More customer support vehicles and more services in them In conjunction with local authorities, identify socially-deprived areas so we can prioritise our support during a power cut Introduce a friends and family power cut support service and a good neighbour scheme to encourage people to identify potentially vulnerable people in their neighbourhood Apply our expertise to help make communities more energy efficient Explore the possibility, with Northern Gas Networks, of upgrading electrical connections in high-rise tower blocks that need to have their gas facilities removed for safety reasons With energy suppliers and local authorities, explore the feasibility of allowing communities to aggregate demand response in return for a community rebate Explore solutions to connect rural communities to our network What we will do We plan to meet our social objectives by: increasing our awareness of vulnerable customers who are affected by power cuts, prioritising our response and providing additional help to those who need it; enhancing processes and training to help our team identify vulnerability and understand how to offer support; working with local authorities to introduce services that recognise that socially deprived neighbourhoods need extra support during a power cut. For example we will deploy more customer care vehicles during power cuts; working with local communities and organisations to develop connections providing low-cost energy solutions; providing internet information and links that will help customers become more energy efficient; introducing new techniques to communicate effectively with the hard of hearing; and raising awareness of the services and benefits available to vulnerable customers. 13

15 Our plan in brief: Social obligations We will change our approach to recognise that we can all be vulnerable at times. We will make more use of our knowledge, local presence and engagement with the relevant agencies to help the vulnerable and the fuel poor. John Barnett, Commercial Director Our stakeholders said Do you agree with our proposals? Yes Don t know No 82% 14% 4% What it will cost spend 0.9m p.a. Share of our costs 0.2% Domestic charge Business charge 0.08 p.a p.a. 14

16 Our plan in brief: Connections Connections Tailoring our service a faster service with more choice Our connections proposition for Measuring success Reduce connection lead-times from enquiry to delivery by more than 30% More flexible quotations Online self-service quotations with price discounts for taking that option Those who don t want to use the internet can still call to get a quotation and be guided through the system Faster quotation times for small-to-medium jobs (down from 15 days to less than one day) and publication of our quotation times on our website Longer validity of quotations (from three to six months) Better payment terms customers will not need to pay as far in advance A more tailored service for customers with large projects, including an account management approach where needed or requested A web-based system for businesses to better understand the electrical capacity available on our network and the likely cost of connection Connection customer satisfaction: Quotations >85% from 2015 Delivery >85% from 2016 Total lead time 38 days by 2018 Average time to quote: Single connection 8 days from connections 11 days from 2014 Average time to connect: Single connection 42 days from connections 52 days from 2014 Better service for non-contestable elements of work we will regularly share performance measures with our customers and other stakeholders Build on the work we have done to facilitate competition and extend our service to independent providers in other parts of the market Key money-back guarantees Quotation: Small service connection Medium-sized connection Large, complex connection 5 days 35 days 65 days Delivery (planning a start date): Small service connection Medium-sized connection Large, complex connection 7 days 10 days 15 days Connect on time (for each day late): Small service connection 35 Medium-sized connection 200 Large, complex connection

17 Our plan in brief: Connections We will improve customer service without increasing overall costs. We will connect the majority of customers 30% faster by adapting our local operations and making better use of digital channels and technology to provide a more personal and tailored service. Mike Hammond, Head of Connections Services What we will do introduce online self-serve options for customers with straightforward needs, where they can get a quotation and order, transact and schedule the job in under an hour; reinvest savings from using digital channels in services that customers want and value most; organise operations on a more localised basis; introduce an improved connections quotation facility that allows customers to tear off and keep the price for any noncontestable services, so they can shop around for the contestable element; and publish a guide for those who wish to connect small-scale generation to our network. Our stakeholders said Do you agree with our proposals? Yes Don t know No 86% 10% 4% What it will cost spend 18.8m p.a. Share of our costs 4.6% Domestic charge Business charge 1.53 p.a p.a. 16

18 Our plan in brief: Sustainable networks Sustainable networks Our sustainable networks proposition for Towards a smarter powergrid 52m of smartgrid enhanced reinforcement that pays back within the period by avoiding 86m of traditional reinforcement a net saving of 34m compared with traditional reinforcement methods Use of new technology to allow greater capacity to be connected to the network without adding as many new cables or transformers as would traditionally be needed The opportunity for customers to participate in demand-side response services to reduce the cost of running the network What we will do use new, smarter solutions that reduce the need for more expensive reinforcement; train new recruits in low carbon technologies so we are ready to respond to increased demand; and invest in technology to lay the foundations of a future smartgrid. 83m of smartgrid enabling investment that, as a minimum, pays for itself in the period the more likely result will be a much larger saving, possibly as high as 400m 500m Enabling a successful transition to smart meters Establish a dedicated team of field staff to perform timely modifications to our equipment when they are needed to enable the meter installation to proceed Modify our trading and customer service systems to gain benefits from the new data 17

19 Our plan in brief: Sustainable networks We will play our part in the government s drive to reduce carbon emissions. We will provide up-front funding for any work needed to install domestic low carbon technologies (LCTs) and smart meters on existing connections to our network. We will also invest in appropriate enabling smart technology ahead of the more extensive take-up of LCTs forecast from Mark Drye, Director of Asset Management Our stakeholders said Do you agree with our proposals? Yes Don t know No 81% 15% 4% Without doubt, this has been the most challenging aspect of our plan. Delivering on our proposals within the costs we are projecting will require that we successfully bring forward innovations, some of which have not yet been proven. We will also have to be flexible to deal with the large uncertainties that exist about how much demand for low carbon technology we will see in the period and also in the periods that follow. What it will cost Smarter powergrid spend 17.4m p.a. Share of our costs 4.2% Domestic charge Business charge 1.42 p.a p.a. The potential costs and benefits of smartgrid enabling investment Total Smart metering spend 6.3m p.a. Share of our costs 1.5% Costs ( 83m) ( 4m) ( 87m) Early replacement of communications kit ( 45m) ( 45m) Extra monitoring & active management ( 38m) ( 4m) ( 42m) Benefits 447m 447m Domestic charge Business charge 0.51 p.a p.a. Avoided replacement of communications kit 47m 47m Smart solution savings 400m 400m Net (costs)/benefits ( 83m) 443m 360m 18

20 Our plan in brief: Our stakeholders said Our stakeholders said We are delighted by the amount of support that we have received from stakeholders both for the way we went about ensuring we had a proper engagement with you and for the content of the plan that we have now finalised. Phil Jones, Chief Executive Stakeholder endorsement of our proposals in June 2013 Output area Do you agree with our proposals? Yes Don t know No Safety 85% 13% 2% Cost of power supply 69% 28% 3% Reliability of power supply 79% 18% 3% Customer satisfaction 82% 14% 4% Environment 81% 14% 5% Social obligations 82% 14% 4% Future networks 81% 15% 4% Connections 86% 10% 4% Overall approval rating 81% Northern Powergrid has come forward with some very innovative ideas. I fully endorse the business plan. I think that over the coming years, as it is implemented, we will see some positive outcomes as well as some tangible deliverables that will be meaningful for people who are more vulnerable and for energy customers who will be struggling to keep warm every winter. Jenny Saunders OBE, Chief Executive, National Energy Action, Member of our expert panel on social issues I think Northern Powergrid s business plan will make a difference, particularly in terms of major events that happen for us I think the key account management that s proposed and the local relationship that s going to be put in place and the longer-term look at infrastructure will make quite a difference to the city of Leeds and we re looking forward to working with Northern Powergrid on that. Tom Riordan, Chief Executive, Leeds City Council The largest supplier of customers connected to our network had this to say We now feel that we have a deep and broad view of network development, and would like to commend Northern Powergrid in particular for the time that you have given us in general fora and more particularly in the extensive bilateral contact that we have had. The development of this dialogue over the past 4 months has been of great help to us in understanding what is a significant element of our customer costs and has satisfied us that you have taken steps to ensure that customer bills will be impacted in the smallest manner by developments within the RIIO-ED1 period We believe that Fast Track is beneficial to consumers for those DNOs (and only those DNOs) who have done the stakeholder groundwork and associated business planning. NPg appears to us to be foremost both for your attention to detail in your business planning process but also in your acknowledgement that the long-term impact on the end consumer is of paramount consideration throughout the RIIO-ED1 design and implementation period. Chris Harris, Regulation Director, npower 19

21 Our plan in brief: Our stakeholders said 20

22 Our plan in brief: Our stakeholders said I think that the quality of the consultation that you have undertaken, including its duration, has been strong and I have seen clear examples of where you have listened and made the relevant changes. This approach has been refreshing and establishing a process to challenge your traditional approach and encourage new and innovative ways to serve your customers is the right decision and I am happy to endorse the plan. I look forward to working with you in the future as you seek to implement all that you have set out. Lynne Mills, Director of Client Services, Institute of Customer Service, Chair of our customer service expert panel The commitment from Northern Powergrid to the process has been unwavering, and now as further evidenced by declaring their social obligations proposals in their Business Plans , which will soon be submitted to the regulator, Ofgem. I do hope people will read the business plans and that Northern Powergrid rightly get the recognition and credit which they deserve for their ambition, process, openness and creative approach. Derek Lickorish MBE, Chair, Fuel Poverty Advisory Group, Chair of our expert panel on social issues It has been useful to have had the opportunity to engage with Northern Powergrid on the technical aspects of its business plan. In particular the panel has looked closely at Northern Powergrid s innovation strategy and smartgrid development plans. I have been pleased to see the appetite for new approaches to running and managing the network. In particular, the commitment to incorporate solutions such as real-time thermal ratings and more sophisticated voltage control is a concrete sign of a more progressive approach. Also, the explicit recognition that these changes will have implications for the organisation in terms of the skills it needs and the way it will need to operate is very encouraging. Professor Phil Taylor, Director, Newcastle Institute for Research on Sustainability, Chair of our expert panel on technical issues I think the plan is good and better as a result of consultation. The two things that I really like about the plan are firstly the account management approach, because people say the whole of politics is local and your activity has really impacted on local people. The second issue which I m really pleased about is visibility of your forward investment programme because another thing that all councils in the North are really focused on is economic growth. The visibility of your investment plans going forward will help us dovetail the economic growth we are trying to achieve with your plan. John Mothersole, Chief Executive, Sheffield City Council and Chair of Local Government Yorkshire and Humber Chief Executives Group senior level. Over the course of the last 12 months Northern Powergrid has engaged with Newcastle upon Tyne City Council on a number of occasions at a I am pleased that they have stepped up their engagement and it is clear from our discussions that this is set to continue. From their plan and our discussions we can see that there are opportunities to apply our collective expertise to examine future energy solutions for Newcastle upon Tyne with a particular focus on sustainability, energy efficient solutions and affordability. Harvey Emms, Director of Housing, Planning and Transport, Newcastle City Council We are very encouraged that our opinion is being valued by Northern Powergrid and what we are encouraged about is what we ve asked for the things that you re looking at, web-based technology, better IT systems and all of those things help Northern Powergrid deliver a good service to us. We do enjoy working with you and collaborating with you in those areas. So, very positive and we enjoy the process. David Overman, Director, GTC I think Northern Powergrid are having a fair crack at making RIIO work for the customer, which in turn will make it work for them so it is potentially a win-win situation, and a lose situation if Northern Powergrid don t get it right. Robert Weaver, Director PowerCon (UK) Ltd 21

23 Our plan in brief: Our stakeholders said 22

24 Powering the region Contact us Website: or Contact Sharon Roper, Stakeholder Manager, on To view our online business plan visit: