Permit Schemes a Utility Perspective Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Paul Gerrard Street Works Manager, National Grid
National Grid An international gas and electricity company We play a vital role in delivering gas and electricity to millions of people safely, reliably and efficiently Based in the UK and northeastern US One of the world s largest investor-owned utilities Approximately 19 million industrial, commercial and domestic customers served by 28,000 employees UK Gas Distribution Our gas distribution business comprises four of the eight regional gas distribution networks in Great Britain We own and operates Britain s largest distribution business Deliver gas to almost 11 million homes and businesses Gas Distribution UK operating area
Scale of our operations 132,000 kilometres of pipelines 26 active gas shippers 10.8 million consumers operate 24 hours a day, 7 days a week 400 million running the gas emergency service 2000km mains replacement/reinforcement maintain gas distribution above ground assets over 3 million calls per year meter number enquiry service appliance repair helpline enquiries line national gas emergency number (0800 111 999) 616,000 metering jobs replace complex gas mains 533,000 emergency jobs 24,000 connections jobs 70,000 repair jobs (7000 caused by 3 rd parties)
Permit schemes: Geographical Impact St Helens (2011/12) GMRAPS (2012/13) Sheffield (2012/13) Notts / Shires (2012/13) West Midlands (2012/13) East Anglia (2012/13) Northants (Jan 2011) LoPS 1, 2 & 3 c.100 HA / LA in NGG Dx footprint (Jan 10 Apr 12)
Elements of a Permit Scheme Utility Pre go-live work User Group Meetings Budget Allocation Consultation Impact Analysis Permit Scheme Training Model Office Testing System Upgrade
Challenges for Utilities Different types of Scheme Single Common Joint Different street area covered in the Scheme s T/S Only All Streets Different Conditions for each Scheme Different Interpretation of the Schemes between Utilities and Authorities Different fees for each Scheme and Authorities
Permit Schemes Non Standard packages Scheme Name Scheme Type All Roads? Consistent Charges? Consistent Conditions? Central Admin Hub? London Permit Scheme Common Northampton Permit Scheme Single Greater Manchester Road Activities Permit Scheme Joint Merseyside Authorities Permit Scheme Common Yorkshire Common Permit Scheme Common East of England Permit Scheme Common
Consultation Process Proposed Devolution of Power Highway Authority Utility
Impacts Of Permit Schemes Extra Admin FTE s Greater FPN Costs Higher Training Costs System Upgrades 50K Per Highway Authority Visible Costs Inconsistent Fees Inconsistent Interpretation Cost of Scheme Implementation Loss of Productivity
Metres of pipe laid per man per week Permit Schemes: Loss of productivity 35 31 31 33 Central London productivity on mains replacement has reduced by 38% since the introduction of the Permit Scheme in the LA s which have implemented LoPS. 30 25 22 21 21 20 16 15 10 12 10 5 0 East Anglia Authorities Outer London Authorites Central London Permit Scheme Hammersmith & Fulham Pre Permitry (Apr 09 - Dec 09) Permitry Admin (Jan 10 - Mar 10) Full permitry (Apr 10 - Jul 10) Kensington & Chelsea Islington Hackney Westminster Camden
Permit Schemes: Longer work duration Inefficient Permit Conditions 200m 100m (Insertion) 11 push Permit / Notice (No Conditions) Total job duration: x days 100m (Insertion) 50m Restriction Permit / Notice (Conditions) Total job duration: x+y days Additional material and backfill costs
Impact on consumers Objectives of Permits Reduce congestion Better coordination More control for HA Impact on Utilities Increase in administration More restrictions on work Increase in charges Loss of productivity Longer work duration Are these objectives being met? Increases in gas bills for all consumers The impacts of PERMITS could introduce significant additional costs to customers
Utility Overview No Clear Benefits Identified No Congestion Reduction Proven No Review Process Large Administrative Burden Existing Legislation Sufficient Self Empowerment on New Schemes Cost may be passed on to consumer
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