A Robust Grid for 21st Century Scotland - Scottish Affairs Committee Contents


2  The robustness of the grid

12. The storms in December 2011 and January 2012 were unusually severe, with the Met Office making comparisons to the exceptional storm of 1998.[7] It was therefore to be expected that damage to the electricity network would occur and that some consumers would experience interruptions to their supplies. However, the extent of such damage and distribution would have been minimised if the grid had been in a robust and well maintained state before the onset of any severe weather event.

13. On the current state of the electricity grid in Scotland, Scottish Renewables told us:

The condition and technological state of Scotland's electricity network is generally good, with the more central aspects of the system being very robust. However, there are aspects that could be better, and this could be attained by increased investment in grid infrastructure.[8]

14. Both Scottish Power and SSE assured us that they had been investing in the grid, and that this had resulted in an improved service to their customers. One manifestation of this improved service, they told us, was the resilience of the grid under severe weather conditions:

[ScottishPower] gave some charts to try and compare the '98 event, which was a similar scale of weather as far as the Met Office was concerned. [...] On the level of faults, and on the response time and the customers affected—on all those measures, they have improved against the '98 measures. That was through investment, through network automation, through putting other specifications in, and also through increased specifications around the clearance of trees where we think some of the worst weather appears.[9]

SSE added:

One of the things [SSE is] seeing, with the level of investment that we are putting in, is that wind speeds are having to be higher before we start seeing the excessive damage. The other thing that we are seeing is that we cleared these events up much quicker than we ever did.[10]

15. Written evidence from Ofgem seemed to support this picture of an improving standard of service. Their statistics showed that, on two key measures of quality of service, Scotland's distribution network operators had improved over the last decade.

Table 2. Performance With and Without Storms (April 2002 to March 2011)[11]
DNO Without Storms Including Storms
GB22% reduction in power cuts

17% reduction in duration

21%  reduction in power cuts

16 %  reduction in duration

SP Distribution (Scottish Power) 25% reduction in power cuts

23% reduction in duration

29%  reduction in power cuts

28%  reduction in duration

Scottish Hydro Electric Power Distribution (SSE) 29% reduction in power cuts

25% reduction in duration

23%  reduction in power cuts

7%  reduction in duration

Source: Ofgem

16. However, that picture was in stark contrast to the experience of customers, particularly residents and organisations on the West Coast and the Islands. Alastair Redman told us:

Over the last 18 months, after many years of good electricity supply, the area was subject to many power cuts and power surges. These ranged from many small multiple cuts in a day to very lengthy ones lasting over 24 hours, [...] a significant number of these cuts were not weather related.[12]

He went on:

[SSE] stopped maintaining the lines back in 1998 to save money. The thing that is annoying is that the front-line workers, although I could not name them, will tell you that they are reactionary things. If it breaks they will fix it, but since 1998 they have not maintained it. Surprise, surprise, the chickens are coming home to roost. Year on year it has got consecutively worse. Try running a car for 15 years without maintenance; of course it is going to break down all the time. It is the exact same analogy and it is not acceptable.[13]

17. We also heard from residents of many communities, including Loch Fyne at Newton, Clachan, the Rosneath Peninsula and Salsburgh and Shotts, who described a poor and declining quality of electricity supply.

18. In the case of Islay, which was probably the worst case we heard about, SSE conceded that "that the fault performance over the last 18 months [...] was not acceptable" and said they were "disappointed about what our customers on Islay suffered and sincerely apologise for that".[14] Having previously delayed promised investments to the infrastructure supplying electricity to Islay, SSE assured us that by late summer 2012, "Islay would have benefited from four major projects which in total have cost in the region of £11 million".[15]

19. We regard SSE's recent performance on Islay as unacceptable. We are, however, pleased that, after a sustained period of poor service, SSE is now providing the necessary investment in Islay's electricity infrastructure. SSE should keep us informed of its progress in completing the four major investment projects it has planned.

Monitoring at a finer level

20. As noted above, one of the most striking features of the evidence taken by the Committee was the discrepancy between the generally good and improving quality of service reported by the TNOs and DNOs and the perception of their customers in particular locations that the service was in fact substandard and declining.[16]

21. Ofgem monitors the performance of TNOs and DNOs and, while noting that SSE had missed its target for the number of supply interruptions in 2010-11, did not contradict the assertions made by SSE and Scottish Power on their overall performance. However, Ofgem only monitors the performance of DNOs at the regional level (Scotland being split into two regions, with SSE serving one and Scottish Power serving the other).[17] There is therefore a risk that a generally good standard of service across a region could mask small pockets of particularly poor performance. Indeed, in the case of Islay, where both the DNO and the community were in agreement that the service had fallen well short of what should be expected, Ofgem was apparently completely unaware of any problem:

Chair: To give an example, we heard Scottish and Southern apologising earlier for failings on Islay. Was the state of that network ever reported to you?

Rachel Fletcher: No, to my knowledge we had not received any concerns or complaints from customers on that part of the network until just after the storms.[18]

22. The current system of regulation failed Islay. Monitoring and publicising performance at a sub-regional level might go some way to closing the gap between the reported performance of networks operators and the experience of some of their customers. The current disparity only serves to create confusion and mistrust.

23. We recommend that Ofgem monitor and regulate network performance on a more detailed geographic scale, particularly for areas which are known to have experienced poor service or are exempt from some of the usual performance safeguards such as the Guaranteed Service Standards. These performance measures should as far as possible be made available to the public in an easily accessible and understandable form.

24. We are pleased that, following their evidence to us, Ofgem has already agreed to 'explore' if it is possible for DNOs to provide a more detailed sub-regional picture of network performance levels. We hope that it will confirm progress on this in response to our recommendation.

Reinforcement

25. On the subject of strengthening network resilience, Jeremy Sainsbury, Chairman of Scottish Renewables told us:

Renewables are usually located in areas that are away from population, whereas the normal central grid has been built and developed over a very centralised network around population, which means that the investment that is being done for renewables should assist the grid in being a firmer and better supply for consumers in the future as a result of that renewable investment.

26. Rachel Fletcher, Acting Senior Partner of Ofgem said:

I have seen a scheme in Wales where transmission reinforcement and extension are actually being used to improve the quality of supply to distribution-connected customers. So there certainly is scope for that to happen, where the distribution companies and the transmission companies actually put their heads together and take a joined-up approach.

27. The increased generation of renewable energy at sea, on islands and in remote parts of the mainland will mean more transmission lines in these areas. Currently, many of these areas are served only by a single and vulnerable electricity line. Islay, for example, is reliant on a 123km overhead line which is susceptible to interruptions. These interruptions could be considerably reduced if the electricity generated in the seas around Islay could be distributed to customers on the Island. A subsea transmission line has been proposed to run from Kintyre peninsula to Hunterston in Ayrshire, running close to the Isle of Bute. If a distribution line to serve Bute could be linked to this transmission line, then there would be no need to supply Bute from the existing long overhead lines.

28. Ofgem should report to the Committee of how well transmission and distribution network operators are working together to ensure that when new transmission lines are constructed, distribution lines are linked at points to bypass the existing vulnerable lines to take electricity to the communities which suffered the most during recent storms. It should also advise the Committee on what steps it is taking to strengthen cooperation in this area.


7   Q 104 Back

8   Ev 59 Back

9   Q 105 [Scottish Power] Back

10   Q 104 [SSE] Back

11   Ev 78 Back

12   Ev 40 Back

13   Q 14 Back

14   Q 112 Back

15   Ev 88 Back

16   Ev 40, 46, 47, 80, 83 Back

17   Q 221,222 Back

18   Q 231 Back


 
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© Parliamentary copyright 2012
Prepared 27 August 2012