network asset management as a contracted service provision based on paper tfs_openshaw_c1
DESCRIPTION
Network Asset Management as a Contracted Service Provision based on paper TFS_Openshaw_C1. 165,000 km network 14.6 GW demand 7.7m customers. b. LE Group UK Networks Branch. Asset Governance / Asset Management Model. LE Group Networks Branch. Power Networks Asset Governance. SPN. LPN. - PowerPoint PPT PresentationTRANSCRIPT
1Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
Network Asset Management as a Contracted Service Provision
based on paper TFS_Openshaw_C1
2Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
LE Group UK Networks Branch165,000 km network14.6 GW demand7.7m customers
b
3Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
Asset Governance / Asset Management Model
EPN
Network Assets
Network Management
SPN
Network Assets
Network ServiceAgreement
Network ServiceAgreement
Power Networks Asset Governance
LPN
Network Assets
Network ServiceAgreement
LE Group Networks Branch
4Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
UK Regulatory Model
+ -
+
+ +
x OpeningValue
-
Investment
DepreciationDepreciation
AssetValue
WACC
RegulatoryReturn
OperatingCosts
AllowedRevenue
Performance Based
Adjustment
Assurance of Stewardship
5Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
UK Use of System Charges
£0.00
£10.00
£20.00
£30.00
£40.00
£50.00
£60.00
£70.00
£80.00
£90.00
£100.00
Easte
rn P
ower
Net
works
Seebo
ard
Power
Net
works
East M
idlan
ds
United
Utili
ties E
lectri
city [
Norweb
]
Lond
on P
ower
Net
works
Aquila
Net
works
[Midl
ands
]
YEDL [Y
orks
hire]
NEDL [N
orth
ern]
SE Pow
er D
istrib
ution
[Sou
ther
n]
SP Man
web
Wes
tern
Pow
er D
istrib
ution
(Sou
th W
est)
SHE Pow
er D
istrib
ution
[Sco
ttish-
Hydro
]
Wes
tern
Pow
er D
istrib
ution
(Sou
th W
ales)
SP Dist
ribut
ion [S
cottis
h Pow
er]
Typical Annual DUoS Charges - Residential Unrestricted Customer
6Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
Value - Quality vs. Price
SSE North
SPWPD W
WPD SNEDL
SSE South
AquilaEME
SPN
EPN
ManwebYEDLUU
LPN
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
£40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00
Average annual use of system charge - unrestricted residential customer (3,750 units p.a.)2
Cu
sto
mer
Min
ute
s L
ost
per
co
nn
ecte
d
cust
om
er 2
001/
02 1
Quality of Supply / average domestic charges
Sources: 1 - Company 2001/02 Licence Condition 5 Information and Incentives Project submissions
2 - Company 2002/03 Licence Condition 4 statements
7Dave Openshaw UK Alpha 6 – Block 3
Barcelona 12-15 May 2003
Risk Management Assurance• Ofgem Asset Risk Management survey
conducted in 2002
• 12 x distribution / transmission companies surveyed
• Performance against 3 key areas of risk audited:
• Business Strategy & Direction
• Asset & Network Strategy
• Asset Life Cycle Management
• 18- point radar plot compiled for each company