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What we have achieved
We own and operate gas and electricity transmission networks in Great Britain and England & Wales respectively and an electricity transmission network in the northeastern US. We also operate the electricity transmission network in Scotland.
Area of operations
We design and maintain National Grid's transmission networks; project manage, construct and commission new assets; and work with the industry and regulators to ensure we have the right returns to carry out our role. In Great Britain, we are the system operator, ensuring reliability of supply to our customers.
57.5 GW and 436 mcm
This year saw a peak electricity demand in Great Britain of 57.5 GW and a peak gas demand of 436 mcm.
£1.3 billion
In 2006/07, we invested over £1.3 billion in our networks to replace ageing assets and to connect new sources of supply.
2006/07 highlights
- Good year for reliability in Great Britain: 100% of gas delivered and 99.9999% of electricity energy delivered.
- 7.5% reduction in lost time injuries across Transmission.
- 8% reduction in cable oil loss in the UK.
- 15% reduction in CO2 emissions in the UK.
£1.1bn
Adjusted operating profit†
£1.3bn
Capital investment
43%
Increase in capital investment
† excludes the impact of exceptional items and remeasurements
Efficiency
Investment for growth
We are entering a period of significant investment in our systems and this brings challenges for our Transmission operations. We need to provide high-voltage electricity lines for the new renewable sources of electricity generation, but this generation is often located away from the traditional centres of demand. Similarly for gas, new infrastructure is required to reinforce and provide new routes for the gas supplies to the interconnectors with Europe and the liquefied natural gas sites at the Isle of Grain and Milford Haven. In addition, we have a large asset replacement programme in place for both our UK and US transmission businesses, with baseline investment over the six years to March 2012 expected to be £7 billion. To enable us to take full advantage of this investment programme we have made some changes to our business model.
In the UK, we have partnered with several large utility construction businesses to create ‘Electricity Alliances’, similar to the arrangements already in place in Gas Distribution. In the US, we have developed a new operating model that allows the transmission assets to be designed, planned, constructed and operated within the business. These Alliances and the new operating model are an integral part of Transmission's strategy to deliver its investment programme.
Reliability
Ward Hill
As part of National Grid's commitment to a wider reliability infrastructure improvement programme in New England, we have completed a $49 million (£26 million) operational upgrade of Ward Hill electricity substation. The upgrade included increasing the number of circuit breakers from 7 to 23 and the number of transformers from 1 to 4. In addition to the substation work, three of the high-voltage electricity transmission circuits feeding into Ward Hill were also upgraded to increase their capacity. The project required careful planning to ensure that customers' supplies were maintained throughout the construction phase. The timescales of the project were challenging and this was made worse by two periods of heavy rain and floods which occurred during construction, halting some work. However, despite these issues, the project was completed to schedule, with construction completed in 12 months.
Safety (Chairman's award winner)
Flatbed lorry redesign
As part of our continued focus on safety we welcome initiatives from across the Company to improve our performance. One of these initiatives was the development of modifications for flatbed trucks used by our oil management unit. The trucks have been fitted with fold-away handrails, which provide a safer working environment while working at height. When access to the truck flatbed is required, the handrails are put in place. If the handrails need to be lowered, access restrictions are instigated. These modifications have been designed in conjunction with the unit's employees so that consideration of work methods and usage have been incorporated. Following a successful trial period, all the oil management unit trucks have been modified. Further work has been carried out with our contractors to allow them to use the designs we have developed and we are also considering wider use throughout National Grid.
Responsibility
Milford Haven
On our Milford Haven gas pipeline project, in Wales, we are consulting with local communities directly affected by our works. To provide information we have created a project website and produced a range of bilingual leaflets and fact sheets providing project information. All MPs, Welsh Assembly Members and councils with constituents affected by the project have been written to and we have met with many of them. There have been a number of public information events and presentations to community councils. Our community relations team has made individual visits to many residents to discuss any concerns they may have. We also provide a freephone number for local residents to call if they have any questions about our works at any time. Despite these efforts, due to the size and nature of our works, there are still concerns in the local community. Throughout the remaining works this level of support to the community will continue as we aim to ensure everyone is informed and is able to have their questions answered.