RIIO-T2 STAKEHOLDER WORKSHOP 28 November 2018
Housekeeping Safety Moment Phones and IT Venue and Hospitality
Reflections on 2018
RECAP Stakeholder Workshop 8 March 2018 How we engage with stakeholders … we’ll provide an update on our 2018 progress and next steps today 2030 Key Performance Indicators … we have since reviewed our current KPIs; and plan to consult on proposals in January 2019 What next for SHE Transmission … we published our Sustainability Strategy in May and our North of The output from the March workshop was that the elements of the Scotland Future Energy Scenarios in Energy Trilemma – security of supply, sustainability and affordability – August. More on this today remain in close balance. This has strongly informed the development of the SHE Transmission Strategic Themes for the RIIO-T2 period.
STRATEGIC THEMES The purpose of SHE Transmission is to deliver value for electricity customers, society and shareholders by developing, owning and operating the transmission network in a safe, reliable and sustainable way Safe and Secure Sector-leading Stakeholder-led Leadership in Network Operation Efficiency Strategy Sustainability Taking a whole system Use data efficiently to Integrated approach to Trusted partner of approach to network understand, predict whole life development customers and operation and and get the best and operation, using communities, realising development to meet network performance risk-based engineering long term benefit for current and future to deliver value society, the economy customers’ needs and the environment
TOPICS Input to the RIIO-T2 Business Plan Scottish Government How we engage with stakeholders Our sustainability initiatives COFFEE Our environmental initiatives Our innovation strategy LUNCH Q&A Expert surgery sessions
Simon Gill Scottish Government
Simon Gill, Energy Engineer, Scottish Government simon.gill@gov.scot Electricity Networks and the Scottish Energy Strategy SHE Transmission Stakeholder Workshop, 28 November 2018
Our Challenge Our challenge …
Our Challenge System Consumer Renewable and Innovative Oil and gas Energy security engagement and low carbon local energy industry efficiency and protection solutions systems strengths flexibly
Our Challenge “by 2040 our homes and buildings are warmer, greener and more efficient” “phase out the need for new petrol and diesel cars and vans by 2032”
What we have achieved so far We can run 13.0 GW in 7.6 GW in the system Britain Scotland without Coal!
What we have achieved so far We can run A 9 MW wind 7.6 GW in the system turbine Scotland without Coal!
What we have achieved so far An electric car that A 9 MW wind 7.6 GW in can drive 500 km + turbine Scotland without recharging
What we have achieved so far Grid scale An electric car that A 9 MW wind battery energy can drive 500 km + turbine storage without recharging
What we have achieved so far The ELECTRICITY NETWORKS deliver 31,000 The GAS NETWORKS deliver 58,000 GWh per year to consumers in GWh per year to consumers in Scotland, and meet Scotland, and meet a peak demand of approximately 22 a peak demand of approximately 5.5GW GW Approximately £1.2 Billion is spent RUNNING AND INVESTING in the Electricity and gas networks in SCOTLAND EACH YEAR ELECTRICITY GENERATED IN SCOTLAND in 2017 had a carbon Electricity valued at £2 Billion in intensity of well under 100 g CO2 per wholesale terms was injected onto the electricity networks in Scotland kWh
What we have achieved so far 6,000 Average consumption (kWh) 5,000 4,000 3,000 2,000 1,000 We have a 0 focus on energy 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 efficiency
Looking forward We want to maintain momentum in connecting renewables
What we have achieved so far There is potential for electricity demand to grow substantially over the next decade
Securing Supply for Scotland Dispatchable generation Security of supply is increasingly reliant on the transmission networks raising new 2010 Peak 2017 Peak Demand Demand operability challenges. Keeping options open will be important.
By 2030 …. Our vision for Scotland’s electricity networks Scotland’s consumers, economy and society are at the heart of our energy systems Decisions which considers the impact on all consumers A secure and resilient transmission network and System, Transmission New, efficient transmission infrastructure that ensures we can meet our renewable energy ambitions
Thanks…. simon.gill@gov.scot
How we engage with our stakeholders Christianna Logan
How we engage with our stakeholders 24
How we engage with our stakeholders We apply the results of our engagement in three ways 25
SHE Transmission stakeholder engagement - What’s the problem? Customer satisfaction SHETL have an engagement strategy 8/10 * in place, but little evidence that this Across the board SSEN is driving a culture of engagement are very good at which is being embedded in the communicating business. Connections customer …the panel found limited evidence that stakeholder engagement is My experience with having an influential role in strategic SSEN ranges from planning and operations. excellent to Ofgem engagement panel horrendous! Connections customer * Based on customer satisfaction survey score
Current approaches - Project engagement “SHE Transmission has been very reliable locally and have been very communicative with the local community” Local authority representative “In terms of engaging with communities, SSEN are doing a good job. However, they need to act on feedback from these events. “ Energy company 27
Current approaches - Strategic engagement 28
Engagement outcomes In March, you helped us understand Now we need to figure out how to Perceptions of our business Improve our engagement Engagement experiences Best Tailor topics & methods Engagement preferences Demonstrate influence Reporting preferences Ensure value Future issues Include end consumers Future priorities Build this into our Business Plan 29
Developing a new strategy for stakeholder engagement 1 Aligns with and helps to inform our Business Plan strategy, becoming part of our 2 6 submission and Better understands bringing it to life Reflects our the expectations of ambition to go all our key beyond Ofgem stakeholder requirements, audiences, including A fresh creating something Ofgem, and our that is truly valuable stakeholder current engagement and distinctive actions engagement strategy for SHE Transmission 5 3 that: Encourages buy-in Reviews and learns from colleagues and from best practice external from inside and 4 stakeholders outside the sector Defines what authentic stakeholder relationships mean for SHE Transmission and what effective engagement can contribute to delivering 30 long-term success
Developing a new strategy for stakeholder engagement Oct 18 Dec 18 Feb 19 May 19 4. 6. Implement 2. • Development Consultation • Review of current Engagement of principles, • Refinement of approaches, framework and the strategy to regulatory context • Interviews with methods for • Public incorporate and best practice SHE • Roll out of engagement consultation on feedback from from our industry Transmission guidance, the draft the and others teams and procedures, 3. Draft consultation strategy external materials and Strategy stakeholders to 5. Final training establish Strategy 1. Review engagement needs and preferences 31
Lessons from the water sector • Ofwat has championed enhanced customer/stakeholder engagement • PR19 is raising the bar in this area and we see the language Ofwat pioneers flowing into energy discussions • All water companies have upped their game in this regard compared to their last price control, with some being genuinely innovative • The end consumer features heavily in their engagement and Business Plans • All of the companies had substantial support from external parties, with expertise in consumer engagement
Lessons from the water sector - who Categorisation is Some customers Engaging with Results of research vital and can be don’t care and those who have and engagement based on socio- don’t want to be experienced should be fed into economic groups, engaged service failures is strategic groups shared values or essential to representing the behaviours capture their public interest views and priorities 33
Lessons from the water sector - how Engagement Water companies Customer forums, Monetising the toolboxes included have as many as 38 deliberative events benefits of social behavioural change different and gamification return on programmes, engagement are effective ways investment helped partnerships and channels including of engaging end customers innovation focus groups, consumers on understand online forums, complex issues and impacts beyond social media explaining trade- costs on bills sweeps and offs in decision traditional surveys making 34
Our Sustainability Initiatives Alex Sutton
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