Electricity Distribution Improvements in the Management of Asset Health

Richard Wakelen Head of Asset Strategy & Performance,

Asset Management Conference 2012

About UK Power Networks

We distribute electricity to 8 million customers in London, the East of England and the South East of England

We own and operate the network of 170,000 kilometres of underground cables and overhead lines and more than 130,000 substations Since 1 November 2011 UK Power Networks has been owned by the Cheung Kong Group (CKG)
5,000 employees

Distribution Networks
FUEL SUPPLY GENERATION TRANSMISSION DISTRIBUTION SUPPLY
INDUSTRIAL

COMMERCIAL

RESIDENTIAL

Distribution costs account for about 20 per cent of electricity bills.

UK Energy Sector - Challenges Ahead

How do we support growth in the economy whilst minimising the impact of climate change? How do we provide an electricity network that can support new technologies, such as widespread renewable generation and electric vehicles? How do we meet our customers and stakeholders increasing expectations for service and quality? How do we provide all of these services at a reasonable price? Perhaps the core requirement of our customers? Power should be there at the flick of a switch

Specific Challenges
Key outputs for DPCR5 is Health (Health Index HI) In RIIO ED1 this is moving to Health + Criticality = Risk / Intervention Aging asset base Move to low carbon SMART networks For UKPN:

Improving core asset data / new decision support systems

Asset Risk and Prioritisation (ARP) builds upon existing methodology of Condition Based Risk Management (CBRM) Shift of strategy from pure replacement to include refurbishment / asset life extension and more focus on TOTEX

Age Profile Power Transformers

List of current HI categories

LV Switchgear LV UGB LV OHL Support HV Switchgear (GM) primary HV Switchgear (GM) distribution HV Transformer (GM) HV UG Cable HV OHL Support poles EHV Switchgear (GM) EHV Transformer EHV UG Cable (gas) EHV UG Cable (oil)

EHV UG Cable (non pressurised) EHV OHL Support towers EHV OHL support poles EHV OHL Fittings and Conductor (tower line) 132kV CB 132kV Transformer 132kV UG Cable (gas) 132kV UG Cable (oil) 132kV UG Cable (non pressurised) 132kV OHL Support towers 132kV OHL Fittings and Conductor (tower line)

In RIIO ED1 additional HI outputs are likely to be added Civil assets e.g. substation buildings and fences Cable bridges, tunnels and cable pits

Health Index (HI) definitions

HI1 New or as new HI2 Good or serviceable condition HI3 Deterioration requires assessment and monitoring HI4 Material deterioration, intervention requires consideration HI5 End of serviceable life, intervention required

Typical HI Profiles Power Transformers

Factors affecting asset health Location Condition/Defect records Duty Reliability Degradation Curve required for future HI

HI Profiles by Age

HI Profiles by Age

Criticality Index (CI) definitions

Criticality provides a comparative measure of the consequence of failure of an asset
Consequence is the impact of failure of the asset which falls under the following categories

Network Performance
Safety Environmental Financial Criticality Index is a numerical representation of criticality on a defined scaled of C1 to C4 Combining Health and Criticality to form Intervention Priority Index
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Typical Health and Criticality Results

HI 1 1 CI 2 3 4 18235 11691 310 27 2 5696 12868 8635 1138 3 1 2150 6392 1553 4 2 1402 4958 737 5 0 76 1314 989

Distribution Switchgear

HI 1 1 CI 2 3 4 136 20 84 81 2 156 13 36 41 3 74 29 17 5 4 83 14 16 7 5 23 1 0 0

132kv Switchgear

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Summary
UK Energy Sector - Challenges ahead with RIIO ED1 RIIO one key focus is delivery of outputs Aging asset base Move to low carbon SMART networks Improving core asset data / new decision support systems

Investing in Asset Risk and Prioritisation (ARP) modeling

Shift of strategy from pure replacement to include refurbishment Risk / intervention priorities being developed with combination of asset Health and Criticality

Pearls of wisdom on the journey to Improving Asset Health and Asset Stewardship

Clarity is key!

Good communication!

Good planning?

Determination to succeed in your objectives?

Attention to detail?

Learn from your mistakes?

Take time to have some fun?

Expect the unexpected?