energyeye, sep 2014

8
ENERGY EYE Prospect members in energy and decommissioning www.prospect.org.uk Issue 3, September 2014 BRIAN SHERWEN Prospect EnergyEye September 2014 Prospect negotiator Mike Macdonald asks whether Ofgem’s latest price control review settlements are a squeeze too far? AFTER FIVE price distribution control reviews focused on cost and value for money, Ofgem has adopted a new approach to the current electricity distribution price control. Revenue = incentives + innovation + outputs, RIIO, was intended to sharpen the financial rewards for meeting customer needs in times of significant change. Given fundamental changes in generation, with more variable wind generation and the wish to encourage greater customer flexibility, substantial investment in networks is needed if consumers are to benefit from new technology. Both the Treasury and UKTI, the government body responsible for encouraging inward investment in the UK, recognise the importance of electricity networks to business. Since Ofgem had provided an incentive for training in the last price review, we had hoped that the new RIIO system would focus more on the long-term needs of the industry. Despite the independence of Ofgem theoretically insulating the organisation from short-term political pressure, we feared that the debate about costs would lead to Ofgem favouring short-term price reductions over the long-term investment required for an efficient system. The positive steps were incentives for better consumer service and a shift to tougher penalties for customer interruptions, but Ofgem‘s approach to RIIO was ominous. The process provided for a swifter fast-track process, where Ofgem would lightly investigate costs if it approved a business plan. The experience of this process in transmission was that slow-tracked companies would face very detailed scrutiny and significantly more stringent price reductions. Only one operator, Western Power Distribution, was fast-tracked, as its business plan was approved. The remaining five operators faced the slow-track method. At the end of June Ofgem issued further proposals for the remaining five companies who had stripped £700m out of their business plans after WPD’s fast-tracking. Ofgem has proposed a further £1.4bn cut based on the following trio of cost Physicist Cox opens nuclear exhibition HOW west Cumbria supported the war effort and afterwards the growth of Sellafield as the home for the pioneering technology behind the UK’s nuclear deterrent, is told via a new exhibition on display in Whitehaven Harbour. The interactive exhibit at the Beacon Museum charts, warts and all, how that early weapons programme grew into a nuclear industry which has supported Cumbria’s economy for the past 60 years, and looks at what the future might be. The Sellafield Story was opened in May by celebrity scientist Professor Brian Cox and energy minister Baroness Verma. Professor Cox, an advocate for the work done at Sellafield, said: “Nuclear is the best sustainable form of energy. Countries with innovative power supplies tend to have lower mortality rates; this is because people are making advances in science which helps in other aspects of their life.” Turn to page 7 to read about the next steps in the Sellafield Workers’ Campaign. The road to RIIO: does innovation in Ofgem assist innovation in networks? continues■on■page■2 ALEX SEGRE/REX

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Page 1: EnergyEye, Sep 2014

ENERGYEYEProspect members in energy and decommissioning

www.prospect.org.uk • Issue 3, September 2014

BRIAN SH

ERWEN

Prospect • EnergyEye – September 2014

Prospect negotiator Mike Macdonald asks whether Ofgem’s latest price control review settlements are a squeeze too far? AFTER FIVE price distribution control reviews focused on cost and value for money, Ofgem has adopted a new approach to the current electricity distribution price control.

Revenue = incentives + innovation + outputs, RIIO, was intended to sharpen the financial rewards for meeting customer needs in times of significant change.

Given fundamental changes in generation, with more variable wind generation and the wish to encourage greater customer flexibility, substantial investment in networks is needed if consumers are to benefit from new technology.

Both the Treasury and UKTI, the government body responsible for encouraging inward investment in the UK, recognise the importance of electricity networks to business.

Since Ofgem had provided an incentive for training in the last price review, we had hoped that the new RIIO system would focus more on the long-term needs of the industry.

Despite the independence of Ofgem theoretically insulating the organisation from short-term political pressure, we feared that the debate about costs would lead to Ofgem favouring short-term price reductions

over the long-term investment required for an efficient system.

The positive steps were incentives for better consumer service and a shift to tougher penalties for customer interruptions, but Ofgem‘s approach to RIIO was ominous.

The process provided for a swifter fast-track process, where Ofgem would lightly investigate costs if it approved a business plan.

The experience of this process in transmission was that slow-tracked companies would face very detailed scrutiny and significantly more stringent price reductions.

Only one operator, Western Power Distribution, was fast-tracked, as its business plan was approved. The remaining five operators faced the slow-track method.

At the end of June Ofgem issued further proposals for the remaining five companies who had stripped £700m out of their business plans after WPD’s fast-tracking. Ofgem has proposed a further £1.4bn cut based on the following trio of cost

Physicist Cox opens nuclear exhibitionHOW west Cumbria supported the war effort and afterwards the growth of Sellafield as the home for the pioneering technology behind the UK’s nuclear deterrent, is told via a new exhibition on display in Whitehaven Harbour.

The interactive exhibit at the Beacon Museum charts, warts and all, how that early weapons programme grew into a nuclear industry which has supported Cumbria’s economy for the past 60 years, and looks at what the future might be.

The Sellafield Story was opened in May by celebrity scientist Professor Brian Cox and energy minister Baroness Verma.

Professor Cox, an advocate for the work done at Sellafield, said: “Nuclear is the best sustainable form of energy. Countries with innovative power supplies tend to have lower mortality rates; this is because people are making advances in science which helps in other aspects of their life.” Turn to page 7 to read about the next steps in the Sellafield Workers’ Campaign.

The road to RIIO: does innovation in Ofgem assist innovation in networks?

■■ continues■on■page■2

ALEX SEGRE/REX

Page 2: EnergyEye, Sep 2014

Stronger together – BACM vote on mergerAS EnergyEye was going to press, the result of a merger ballot being undertaken by members of the British Association of Colliery Management-Technical, Energy and Administration Management (BACM-TEAM) was eagerly anticipated.

If the result, due on 16 September, shows BACM members have voted in favour of a transfer of engagements, the mining industry union’s

450 working members and 1,400 retired members will become part of the wider Prospect family on 1 November 2014.

BACM represents mining industry employees, including engineers, as well as other members working in information technology, finance, pensions administration, distribution, manufacturing and utilities.

A yes vote would further

Prospect’s aim to be the union of choice for energy professionals, particularly at a time when energy policy has never featured so prominently in headlines or been so high up the political agenda.

Negotiator Mike Macdonald, based at Prospect’s Wakefield Office, will be the lead officer for BACM members, who will come under the Midlands and north east region.

Published by Prospect New Prospect House, 8 Leake Street, London SE1 7NN EnergyEye editor: Katherine Beirne e: [email protected] t 020 7902 6625Printed by College Hill Press

Prospect • EnergyEye – September 2014

NEWS2

ENERGY AND NUCLEAR SKILLS SEMINARBRANCHES are invited to send representatives to a seminar on energy and nuclear skills that Prospect is holding on 9 October at New Prospect House.

The aim is to highlight the need for investment in training and development to ensure that the UK energy sector has the skilled workforce required for the future.

Deputy general secretary Garry Graham said: “A number of keynote speakers from across industry will attend the seminar, providing an opportunity for representatives to network, share information and best practice.

“Championing skills and professionalism are key to our bargaining and lobbying agendas as reflected by the Prospect Pledge campaign, which calls for support for more women in STEM and investment in energy infrastructure and skills.”

Branches are requested to send expressions of interest if they are likely to send a representative – plus also encourage younger members in line with the union’s plans to develop our Young Professionals Networks. Email Bridget Lauder at [email protected]

Details of the final agenda and formal registration process will be sent out closer to the time.

■■ See■the■skills■feature■on■page■4

STEFANO

CAGN

ON

I

reductions, totalling £2.1bn: ● £850m immediate cuts due to

benchmarking ● £850m based on real spending cuts

over the ED1 (Electricity Distribution Price Control Review 1) as income is effectively frozen for eight years

● £400m based on efficiencies due to the introduction of smart metering reducing consumer demand and the need to strengthen infrastructure.

This difference of views results in a cut of between 6.75% and 12% for the five companies, compared to 6% for WPD.

The last price control review provided an allowance for workforce renewal, encouraging the training of direct staff and contractors to achieve the efficient electricity system everyone wants.

As 9,000 staff had either been recruited or substantially upskilled to perform high-value, high-skill jobs in the last five years, we hoped this would continue – the industry requires a further 15,000 more staff over the next eight years.

Instead we see company incomes frozen for eight years to reduce consumer costs by under 25p per week. The inevitable squeeze on pay and pensions will undo the considerable hard work undertaken by employers, unions and the government to attract staff into the sector.

Privatisation has shifted long-term investment to the private sector, and Ofgem expects £20bn to be invested by 2023: this price review reduces the rate of return to 6%, the lowest return for any British utility.

By being fast-tracked, WPD gets a

higher rate of return despite not being measured as any more efficient than some of the slow-tracked companies using Ofgem’s revised mechanism. If interest rates rise significantly over the next eight years, this does make further investment less attractive.

At the beginning of the RIIO process Hannah Nixon, then the Ofgem official responsible for networks, emphasised the importance of engagement with stakeholders.

While the DNOs have improved communication and responded positively, Ofgem sadly has taken the opposite approach.

We have seen the lowest level of engagement with stakeholders, other

than the network operators, in any price control process since privatisation: indeed Ofgem made strategic decisions about the price control before consulting stakeholders.

It does seem perverse for a regulator under severe criticism for its effectiveness to avoid speaking to wider stakeholders about issues

that affect the long-term future of networks and the infrastructure required for economic regeneration.

Given the expressed intent was to improve the quality of regulation and respond to consumers’ interests, it is disappointing that Ofgem has focused so heavily on a £12 price cut for the average consumer and ignores the benefits of efficient networks to the economy.

Nobody begrudges WPD having a better settlement. But there are better ways to reward WPD than reducing investment in infrastructure and skills across the remaining DNOs.

The road to RIIO continued■from■page■1

■■ Macdonald■–■Ofgem’s■approach■to■RIIO■was■ominous■

“In the context of a more stringent regulatory regime, there never has been a more important time to be a member of Prospect in order to ensure the professionalism of out members is recognised and their voices heard.”

■■ Deputy■general■secretary■Garry■Graham

Page 3: EnergyEye, Sep 2014

■■ Above,■flasks■of■spent■nuclear■fuel■from■the■south■of■England■on■route■to■be■reprocessed■at■Sellafield,■Cumbria

PHO

TOFU

SION

/REX

Prospect • EnergyEye – September 2014

NEWS 3

YES VOTE FOR POWERING IMPROVEMENT STRATEGYPROSPECT is calling on energy supply industry branches to engage fully in the sector’s Powering Improvement strategy, and for the union to do same at national level.

The policy was carried at Prospect’s national conference in May amid renewed concern at the lack of visibility of this company-acclaimed campaign.

Moving the motion, Sue Stelfox,

Electricity Northwest, explained that a spate of serious and fatal incidents prompted industry research that found deficiencies in role, clarity, training, procedures and resources.

“I work in a company that was part of the research. I haven’t been bombarded with messages. I haven’t seen anything. There are plenty of safety messages and

accidents are always followed by individual blame, but not organisational learning.”

Stelfox emphasised her company was not alone by highlighting a sister business which belatedly revived its health and safety committee only after a recent fatality.

“The Health and Safety Executive recognises the union effect. We must press strongly

for full engagement in Powering Improvement,” she said.

Support came from Neil Thomson, SSE, who acknowledged his employer’s endorsement of the campaign but said this was not backed up on the ground. “There is no mention of Powering Improvement in SSE; no indication if their own campaign dovetails with it.”

NUGEN DEAL A BOOSTA welcome boost was the reaction to news that Toshiba and GDF Suez had signed a deal to build the largest proposed nuclear project in Europe on the west Cumbrian coast.

The deal sees Toshiba acquire a 60% stake in UK-based nuclear energy company NuGen, the joint venture that will be behind three new nuclear reactors planned for the Moorside site next to Sellafield. GDF Suez will retain a 40% holding.

Prospect national secretary Gill Wood said: "This is great news. When fully operational the Moorside site will deliver around

7% of the UK's future electricity requirements, enough capacity to deliver power to six million homes.

"It will provide new jobs and new opportunities for the nuclear industry. We look forward to working with the new consortia."

NuGen plans to build three Westinghouse AP1000 reactors – pressurised water reactors – in west Cumbria. Each will take approximately four years to build, with fuel for the reactors manufactured at Westinghouse’s Springfields facility nearby.

While NuGen has said final investment decisions will be made in around four years, all new nuclear build projects in the UK are waiting to hear the outcome of the European Commission’s investigation into the strike price agreement with the EDF Energy lead consortium at Hinkley Point C.

New plans to deal with the country’s radioactive waste are a welcome step in the continued search for a safe, secure, retrievable solution to the UK’s nuclear legacy, Prospect has said.

A Department of Energy and Climate Change white paper, published in July, aims to improve the way the government works with communities in identifying a site for a Geological Disposal Facility.

It follows the decision by one Cumbria County Council to block further investigations into a future £12bn nuclear waste repository in the county last year.

While the new plans are still rooted in the principle of voluntarism, they no longer provide local politicians with a right to veto a GDF in their area.

The old policy required a strategic authority, such as a county council, as well as the local council to approve a project. The new plans simply require what DECC calls a positive “test of community support” for the project to go ahead.

Instead communities will be paid to engage. Councils joining the site investigation process will receive £1m per year for up to five years, rising to £2.5m per year as the design and planning phase begins, before rising substantially when building starts.

DECC have also tasked Radioactive Waste Management Ltd to deliver the repository. In the first two years it will be undertaking geological screening to find areas with suitable rock formation.

RWM is looking for potential sites big enough to safely hold the equivalent of six Albert Halls full of waste, expanding to more than seven with a new generation of new nuclear power stations.

But the government warns it will

NEW LONG-TERM PLAN FOR RADIOACTIVE WASTE

be a long process, taking decades before the first waste – 70% of which is currently held at Sellafield – can be placed in the facility.

Unfortunately the white paper’s aim, to encourage open debate and informed judgement, was not reflected in the media coverage prompting deputy general secretary Garry Graham to write to several national papers protesting about headlines referring to “a nuclear dump”. He said this term “does little to support an informed public debate”, is “deeply misleading” and fails to acknowledge that the GDF proposal is in line with the most up-to-date and authoritative scientific research on long-term storage solutions for nuclear waste.

“Finland, Sweden and Canada have already recognised that such facilities provide the safest and most secure method of dealing with radioactive waste,” he said.

Page 4: EnergyEye, Sep 2014

Prospect • EnergyEye – September 2014

4 ENGTECH

OF THE 429 projects listed in the government’s national infrastructure plan, 141 of them are energy projects. Many others, like HS2, will require energy specialists, too. This means a lot of jobs will be created in the energy industry as these projects go ahead, but now is a tough time to expand a workforce and fill new senior positions.

“It is no accident that E.ON, Siemens and NG Bailey were among the first firms to approach us,” points out Blane Judd, chief executive of EngTechNow, the campaign to increase registrations for the professional title EngTech – and a man with 25 year’s experience in the power sector.

“The skills crunch has the potential to damage all engineering sectors but the need to invest in staff is particularly acute in fast-growing fields like energy.”

Reports on skills vary in focus. The Prince’s Trust SkillsCrunch report highlights the plight of the young unemployed while the CBI’s Gateway to Growth report looks at competitiveness issues across all sectors. One message stands out though: there is a shortage of technologically capable people.

“The first big challenge the industry faces is filling a growing number of senior technician roles as more and more projects get going. These are jobs that require hands-on experience and a proven capacity to take responsibility in the workplace.

“People must be supported into those roles, and good people need to ensure they stand out when applying for these jobs and promotions. That is why thousands of technicians are now proudly achieving and highlighting their EngTech registration,” explains Blane.

The skills crunch led companies from across engineering to approach the three largest professional engineering institutions for a solution. They were already struggling

to find people and they expected it to get harder. They all knew, however, that no one company could comprehensively change the status of technicians alone.

While companies have for years supported people to achieve chartered status, few did the same to help technicians gain their equivalent professional status – EngTech. That was why, in March 2014, EngTechNow was

formed with government support to better promote registration.

Recognised in international treaties, EngTech registration is not an exam. It is a comprehensive review of a technician’s experience and professionalism. It is also an ongoing status, which means that the institutions themselves provide ongoing training and updates on the industry and technology for all EngTechs. It enables individuals to stand out for their great work while companies have easy support on hand to ease them into senior roles.

Simon Bishop EngTech (pictured above) is a technician with BAE Systems. He took the step to become registered and has since encouraged others to do the same. “EngTech is definitely looked upon in a good light by colleagues and companies that I work with,” he says. “The registration was simple, and it has given me access to lots of documents and reference materials.”

One of the challenges companies have is that, while EngTech status has existed for decades, technicians are incredibly diverse in what they do. Government estimates show more than a million technicians across the country, with roles in everything from building information

Blane Judd entered the power sector as a technician 25 years ago, when he also joined the Engineers’ and Managers’ Association, which became Prospect. Now he works with employers and technicians to support professional registration and recognition of the title EngTech

The strength of EngTech in the energy sector

Page 5: EnergyEye, Sep 2014

ENG

TECHN

OW

Prospect • EnergyEye – September 2014

5ENGTECH

modeling analysis to welding, and from valve maintenance to installing electrical equipment.

Few of these technician roles have a long culture of professional registration, so while some were fortunate enough to find out for themselves, many just didn’t know enough about EngTech or how it could benefit them.

To help fix this at E.ON, EngTechNow was invited to hold a workshop for staff.

“We put technicians into groups to talk through the experience they already had,” explains Phil Horsham, project manager with the EngTechNow team.

“Most were surprised that they were probably already working at a qualifying level, and within a month we not only had registrations submitted by the technicians we met, but we had just as many again from colleagues they had told about it.”

The lesson from that experience was clear. Technicians recognise the value of EngTech when they find out what it really is, but many still don’t know enough about it. Fortunately, more and more companies are supporting staff, often paying membership fees for their professional bodies.

The big picture is not all about existing staff however. One of the primary aims of EngTechNow is to use the registration of existing technicians to help make these careers more attractive to newcomers.

“When a young person chooses what path to take, it might be the start of 50 years of working life – and they have a lot of options open to them,” says Blane.

“Hundreds of thousands of apprenticeships and entry- level jobs are advertised and we need to make those in the power sector stand out. When young people see recognised professionals achieving amazing things, it reassures them

Prospect’s backing for EngTechPROSPECT has been granted nearly £90k by a charitable trust to back the EngTech drive.

It is the only union to secure funding from the Gatsby Charitable Foundation, set up by Lord Sainsbury of Turville, to finance a two-year project and dedicated part-time development officer.

The project aims to achieve four key goals:

● to train a minimum of 20 EngTech advisors to support fellow technicians across the union’s relevant branches

● to map 10 workplaces and establish the types of technicians employed and any potential need for further support and advice

● to work with two employers to develop and pilot learning agreements setting out each party’s commitment to learning in the workplace, and the organisational support, resources and expertise required to deliver effective learning and development

● to evaluate and disseminate the impact of technician programmes

in Prospect-recognised workplaces, including the outcomes achieved working collaboratively with other professional and employer bodies.

Lifelong learning officer Rachel Bennett■(left) said: “Prospect’s experience suggests that there is a lack of understanding as to what technician

registration is, and how it can benefit the individual and the company.

“For example, while apprentices are often clearly identifiable, managed centrally and have access to career development opportunities, once deployed to the business they can become less visible, leading to cadres of technicians effectively lost to the business.

“By working with employers, and mapping skills within their organisations, we hope to encourage line managers to view the technician registration route as a means to validate and develop the skills within their business.” To find out more email [email protected]

that ours is the right industry for them.” Importantly, the existing projects in the national

infrastructure plan will end one day, and be replaced by others. A project like Hinkley Point C will employ thousands of people through its installation, but once built many of those good people will need to find their next job.

Regina Tumblepot EngTech works for Morgan Sindall on Crossrail, which will complete in 2018. She is in no doubt about the value of her status. “Whenever you apply for other jobs, or you’re making connections, you will be seen as a professional. That is a great thing,” she says.

A number of responsible companies now commit to EngTech registration. Some align their higher apprenticeships with the criteria for EngTech. Others are investigating whether some roles should only be available to EngTech technicians. But none of this is entirely selfless. These same companies are very honest about the mutual benefit.

“When new projects start, our champion employers want to identify high quality staff to hire and promote,” stresses Blane. “That makes EngTech status a win-win situation. Technicians gain opportunities for new and better paid jobs and for better job security. Employers can provide certainty to clients that their people really are proven professionals.

“Because of that, the employers we approach and the staff we talk to both end up wondering why they didn’t do this years ago.”

■■ To■find■out■more■visit■the■website■www.engtechnow.com,■twitter■account■i@EngTech_Now■or■see■case■studies■at■youtube.com/EngTechNow

Blane Judd BEng FCGI CEng FIET is the chief executive, EngTechNow

Page 6: EnergyEye, Sep 2014

WIN

UK

Prospect • EnergyEye – September 2014

6 WOMEN IN NUCLEAR

WITH A heritage dating back to the 1950s the UK’s civil nuclear sector is one of the oldest in the world.

It is then quite strange that the Women in Nuclear movement, which is prominent throughout the world, has only just reached UK shores.

Women in Nuclear UK (WiN UK) is one of more than 30 international chapters of Women in Nuclear Global, which has 25,000 members in 102 countries. WiN UK aims to launch with a formal constitution and executive board in January 2015.

The objectives for the group are to address the industry’s gender imbalance, improve the representation of women in leadership and engage with the public on nuclear issues.

The WiN UK executive board was set up at the beginning of the year; eight board meetings and a multitude of subcommittee meetings and calls later, a 40-strong team of impressive individuals is driving change and delivering results.

The board is made up of a team of high-performing women who are volunteering their time – often outside their day jobs – from across the nuclear industry’s operators, vendors, consultancies, contractors and SMEs.

Prospect’s own national secretary Gill Wood is an associate WiN UK board member, participating in monthly meetings to represent the interests of the Prospect membership and ensure good communications and sharing between the two organisations.

You may think membership of WiN would only be open to women, but it isn’t. Without the backing of senior men in the industry, and having them recognise the issues women face, it will be difficult for the group to achieve its aims.

The group has already held two events, one in London and another Warrington, to spread the

word within the industry about its formation. The impressive panellists included energy minister Baroness Verma, Prospect’s Sue Ferns, and John Clarke, chief executive of the Nuclear Decommissioning Authority, among others.

Further events are planned for the rest of the year. A speed-mentoring session – or ‘QuickWiN’ – will bring figureheads and leaders from industry together with newcomers and younger people to give tips and support to develop their career.

All this first year’s hard work will culminate in a major conference in January 2015. WiN UK wants to make sure this hard work will lead to an agreed aspiration or policy towards gender balance in the nuclear industry for the months and years to come.

For this first year, WiN UK has two presidents overseeing the work; Miranda Kirschel from Atkins and Rebecca Holyhead from PwC. Both are keen champions of the sector as a whole and believe it is a great industry for women to be involved in.

While many companies within industry have initiatives to engage local people on the subject of

nuclear, it is vital that the wider public understand more about it. The WiN UK chapter is working closely with the Nuclear Industry Association, the trade body for the sector, and the Nuclear Industry Council, among others, to ensure the positive message about the sector is heard by as many people as possible.

The group was also asked to support Baroness Verma’s POWERful Women initiative, which looks at how to advance the professional growth and leadership development of women across the UK’s energy sector. WiN UK is also involved in the government’s Your Life campaign, which gives young people advice on how science and maths can lead to rewarding careers.

Membership of WiN UK is free, and by joining the mailing list you will get to hear about events taking place across the sector, such as the QuickWiN session.

■■ To■join,■send■an■email■with■your■contact■details■to■[email protected].■You■can■also■follow■on■Twitter■@WiNuclear■and■find■the■group■Women■in■Nuclear■UK■on■LinkedIn

A new group aims to draw together women from all areas of the nuclear industry. Miranda Kirschel and Rebecca Holyhead, joint presidents of Women in Nuclear UK, explain how

■■ Pictured■above■(l-r)■Miranda■Kirschel■and■Rebecca■Holyhead

POWERFULwomen in nuclear

Page 7: EnergyEye, Sep 2014

Prospect • EnergyEye – September 2014

NEWS 7

EU funding brings carbon capture closerA CARBON capture and storage project has secured crucial funding from the European Union, which will allow the construction of the first CCS demonstration project at commercial scale in the UK.

Prospect welcomed the €300m (£238m) grant awarded to the project, which is located on land adjacent to the existing Drax Power Station, near Selby in North Yorkshire.

The White Rose project aims to build a CCS plant designed to capture carbon dioxide so it can be pumped to and stored under the North Sea.

When completed the 426MW plant will burn up to one million tonnes of coal with the potential to co-fire sustainable biomass and meet the equivalent power needs of over 630,000 homes.

This plant could provide a lifeline for one of the UK’s three remaining deep mines by creating a continued market for coal beyond the life expectancy of existing coal-fired generation.

Equipped with CCS technology from the outset, 90% of all the CO2 produced by the plant will be captured and transported by pipeline for permanent offshore storage deep beneath the North Sea seabed.

Importantly the oxy-combustion process for White Rose uses technol-ogy proven at a lower power output, which could be retrofitted to exist-ing coal-fired plant.

It is the only clean coal project to be supported by the European Commission’s NER300

competition. As the UK retains significant coal reserves, this is an opportunity to protect high value employment in coal mining and power generation in Yorkshire and North Nottinghamshire

White Rose is scheduled to form the anchor project for the develop-ment of National Grid’s Yorkshire and Humber CO2 transport and storage infrastructure: the ability to capture and store carbon dioxide offers an attractive future for a va-riety of energy-intensive industries such as steel and chemicals.

The transport infrastructure will have a capacity of up to 17m tonnes of CO2 per year, through which White Rose will transport around 2m tonnes each year.

The aim is to help secure the long-term industrial future of the region, which emits 60m tonnes of CO2 per year – equivalent to 19% of all UK emissions.

Capture Power, a joint venture set up by Alstom, Drax and BOC, is driving the project in close co-operation with National Grid.

White Rose is also a participant in the UK’s CCS commercialisation programme.

Prospect negotiator Mike Macdonald said: “Not only will this provide high-skill, high-value employment in Yorkshire, it will give Britain world-class expertise in a technology it can export.

“CCS protects the environment while providing a long-term future for coal, so we look forward to the government establishing a market mechanism that allows this technology to play its role in keeping Britain’s lights on.

“With a potential market for CCS coal generation of 13GW by 2030, thermal generation complements new nuclear and renewables, so we have value-for-money green electricity. With CCS and renewed interest in UK coking coal, it is premature to proclaim the death of King Coal.”

Macdonald added that the success of the project was testament to the skills and ingenuity of members at Drax.

Contract milestoneIT is a process that has taken two years but 1 September formally marked the end of the Nuclear Decommissioning Authority’s Magnox/Research Sites Restoration Ltd (RSRL) competition, with the shares of both organisations transferred to the winning consortium, Cavendish Fluor Partnership.

The milestone was marked at an event held at Manchester’s Museum of Science and Industry, and opened by energy minister Baroness Verma.

While the share transfer saw two Prospect branches – Magnox and RSRL – formally come together under the same employer, negotiator Richard Tabbner said “belt and braces” discussions have been under way to guarantee the existing terms and conditions of each branch are not altered.

“Both I and national secretary Gill Wood have met with management on several occasions and at no point have they expressed a desire to change the status quo,” said Tabbner.

“But we have agreed a programme of meetings to ensure continued and meaningful dialogue regarding the future direction of the company.”

SELLAFIELD WORKERS’ CAMPAIGN TO TURN UP THE HEATWITH the party conference season looming, the Sellafield Workers’ Campaign was gearing up to take its key messages directly to the three main political parties, says Steve Nicholson, Prospect rep and SWC communications officer.

With all three of the main political parties now pro-nuclear, and given the race to keep the lights on, the SWC felt it was important to put its case.We have real issues that need addressing and can't continue to let them get kicked into the long grass of politics.

For example, new build is a

must for west Cumbria and with Toshiba teaming up with NuGen we see no reason to delay the project. (See page 3)

Moorside will bring much needed employment – 21,000 jobs during construction – plus astronomical economic benefits for an ailing community largely dependant on Sellafield, its service providers and supply chain.

Plutonium disposition is also high on the agenda as we have 145 tonnes already safely stored at Sellafield. The priority is national and international security issue, with proliferation

prevention the key issue. But it must not be looked on as a commercial contract.

The SWC held a successful industry day in 2013

highlighting the three technological disposition options for the UK’s plutonium stockpile: Areva’s proposal to reuse it as MOX in light water reactors; General-Electric Hitachi’s plans for reuse in PRISM fast reactors;

and Candu’s plans for use as CANMOX in its reactors.

The government will decide its preferred option within 12 months. The SWC has no real preference and will support the government whichever option it chooses, as long as it is safe and meets all the Office for Nuclear Regulation's licensing criteria.

The Moorside site has 200 acres of land which could host all the above, in a massive project three times bigger than the London Olympics that would make west Cumbria the centre of nuclear excellence.

■■ Nicholson■–■SWC■to■deliver■key■messages

■■ The■standalone■power■plant■will■be■located■at■the■existing■Drax■Power■Station■site,■generating■electricity■as■well■as■capturing■approximately■two■million■tonnes■of■CO2■per■year

Page 8: EnergyEye, Sep 2014

It’s a fair bet that many delegates to this year’s TUC conference had never have heard of the Trans-Atlantic Trade and Investment Partnership agreement before the event, says Prospect research officer Beverley Hall

THE PLANNED European Union/United States trade deal, known as T-TIP was the subject of several motions at the TUC conference held in Liverpool, where large and small unions voiced their fears that it could bring about, among other things, the privatisation of the NHS.

But healthcare is not the only sector likely to be affected by T-TIP. It will have a big impact on all industries including energy.

T-TIPA trade agreement is a wide-ranging tax, tariff, trade and investment treaty concluded between countries or trading blocs in order to reduce or eliminate tariffs, quotas and other trade restrictions on items, services and investments.

Opinions on the US-EU T-TIP range from groups who believe it will be a positive “game changer” to those who believe the agreement will remove all barriers that protect employees’ rights to defend themselves, including the removal of rights to workplace representation.

The T-TIP aims to give UK and EU businesses access to US markets without having to pay import duties, which make products uncompetitive (and visa versa). Figures quoted estimate a potential benefit to the EU economy of £100bn (€119bn) a year, which equates to an additional £450 (€545) for each family of four across the EU.

Major concerns ● ENERGY AND ENVIRONMENT: An initial

EU position paper argues that the World Trade Organization “does not fully reflect issues” related to energy generation and trade, and T-TIP could provide stronger rules for the sector.

T-TIP could affect the energy sector by opening the door to the import of oil from US and Canadian tar sands (through the US) and imports of shale gas in the form of LNG (liquefied natural gas).

T-TIP could also see European fracking regulations stymied. Due to the cloak of secrecy around the discussions, much of this is speculative, but there is a sense it could have knock-on effects on Europe’s energy mix.

● THE RIGHT TO SUE SOVEREIGN GOVERNMENTS: T-TIP will grant investors a new right to sue sovereign governments – this is called Investor States Dispute Settlement (ISDS) and in practice means that companies will have the right to sue foreign governments if they consider they have been disadvantaged by national legislation.

One example of this is Swedish power company Vattenfall suing Germany for a reported €3.7bn over the state’s decision to phase out nuclear power. From the company’s point of view, the German government’s decision to abandon nuclear power destroyed the value of its assets.

● REGULATORY COHERENCE: Using the

argument of barriers to trade, T-TIP calls for the harmonisation of regulation between the US and EU. The worry is that regulatory barriers explicitly target labour market, health and safety and employment protection rules and directives, such as information and consultation, European Works Councils and working time regulations could be weakened to US

standards or abolished in the EU if non-existent in the US.

Within this process we could also see the erosion of the EU’s long-established precautionary principle – which presupposes that potentially dangerous effects deriving from a phenomenon, product or process that has been identified could be at risk because often the US’s standards are lower.

The union response The global unions have met with US and EU negotiators and are calling for T-TIP to raise labour standards and not create a race to the bottom that disproportionately affects workers.

They will campaign to ensure that there is freedom for workers to organise a union, collectively bargain with employers and strike when necessary. They also want the removal of the ISDS and to ring-fence public sector services such as the NHS.

■■ For■more■information■see■http://bit.ly/T-TIP

Economic game changer or democratic deficit?

■■ Fukushima■Daiichi■nuclear■power■station■in■Japan.■Vattenfall■sought■compensation■from■the■German■government■after■it■phased■out■nuclear■energy■post■Fukushima

ZUM

A/REX

Prospect • EnergyEye – September 2014

8 T-TIP

IN BRIEFBradwell – Did you work at Bradwell Power Station? Would you like to catch up with old colleagues? Bradwell Power Station is hold-ing a reunion on Sunday 5 October at 2pm, Bradwell Village Hall, Bradwell on Sea, Essex, CMO 7QJ. Refreshments will be provided.

For further information please contact Barbara Webber on 01621 816393 or [email protected]

Apprentice growth – The energy sector has stepped up its recruitment and investment in the next generation of apprentices joining the industry, increasing the intake to 1,400 from 970 in 2010.