Agenda item

 Mr Andrew Gibson (Head of Network Distribution, SGN) was in attendance for this item.

(1)        The Chairman welcomed Mr Gibson, who delivered a presentation about the roles and responsibilities of SGN. The presentation covered:

·   The role of SGN and how it operated;

·   Developing the network and the changing demands of customers;

·   Stakeholder engagement;

·   Looking to the future.

(2)        Mr Gibson explained that due to their monopoly status, SGN were heavily regulated by Ofgem. Ofgem set price controls, and the next period (RIIO-2) would commence in 2021 for a period of five years.

(3)        Mr Gibson informed the Committee that there were 3 bio-methane plants (producing renewable “green” gas) in Kent, with 4 more scheduled to be built in the next few years.

(4)        When developers required a gas connection that would exceed the current capacity, an economic test (set by Ofgem) was used which would determine how much they had to pay for the connection.

(5)        Mr Gibson spoke of the “energy trilemma” – achieving low carbon, sustainable energy at value for money prices.

(6)        Monitoring of the network demonstrated that the demand for energy was growing across the UK, and electricity alone would not be enough to meet this demand. The gas network needed to evolve in order to provide greater energy options.

(7)        Mr Gibson spoke about the importance of data sharing with different sectors in order to model future opportunities and deliver a better service to customers. SGN had 109 data sharing agreements in place with local authorities, including 6 of the 12 boroughs in Kent. The type of information shared included programme of works, local plans and growth agendas, as well as the delays affecting these. The information, which used to be shared just annually, was electronic and updated regularly. A Strategic Planning Report specific to each district was then created.

(8)        Members questioned why the remaining 6 boroughs in Kent had not signed up to the data sharing agreement. Mr Gibson advised that contact had not yet been made, perhaps due to initial communication problems. Carolyn McKenzie offered to help SGN get in contact with the right people.

(9)        Members discussed the disruption caused to local communities when utility providers dug up the road, and the apparent lack of coordination between them. Mr Gibson explained that utility companies did engage with each other, but it was not always possible to carry out works at the same time due to timings.

(10)     A Member questioned the success of the Kent Lane Rental Scheme in relation to the above point, whereby companies needing to close specific roads were charged to do so during busy periods. It was recognised that this issue deserved further consideration by KCC.

(11)     SGN was developing forums in local areas where utility providers and local authorities came together to discuss upcoming works. Mr Gibson advised that there was no forum in Kent at that time, but he was keen to develop one.

(12)     Mr Gibson explained that an area for improvement within SGN was their engagement with energy efficiency teams in local authorities.

(13)     A pilot would be starting in Medway over the summer for 18 months, in which 1,200 homes would have smart meters installed in order to establish the gas demand by recording how much gas was needed and when.  This would allow SGN to investigate how to make the gas supply more secure, affordable and flexible.

(14)     Referring to his presentation, Mr Gibson put four questions to Members of the Committee.

·           Are you supportive of our Data Sharing initiative?

·           Are you supportive of ensuring we work to remove any barriers to support your Growth Plans?

·           That SGN work with both your Planning Teams and Energy Strategy Teams?

·           What is the best vehicle to achieve this?

(15)     Members discussed the questions and supported a positive response to the three yes / no questions. In relation to suggesting the best vehicle to achieve them, Members suggested that KCC should engage with the district and borough councils to ascertain whether it should have a coordination role.

(16)     Carolyn McKenzie explained the GIF (Growth Infrastructure Framework) for the benefit of the Committee and guests. As a strategic document considering county growth, she felt the data in the document could be shared with SGN in order to provide greater opportunity for innovation and development. Carolyn McKenzie committed to work with SGN outside of the meeting to look into the options available, including whether the data sharing agreement KCC held with district councils could be extended to SGN.

(17)     As the gas network evolved to become more sustainable, Members questioned whether consumer appliances would need to be replaced, as had happened in the past. Mr Gibson advised this was being investigated by several parties, including the Department for Business, Energy & Industrial Strategy. The intention was for any change to be a seamless transition for customers.

(18)     The Chairman thanked Mr Gibson for attending and invited him to participate in the future work of the Committee.

RESOLVED that the presentation be noted.