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Projects: Projects for Investigator
Reference Number NIA_WWU_009
Title Investment Prioritisation in Distribution Systems
Status Completed
Energy Categories Fossil Fuels: Oil Gas and Coal(Oil and Gas, Refining, transport and storage of oil and gas) 100%;
Research Types Applied Research and Development 100%
Science and Technology Fields SOCIAL SCIENCES (Business and Management Studies) 50%;
ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 50%;
UKERC Cross Cutting Characterisation Not Cross-cutting 100%
Principal Investigator Project Contact
No email address given
Cadent Gas
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 December 2013
End Date 01 November 2015
Duration 23 months
Total Grant Value £426,240
Industrial Sectors Technical Consultancy
Region London
Programme Network Innovation Allowance
Investigators Principal Investigator Project Contact , Cadent Gas (99.997%)
  Other Investigator Project Contact , Wales and West Utilities (0.001%)
Project Contact , Northern Gas Networks (0.001%)
Project Contact , SGN (0.001%)
Web Site http://www.smarternetworks.org/project/NIA_WWU_009
Objectives This project will identify and recommend transferable approaches to investment planning and prioritisation of mains replacement between the water and gas distribution sectors. The specific objectives are to: Identify transferable methods of investment planning which incorporate multi criteria risk-based approaches;Present a robust decision support procedure which helps to deliver a more cost-effective investment plan whilst still meeting safety risk reduction obligations; andIdentify additional risk assessment methods to plan and prioritise investment. Following this research the gas distribution companies should collectively be able to: Steer the future of investment planning practice for the gas sector;Improve efficiency and effectiveness of mains replacement schemes; andGain knowledge and experience of tried and tested approaches for investment planning based on service failure risk.
Abstract The gas distribution sector has a well-developed risk-based approach to prioritising iron mains replacement expenditure, accepted by the Health and Safety Executive as a robust method of reducing societal risk. A revised three-tier approach introduced as a key element of this price control period (from April 2013) allows greater flexibility and potential optimisation of replacement scheme design through incorporation of condition, environmental impact (leakage) and customer service metrics, subject to overall network risk reduction targets being met. This multi-criterion risk-based planning approach to investment planning has been adopted by the UK water industry which has not historically been dominated to the same extent by safety considerations. As a result the water industry already considers a broader suite of risks by following the Capital Maintenance Planning Common Framework (CMPCF). This risk-based framework for asset management planning has been used in the water industry for the last three Periodic Reviews (PR) in 2004, 2009 and 2014 (PR04, PR09 and P14 respectively) and identified as best practice. The two industries’ networks have much in common in terms of material types, location and external influencing factors on asset performance and deterioration. With the potential opportunity to out-perform cost allowances through optimised planning in this price control period (and following thePR14 settlement in the water sector), there is an opportunity to benchmark and transfer good practice and approaches to investment planning and prioritisation. Such revised approaches are of strategic interest also as gas distribution companies face a potential change to the Pipeline Safety Regulations in the next few years. A research programme will be undertaken which considers investment planning approaches, recommends transferable approaches and implements these approaches through the development of a proof-of-concept decision support tool (DST). The approach taken will be to: Detail distribution mains investment prioritisation approaches in the water sector and the gas sector, with transferable approaches recommended for further consideration. Define the requirements for investment planning and prioritisation of mains replacement in the gas sector through engagement with individual gas distribution companies. Subject to the identification of suitable methods, develop a company-specific implementation plan to include the selection of trial catchment areas for future testing. Develop and demonstrate a DST incorporating recommended alternative approaches to investment planning and prioritisation of mains replacement.Note : Project Documents may be available via the ENA Smarter Networks Portal using the Website link above
Publications (none)
Final Report (none)
Added to Database 21/08/18