1. Unavoidable Impacts of Streetworks Legislation Jon Butterworth MBE Director, National Operations

2. National Grid in the UK/US  UK: Owns high-voltage electricity transmission network in England and Wales and operates system across Great Britain  UK: Owns and operates high pressure gas transmission system in Britain. Distribution business delivers gas to 11 million homes and businesses  Distributes electricity to 3.3 million customers and provides natural gas to 3.5 million customers  Services 1.1 million customers of Long Island Power Authority (LIPA)  Currently owns over 4,000MW of generation

3. 3 National Grid’s Distribution Operations Opex - £180m Capex - £70m Repex - £450m  Miles of pipe: 82,000  Customers: 11 million  Staff: 5300 (Direct Labour and Contractors)  Metering: 616,000 jobs  Emergency: 533,000 jobs  Gas Escapes: 70,000 jobs (7000 interference damage jobs)  Relay after escape: 20,000 jobs  Mains replacement/reinforcement: 2000km  Connections: 24,000 jobs  Winter / Trigger Survey: Full Network  High Rise Flats: 400 projects, 6,000 meter points  Diversions Major: 45km  20 major Incidents

4. Our job is to SAFEGUARD…. LIFEPROPERTYSECURITY OF SUPPLY Gas Emergency Service, 30/30 Mains Replacement Programme, Pass55 Asset Maintenance Programme, Domestic Connections, Roadworks/Diversions and 3rd Party Activities

5. Range of Legislation and Governance Pipeline Safety Regulation (Regulation 13) 1996 Pipeline Safety Regulation ( Regulation 13A) 2003 Traffic Management Act New Roads and Streetworks Act (NRSWA) 1991 Construction Design and Management Regulations Control of Major Accident Hazards Regulations Corporate Manslaughter Legislation PAS-55 Asset Maintenance Streetworks Authorities (SA’s) Traffic Managers Permits – Ability to apply conditions Traffic Management Design Section 58 & 58A – Power to restrict Section 56 – Power to direct Section 54 – Advance notice Poor Planning Poor Coordination

6. Legislation and its Impact on Streetworks A Constantly Moving Feast S74 Charging COP for Inspection’s COP for Safety Yorkshire Permits LoPS – Tranche 2 Lane Rental Northamptn Permits Gtr Man Permits Scheme 2010-20112011-2012 Legislation changes currently being considered and may land soon? “Every time there is a change to legislation it takes time to understand, implement and embed these in to an organisation. Some changes have also led to reduced productivity, increased duration of works and increased customer costs”

7. Legislation and the Cost Impact S73/78 Legislation Proposed Lane Rental Permits (National) Permits (London ) Inspections Increased costs from legislation changes - worst case costs assuming current levels of performance

8. Impact of London Permit Scheme on Productivity Key Message Central London productivity on mains replacement has reduced by 38% since the introduction of the Permit Scheme in the LA’s which have implemented LPS. Planned Works

9. National Grid - we are not sitting still….. Lean/Six Sigma Review has reduced unoccupied time on site 42% improvement 40% improvement 53% improvement Duration in days of end to end repair process; open notice to job closure Duration in days of repair make safe process; measure of time between notice request and request for reinstatement team Duration in days of reinstatement process; request reinstatement to physical completion of reinstatement work Emergency Works

10. We are not sitting still…. Committed to our Customers National Grid takes Customer inconvenience seriously and is committed to finding solutions that minimise disruption to our stakeholders Customer Communication No Dig Solutions Core & Vac, Trenchlink and Forge

11. We are not sitting still…... Good Practise Becomes Common Practise ” Digfest – Upper Thames Street 14 Dec 08 Committed to the Code of Conduct

12. Summary Pipeline Safety Regulation (Regulation 13) 1996 Pipeline Safety Regulation ( Regulation 13A) 2003 Traffic Management Act New Roads and Streetworks Act (NRSWA) 1991 Construction Design and Management Regulations Control of Major Accident Hazards Regulations Corporate Manslaughter Legislation PAS-55 Asset Maintenance Streetworks Authorities (SA’s) Traffic Managers Permits – Ability to apply conditions Traffic Management Design Section 58 & 58A – Power to restrict Section 56 – Power to direct Section 54 – Advance notice S74 Charging COP for Inspection’s COP for Safety Yorkshire Permits LoPS – Tranche 2 Lane Rental Northamptn Permits Gtr Man Permits Scheme Our job is to safeguard life We are heavily codified Legislation changes present our business with significant challenges We are committed to the Code of Conduct