RP7 Stakeholder Consultation WEB - Flipbook - Page 35
The lifespan of an asset depends
on a number of factors including the
asset type. For example, switchable
plant assets have a shorter life span
when compared to that of overhead
line conductors, steel towers and
underground cables. On this basis,
whilst some plant assets installed
between the 1950’s and 1970’s may
have been subject to a replacement
programme in previous price controls,
for other assets such as underground
cables, transmission plant and
transmission overhead line towers and
conductors, the approach has been
to maximise their useful lives by way
of maintenance and refurbishment
rather than replacement. In order to
maintain the current reliability of the
network, a larger programme of asset
replacement is required to address the
deteriorating condition of some areas of
the underground cable and transmission
network. Ultimately, this along with other
safety and legislative requirements,
will drive a step increase in asset
replacement spend when compared
to RP6. Where possible this will be
minimised utilising our 4 step approach
outlined opposite. To defer any further
spend would have the impact of
decreasing the reliability of the network
and would only be a short-term deferral,
most likely into the following price
control period.
Q14. Do you agree with our
position of maintaining the
reliability of the network? Would
you accept a reduction in network
reliability, potentially leading to
a higher incidence of electricity
outages for customers, to reduce
your electricity bill in the shortterm?
For context, a £50m reduction in
capital spend would result in an
approximate £1.90 saving on the
average annual domestic electricity
bill during RP7. For our commercial
customers this represents an annual
decrease between £7.50 for a small
business and £118 for a medium
business.
In addition, considering the increased
interaction with the electricity network
we propose targeting 50,000 people
annually with our public safety
campaign, including 10,000 school
children. This represents a 100%
increase in our safety interactions
compared to RP6 costing less than 10
pence to the average annual domestic
customer during the RP7 period.
RP7 Stakeholder Consultation
35
