2.1.1 To enable OfGEM to establish its required revenues within the 2002-2007 Price Control Period, Transco has prepared a five year projected mains replacement work plan. This plan provides planned annual totals for each Network2 plus National totals over the five year period, based on agreed diameter band groupings.
2.1.2 Transco develops detailed annual phased work schedules in order to establish each Network's financial and manpower budgets for the forthcoming year. Transco's planning schedule relating to the preparation and issue of the detailed annual programme begins approximately six months before the start of the financial year. Planned work activity schedules are developed on a national and individual Network basis. The schedules, when completed, provide phased workloads by month on a cumulative basis to facilitate future routine tracking of progress of actual against planned activity.
2.1.3 The core mains replacement activities monitored by Transco are:
(a) mains "abandoned" (decommissioned or otherwise taken "off risk"); and
(b) new mains laid or inserted to replace "abandoned" mains.
2.1.4 Using data from the MRPS risk assessment system, Transco is able to estimate the risk score profile of the mains in use in each Network at the start and end of any one year. The risk score profile will change on an on-going basis throughout the duration of the mains replacement programme. These changes are a result of the abandonment of iron pipes (a reducing effect); the addition of fracture or corrosion history to the MRPS database (a generally increasing effect); and the input to MRPS of topographic data collected by survey (again, a generally increasing effect). It is conceivable that, during the period to 31st March 2007, Transco will be in a position to provide a forecast of the reduction in risk likely to be achieved in each Network as a result of the replacement programme.
2.1.5 Currently, an Excel spreadsheet/workbook is utilised by Transco to provide weekly reporting information on the progress of the replacement programme. The use of such spreadsheets is used to facilitate electronic routine reporting within Transco. Extracts from these reports have been provided to HSE as evidence of progress against the medium pressure ductile iron (MPDI) replacement programme during 2000 and 2001 (see section 2.6).
2.1.6 Transco's monitoring covers all elements of the Plan-Monitor-Implement-Control
cycle associated with the mains replacement programme to provide suitable
monitoring of all key stages of the process.
2.2.1 Transco undertakes detailed planning to ensure that annual mains
replacement work programmes are adequately prepared in time for each forthcoming
work year (see section 2.1.2). Table 1 below illustrates typical stages in the planning process and makes
provision for setting planned/target dates (project milestones) for completion.
|May & June||Planning assumptions finalised.|
|June to September||Networks identify workload targets and associated costs for budget provision. Local management and Network Policy undertake challenge & reviews to ensure consistency with Ofgem & HSE targets.|
|September||Approval of workload and costs by Network Directors|
|October||Approval of workload plan by Chief Operating Officer|
|July - March||Networks undertake physical project scoping, costing and approval of projects to be undertaken.|
|Commencing October||Network (Planning) issues approved projects to Network (Operations)|
|Commencing November||Network (Operations) distribute work packages to Contractor|
|November||Contractor provides work schedule for Transco approval.|
|tba||Transco Centre issue mains replacement workload plans to HSE in accordance with agreed timeline.|
2.3.1 Transco have identified that a flattened S-type curve profile (see Appendix 5C - Cumulative Performance Chart) typically illustrates the normal annual profile of mains abandonment and replacement activity. Actual progress against these phased plans is currently circulated within Transco on a weekly basis and has been provided to HSE in the past as a part of the quarterly reporting arrangements associated with the MP DI replacement programme (see section 2.6).
2.3.2 Until the end of 2001, Transco operated a system of work activity and financial reporting based on a calendar year period (January to December) framework. However, OfGEM now require Transco to report information to them on agreed outputs (in line with the price control agreement) based on the Formula Year period (April to March). From April 2002, Transco will bring its financial and planning year into line with the Formula Year. During this transitional period, HSE request that Transco report on their mains replacement activities over the 15 month period to 31 March 2003, with the exception of the MP DI activities which should be completed by 31 December 2002. It is anticipated that from April 2003, HSE monitoring of the iron mains replacement programme will be based on the Formula Year period (April to March).
2.3.3 As indicated within section 2.1.2, Transco prepares detailed annual phased work programmes. Key extracts from these detailed programmes are to be provided to HSE to facilitate future routine tracking of work progress. The tables shown within Appendix 3 - National Programme Mains and Appendix 4 - Example Network Programme Mains illustrate provisional summary level data extracts provided for both the National and a typical Network annual phased work programme for 2002/3. The plans separately identify both MPDI and other MRPS driven activities, broken down into the identified broad diameter bands. Beyond the completion of the MPDI replacement work at the end of 2002, it is anticipated that the plans will then separately identify both DI and CI activities (MRPS driven), once more broken down into the broad diameter bands.
2.3.4 Within the annual programme extracts, summary level detail should also be typically provided for other non-policy planned replacement type work; e.g. diversions and condition replacement. Information on other related work such as service replacement and reinforcement should also be provided for monitoring purposes. This supporting information assists in the overall review of the balance of resource usage within each of these work areas.
Transco also prepares five year projected summary work plans. These plans provide planned annual National and Network totals over the projected five-year period, based on identified diameter band groupings. This is consistent with the level of detail provided in Transco's forecasts to OfGEM for the Price Control Review. Key extracts from these plans relating to planned mains abandonment activity are to be provided to HSE. Appendix 1 - National 5 Year Forecast and Appendix 2 - Example Network 5 Year Forecast both illustrate the typical level of detail provided to HSE for the period 2002/3 -2006/7, although currently the data provided by Transco for Appendix 2 relates to a forecast of mains to be laid rather than abandoned, as is shown in Appendix 1.
Transco makes use of individual mains units' MRPS risk values to assess the total risk presented by the iron mains population. This data is used to develop a risk score profile of the existing mains population both nationally and by Network. Appendix 6 - Risk Profile provides a typical illustration of the national risk score profile. Regular review of this data can enable assessment of the effectiveness of the replacement programme in mitigating the risk. The MRPS data is being updated continuously although the first five years cycle of MRPS surveys has yet to be completed. Thus, year-on-year changes to risk profiles not only reflect changes in risk achieved by the replacement programme, but also the effects of this continuous updating of information (see section 2.1.4).
Monitoring and reporting of the current programme of MPDI replacement (scheduled to be completed by the end of 2002) will continue during 2002 in line with these reporting requirements. Routine monitoring reports will continue to identify the MPDI activity separately from the other iron mains replacement programme activities. Summary performance data from other related work areas should also continue to be provided to facilitate comparative assessment of resource usage. The activities monitored cover selective service renewal and other replacement activities, such as Condition replacement and Mains diversions. Appendix 5A - Ytd Monitor: Summary and Appendix 5B - Ytd Monitor: Data Table both illustrate the typical current reporting format.
2 The Transco geographic administration areas are now referred to as regional "Networks". This follows recent migration from a twelve Local Distribution Zone (LDZ) to a new eight regional Network structure. For simplicity, the term "Network" will be used throughout this report.