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Cambridgeshire – Delivering power infrastructure 21 June 2019

Cambridgeshire – Delivering power infrastructure 21 June 2019. Agenda. Overview of UK Power Networks Key drivers for investment Our regional investment programme The local Cambridge investment programme Conclusions. About UK Power Networks.

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Cambridgeshire – Delivering power infrastructure 21 June 2019

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  1. Cambridgeshire – Delivering power infrastructure 21 June 2019

  2. Agenda • Overview of UK Power Networks • Key drivers for investment • Our regional investment programme • The local Cambridge investment programme • Conclusions

  3. About UK Power Networks

  4. UK Power Networks’ performance – since acquisition in 2010 The safest Our best ever customer satisfaction score The lowest cost 10% Below industry average Average domestic distribution costs 2018/19 ( £ 18/19 prices) Ofgem broad measure of customer satisfaction Lost Time Incident Frequency Rate 18% 90% Improvement since 2010/11 Improvement since 2011/12 Reduction in the frequency of power cuts Reduction in the duration of power cuts An employer of choice The most innovative Smart Grid Index from 45 utilities across 30 countries 3rd Innovation savings £130m Customer minutes lost per customer Customer interruptions per 100 customers 54% 48% Improvement since 2010/11 Improvement since 2010/11

  5. Contribution to the bill £1,117

  6. Key drivers for investment Our aim is to deliver the best network performance in the UK while maintaining the overall health of the network. • We make an ongoing assessment of: • The condition of our assets (health indices) • The utilisation of those assets (load indices) • The way in which we assess our assets is common to all DNOs and drives our investment programme. We are funded to maintain health and utilisation at stable levels through the eight year RIIO period. • Replacing ageing assets can also create spare capacity to support future development.

  7. Our investment programme £4.5bnto be invested in the network between 2015 and 2023. • Last year we invested over £600 million back into the network. • We are the most innovative network and this enables us to avoid traditional costly grid reinforcements • We are the lowest cost DNO in the UK, charging just £75.57 on the average energy bill per year £600minvested in the network annually. ‘Savings made by efficient investment is shared with customers through lower bills’

  8. Cambridgeshire infrastructure investment £65mto be invested in Cambridgeshire between 2015 and 2023. • We have connected 1481 MW of Distributed Generation to the local network • We have contracted for a further 1030 MW of generation • We have supported the growth in: • Cambridge City & the University campus’ • Housing developments in Northstowe and Waterbeach • Addenbrooke’s hospital and other research campus’ • Peterborough City centre • The southern expansion at Orton 660 MVAof capacity will be added to the regional network; equivalent to 250,000 homes

  9. How new developments are funded • The UK has a common methodology setting out the structure of connection charges • A ‘shallowish’ model aimed at protecting connected customers funding reinforcement for commercial developments • New connecting customers fund the cost of any new assets solely provided for their development and a proportionate share of any reinforcement • Where reinforcement costs are shared the balance not funded by the customer will be ‘socialised’ across existing customers and recovered via the networks element of the electricity bill

  10. UK Power Networks invests to provide capacity in support of the development of Cambridgeshire. A number of the these investments are shown below

  11. Cambridge feasibility study Greater Cambridge Partnership (GPC) commissioned an independent evidence based study on the future electricity demand to facilitate planned growth. As a result of this work, it was recommended by the study that GPC invests into 132KV upgrades in Cambridge Southern Fringe. • Greater Cambridge Partnership has subsequently commissioned UKPN to undertake an engineering feasibility study • The study will look at a range of options for providing circa 120MW for the southern fringe and 470MW of capacity for greater Cambridge • Initial outcomes expected in the next 8 weeks

  12. Summary • UK Power Networks is committed to spending more than £3 billion on network infrastructure between 2015 – 2023, including £65m specifically for Cambridgeshire • We are required to meet the needs of all of our stakeholders to deliver the most efficient coordinated network we can • The connection charging regime is determined by the industry regulator Ofgem • The Greater Cambridge Partnership are shortly to initiate a Feasibility study that will identify the scale of investment required to meet a demand of up to 470MW

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