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

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

2. National Grid in the UK/US National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. We also own and operate the high pressure gas transmission system in Britain and our distribution business delivers gas to 11 million homes and businesses. National Grid also has a number of related businesses such as LNG importation and storage, land remediation and metering. National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. We also own and operate the high pressure gas transmission system in Britain and our distribution business delivers gas to 11 million homes and businesses. National Grid also has a number of related businesses such as LNG importation and storage, land remediation and metering.

3. 3 National Grid�s Distribution Operations

4. Our job is to SAFEGUARD�.

5. Range of Legislation and Governance

6. Legislation and its Impact on StreetworksA Constantly Moving Feast Section 58 and 58A � POWER TO RESTRICT Previously 1 year restriction � now ranked by impact: Newly constructed roads 5 years Re-constructed roads 5 years Re-surfaced roads 3 years Substantial street-works 1 year Exemptions for Immediate works Exemption where the risk score of a pipe has changed �substantially� requiring immediate replacement Section 56 � POWER TO DIRECT Highways Authority can now direct date (as well as time of day) and we MUST comply To ensure co-ordination with other Utilities / Authorities programmes Section 54 � ADVANCE NOTICE From one month to three months for major works Major works = >11days / programmed work known about for at least 6 months / temporary traffic order LA Traffic Managers Network management duties for the �expeditious  movement of traffic� Oversees the whole picture of the works of HA / LA / Utilities / developers and neighbouring Boroughs and is responsible when traffic flow problems can be attributed to lack of co-ordination  Power to enforce efficient co-ordination with other  Utilities / Authorities programmes PERMITS (2009) - Ability to apply conditions insert instead of open cut / only 70m of open cut at any time (Kensington) / no storing of materials in the street Traffic Management Designs (currently voluntary) Traffic Management Plan for works on major routes  Costly and lengthy discussion / approval periodsSummary: There is an obligation for all Utilities to adopt a better co-ordinated longer planning horizon. The more we can plan ahead the more we can share with others to reduce disruption and the impact on the general public Section 58 and 58A � POWER TO RESTRICT

7. Legislation and the Cost Impact Identifies the cost of legislation, excluding administration costs, from Inspections at a cost of 500k per annum, increasing to 1 million with the advent of London Permits, rising to 10 million when permits roll out nationally, with proposed Lane Rental to be introduced in 2011/12 with a cost to the business of more than 30million. Proposed legislation in the form of S73 and S78 � half width reinstatement and a guarantee fee on works undertaken on the horizon.Identifies the cost of legislation, excluding administration costs, from Inspections at a cost of 500k per annum, increasing to 1 million with the advent of London Permits, rising to 10 million when permits roll out nationally, with proposed Lane Rental to be introduced in 2011/12 with a cost to the business of more than 30million. Proposed legislation in the form of S73 and S78 � half width reinstatement and a guarantee fee on works undertaken on the horizon.

8. Impact of London Permit Scheme on Productivity

9. National Grid - we are not sitting still�..Lean/Six Sigma Review has reduced unoccupied time on site

10. We are not sitting still�.Committed to our Customers

11. We are not sitting still�...Good Practise Becomes Common Practise

12. Summary