MANX ELECTRICITY AUTHORITY - Tynwald - Parliament … Evidence/MM200… · MINUTES OF A MEETING OF...

MANX ELECTRICITY AUTHORITY

BOARD MEETING

30 MARCH 2000

M Proffitt 1 _

CONFIDENTIAL

AGENDA

MEETING OF THE MANX ELECTRICITY AUTHORITY TO BE HELD ON THURSDAY 30

MARCH 2000 AT 9.30AM IN THE BOARDROOM AT BALLACOTTIER

1 TO CONFIRM the Minutes of the Meetings held on 24 and 29 February 2000 (copies enclosed).

2 TO CONSIDER matters arising from the Meetings held on 24 and 29 February 2000 not featuring on the Agenda.

3 TO NOTE the Chief Executive's Monthly Report (Paper No MEA 00/11 enclosed).

4 TO NOTE the Divisional Monthly Reports (Paper No MEA 00/12 enclosed).

5 TO NOTE the Management Accounts for ten months ended 29 February 2000 (Paper No MEA 00/13 enclosed).

6 TO RECEIVE a Proposal for the Purchase and Installation of Additional Protection Equipment for the IoM Interconnector by Ashton Lewis, Capital Investment Manager (Paper No MEA 00/14 enclosed).

7 TO NOTE a Paper on Thermal Efficiency by Jim Crombie, Generation Manager (Paper No MEA 00/15 enclosed).

8 Any Other Business.

9 TO CONFIRM the date of next meeting as Thursday 27 April 2000.

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MINUTES OF A MEETING OF THE MANX ELECTRICITY AUTHORITY HELD AT 9.30AM ON THURSDAY 24 FEBRUARY 2000, IN THE BOARDROOM, BALLACOTTIER, BRADDAN

Present: Chairman Mr W J McCallion Chief Executive Mr M J Proffitt

Mr T Ferrer

Apologies: Deputy Chairman Mr T D Mackay

In attendance: H R Manager Mr M A Honour

12/00 Minutes

The Minutes of the meeting held on 27 January 2000, having been previously circulated to members, were taken as read, confirmed as a correct record and signed by the Chairman.

13/00 Matters Arising

a Minute 46/99 (a) - MCCL Fibre Optic Cable

IT WAS NOTED that following a meeting comprising Directors of the Manx Cable Company, representatives of the DTI and lawyers for the respective parties, the lease for the fibre optic cable has been agreed in business terms. The necessary documentation is currently being drafted and will be completed in due course. The concept that the DTI pay a single lease payment of £5.9 Million is still under review.

IT WAS FURTHER NOTED that MCC financiers have advised that the market is strong enough to finance the overall interconnector project in the sum of £45 Million. Discussions around this are ongoing.

b Minute 70/99 - National Wind Power

IT WAS NOTED that a wind generator had been developed which operates silently by means of blade design and removal of gearbox equipment. Hundreds have been erected in Germany and one is being tested at a site in the UK.

c Minute 76/99 (f) - Gas Connection

IT WAS NOTED that the DTI have asked the Chief Executive to progress discussions with Burlington Resources Limited on the basis of supplying the Island with Natural Gas. A meeting is to be held, with Mr Steve McGough of Burlington Resources during his visit to the Island to discuss the issue.

d Minute 08/00 - John Bowles, Executive Communications

IT WAS AGREED that following consideration of the services offered by John Bowles, it had been decided, in conjunction with a proposed organisational restructure, to develop an in-house public relations facility which would provide regular Board Pack briefings of press material and other external items related to the MEA. A paper outlining the specific proposals will be submitted for consideration in due course.

e Minute 10/00 (a) - Tour of Power Station

IT WAS NOTED that the Chief Executive had received a positive response from the staff based in Generation, particularly Peel, following a recent tour of the sites with Jim Crombie. Mr Crombie has been asked to make arrangements to install a lift at Pulrose on the basis that it will assist staff to operate and communicate within the building.

IT WAS FURTHER NOTED that the appearance of the Ramsey Station site has much improved following the implementation of the recent general housekeeping exercise.

f Appointment of Board Member

IT WAS AGREED that in view of Mr Mackay's absence to defer the submission of nominees for a 5 th Board Member.

g Tariff Proposals 2000-2001

IT WAS NOTED that a letter of thanks from Mr R Briercliffe, Treasury had been received, in respect of the decision to maintain the 2.5% prompt settlement discount to customers.

v.. h UndergroundinE at St Johns/Tynwald Hill

r \ xi IT WAS NOTED that Mr T A Bawden, Tynwald Select Committee had

\.../ been advised that the Board had agreed to underground overhead lines at St Johns on the basis that the work would be completed prior to the Tynwald Ceremony in July 2000.

Mr Bawden has since indicated the Select Committee's grateful thanks for this decision. A copy of the MEA's letter to the Committee is to be sent to Mr K B Bawden, Chief Executive, DTI.

i Meter Reading

IT WAS NOTED that Norweb had successfully installed telephone modems in customers premises in order to facilitate the reading of meters remotely.

IT WAS AGREED therefore to determine equipment availability and also to identify suitable properties for installation.

IT WAS FURTHER AGREED that the Chief Financial Officer should, as soon as possible, discuss the initiative with the meter readers in order to gain their support with future proposals.

I

Internal Audit

IT WAS NOTED that, a positive meeting had been held between Mr Paul Dewar and Auditors, KPMG and they had agreed to provide assistance to him with the design of internal audit policies and procedures.

k Phase 5

IT WAS NOTED that Mr Malcolm Gibson had attended a critical testing exercise by the manufacturers of a jointed section of the subsea cable and confirmed his satisfaction with the results.

IT WAS AGREED to establish whether a sample joint had actually been tested to destruction.

IT WAS NOTED that a method statement, in respect of procedures for laying the jointed sections of the fibre optic cable has been reviewed by Ashton Lewis and the Chief Executive and does not raise any concerns for the project.

1 Security at Ballacottier Business Park

IT WAS NOTED that a reply from Dandara had been received advising that it was not their intention to provide an independent security guard for the Business Park.

IT WAS AGREED therefore to investigate the possibility of establishing a means of additional night security for the headquarters and stores buildings.

IT WAS FURTHER AGREED to issue a reminder to staff of the need to ensure security of confidential documents and computer access after normal working hours.

14/00 Divisional Monthly Reports - January 2000

The contents of Paper No MEA 00/06 were noted.

a) Generation

IT WAS AGREED to prepare a Paper outlining the alternatives for improving generating plant fuel efficiency.

b) Distribution

IT WAS AGREED to place an order with ABB for the purchase of additional transformers for Pulrose at a total cost of £.1.6M on the basis that they had offered attractive discount terms for part-payment in advance of the delivery of the equipment.

c) Human Resources

IT WAS AGREED that a review of the Current Affairs Publication will be undertaken in conjunction with the introduction of an in-house Public Relations facility.

d) Finance

IT WAS NOTED that the reason for the reduction in January, of bi-monthly direct debit customers had been due to their migration to monthly direct debit.

IT WAS FURTHER NOTED that the Chief Financial Officer had been requested to investigate the reasons for the increase in error rate in bills.

e) Internal Audit

IT WAS NOTED that arrangements have been made to install a partition within the Internal Audit area to provide a confidential office for both audit staff.

Legal Services

IT WAS NOTED that the Government Valuer has advised that the Close Chaim properties have a total value of £600k. Peel Commissioners are currently undertaking an independent appraisal and it is expected that the sale of the properties will be completed soon.

IT WAS NOTED that negotiations with the owner of the Bay Queen Hotel have not resulted in securing the site for substation purposes. Suitable alternative sites are, therefore, being investigated.

15/00 Financial Commentary - Management Accounts

The contents of Paper No MEA 00/08 were noted

IT WAS NOTED that in view of current oil prices, the fuel cost adjustment account was accruing £135k per month to the detriment with a final debit balance of £750k, expected by year end.

IT WAS FURTHER NOTED that the sum of £5M owed to HSBC was now fully paid and the only outstanding borrowings were longer term generating plant leases, which were linked to tariff increases. The Chief Executive was pleased to report, therefore, that the Authority was in a strong financial position.

16/00 11kV Network Reinforcement for South Douglas

The contents of Paper No MEA 00/07 were approved.

17/00 Peel 'A' Site Development

The contents of Paper No MEA 00/10 were approved.

Mr P Thompson, Retail & Marketing Manager joined the meeting at this point and presented the Retail Operational Report for January.

18/00 Retail Operational Report

IT WAS AGREED that Mr Thompson should attend the meeting on 29 February 2000 with Mr Proffitt and Mr Mark Savage to discuss alternative design proposals for the Castletown Showroom redevelopment.

IT WAS FURTHER AGREED that Mr Thompson should undertake a review of the availability of additional appliance storage space. Mr Thompson was thanked for his presentation and the meeting was adjourned.

Meeting adjourned from 1.00pm until 3.00pm for Lunch and a Tour of Retail Division.

19/00 Proposal for New Tariff Structure

IT WAS AGREED to consider this Paper, when all Members would be present, at an Extraordinary Meeting to be held on Tuesday 29 February 2000.

20/00 Five Year Business Plan

IT WAS AGREED to defer consideration of the Business Plan until such time as the decision in respect of organisational restructuring was announced.

21/00 Any Other Business

a) Mrs Brenda Cannell MHK

IT WAS NOTED that a meeting between Mr Proffitt and Mrs Brenda Cannell MHK had been arranged following which, it was intended that Mrs Cannell would be visiting Ballacottier on a monthly basis in her capacity as a DTI representative.

b) Board Lunch Guests

The proposed guest list for monthly luncheons was approved.

c) Customer Contribution for Supply Connection

IT WAS NOTED that a Paper in respect of customer contributions for supply connection will be submitted for consideration at the next meeting.

c) Properties without Supply

IT WAS AGREED to progress the issue of properties which were not currently supplied with electricity, on the basis that the following criteria be established:

i) Identification of those customers who wish to be supplied; ii) Establishment of a budget to complete each connection; iii) Means testing applicants for qualification into a secured loan

programme.

d) Route of Interconnector v Solway Harvester

IT WAS AGREED to establish the exact position on the seabed of the Solway Harvester Trawler in relation to the route of the Interconnector.

22/00 Next Meeting

IT WAS AGREED that the next meeting should be held at 9.30 am on Thursday 30 March 2000.

Chairman Date

MINUTES OF AN EXTRAORDINARY MEETING OF THE MANX ELECTRICITY AUTHORITY HELD AT 11.00AM ON TUESDAY 29 FEBRUARY 2000, IN THE BOARDROOM, BALLACOTTIER, BRADDAN

Present:

In attendance:

Chairman Mr W J McCallion Deputy Chairman Mr T D Mackay Chief Executive Mr M J Proffitt

Mr T Ferrer

H R Manager Mr M A Honour

23/00 Minute 19/00 - New Tariff Structure

IT WAS AGREED that Appendix 3 of the Tariff Paper was not relevant to the proposal and should, therefore, be removed.

IT WAS FURTHER AGREED that a schedule of the top 200 highest users of electricity should be made available to Members for information.

The Chief Executive explained the reasons for introducing the new tariff, to be called "Economy 8", and outlined in detail, the structure of the proposal.

IT WAS UNANIMOUSLY AGREED that approval should be given in principle to the introduction of the Economy 8 Tariff with effect from 1 April 2000. Following a meeting with Treasury, to be attended by the Chairman and Chief Executive, the tariff will be advertised in the local press prior to implementation.

IT WAS FURTHER AGREED that a précis of the Paper should be prepared for the Treasury review and copied to the DTI, for information.

24/00 Organisation Structure

An organisational chart was presented to the meeting by the Chief Executive. The objective of the reorganisation is to reduce tariffs by 25% over the next 3 years by examining costs and opportunities.

IT WAS UNANIMOUSLY AGREED that the reorganisation of the Management Structure be implemented by the Chief Executive.

IT WAS FURTHER AGREED that the Business Plan would require amending to accommodate the changes outlined in the Organisational Chart.

25/00 B I Machin Retirement Reception

IT WAS NOTED that a retirement gift had been purchased and it was proposed to make a presentation at a venue to be agreed.

26/00 Board Lunch Guests

IT WAS AGREED that 3 guests would be selected and invited from the approved list, on a monthly basis, to include political, commercial and celebrity representatives. The lunch would also be attended by the Manager making presentation to the Board on that day.

IT WAS FURTHER AGREED that the Chief Minister and Treasury Minister be invited to the Board Lunch on 30 March 2000.

27/00 Any Other Business

IT WAS AGREED that Mr M J Proffitt be replaced by Mr T D Mackay as Chairman of the Audit Committee following Mr Proffitt's appointment as Interim Chief Executive.

Chairman Date

MANX ELECTRICITY AUTHORITY MEA 00/11

CHIEF EXECUTIVE'S REPORT MIKE PROFFITT

FEBRUARY 2000

1. Phase V I Interconnector Cable

1.1 Commissioning date of 30 October 2000 remains secure.

1.2 Civil works are underway on Isle of Man sites at Port Cornaa, Douglas Head, North Quay and Lord Street.

1.3 Civil works at Bispham are nearing completion with Norweb commissioning on schedule for end of March.

1.4 The Pirelli cable completion has been accomplished (16 March 2000) and the cable is being loaded on to the lay-vessel at the time of writing.

1.5 The fibre optic cable is already onboard the lay-vessel and final testing was witnessed by NGC's quality assurance engineer who is part of the NGC project implementation team.

1.6 The inter-company joint will commence in Erith (BICC factory) beginning of April and this is expected to take two weeks to complete.

1.7 It is anticipated that deployment will commence circa 27 April.

1.8 Pirelli have contracted with Manx fishing vessels to provide marine security around the lay convoy.

1.9 The estimated cost of completion is currently at £40.47M against a budget of £40.55M. This estimate includes a risk contingency of f1.6M and a remedial burial contingency of £.1.5M.

1.10 87% of the land cable for the Isle of Man has been manufactured.

1.11 The contractors Health & Safety meetings are ongoing, with reports coming to MCC. There have been no incidents in February.

1.12 Discussions have taken place with the Harbour Authority who are comfortable with the lay-vessel berthing on the North side of the North Pier. Arrangements are underway for a suitable PR opportunity to include an onboard party of VIP's and later an "open-day" for the public. The Chief Minister was approached regarding "ribbon-cutting" for open-day, however, he indicated that he thought it more appropriate for the DTI Minister and the Chairman to be seen undertaking this task.

14 INS Om,. I 11 I 4.04 1 1141% i I

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Notes cif between alunC the Head of , Internal Audit

A meeting took place between Terry Mackay (Chairman of the Audit Committee) and Paul Dewar (Head of Internal Audit) on Friday 17 March at MEA Headquarters It was agreed at the meeting that further meetings would take place monthly and then move to a quarterly period.

2. Discussions took place on the role, responsibilities and scope of the Internal Audit function within the MEA, The aim of the internal Audit is to provide an auditing service in accordance with the 'Code of Ethics' and 'Standards and Guidelines for the Professional Practice of Internal Auditing'. The Code and Standards are published by the Institute of Internal Auditors (HA). The 11A is the organisation concerned with internal auditing in the UK.

3. The remit of Internal Audit within the MEA is set out in an Audit Charter. The Charter establishes audit's position as an integral part of the company and is an agreed statement of the scope of the internal audit activity. The present Audit Charter was approved by the Board in May 1999. The approval of the Charter by the Board is in keeping with HA standards.

4. Discussions took place on the role of the Audit Committee and the need to formalise a terms of reference for the Committee within the MEA Good corporate practice elsewhere indicates that Audit Committees should follow specific guidelines in ensuring high standards are maintained in internal control arrangements, financial accounting and custodianship of assets. The Head of Internal Audit undertook to provide information on best practice and, to put forward a suggested Audit Committee terms of reference at the next meeting for the Board to approve at a later date.

5. Discussions took place on the level and standard of documented operating procedures and work instructions held by the MEA divisions. The Head of Internal Audit undertook to review the extent of documented policy, procedures and processes and provide a brief report for the next monthly meeting.

The next monthly meeting is to take place on Thursday 6 April at 2.3Opm.


1.13 A draft lease between MCC and DTI has now been received embodying the agreements reached at the recent meeting of principals, with respect to the leasing by DTI of the dark fibre optics.

2. Natural Gas

2.1 Discussions with the Chief Executive of the DTI indicated it was their wish for the progression of a natural gas "project" to be led by the MEA.

2.2 Following this MJP had meetings with Peter Ritson (original gas feasibility consultant) and with Burlington Resources (owners of Irish Sea gas and oil assets).

2.3 Burlington are keen to assess the Islands needs for compatibility with the East Irish Sea Development, especially a field called Millom. Preliminary analysis indicates that this field could serve the Isle of Man (i.e. MEA and Manx Gas) for 25 or more years.

2.4 From the appendix it can be seen that the gas composition is suitable for electricity generation without further treatment. Time is of the essence, as any pipe laying to the Island would need to be carried out in Summer 2001. They are carrying out network development at that time and have ordered the necessary equipment and vessels.

2.5 Once a report from Burlington is received, which will outline indicative costs, serious discussions will start.

2.6 It is MJP's preliminary view that a 60MW Combined Cycle Gas Turbine power plant to complete Phase V could be developed in conjunction with a Burlington Natural Gas field. The following issues require debate:

a) Ownership of CCGI Power Station. b) Ownership of gas pipeline and therefore point of purchase of gas. c) How an MEA project would deal with Manx Gas.

3. Wind Farms

3.1 This month sees the completion of five months anemometer readings which can now form the basis of projections and turbine size discussions.

3.2 Once this has been outlined a package of planning applications will be developed.

3.3 Initial wind data readings covering the first five months indicate the following rankings in terms of 1 being the windiest:

1. Windy Hill 2. Injebreck 3. Round Table

4. Old Mines 5. Jurby

2


4. Economy 8 Tariff

4.1 This initiative has received the full support of Treasury and the DTI and we have received much positive feedback from customers that were reviewing, up until now, their potential for self-generation.

5. Industrial Relations

5.1 MJP has met with the seven staff representatives and has conducted the first INC meeting of the year with all three full-time officers in attendance.

5.2 Two issues were ongoing namely 1) Ken Harrison/ILO, et al and 2) Wayleaves flexibility agreement. Both issues have been resolved with the full support and agreement of the full-time officers.

5.3 JCC (Joint Coordinating Council) Meetings are to be reinstated under the Chairmanship of MEA Chairman.

6. Reorganisation

6.1 The attached organisational chart has been rationalised with all staff concerned and a high degree of enthusiasm is evident from key personnel.

6.2 This management structure will allow a keener more commercial way of running the business with cost savings being identified by directors and delivered by managers. Compatible incentive compensation packages will be reconciled to objective targets determined in advance of the subject year.

6.3 The following functions have already been realigned within the organisation to accommodate this management principle, namely, payroll, stores, meter reading, meter security and customer services.

6.4 A project team chaired by MJP has been set up to develop the framework for operating the cable within the new Cable Operating Division.

6.5 Technical and commercial wherewithal with suitable operational and financial controls are to be in place by July 2000.

6.6 During the time up to this date strategic policy on trading within NETA will be debated and developed.

7. Political

7.1 Brenda Cannell MHK A lengthy meeting was held at Ballacottier with MJP and the above (DTI member with portfolio responsibility for Energy). The meeting was harmonious and productive from a relationship standpoint. Monthly meetings have been agreed upon which should be brief and will cover policy and material developments at a summary level.

3


7.2 Edgar Quine MHK The above member, approached the MEA with regard to Ramsey Power Station and was invited to Ballacottier to discuss the subject of this site's future. An enjoyable meeting was held with a satisfactory outcome.

7.3 Correspondence Alison Corkill now operates under a standing order to furnish copies of all correspondence from the CEO to Government members and or civil servants to the DTI Chief Executive.

7.4 DTI Dinner A dinner for the Chief Executive for the DTI and hosted by MCC was arranged in order to create an enhanced relationship between the department and the NGC Directors. Unfortunately this was cancelled due to a conflict in NGC schedules but the principle has been adopted and a replacement date is being selected.

8. Balance Sheet Management

8.1 The reorganised MEA will be driven to identify cost savings throughout the company, whilst the Cable Operating Division will have its challenge to development savings in procurement as well as an income stream from exports. All these efforts are for the common purpose of Tariff Reduction of significant size over the coming 2-3 years.

8.2 The effort must go further, however, if we are to align Isle of Man Tariffs with that of UK.

8.3 Within the MEA Balance Sheet there is material value not presently being translated into anything tangible. The value of unused capital allowances and the long-term nature of real-estate financing have both been hitherto ignored.

8.4 By realising these values a capital project such as the completion of Phase V could be commissioned with financial savings of in excess of £1.OM per year; representing a direct reduction of Tariff of say, 5.0%

9. ComfyHeat

9.1 ComfyHeat was implemented to encourage a shift in load profile from "Peak" to "Off-Peak" periods.

9.2 With hindsight the ComfyHeat project was sound in concept but introduced too early.

9.3 The impending commissioning of the sub-sea cable should create an opportunity to re-launch ComfyHeat at a price attractive enough to justify the installation and create positive customer satisfaction (circa £0.04 per unit incl. of FCA).


9.4 However, even for this to work the MEA must provide better and further advice on the use of off-peak electricity and it's incompatibility in some cases.

9.5 Recommendation The Board is asked to consider the following:

a) Rename the Tariff (ComfyHeat is a misnomer). b) Design an entire Product not just a Tariff. c) Target product to Developers. d) Design follow-up service to ensure efficient use by end-user.

10. Customer Payments

10.1 A new standing order has been issued enabling the Chief Financial Officer to vary the terms of advance payment for the provision of electricity services.

10.2 Under this procedure, credit can be granted against a customers credit-worthiness or alternatively against suitable collateral.

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MEA 00/12

OPERATIONAL MONTHLY REPORT - FEBRUARY 2000

GENERATION JIM CROMBIE

Units Sent Out 29.1GWh of energy were sent out in February 2000, compared to 27.10Wh in February 1999; an increase of 7.2 %. The 12 month moving total is now 328GWh compared to 313GWh at this time last year; an increase of 4.8%. Peel 'B' Station provided 41.1 % of units sent out this month.

Maximum Demand Maximum power demanded during February 2000 occurred on Wednesday 2 February 2000 at 1800 hours and was 66.8MW, an increase of 3.2%.

Graphical Information Appendix 1: Units Supplied by Power Stations - 12 Month moving total. Appendix 2: Weekly Maximum Demand.

Efficiency The overall net brake thermal efficiency of generating plant for February 2000 was 40.2% compared to 40.7% for February 1999.

Fuel Prices Monthly Average Pulrose HFO Peel HFO Gas Oil

Availability Overall plant availability Running Plant availability

13.51 ppl 11.92 ppl 16.50 ppl

94.2 % 99.7%

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MEA 00/12


DISTRIBUTION 4OHN BEVAN

Douglas North Reingorcement Discussions are continuing with the owner of the site at Park Avenue. The trustees of the site have agreed in principle to the sale and are currently obtaining two independent valuations.

Pulrose Switching Station Planning permission has been applied for. An order has been placed with Siemens for the equipment. Tenders have been returned for the civil works and are currently being appraised.

Pulrose Additional Transformers Planning permission has been applied for the additional transformer housing bay. An order has been placed with, ABB for the supply of the transformer. Tenders have been returned for the civil works and are currently being appraised.

2

Budget Current Month

Year To Date/

Avg.

Out Turn

Est.

270 259.7 258.3 260

6.3M 524K 5.3M 6.3M 1.30 4.04 3.90 2.00

0 1 3 3

0.65 1.00 0.93 0.95

Total Salary Budge (£) SicknesS on Attendance:

Lost Time Accidents

Staff Per GWH Sold

Out turn takes into account projected retirements and forthcoming appointments.

3 Staff on long term sickness absence. Back injury sustained by Generation staff

Comments


MEA 00/12


HUMAN RESOURCES - TONY ONOUR

Key Statistics And Performance Indicators

Training Strategy Review Staff from MEA including myself attended a one day Training Strategy Review organised by the Isle of Man Government. The purpose of the review was to invite discussion on a number of initiatives which were being considered as a way forward in training and development throughout Government Departments and Statutory Authorities.

The session proved to be most beneficial in terms of an exchange of information and contacts made during the day.

The findings of the focus groups as a whole will be notified in due course and it is hoped that the various initiatives discussed will be implemented.

School Sponsorship A meeting was held on 9 February 2000 with Mr Proffitt, Mrs Creighton Adviser to the Department of Education and myself. We discussed a number of sponsorship initiatives which would have the most positive impact on the Schools in the Island and it was agreed that the MEA will support the Life Education Bus which operates within all of the schools. The Bus promotes Health Education to students of all ages and will, therefore, provide the opportunity for the MEA to become involved with this high profile initiative.

Careers Convention Two careers conventions were attended by Human Resources Staff during the month at QEII High School and Ramsey Grammar School.

Changes were made to the display which included information and pictures of the Interconnector Project. There was much interest from students, parents and teachers and arrangements are being made to provide Ramsey Grammar School with general details of the project for use by the science department.

3



Joint Co-ordinating council It has been agreed to reinstate the Joint Co-ordinating Council Meetings which will be chaired by Mr J McCallion.

The Council was established to provide a means of formal communication and consultation within the MEA.

The Council will hold meetings on a regular basis and will include representation from Management and Staff in each Division.

4


MEA 00/12


'FINANCE - JOHN KELLY

Staff The number of staff employed as at 29 February 2000 is 37.2. This compares with 38.3 employees as at 28 February 1999. These numbers include 6 Stores Personnel and one Meter Security staff member who will be transferred to Distribution Division with effect from 1 April 2000.

Billing System and IT Strategy The new Billing syStem, implemented on 6 April 1999, is working well and will lead to improved working practises and eventually a more integrated Customer Services function for the MEA.

Work has now commenced on integrating all Financial and Retail computer systems onto a common platform using Navision software by 31 March 2001.

Management Accounts The monthly management accounts were sent to the Divisional Managers, 4 working days after the month end i.e. 6 March 2000.

Payroll Payroll will be administered within Finance Division using Navision Software with effect from 1 April 2000.

Key Statistics and Performance Indicators December January February

Monthly Direct Debit Customers 6,309 6,404 6,511 Bi-Monthly Direct Debit Customers 4,373 4,362 4,361 Direct Debit Custoiner Accounts Total • 10,682 10,766 10,872 New Direct Debit ACcounts • 50 84 106 Bills Produced • 20,940 19,148 20,133 Bills Replaced • 141 162 167 Error Rate in Bills • 0.67% 0.84% 0.83% Final Accounts ProdUced • 294 330 394 End of Tenancies Processed • 466 523 647

5

Number of Bills Sent Out Number of Readings Actua Number of Estimate eadings Number of Auto Estimates

otal Energy Cash C Ilected enancy Forms Proc sseci

Domestic Non Dornestic(Commercial) Demand Public Lighting Other

. Direct Debit Customers-Monthly Direct Debit Custom rs-Bi Monthly Replacement Readm s Number of Customers



Monthly Energy Billing

1998/99 .. Year

1999/2000 11 Months

259,231 250,360 106,349 103,357 54,019 46,829 86,438 75,631

27,550,001 26,498,953 14,812 20,928 5,357 6,511 4,364 4,361 2,855 1,733

39,755 40,242

34,815 35,327 4,588 4,636

186 200 52 52 27 27

6


MEA 00/12


RETAIL &WM&

TING PHIL THOMPSON

Sales The total appliance sales for February 2000 were £206,148 net representing a decrease of 4% over the same period 1999 (U14,544). Although this performance is the first failure to show an increase compared to the previous years monthly performance the result still represents the second highest February sales figures achieved to date.

The sales total is not indicative of any particular trend at this time and is considered as affected by the well publicised "Closing Down" Sale by our previous major competitors, Waltons Ltd. Sales activity within our shops was reduced over the first two weeks of the month as Waltons advertised their stock 'At Cost Price'. Douglas sales figures in particular recovered strongly over the last two weeks of the month.

Waltons have now ceased trading in white goods from their Mile Stone headquarters and have transferred remnants of this activity into their leased premises at Tromode (Pascoes). Their TV, Hi-Fi and computer outlet on Strand Street still continues to trade normally but it is believed that they will be withdrawing that facility shortly.

The total gross receipts within the shops for all transaction types including energy payments, meter token sales, and all other payments during February was £1.023M.

Items of Interest To facilitate the introduction of the new Navision' Retail computer system and ensure we attain correct configmation and changes to the business processes, senior retail staff paid a short visit to Jersey Electric to experience the system in operation. Excellent feedback was obtained which will prove invaluable to the introduction and usage of the new system.

A four day course, conducted at Ballacottier, was completed by all appliance repair engineers. The course was provided without cost by the training officers of the Electrolux group and was completed without interference to our customer service schedules.

A study into the costs, implications, restructuring and extension of our storage facilities is currently underway to enable a suitable business plan to be presented to the Board for their considerations.

December January .. February: : YTD New Installations 0 0 0 4 PT Meters Only 3 4 0 60 PT Meters/Add Heaters 2 2 0 6 Heater only/no:meter Wine of New :Installation . £0 £0 £0 £1,690 Value of .PT . Add Heaters £1,552 £852 £0 £2,902 Value of Heaters only/no meter Total Value Heater/Installation £1,552 £852 £0 £4,592

£14,000

£12,000

£10,000

Jun4 July August Saplr Ocrr NoVr



MANX ENERGY - RICHARD BUJKO

ComfyHeat ComfyHeat sales continue to disappoint with only three enquiries being received during February despite continually rising oil prices and a further surcharge announced recently by Manx Gas. The latter represents a 15% increase on existing gas prices which is on top of a 11% increase announced at the start of the year. Manx Gas prices are currently being reviewed by the Office of Fair Trading.

Future Work Manx Energy have been offered the opportunity by Paul Harper, Director of DHSS Estate Services, to conduct ;a 'value engineering' exercise on the New Hospital to both re-examine the existing energy strategy originally formulated by Hoare Lee & Partners and the possible implications of MEA' s interconnector on the future operating costs of the hospital. The contract has a value of £3,000.

A presentation on the initial findings of an Energy Review and future recommendations was made on 13 March to the Managing Director, Malcolm MacDonald, and 25 managers and senior supervisors at Dowty Aerospace (IoM). A subsequent meeting has resulted in a proposal which should result in further energy contract work.

Further energy related contract proposals are being drafted for Ramsey Bakery, Shoprite and Lloyds TSB following personal visits to their premises.

8


MEA 00/12


INTERNAL Au]) PAUL DEWAR

Audit Assignments Completed this Month

Customer Contributions A follow-up report has been issued to the Distribution Manager. Only some of the agreed actions have been implemented. Others are to be implemented with effect from 1 April 2000 with one action now earmarked for completion no later than June 2000.

This activity is to be reviewed again during the next financial year.

Cash Security Management responses have been agreed with the Retail Marketing Manager. The final report is awaiting clearance.

Energy Billing Post Implementation Review Management responses are being finalised with the Chief Financial Officer and the Finance Projects Manager.

Credit Control A draft report has been issued to the Chief Financial Officer and responses are awaited.

Audit Assignments in Progress

Fuel Procurement A follow-up audit on agreed management actions has commenced. A report is to be issued before the end of the month.

Capital Expenditure Programme Audit fieldwork is continuing and should be completed before the month end.

Generation Maintenance A terms of reference and audit programme has been prepared. A start date is being agreed with the Generation Manager.

Fixed Asset Register System testing is complete. A schedule of implementation tasks is being followed to ensure the application is operational from 1 April 2000 within the live environment.

Annual Operating Plan for 2000/2001 A draft operating plan is to be discussed with the Chairman of the Audit Committee next month.


MEA 00/12


LEGAL SERVICE S JUAN CALLOW

Easements, Wayleaves, Leases and Conveyances The following agreetnents have been put in place during the month in securing substation sites and cable routes for the MEA distribution system. Most are in the Santon area where the MEA is securing supply reinforcement routes to the IRIS site at Meaty Veg.

Easements

12 Wayleaves

11 Leases

1 Conveyances

Close Chairn Housing Peel Commissioners, have undertaken an independent survey of the Close Chairn housing which has shown the houses are generally in good order. Peel Commissioners are approaching Treasury to discuss financing arrangements. DoT will not adopt the approach road in its present condition and Peel Commissioners are taking advice on alternative options.

Volante v MEA A claim for compensation for injuries received at work due to MEA negligence was brought by a former employee. Following a court hearing the claim was dismissed and the MEA completely exonerated.

Substation Site - North Douglas An offer has been made to the Trust owning land at Parkfield, Glencrutchery Road Douglas for the purchase of a plot of land for a new major substation site. Provisional plans have been drawn up. Purchase' would be subject to obtaining the necessary planning approval and the satisfactory conclusion of price negotiations.

Statutory Wayleaves The MEA has been ranted necessary Wayleaves from the DTI following hearings before the appointed arbitrator (under the provisions of the Electricity Act 1996) in two cases where agreement with the landowner has been withheld or where no known owner has been traced. The Wayleaves were necessary to secure and improve supplies to customers and to enable the MEA to remove poles and overhead lines.


MEA 00/12


PUBLIC RELATI NS EXTERNAL/INTERNAL - ALISON CORKILL

External Relations Various meetings were held during the month, regarding the introduction of the new "Economy 8" Tariff, with high volume commercial customers. The new initiative was received extremely well by both the Treasury and Minister, Richard Corkill. The press release was issued on 20 March 2000.

Progress has been m'ade with the filming of Port Skillion by Duke Video. The Duke footage will be merged wife the BICC and Pirelli footage to produce a historical tape of the Interconnector Deplqyment together with still-shots of the MEA or Electricity Board as it was in the very beginning. A story that will begin at Lord Street Power Station (as it was) and end at Lord Street Cable Substation (as it will be).

Internal Relations The formation of an internal PR team to support me in my role as PR Manager has been instigated, with it's first meeting to be held shortly. Opening issues are expected to be staff uniforms and a corporate identity standards manual for all correspondence, leaflets, etc. The introduction of the team was well received by the Divisional Managers and I am personally looking forward to the challenge.

Media Review Articles published in IoM Newspapers beginning January 2000 to date, as follows (copy articles attached - appendix 1):

1. POSITIVE 07/01/00 Manx Independent "Thanks to MEA Staff" A letter of thanks for staff attendance during Christmas Storms.

2. POSITIVE 11/01/00 IoM Examiner "Cable link work going well" Statement by Mr Hannay of DoT in regarding the joint trench works at North Quay.

3. NEUTRAL 21/01/00 Manx Independent "Machin leaves at halfway date" Article on the retirement of B Machin and appointment of M Proffitt as Chief Executive. Statement from M Proffitt was released from this office.

4. POSITIVE 18/02/00 Manx Independent "Relationship OK" This article was published in conjunction with the question tabled by Mrs Hazel Hannan MHK, regarding the relationship between the MEA, Government and the Consumer.

5. POSITIVE 22/02/00 "Undersea power by Nov 1 forecast" Article released from this office.

IoM Examiner

11



6. NEUTRAL 29/02/00 IoM Examiner "Age Concern Energy Services" This advertisement was placed in the Examiner by PowerGen, Nottingham. No comments have been made to the MEA regarding it's content.

7. NEUTRAL . 07/03/00 IoM Examiner "Quine questions on monopolies situation" Article instigated by Edgar Quine's question to the Keys on government control of prices on essential services.

8. NEUTRAL 10/03/00 "Regulation urged for monopolies" Response to (6) following Keys.

Manx Independent

9. POSITIVE 14/03/00 IoM Examiner "Electricity cable-laving work to start on April 26" Article released from this office.

10. POSITIVE 21/03/00 TOM Examiner "Oil price up bur MEA cuts firms' night power rate" Article released from this office.

Media Statistics

Feb 1997

Feb 1998 Feb 1999 Feb 2000 Positive 2 1 1 2 Neutral 1 1 0 1 Negative 5 2 4 0

The following statistics indicate our appearances in IoM Newspapers ("Media") and ("PR") indicates appearances in media instigated by this office.

1997 1998 1999 2000 TO.Dat6i edia PR .PR Media PR Media PR

Positive 1 23 21 13 9 28 21 3 3 Neutral 6 2 9 2 3 1 Negative 12 4 19 5 20 5 0 0

TOTAL !40 26 38 16 57 28 6 4

Complaints StatisticS The complaints logged for February 2000 are attached (appendix 2) together with graphical information on the status of complaints over the last 12 months (appendix 3). The peak of Finance complaints M June 1999 was caused by teething problems on the new billing system.

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LE OF MAN EXAMINER

NEWS

Central Hotel: ravelodge-prices for the dis-abled suggest on

'Iota for disab Central could accommodatio

ACCOMMODATION for disabled tourists could be provided if the Central Hotel, Douglas, is con-verted into a budget-style hotel.

Heron and Brearley last month unveiled plans for a famillion con-version.

Managing director Eddie Ardern claimed the company had been forced into the move by a decision to put the Central on the register of protected buildings.

Mr Ardern hit-out at planners, saying the 52-bedroom hotel was not the preferred use for the building and registration had left the company's use of the building extremely restricted.

Tim Barker, chairman of pres-

sure group Save Mann's Heritage, has written to Mr Ardern sug-gesting, if the conversion is grant-ed planning permission, the Central is ideal for catering for disabled visitors to the Island,

'It occurs to me that there is probably a real shortage of suit-able accommodation for disabled groups visiting the Island, partic-ularly if they come as part of a coach party and wish to stay together with their friends and guides in one location at Travelodge-prices,' he said.

'The site is on level ground adja-cent to the promenade, the Villa

:onsidering cafe 1VERNMENT planners will s week consider proposals to

the former Athol Garage Hill Street, Douglas, into a

_Le ban le of Man Business Parks, livision of the Dandara rup, has applied for permis-n to change the use of the

_Aind floor of the site from !es into a licensed cafe bar 1451).

cie ground floor used to be a age showroom and work-

-14 and the six car parking es which were required for office ould serve the bar, 16...ch the applicant

tes will 'provide a -1y/diverse use at street

idara declined to corn-t further

Mar sere atre

'As a de suita ple large chair batter shoo pate(

Mr could posed tion ii

Mr

A MAJOR •roject to develop Shoprite's agship Douglas store in Vii toria Road has reached a n• stage.

Shoppers will ave started to become aware of the wor being carried out as sections of the s ore are closed down. The effects are .eing minimised and Shoprite will con inue to remain open for business thro ghout the redevelop-ment, which sho Id be completed by early spring, a s okesman said.

Carolyn Armstr ng said: 'The effects of the work that's .eing carried out are now starting to b- felt. There will be some disruption b t we are committed to minimising an inconvenience cus-tomers might enc unter while the work is under way.

'We would like , to thank our cus-tomers for their s pport and patience over the next few onths.'

Once the redevel pment is complete, sh ppers will be able to buy from an

WORK to connelt the Island to the UK National Grid along with efforts to cOmplete a new sewerage systern are on sched-ule and going well, despite the weather's best efforts to hold up work.

That's good news ft r the Department of Transport but bad news for drivers who'll soon have to et used to a new one-way system al ng North Quay, Douglas.

The DoT is carryin out joint works with the Manx Electricity Authority to lay sewer pipes for the IRIS scheme and power lines along the quay area to

increased range of fresh, prepared and frozen foods and a bigger choice of beers, wines and spirits.

The work will see the addition of a

hook up with the planned undersea cable.

Works involved digging a trench for the pipes and cables running from Leigh Terrace to Loch Promenade.

But to carry out the work traffic pass-ing through the area needs to be divert-ed and the third phase of the operation has been held back until the new har-bour bridge is open.

That has almost been completed and director of highways and traffic Bruce Hannay said the work between Bridge Road and Quine's Corner would start as planned next Monday [January 24

To help traffic flow while the road works are going on North Quay will become a one-way street in an easter-

restaurant and coffee shop and a cook-ery school, which is a first for Shoprite and will host demonstrations and cook-ery lessons.

ly direction, Also affected will be parking in the

area, which will be suspended during the project.

Mr Hannay said: 'The contractor was supposed to complete the work in Peveril Square before phase three got underway but there were one or two delays.

'They are pressing ahead as we speak, and phase three won't start until the bridge is open.

'The weather hasn't helped, but the contractors are doing a good job and it's been going satisfactorily.

'We should be on schedule to start th e phase three work:i. on January 24.

sought charity Community

ce Volunteers is seeking le willing to live away home for at least four ,s. ; can assist in projects as aiding the homeless,

the rehabilitation of offenders and accompa-disabled students to uni-

y. :pecific skills are needed

_J-exchange for their time, , ers aged 16 to 35 receive and and lodgings and a

,( allowance. information contact

—lie 08r '4 991.

you help? EARCHER studying the

—ent of graduates is zg for help from the

Docherty's project .t why graduates move e region to another — rticular emphasis on h West of England.

tudy is a collaborati 1 six universities a d s in Manchester, , Warrington and

ud: 'This research will benefit future gradu-

t is designed to help ture higher education

.; and those of the ist regional bodies' is distributing ques-

but is having trou-ig graduates in the

wishing to take part _act her by email at:

n.ac. uk

or blind AL National Institute

d has secured places

I I HE res fro fav' tio Hot

Th Dane dem( for i spar; Edwr

Pri by Sc is ho

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-'earn _s e after

end up to Ong the oring the

are that Scottish

gun d Scott_ tribute.

- recov- .e CSO

crew of trying to

-- on the said: 'It

ive oper-from the

accepting --Lts and,

ler, there of a suc-

of raising ing would t spent to little as

£60,000. The marine accident inves-

tigation branch and the ves-sel's underwriters will be asked to contribute, Mr Gelling revealed.

The Solway Harvester remains on the sea bed and is therefore a piece of unfin-ished business,' he said.

'There are a number of reasons why we should pro-

In brief . . . in brief

,zeW.-0AM revolve'"' of Salitiikjiig Life she :i.'cariied out:

rieoldentand r iii

-.._..worked loiigliourS'At the sayingqrbey were

Inriiiiry":;: . .a- credit to themselves and

whilg*Iortipiformatinri Island.and..fheicdeserVe has . been -OM-rained. bY7-,.video our thanks. •

'and by the "divers; icceSs'tii He said the . Operation — 4the:-Solway: Harvester itself '.s.which has forded the 'UK ..would be valuable in helping • -Government to review its po - tci"arrive at firm and final icy of leaving vessels where conclusions. : they foundered — was • 'There is a responSibility to ground-breaking. establish whether or not any He added: 'It may be three criminal proceedings need to months or so before we can be instituted. anticipate with confidence

'Then there are the families the sort of weather that we of the men whose lives were need but we do hope that lost and who have been sub- before the summer arrives jetted to all manner of we will have raised the rumour and suggestion. Solway Harvester sa that the

'They are concerned that final chapters in this tragic there should be no cover up story can be written' and that the facts should be • Appeal fund helpers established.' thanked

Mr Gelling gave colleagues — page 17

BOTH Chief Minister Donald Gelling and Trade and Industry Minister David North are satisfied with the relationship between the government and the Manx Electricity Authority.

They were responding to questions from Hazel Hannan (Peel) at Wednesday's sitting of Tynw-aId concerning whether the relationship between them was in the best interests of the con-

. sumer. Both Mr Gelling and Mr

North said the MEA was free to run its business with-out interference while main-

, taining good levels of communication with the government.

Mr North said there were some instances where the government could direct the MEA but he didn't recall it happening during his time as minister.

He also said the govern-ment could not lay down hard and fast rules as each case when using powers of direction would have to be

— 1glz/ cfl

Relationship OK considered on its own mer-its.

'It is accepted that powers of direction can only be used in general terms and not in such a way as to leave the authority with little or no discretion as to the exercise of its statutory functions, said Mr North.

Mr Gelling said the Council of Ministers appoints the chairman and members of the MEA board.

He said the MEA is accountable in a very public way and believes the rela-tionship between the author-ity and the government is in the best interests of the con-sumer.

Mrs Hannan asked Mr Gelling if the relationship between them would be reviewed in the light of the MEA's chief executive Brian Machin's. recent departure. Mr Gelling said no such review would take place.

The matter was raised after the resignation of Mr Machin, who also quit his post as a director of the Manx Cable Company, which is handling the under-sea electricity link to the Island.

• public and- -workers suffer sirni-

•lai k • ties unless the • housing issue is

addressed. 1Ve'shave acknowl-

edged the difficulties our - staff are facing due to

recent developments in the housing market in the Island and we are acting accordingly,' Mrs Christian said.

'Unfortunately this issue is not restricted to health service employ-ees but to all recruits from off-Island in both the public and private sectors.

'It is thus an issue we must address if the Island is to stay compet-itive in the recruitment market and continue to provide quality services of all descriptions to our population'

Her comments fol-lowed a question from Bill Henderson (APG, Douglas North), who asked whether the DHSS would consider buying properties to relieve nurses' problems.

Union leaders warned last month that nurses who have moved to the Island to fill vacant posts may be forced to leave again because of the high cost of housing and rents. Mr Henderson

t other accommo ation,' t sector encompasses otherm

sures to aid reernittru and retention.'

died :exit%

purchase: at Prop week

altip u=c

- for the purpose

CHIEF Minister Donald Gelling will be lo - ing favourably on Manx candidates for t e position of lieutenant governor after a deb e in T•--•vald on Wednesday. He amended a mot rem David Cannan (Michael) insist-ing tne next governor should be Manx. The amended motion, which says all future gov-ernors should preferably be Manx, win accepted unanimously by Tynwald. • THE chairmen of Onchan, Port Erin, P rt St Mary and Laxey village commission will be allowed to take full part in the Tynwald ceremony in St John's in July. Tynwald vot to support a motion by Ray Kniveton which means the four will sit on Tynwald take part in the procession and have seats 'n the royal chapel. • VETERANS of Japanese prisoner-of-w camps in World War Two will be getting one-off- tax-free payment to compensate the trauma. Bill Henderson (Douglas Nort saw his motion unanimously voted throu by Tynwald on Wednesday. The Council

— Ministers will report back by . ..Tune on how t payments, which could be as high as £10, per person, are to be made. • WORK will not beginyeeto stop the erosi of Kirk Michael coast, after Tynwaldvoted favour of a motion by Transport Minis r Tony Brown. Having taken note of a prof s-sional report on using rock armour to prey rit further erosion, he advised members to w it for more detailed advice. David C n

- (Michael) failed to persuade the court to build an initial 200 metre stretch of t e armour, which he said would ensure the safe-ty of homes.

• Full stories in Tuesday's Examiner,

Clare Christian: 'Ise we must address'

She said action wo include refurbish houses in the health vice estate and obtain dedicated use of 1 workers' propert owned by governmen

'In addition my dept ment operates a cc prehensive removal relocation expen: scheme which provi financial assistance new recruits to h them to settle down the Island'

But she added it is the role of the DHS: act as a housing auti ity.

filming! cinusdus. Th

trye has airs:

seen a fox, a bad and various spid brought into the 1st under a loophole in

saidlaw,

this whalsrna.tosaw

factory. can now

Lieensed for the f pose of the film inc try, defined 'as commercial product of visual recordings any method inten• for use in the med: o

f cinema, video television, or any of visual medium'.

Grrreat for WILD animals used in films will be allowed in the Island under new rifles passed by Tynwald on Wednesday. . Department of

:Agriculture, Fisheries and Forestry Minister Alex Downie:: put for-ward the motion . under the Wildlife Act 1980. .

He said - animals which would not nor-mally be allowed in the Island can be brought in on special licences but, until now, were limited to exhibition in a wildlife park or a cir-

•

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INTERNATIONAL

Golf clubhou e future in question because of fig e safety regulations THE future of Douglas to Golf Club clubhouse could be in doubt following a report it needs substantial alterations to comply with fire regulations.

Douglas Council will hear tomor-row (Wednesday) that the borough engineer is obtaining a report from de the fire service about what needs th

done to the Puirose building. ark is needed to comply with

tons before a new fire safe-ificate is issued. The current

ificate dates back to 1982. the work is not done the club-e could be forced to close, it

erged. ouncil leader David Christian lined to comment ahead of Pur-r talks with the fire service.

Last month the corporation was similarly silent after the licensing court threw out its application to be allowed to sell drinks at the clubhouse.

A representation told the court it hoped to attract the public as well as players.

But the court turned down a licence amidst fears junior players could be mixing with those drink-ing.

re ty ce

ho e

:Millenniu pay 'confusion' according to Moffatt

AS row surrounding mil- _ lennium overtime payments

to government workers rumbles on in the House of Keys this week, union boss Bernard Moffatt says there appears to be some confu-sion over the various agree-ments made last year.

- Last week Douglas North MHK John Houghton attacked several government departments when the total cost of the holiday overtime was revealed.

It showed a total of almost £800.000, with Health and Social Security (“81,756) and Home Affairs (L239,142) the biggest spenders.

Mr Houghton accused some departments of 'jumping on the gravy train' and questioned whether the government actually approved the overtime rate of five time 'rmal salary.

Ht as tabled six questions, including one to Chief Minister Donald Gelling, for the sitting today (Tuesday) of the Keys.

ome Affairs Minister Allan Bell ha• defended his department, say-ing the overtime agreement had bean made with the Whitley Council an no one had criticised it at the ti e.

B t Mr Moffatt says it needs poi ting out that while all govern-me t workers received the same 'fiv• times' rate for working the mil-len ium, the Whitley Council settle-me t only related to a section of pudic servants, such as manual wo kers.

H• said it had nothing to do with oth r groups, such as prison officers an' police officers, about which Mr Bel was commenting.

T e agreement only applied to tho e groups of workers within the re it of the Whitley Council, said Mr Moffatt, general secretary of the Transport and General Workers' Un'on.

'I also struck various other agree-me is for various health services gro ps and these were formally rat-ifie , he added.

'I think the hub of Mr Houghton's con erns are about who authorised the amounts paid out in particular

areas where it indeed seems to be astronomical.

'I would make the point that the main group of people that the Whitley Council was concerned with were manual workers who would have ordinarily been working over the holiday period anyway and on standby to be called out for emer-gency work'

Mr Moffatt says he agrees with Mr Bell's argument that if his depart-ment hadn't had extra staff on duty in preparation for any millennium 'problems' it would have come in for heavy criticism.

But Mr Moffatt also believes Mr Houghton's concerns do need inves-tigating.

He said: 'Mr Houghton has stum-bled on something here which may need to be the focus of some inquiry.

'I am at least aware of one other area of government where no for-mal agreement appears to have been ratified'

Mr Moffatt believes several divi-sions of government may have taken the five times rate and simply applied it without having formal negotiations themselves.

Quine question on monopolies situation - MONOPOLY industries and pri-

vate companies will be under discussion in the House of Keys today (Tuesday) when Alliance for Progressive Government

— leader Edgar Quine raises questions about how the gov-ernment controls prices for essential services.

- In a question to Chief Minister Donald Gelling he is due to ask whether a promised review of monopoly controls has taken place and what recommendations have

— been made. In the first of two written ques-

tions to chairman of the Office of Fair Trading Pam Crowe, Ayre

■■■ • Alliance eirpster

MH Mr Quine will ask about sta ding charges levied by statuto-ry •oards and private companies sue as Manx Gas, the Water Aut ority and the Manx Electricity Aut ority.

H wants to know what kind of infl ence the OFT exerts on pricing st duns if it becomes concerned pries were too high.

H s second question to Mrs Crowe dea with the Island price of build-ing materials such as sand and ag: egate compared with charges in t e UK.

st week Mr Quine explained he wa ted to ensure the government ca led out the promised review of ho it makes sure monopolies are

not abused. That was proposed in October last year and Mr Quine said he wanted to know how much progress has been made.

He added: 'The fact is the man in the street is seriously exposed to the adverse effects of monopolies.

'Monopolies are a natural conse-quence of Island life. They are not necessarily unworkable. They may be beneficial but you need govern-ment to regulate them.

'You can't rely on competition because the Island is too small. You have to live with monopolies but they have to be effectively and strin -

gently regulated'

Gold awards for palace five FIVE Duke of Edinburg': -. Gold Award winners from -. the Island are travelling

Radical cat: A crane lifts Team Philif

By BOB PEAKE

THE giant catamaran designed by an Island team for yachtsman Pete Goss was launched in Dec on on Saturday.

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Electric ty cable-laying work to tart on April 26 THE cable linking the the UK National Grid laid next month if the stays calm.

Preparations are nearing c for it to be hooked up to Electricity Authority system Head.

MEA chief executive Micha Said the ship which will lay th al cable across the Irish Sea on. Wednesday. April 26. if according to plan.

The cable will be attached to landfall and the ship will then

land to ould be eather

mpletion he Manx t Douglas

1 Proffitt industri-ill arrive all goes

its Island sail from

Douglas for Lancashire. It will spend about six weeks paying

out the cable. Progress will be slow because a special plough will create a furrow which will protect the cable as it's laid.

Mr Proffitt said: 'The cable's not there yet but we do have civil works on Douglas Head ready for it.

'The vessel will be here on April 26, The vessel will arrive laden with the cable that will be pulled off and laid ashore here.

'The boat will then start deploying out-wards, away from the Isle of Man.'

NEWS

MANX is to appear on street name signs and on Douglas Corporation vans as a result of Wednesday's council meeting.

The council agreed to a public works committee suggestion that 'all new and replacement signs (would) be in the form and style of the full-sized example sub-mitted by the chief building control offi-cer'.

Murray's ward councillor Ritchie McNicholl asked chairman of the public works committee: 'Can we now start to put Manx on our vans?

'Cane: appertai there to

Counci to know vehicles whether paint ea ,

Mr Fa that Mar the vans

Gary ( Faraghe vote for

`More drivir

Volt hole: workers clear a t cable to be laid (IP)

11.

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ench at Port Skillian, Douglas Head, ready for the

A BAN on shops opening on Christmas Day could lead to increased drink-driving, warns a Douglas garage manager.

Gary Logan, of Bray Hill filling station, Douglas, believes taxis could be affected by the closure.

He says if cab services suffer because drivers cannot fill up on Christmas Day it could tempt festive boozers into their own vehicles.

'It could cause people to drink and drive,' said Mr Logan. 'It goes against

what the do.

'Govern ving, but

Mr LogE tation by ( Pam Crov National on Monda

The Sh Sunday of sage thr( amendme banning r Christmas

Voice for children CHILDREN in the Island have been taken under the wing of a UK Church organisation.

A senior representative of the Children's Society will visit the Island later this year to meet supporters and recruit new ones. The Reverend Alan Baker, who works for the society in Cumbria and Lancashire, has added the Island to his area.

He said: 'I am hoping to visit the Island later this year. I am still in the early stages of planning this and I have nothing concrete yet. I'd hope to visit in late July or early August.'

Set up in 1881, the society works with chil-dren in deprived communities, those facing expulsion from school or criminal charges, runaways and children in care. It also cam-paigns for changes in the law which would benefit young people.

It's yo ngsters' fresh outlook that m kes Design an. AdakiainP

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FINANCIAL COlViMENTARY- MANAGEMENT ACCOUNTS

1. Profit & Lois Account - Eleven Months Ended 29 February 2000

Energy Sales Energy sales for the eleven months ended 29 February 2000 amounted to £26.1 M. Actual units sent out for the year to date equated to 299.8M which is higher than budget levels of 298.4M units.

Fuel and Oil Costs Oil prices remain llgh at over $28/barrel. Output is expected to rise following the OPEC meeting on 27 March. Brent prices are still expected to average $22/barrel for 2000 and $19/barrel for 2001.

Spend for the year id expected to be £8.5M.

Staff Costs Staff costs, although slightly higher than budget for the eleven months, are expected to be held at budget levelsl for the full year.

Staff numbers show a small decrease from 260.3 at 28 February 1999 to 259.7 at 29 February 2000.

Other Materials, Gods and Service Costs This figure is not expected to exceed budget level for the year ending 31 March 2000.

Retail The net profit in R4tail Division has exceeded budget expectations by £66,000. Net profit percentage achieved, of 10.1% is 2% higher than budget as a result of strong sales growth .

2. Balance Sheet as at 29 February 2000

Stock and Debtors Stock levels have reduced by £200,000 since year end 31 March 1999 as a result of lower fuel stocks being held.

Debtors at £4.8M show an increase since year end as this figure now includes amount due from Department ofiTransport re joint cable works on North Quay, Douglas of £442,000.

Cash Overall cash balances show a decrease as a result of paying creditors and making loan repayments since year end.

John F Kelly Chief Financial Offilcer 24 March 2000

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MANX ELECTRIC ITY AUTHORITY MEA 00/14

IOM-UK INTERC NNECTOR PROTECTION I PROVEMENTS OF NORWEB SYSTEM

1. Backgroumi

1.1 A pr tection study has been undertaken of the Norweb 132kV transmission syste which provides supply to their Bispham Substation, the United King om connection point of the Isle of Man Interconnector.

1.2 This Study has shown that enhanced protection features will be required so that any Major fault in the Norweb system will be disconnected before the outflow of power from the MEA system would place any present or future MEA generating plant at risk.

1.3 Norw instal contri

eb Engineers have confirmed these studies and have agreed the ation of an enhanced protection scheme subject to a financial bution by MEA.

2. Scheme

2.1 The existing Norweb protection comprises one set of fast acting equipment on each feeder associated with the Bispham supplies. This equipment comprises several components and includes a communications system between both ends of each feeder. In the event of fault, or maintenance of any of these components Norweb rely on slower acting "back-up" protection which can not ensure disconnection of a fault in the time required by MEA.

2.2 Sine there is a clear risk of damage to any MEA generating plant which could be o erated when such delayed fault clearance occurred, to avoid the signi leant costs of disruption and repairs that would then arise, and also to avoi the unnecessary disconnection of this plant and loss of MEA supplies an enhanced protection scheme is proposed as noted below.

2.3 The i:roposed protection would comprise:

i) A duplicate fast acting protection system for the Norweb 132kV feeders directly associated with the Bispham supplies (other more remote feeders are not critical to MEA generation). This system will provide redundancy to the present fast acting Norweb equipment and largely remove the risks arising from reliance on the back-up protection.

A "last resort" protective scheme located at the Lord Street termination of the interconnector. This is proposed to remove the risks of any delayed Norweb fault clearance which could possibly arise from equipment failure or breakdown within the Norweb system impacting on MEA plant. This system would, in the time scale required, disconnect the connection between the Isle of Man generators and the

MANX ELECTRICIkY AUTHORITY MEA 00/14

United Kingdom supply whilst leaving the Isle of Man load connected as may be optimally arranged to either power source.

2.4 Norweb have quoted £139,378 as the MEA contribution to their costs which includes the design and the future operation, maintenance and repair of the equip ent embedded in their system. The estimated cost of the equipment to be ins led at Lord Street is £31,250 including design and installation costs. The t al budget for this project is estimated at £180,000 which includes a contingency of 5%.

3. Recommenthi[tion

3.1 The uthority are recommended to approve the expenditure of a sum not excee ing £180,000 for the provision of equipment to enable main and reserve high peed protection to be fitted to sections of the Norweb 132kV trans ission system for the benefit of MEA supplies and with final high speed protec ion at Lord Street to ensure the safety of MEA generating plant.

Ashton Lewis Capital Investment M 24 March 2000

anager

MANX ELECTRIC ITY AUTHORITY MEA 00/15

FUEL EFFICIENdY

1. Introduction

1.1 This paper examines how the MEA measures fuel efficiency in its power stations, what changes to fuel efficiency have occurred over the life of the MB410 plant, and looks ahead to possible operational developments for the futurl.

2. Efficiency

2.1 Fuel efficiency is a measure how great a proportion of the chemical energy contained in the fuel is converted to mechanical or electrical output from the prime mover.

2.2 The chemical energy is determined as the calorific value or specific energy of the fuel The Gross (or Higher) Calorific Value GCV includes the latent heat of the water formed from the combustion of Hydrogen. This water passes as vapoulF straight through to the exhaust and does not contribute to the power outpu of the engine. We therefore use the Net Calorific Value (NCV) in our dete !nation of fuel efficiency (as do all engine manufacturers), which is the gross figure less the water latent heat.

2.3 Engine manufacturers refer to the net brake thermal efficiency of their engines and Os is a measure of the brake power output measured at the flywheel comped to the rate of energy supplied based on the net calorific value of the fuel. These tests are prescribed in ISO standards, and use weighed fuel of known calorific value at specified temperatures and pressures to give an absolnrte measurement.

2.4 A corollary to net brake thermal efficiency is the specific fuel consumption (SFC) in grams/kWh. The actual SFC obtained under a test described above is adjusted by a factor that assumes a fuel of standard calorific value, to enable comparisons to be made between engines of differing manufactures and design using afferent fuels. This is the manufacturers preferred parameter rather than efficie cy.

3. Fuel Parameters

3.1 Fuel i purchased on a volumetric basis ie pence per litre. Its energy content is based n weight. It is therefore necessary to know the fuel density or mass per unit v lume - and how this varies with temperature.

3.2 The conventional references to light, medium or heavy fuel oil are referring to their 'scosity, not weight. The heavy fuels are more viscous than light fuels. As a eneral rule the density increases with increase in viscosity, but not necess 'ly so in all cases. Fuels of higher density have more carbon and less hydro en content than lighter fuels and thus their energy content reduces per unit o weight.


3.3 An important derived parameter is ignition quality and this is calculated form empirical formulas based on density and viscosity.

4. Engine Paraineters

4.1 The c mpression ignition oil engine is one of the most fuel efficient types of prime mover available, and combined with the ability to burn a wide range of fuel t es, gave it a dominant position for small and medium power outputs. It is nly recently that advances in gas turbine technology have presented a seriouschallenge to the cost effectiveness of diesels within the same power range. Large slow speed diesels can return a fuel efficiency of more than 50%; medi speed engines, such as the MB430 can achieve 41-45% efficiencies whils high speed engines can achieve better than 35%.

4.2 These efficiencies are achieved by using high compression ratios, and gener ting very high firing pressures (and hence temperatures). Careful match ng of turbochargers to engine and fuel injection equipment optimises the pr cess. Good fuel atomisation at exactly the right moment is essential for achie ing good fuel efficiency. Maximising fuel efficiency minimises carbon dioxi e (CO2) emissions but increases the production of Nitrogen Oxides (NO.) and it is NO„ emissions that presents the limiting condition in setting up the tuning envelope of the engine.

5. Power Station Fuel Systems

5.1 Fuel i delivered to bulk fuel tanks. The volume delivered is checked against invoice and it is the bulk volume, corrected always to 15°C, that we pay for.

5.2 Fuel i drawn from the bulk tanks that are maintained at about 50°C, and pump d into pre-treatment tanks where it is heated to 90°C. This fuel is then centri ged and passed to post-treatment tanks, The centrifuging process remov s any water, solid impurities and heavy sludges that may be present, - produ ing about 1% as sludge, and as a consequence alters the fuel density as it is th heavier materials that are extracted.

5.3 The p st-treatment or service tanks are kept full and overflowing back to the pre-tr atment tank, This achieves greater processing of the fuel and maintains the fu 1 temperature in the tanks. Pumps draw from the service tank and circul to the fuel ring main where the temperature is maintained at 105-100°C, and w ich supplies fuel to each individual engines fuel module.

5.4 Pump on the fuel module draw from the ring main via heaters and the engine fuel eter to the engine bus-rail where fuel now at more than 130°C is circul ted to each cylinder fuel injection pump, the return passing back to the downs eam side of the fuel meter so that the meter does not register circulting volumes only the amount used.

MANX ELECTRICTY AUTHORITY MEA 00/15

6. Station Caleillations

6.1 The s tions calculations deviate from the strictly defined test calculations in one o two important details.

6.2 The gures we produce are primarily for comparison with the same data from an e lier period. We include the alternator in all calculations and hence the electr cal losses, although only small are included. This is a convenience, as the g erator set output is routinely measured at the alternator terminals in kW or k electrical and not at the flywheel as brake power. This produces a lower efficiency (or higher specific fuel consumption) than the engine manufacturer would quote.

6.3 All f el consumption's, metered on a volumetric basis at the engine, are adjust d upwards on a pro-rata basis to include the material extracted during trea ent. This is done to make the calculation relevant to what we paid for in fuel. his is a significant factor when comparing results achieved on medium fuel it (MFO) to those on heavy fuel oil (HFO) as there is more sludge produ ed from the heavier oil. No adjustment is made for change in density due to fuel treatment, but temperature changes are allowed for.

6.4 The c lorific value used in the calculations is derived from tests carried out on pre-d livery samples of fuel. The oil in the storage tank is a combination of oil fi- m different deliveries and an average figure is used in month end calcul Lions.

7. Type of fuel reatment plant

7.1 The el treatment plant at Pulrose was of the manually-cleaned type that was effecti e for fuels up to MFO grades, but which was unsuitable for HFO grade where the density of fuel could exceed that of water. These centrifuges rely o a difference in density between oil (lighter) and water/solids (heavier) to sep ate out the components, and were suitable for fuels with a maximum densit of 0.991.

7.2 The cilange to HFO at Pulrose required new fuel treatment plant of a type ahead installed at Peel 13' to be fitted at Pulrose. These self-cleaning machi es use water to eject the solids contents of the bowl periodically with° t having to stop the machine. Inevitably some oil is also ejected and the total olume of sludge is higher than with the manually cleaned type. Again this r ects in a lowering of fuel efficiency when referred back to the bulk suppl volumes.

8. Engine Tuniil g

8.1 The p int in the cycle of engine operations at which injection of fuel begins in critica for successful operation. This is measured at the point of spill-port-closur of the injection pump. Provision is made for adjustment of this point by a) being able to adjust the position of the camshaft relative to the cranks aft, which alters the spill port closure of all cylinders timed by that

MANX ELECTRIC TY AUTHORITY MEA 00/15

cams aft or b) individual pump adjustments can be made by adjusting shim packs under each fuel injection pump. Neither of these operations are easy and • e not usually attempted outside the commissioning and setting up period after ach major overhaul.

8.2 Adv sing the spill port closure improves efficiency but increases cylinder press es and temperatures. A point can be reached where cylinder pressures excee design maximums, resulting in piston and bearing damage, and the high ommensurate temperatures generate excessive NO R. Turbocharger speed limits can be exceeded. Retarding spill port closure point reduces efficiency, press es, temperatures and NO„ but increases CO 2, unburned hydrocarbons, and e haust temperatures. A balance must be struck often conflicting factors.

9. Ignition Del y

9.1 There is a small, but measurable time delay between injection of fuel and igniti i in of that fuel. The heavier the fuel the longer the ignition delay, and it is this feature of the fuel that the ignition quality index attempts to qualify.

9.2 At 5 0 r.p.m., which is the speed of the MB430, 1 millisecond delay is equiv lent to 3° crank angle advancement. If the fuel is of poor ignition qualit , ignition is delayed to an inappropriate point, and there is a build-up of fuel aiting to ignite. This can produce unacceptably rapid rate of rise of press e and damage to components.

10. Turbocharg rs

10.1 The icient provision of air for combustion is of major importance in succe sful operation of pressure charged engines. Turbochargers are overh uled at 20,000 hour intervals (bearing replacement at 12,000 hours). The bo gas side blades are subject to wear from erosion/corrosion mech isms particularly when burning heavy fuel. This can reduce the effect eness of the turbo-charger and contribute to loss of efficiency. As a guide o the work rate of the turbo-chargers, collectively they pump about 3 millio tonnes of air per annum (or 160,000 tonne each).

10.2 It w. mentioned earlier that for optimum efficiency turbochargers are match d to the engines. Peel power station is subject to emission limits as per proces guidance PG1/5 1991, which limits particulates, carbon monoxide (CO) d NO„ . Because of the NO limitations, the tuning of the Peel engines differs from Pulrose (their fuel injection point is retarded c 9° BTDC, cf. Pulros at 15° BTDC). As a consequence of this the turbo-chargers at Peel have a different build to Pulrose (blade heights, angles etc.) The retardation of the P -el timing has resulted in lower fuel efficiency at Peel compared to Pulros Fuel is procured for Peel directly from sea tanker into our own tanks - avoi • ing road transportation costs - and so the costs of generation per kWh is still le s at Peel than at Pulrose, even though the specific fuel consumption is higher

MANX ELECTRIC TY AUTHORITY MEA 00/15

10.3 The timing of the Peel sets has been advanced to 12° BTDC to take advantage of the HFO increased ignition delay in an attempt to offset the downside of the NO„ determined tune, but the turbo-charger build prevents further advancement as it would result in overspeed of the turbo -charger at full load

11. Changes in Ifficiency

11.1 The from

el efficiency achieved now is less than previous years. Taking data he annual report we have

1994 1995 1996 1997 1998 1999 2000

41.6 41.7 41.7 41.5 40.6 40.7 40.5*

*as at February 2000.

11.2 We c . HFO witho at abo

12. Effect of lub

see that a step change occurred in 1998 coincident with the change to t Pulrose. The change from MFO to HFO at Peel was accomplished t serious loss of efficiency, by the advancing of the fuel injection timing t the same time.

'eating oil consumption

12.1 Comm oil co oil de 1% o burnt, fuel e the sh meter

dent with this time frame, we have managed to reduce the lubricating sumption of the Pulrose engines to less than a third of their early lub. and. Often at 18 litres per hour or more the lub. oil use was more than the fuel consumption. This was oil passing the piston rings and being and as such represented "free" fuel in so far as it was not included in the ficiency calculations. Current consumption of lub. is less than 5 Uhr and • rtfall of energy released by unmetered lub. oil has to be made good by d fuel consumption.

13. The Future

13.1 The P nomi but comp major

lrose sets have now accrued c70,000 running hours each, against a . 1 life span of 100,000 hours. They are decidedly not 'new' any more e in remarkably good condition after such service. Turbo-charger ssor wheels are due for replacement this year and next, but no other omponents require renewal.

13.2 At Pe to ch struc produ molec produ fractio fuel c contin

1 one engine is fitted with an experimental fuel "filter" that is designed mically modify the fuel to produce a more homogeneous molecular e of mid-range hydrocarbons. The lighter fractions, that bum early ing high temperatures and NOx, are combined to make heavier les (oligimerisation), whilst the heavy molecules, that bum late and e unburnt hydrocarbons, particulates and smoke, are split into lighter s ( isomerisation). Other engine users claim significant reductions in nsumption, but our results to date show little improvement. We are ing with the trial to try to achieve the desired result.

MANX ELECTRICTY AUTHORITY MEA 00/15

13.3 Mirrli Stock result same cycle

es Blackstone are trying an engine modification on their test engine at port that will be applied to the next Peel engine to be overhauled if s look promising. The engine compression ratio is increased whilst at the time retarding the fuel injection point. This is designed to give the high pressures (and efficiency) without high temperatures (and NOx)

14. Conclusion

14.1 We h ve tried to show the various factors that affect the fuel efficiency of an engin • . Our method of calculation used in monthly statistics is for comparison with p revious 'every day' performance; and is not an absolute calculation. Such every day calculations produce a conservative result that includes all ineffi i iencies, and as such is perhaps unfairly labelled engine efficiency.

14.2 The op in efficiency as calculated is largely due to increased sludge removal from FO and the reduced lubricating oil consumption resulting in increase in meter d fuel to make up the lubricating oil energy content.

14.3 Speci is test results are calculated from time to time, using data from engines under strict test conditions, gathered with sophisticated mass measuring equip ent on loan to us from Mirrlees Blackstone.

Jim Crombie Generation Manager 24 March 2000

MANX ELECTRICITY AUTHORITY - Tynwald - Parliament … Evidence/MM200… · MINUTES OF A MEETING OF...

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