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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IR 01 0, 01 01 00 00 01 01 01 01 01 C3 CI CD CD CD C) CD C3 CO CD CD N M N N 04 NI- Cr) 04 04 CA N 04 04 N N N 04 Cs1 04 04 ENQU 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: Chairman Mr W J McCallion Deputy Chairman Mr T D Mackay Chief Executive Mr M J Proffitt Mr T Ferrer
In attendance: 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 la TOO f 0 I J GY/ LiS LIU "1b: "!Y LY ;U4
Notes cif between alun C 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.
MANX ELECTRICITY AUTHORITY MEA 00/11
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 4. Old Mines 2. Injebreck 5. Jurby 3. Round Table 2 MANX ELECTRICITY AUTHORITY MEA 00/11
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 MANX ELECTRICITY AUTHORITY MEA 00/11
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). MANX ELECTRICITY AUTHORITY MEA 00/11
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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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 13.51 ppl Peel HFO 11.92 ppl Gas Oil 16.50 ppl
Availability Overall plant availability 94.2 % Running Plant availability 99.7%
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OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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
MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
HUMAN RESOURCES - TONY ONOUR
Key Statistics And Performance Indicators Budget Current Year To Out Comments Month Date/ Turn Avg. Est. 270 259.7 258.3 260 Out turn takes into account projected retirements and forthcoming appointments. Total Salary Budge (£) 6.3M 524K 5.3M 6.3M SicknesS on Attendance: 1.30 4.04 3.90 2.00 3 Staff on long term sickness absence. Lost Time Accidents 0 1 3 3 Back injury sustained by Generation staff Staff Per GWH Sold 0.65 1.00 0.93 0.95
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 MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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
MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
'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 MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
Monthly Energy Billing
1998/99 .. 1999/2000 Year 11 Months Number of Bills Sent Out 259,231 250,360 Number of Readings Actua 106,349 103,357 Number of Estimate eadings 54,019 46,829 Number of Auto Estimates 86,438 75,631 otal Energy Cash C Ilected 27,550,001 26,498,953 enancy Forms Proc sseci 14,812 20,928 . Direct Debit Customers-Monthly 5,357 6,511 Direct Debit Custom rs-Bi Monthly 4,364 4,361 Replacement Readm s 2,855 1,733 Number of Customers 39,755 40,242
Domestic 34,815 35,327 Non Dornestic(Commercial) 4,588 4,636 Demand 186 200 Public Lighting 52 52 Other 27 27
6
MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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.
MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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.
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
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 MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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. MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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 11 Wayleaves 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. MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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 IoM Examiner "Undersea power by Nov 1 forecast" Article released from this office. 11
MANX ELECTRICITY AUTHORITY MEA 00/12
OPERATIONAL MONTHLY REPORT - FEBRUARY 2000
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 Manx Independent "Regulation urged for monopolies" Response to (6) following Keys.
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.
12
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LE OF MAN EXAMINER NEWS
:onsidering cafe 'Iota for disab 1VERNMENT planners will ACCOMMODATION for s week consider proposals to disabled tourists could be the former Athol Garage Central could Hill Street, Douglas, into a provided if the Central _Le ban Hotel, Douglas, is con- accommodatio le of Man Business Parks, verted into a budget-style livision of the Dandara hotel. sure group Save Mann's Heritage, Mar rup, has applied for permis- Heron and Brearley last month has written to Mr Ardern sug- sere n to change the use of the gesting, if the conversion is grant- atre _Aind floor of the site from unveiled plans for a famillion con- version. ed planning permission, the 'As !es into a licensed cafe bar Central is ideal for catering for Managing director Eddie a de 1451). disabled visitors to the Island, suita cie ground floor used to be a Ardern claimed the company had 'It occurs to me that there is been forced into the move by a ple age showroom and work- probably a real shortage of suit- large -14 and the six car parking decision to put the Central on the able accommodation for disabled chair es which were required for register of protected buildings. groups visiting the Island, partic- batter office ould serve the Mr Ardern hit-out at planners, ularly if they come as part of a shoo bar, 16...ch the applicant saying the 52-bedroom hotel was coach party and wish to stay pate( tes will 'provide a not the preferred use for the together with their friends and Mr -1y/diverse use at street building and registration had left guides in one location at could the company's use of the building Travelodge-prices,' he said. posed idara declined to corn- Central Hotel: ravelodge-prices for the dis- extremely restricted. 'The site is on level ground adja- tion ii t further abled suggest on Tim Barker, chairman of pres- cent to the promenade, the Villa Mr sought charity Community I ce Volunteers is seeking le willing to live away home for at least four A MAJOR •roject to develop ,s. Shoprite's agship Douglas I ; can assist in projects store in Vii toria Road has as aiding the homeless, the rehabilitation of reached a n• stage. HE offenders and accompa- Shoppers will ave started to become res disabled students to uni- aware of the wor being carried out as sections of the s ore are closed down. fro y. The effects are .eing minimised and fav' :pecific skills are needed Shoprite will con inue to remain open tio _J-exchange for their time, for business thro ghout the redevelop- Hot , ers aged 16 to 35 receive and and lodgings and a ment, which sho Id be completed by Th ,( allowance. early spring, a s okesman said. Dane Carolyn Armstr ng said: 'The effects dem( information contact of the work that's .eing carried out are —lie 08r '4 991. for i now starting to b- felt. There will be spar; some disruption b t we are committed Edwr you help? to minimising an inconvenience cus- tomers might enc unter while the work Pri is under way. by Sc EARCHER studying the is ho —ent of graduates is 'We would like , to thank our cus- zg for help from the tomers for their s pport and patience increased range of fresh, prepared and restaurant and coffee shop and a cook- over the next few onths.' frozen foods and a bigger choice of ery school, which is a first for Shoprite Docherty's project Once the redevel pment is complete, beers, wines and spirits. and will host demonstrations and cook- .t why graduates move sh ppers will be able to buy from an e region to another — The work will see the addition of a ery lessons. rticular emphasis on h West of England. tudy is a collaborati 1 six universities a d s in Manchester, abbe link work going well , Warrington and WORK to connelt the Island to hook up with the planned undersea ly direction, ud: 'This research will the UK National Grid along cable. Also affected will be parking in the benefit future gradu- Works involved digging a trench for area, which will be suspended during with efforts to cOmplete a new the pipes and cables running from t is designed to help sewerage systern are on sched- the project. ture higher education Leigh Terrace to Loch Promenade. Mr Hannay said: 'The contractor was .; and those of the ule and going well, despite the But to carry out the work traffic pass- supposed to complete the work in ist regional bodies' weather's best efforts to hold ing through the area needs to be divert- Peveril Square before phase three got is distributing ques- ed and the third phase of the operation underway but there were one or two up work. has been held back until the new har- but is having trou- delays. ig graduates in the That's good news ft r the Department bour bridge is open. of Transport but bad news for drivers That has almost been completed and 'They are pressing ahead as we wishing to take part who'll soon have to et used to a new director of highways and traffic Bruce speak, and phase three won't start until _act her by email at: one-way system al ng North Quay, Hannay said the work between Bridge the bridge is open. n.ac. uk Douglas. Road and Quine's Corner would start 'The weather hasn't helped, but the The DoT is carryin out joint works as planned next Monday [January 24 contractors are doing a good job and or blind with the Manx Electricity Authority to To help traffic flow while the road it's been going satisfactorily. lay sewer pipes for the IRIS scheme works are going on North Quay will 'We should be on schedule to start th e AL National Institute and power lines along the quay area to become a one-way street in an easter- phase three work:i. on January 24. d has secured places
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died :exit% purchase: at Prop altip u=c week -'earn ,zeW.-0AM _se after revolve'"' of Salitiikjiig Life - for the purpose end up to she :i.'cariied out: t other accommo ation,' t Ong the • public and- sector encompasses otherm oring the r iii -workers suffer sirni- sures to aid reernittru rieoldentand -.._..worked loiigliourS'At the and retention.' sayingqrbey were •lai k • ties unless the are that Inriiiiry":;:. .a- credit to themselves and • housing issue is Scottish whilg*Iortipiformatinri Island.and..fheicdeserVe addressed. gun 1Ve'shave acknowl- has . been-OM-rained. bY7-,.video our thanks. • edged the difficulties our d Scott_ 'and by the "divers; icceSs'tii He said the . Operation — tribute. - staff are facing due to 4the:-Solway: Harvester itself '.s.which has forded the 'UK recent developments in - recov- ..would be valuable in helping • -Government to review its po - .e CSO the housing market in tci"arrive at firm and final icy of leaving vessels where the Island and we are crew of conclusions. : they foundered — was trying to acting accordingly,' Mrs • 'There is a responSibility to ground-breaking. Christian said. establish whether or not any He added: 'It may be three -- on the 'Unfortunately this £60,000. criminal proceedings need to months or so before we can issue is not restricted to said: 'It be instituted. ive oper- The marine accident inves- anticipate with confidence health service employ- from the tigation branch and the ves- 'Then there are the families the sort of weather that we ees but to all recruits accepting sel's underwriters will be of the men whose lives were need but we do hope that from off-Island in both --Lts and, asked to contribute, Mr lost and who have been sub- before the summer arrives the public and private ler, there Gelling revealed. jetted to all manner of we will have raised the sectors. of a suc- The Solway Harvester rumour and suggestion. Solway Harvester sa that the 'It is thus an issue we Clare Christian: 'Ise remains on the sea bed and is 'They are concerned that final chapters in this tragic must address if the we must address' of raising therefore a piece of unfin- there should be no cover up story can be written' Island is to stay compet- ing would ished business,' he said. and that the facts should be • Appeal fund helpers itive in the recruitment She said action wo t spent to 'There are a number of established.' thanked market and continue to include refurbish little as reasons why we should pro- Mr Gelling gave colleagues — page 17 provide quality services houses in the health of all descriptions to our vice estate and obtain population' dedicated use of 1 In brief . . . in brief Her comments fol- workers' propert lowed a question from owned by governmen CHIEF Minister Donald Gelling will be lo - Relationship OK Bill Henderson (APG, 'In addition my dept ing favourably on Manx candidates for t e BOTH Chief Minister considered on its own mer- Douglas North), who ment operates a cc position of lieutenant governor after a deb e its. asked whether the DHSS prehensive removal •vald on Wednesday. He amended a Donald Gelling and in T•-- Trade and Industry 'It is accepted that powers would consider buying relocation expen: mot rem David Cannan (Michael) insist- of direction can only be used properties to relieve scheme which provi ing tne next governor should be Manx. The Minister David North in general terms and not in nurses' problems. financial assistance amended motion, which says all future gov- are satisfied with the such a way as to leave the Union leaders warned new recruits to h ernors should preferably be Manx, win relationship between the authority with little or no last month that nurses them to settle down accepted unanimously by Tynwald. government and the discretion as to the exercise who have moved to the the Island' • THE chairmen of Onchan, Port Erin, P rt Manx Electricity of its statutory functions, Island to fill vacant posts But she added it is St Mary and Laxey village commission may be forced to leave the role of the DHS: Authority. said Mr North. act as a housing auti will be allowed to take full part in the Tynwald They were responding to Mr Gelling said the again because of the ceremony in St John's in July. Tynwald vot questions from Hazel Council of Ministers high cost of housing and ity. to support a motion by Ray Kniveton Hannan (Peel) at appoints the chairman and rents. Mr Henderson which means the four will sit on Tynwald Wednesday's sitting of members of the MEA board. take part in the procession and have seats 'n Tynw-aId concerning He said the MEA is Grrreat for filming! the royal chapel. whether the relationship accountable in a very public • VETERANS of Japanese prisoner-of-w between them was in the way and believes the rela- WILD animals used cinusdus. Th camps in World War Two will be getting best interests of the con- tionship between the author- in films will be trye has airs: one-off- tax-free payment to compensate . sumer. ity and the government is in seen a fox, a bad the trauma. Bill Henderson (Douglas Nort allowed in the Island and various spid Both Mr Gelling and Mr the best interests of the con- under new rifles saw his motion unanimously voted throu North said the MEA was sumer. brought into the 1st by Tynwald on Wednesday. The Council free to run its business with- Mrs Hannan asked Mr passed by Tynwald under a loophole in — Ministers will report back by ...Tune on how t out interference while main- Gelling if the relationship on Wednesday. . law, whalsrna.tosaw payments, which could be as high as £10, , taining good levels of between them would be Department of said this per person, are to be made. communication with the reviewed in the light of the :Agriculture, Fisheries factory. • WORK will not beginyeeto stop the erosi government. MEA's chief executive Brian and Forestry Minister can now of Kirk Michael coast, after Tynwaldvoted Mr North said there were Machin's. recent departure. Alex Downie:: put for- Lieensed for the f favour of a motion by Transport Minis r some instances where the Mr Gelling said no such ward the motion . under pose of the film inc Tony Brown. Having taken note of a prof s- government could direct the review would take place. the Wildlife Act 1980. . try, defined 'as sional report on using rock armour to prey rit MEA but he didn't recall it The matter was raised He said - animals commercial product further erosion, he advised members to w it happening during his time after the resignation of Mr which would not nor- visual recordings for more detailed advice. David C n as minister. Machin, who also quit his mally be allowed in the of (Michael) failed to persuade the court to oany method inten• - He also said the govern- post as a director of the Island can be brought for use in the med: build an initial 200 metre stretch of t e ment could not lay down Manx Cable Company, in on special licences armour, which he said would ensure the safe- hard and fast rules as each which is handling the under- but, until now, were f cinema, video ty of homes. case when using powers of sea electricity link to the limited to exhibition in television, or any of • Full stories in Tuesday's Examiner, direction would have to be Island. a wildlife park or a cir- visual medium'. — 1glz/ cfl •
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Age Concern Energy Ser44-eici-e- • vs and PowerGen have joined foriiet ':to help older people save rtioney,., on their gas and electricity bills: SAVE AROUND 160 AYEAR ONYOUR 6.110•1111111111 Um. ,_ - VI MOO Coto • INEN Mt NOP cam. wk. dada ■••■ 1.1•1.0 ENERGY BILL* anno • MN ■••■•••• MOM eaM1111.1. • li■la rr mew compared to British Gas • Ora AMMO . .1.1•111 ma • timmin MB% me dmilro 0/1=INWEI allaw• . Mown Oft SO loos Visit your local Age Concern office with • OM alias MY your recent energy bills to claim your FREE HYPOTHERMIA THERMOMETER while stocks last • your energy and also to find out just how much you can save. Alternatively, for a free quotation, complete the coupon below or phone us free on 0800 917 3352 *Based on a British Gas dual fuel annual bill of 0567, paid 10 days after the bell dace ;7•L.,, r ,,,,-tortri- -, LA kt" SITTIA DIALS FOR r/4,A.(.> ALL CONCIRNID Name A,td:.-ess Jc bono: The February edition of clismo carries a six page feature on the I , r Nan and the TT. There's also a report on -se world's top racers get up to in winter Tel No, icludes a picture and story about TT leg- Poo- M.D 15672 Nottingham, NG8 i BR AI 17 tcorno Agostini K C IIIIII - IMF --- 2-/ Golf clubhou e future in question because of fig e safety regulations THE future of Douglas to done to the Puirose building. Last month the corporation was Golf Club clubhouse could ark is needed to comply with similarly silent after the licensing re tons before a new fire safe- court threw out its application to be in doubt following a ty ificate is issued. The current be allowed to sell drinks at the report it needs substantial ce ificate dates back to 1982. clubhouse. alterations to comply with A representation told the court it the work is not done the club- hoped to attract the public as well fire regulations. ho e could be forced to close, it as players. Douglas Council will hear tomor- e erged. But the court turned down a row (Wednesday) that the borough ouncil leader David Christian licence amidst fears junior players engineer is obtaining a report from de lined to comment ahead of Pur- could be mixing with those drink- the fire service about what needs th r talks with the fire service. ing. :Millenniu pay 'confusion' according to Moffatt AS row surrounding mil- ome Affairs Minister Allan Bell areas where it indeed seems to be _ lennium overtime payments ha• defended his department, say- astronomical. ing the overtime agreement had 'I would make the point that the to government workers bean made with the Whitley Council main group of people that the rumbles on in the House of an no one had criticised it at the Whitley Council was concerned with Keys this week, union boss ti e. were manual workers who would Bernard Moffatt says there B t Mr Moffatt says it needs have ordinarily been working over poi ting out that while all govern- the holiday period anyway and on appears to be some confu- me t workers received the same standby to be called out for emer- sion over the various agree- 'fiv• times' rate for working the mil- gency work' ments made last year. len ium, the Whitley Council settle- Mr Moffatt says he agrees with Mr - Last week Douglas North MHK me t only related to a section of Bell's argument that if his depart- John Houghton attacked several pudic servants, such as manual ment hadn't had extra staff on duty government departments when the wo kers. in preparation for any millennium total cost of the holiday overtime H• said it had nothing to do with 'problems' it would have come in for was revealed. oth r groups, such as prison officers heavy criticism. It showed a total of almost an' police officers, about which Mr But Mr Moffatt also believes Mr £800.000, with Health and Social Bel was commenting. Houghton's concerns do need inves- Security (“81,756) and Home T e agreement only applied to tigating. Affairs (L239,142) the biggest tho e groups of workers within the He said: 'Mr Houghton has stum- spenders. re it of the Whitley Council, said bled on something here which may Mr Houghton accused some Mr Moffatt, general secretary of the need to be the focus of some inquiry. departments of 'jumping on the Transport and General Workers' 'I am at least aware of one other gravy train' and questioned Un'on. area of government where no for- whether the government actually 'I also struck various other agree- mal agreement appears to have approved the overtime rate of five me is for various health services been ratified' time 'rmal salary. gro ps and these were formally rat- Mr Moffatt believes several divi- Ht as tabled six questions, ifie , he added. sions of government may have taken including one to Chief Minister 'I think the hub of Mr Houghton's the five times rate and simply Donald Gelling, for the sitting today con erns are about who authorised applied it without having formal (Tuesday) of the Keys. the amounts paid out in particular negotiations themselves. Quine question on monopolies situation - MONOPOLY industries and pri- MH Mr Quine will ask about not abused. That was proposed in vate companies will be under sta ding charges levied by statuto- October last year and Mr Quine said Radical cat: A crane lifts Team Philif discussion in the House of Keys ry •oards and private companies he wanted to know how much sue as Manx Gas, the Water By BOB PEAKE today (Tuesday) when Alliance Aut ority and the Manx Electricity progress has been made. for Progressive Government Aut ority. He added: 'The fact is the man in — leader Edgar Quine raises H wants to know what kind of the street is seriously exposed to the THE giant catamaran questions about how the gov- infl ence the OFT exerts on pricing adverse effects of monopolies. designed by an Island ernment controls prices for st duns if it becomes concerned 'Monopolies are a natural conse- team for yachtsman Pete essential services. pries were too high. quence of Island life. They are not Goss was launched in - In a question to Chief Minister H s second question to Mrs Crowe necessarily unworkable. They may Dec on on Saturday. Donald Gelling he is due to ask dea with the Island price of build- be beneficial but you need govern- tixilpere , ! whether a promised review of ing materials such as sand and monopoly controls has taken place ag: egate compared with charges ment to regulate them. and what recommendations have in t e UK. 'You can't rely on competition — been made. because the Island is too small. You st week Mr Quine explained he :-• In the first of two written ques- wa ted to ensure the government have to live with monopolies but tions to chairman of the Office of ca led out the promised review of they have to be effectively and strin - Fair Trading Pam Crowe, Ayre ho it makes sure monopolies are gently regulated' Gold awards INTERNATIONAL ■■■ for palace five • FIVE Duke of Edinburg':-. 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Counci to know The council agreed to a public works committee suggestion that 'all new and vehicles replacement signs (would) be in the form whether and style of the full-sized example sub- paint ea, mitted by the chief building control offi- Mr Fa cer'. that Mar Murray's ward councillor Ritchie the vans McNicholl asked chairman of the public Gary ( works committee: 'Can we now start to Faraghe put Manx on our vans? vote for `More drivir A BAN on shops opening on what the do. Christmas Day could lead to 'Govern increased drink-driving, warns a ving, but Douglas garage manager. Mr LogE Gary Logan, of Bray Hill filling station, tation by ( Pam Crov Douglas, believes taxis could be affected National by the closure. on Monda He says if cab services suffer because The Sh 11. drivers cannot fill up on Christmas Day it Sunday of could tempt festive boozers into their own fou sage thr( — Jo vehicles. amendme Volt hole: workers clear a t ench at Port Skillian, Douglas Head, ready for the 'It could cause people to drink and banning r cable to be laid (IP) drive,' said Mr Logan. 'It goes against Christmas Voice for children Cs Electric ty cable-laying CHILDREN in the Island have been taken under the wing of a UK ST GER work to tart on April 26 Church organisation. was pa A senior representative of the Children's morninE land to Douglas for Lancashire. Society will visit the Island later this year to vice dt THE cable linking the month-c the UK National Grid ould be It will spend about six weeks paying meet supporters and recruit new ones. The out the cable. Progress will be slow Reverend Alan Baker, who works for the of Ange laid next month if the eather society in Cumbria and Lancashire, has Cover, vk because a special plough will create a The ( stays calm. furrow which will protect the cable as it's added the Island to his area. Preparations are nearing c mpletion laid. He said: 'I am hoping to visit the Island for it to be hooked up to he Manx later this year. am still in the early stages Mr Proffitt said: 'The cable's not there I Electricity Authority system t Douglas of planning this and I have nothing concrete Head. yet but we do have civil works on yet. I'd hope to visit in late July or early Douglas Head ready for it. M MEA chief executive Micha 1 Proffitt August.' Said the ship which will lay th industri- 'The vessel will be here on April 26, Set up in 1881, the society works with chil- al cable across the Irish Sea ill arrive The vessel will arrive laden with the dren in deprived communities, those facing WORR on. Wednesday. April 26. if all goes cable that will be pulled off and laid expulsion from school or criminal charges, town's according to plan. ashore here. runaways and children in care. It also cam- of its tr The cable will be attached to its Island 'The boat will then start deploying out- paigns for changes in the law which would ing 0 landfall and the ship will then sail from wards, away from the Isle of Man.' benefit young people. Wedne The ha are carri as a spr- It's yo ngsters' fresh outlook ing. Trader' that m kes Design an. AdakiainP not addrf t. to ,..* be' > 0 = 5l'ic -.c'" = 74 0 .-.0 .4 E 4. C 0 ...V •17:, .2.'j. V, .1°13 al 's .> ....., .,.:: - ... 0 >,..., CV 03 03 t.: M' )1 ..g, .ia' a • -q, I CI. . o73 .1 a 4=1 cri eal 2 ,. 0 E 0 ■ C c/7 .0 ,•• " 2: r' . a0E Q '13 t ....- a9. r1Z 06. - 6 ; 0° 5* 9:1 " "F. -. E E 4 w 0 •••• 03 "a = 0 43:•-• .4 .s.: ,,,,:i L.?..- w n Q E 0 :v., - 0.- v 2-003 • '-0 0 0 ---ig.h.,,....= 76 0 two -_,0. :,. n g . 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(5 lz C e. — h Brief DeStription - Divisional Manager y, F., '''''' nC,7 cd Chief ExeCutive ,.. t 0 rn CI 0 c 0 0 ta 0 g Mr R Tilleard, Avistine, Glen Road, Colby Chief Executive m Letter iterating MEA position undergrounding and reason frl c> U *Ccn for interruptions. n n au si y eim .105 0 0 u io2 tt LT-1 2 , , j Written 0A1 Awaiting word from customer on bank charges to be Complaint: Direct Debit Error ED refunded due to Direct Debt payments being incorrectly taken from bank account. Ja2 n a i ys gur t& t& li Un 44 n Resolved Letter sent to explain why meter readers didn't know of C3 access to property. Navision updated of access. Complaint: Estimated Bills RD RD fe un • tre 4. —• c•.) 0 Resolved Access available Navision updated spoke to Mr Clarke Complaint: Estimated Bills C3 I matter resolved. Shouldn't have received estimated bills. ....• u u a mos '' 1.) 0 Chief Executive pa FMatter resolved by Retail & Marketing Manager. Complaint regarding appliance ED Appliance exchanged as gesture of goodwill even though nothing wrong with original appliance. a aIs a) U. 0 0 1 C CO a) C) C C CI a) O Z S c al Ts cr.> Q 0. o E co 0 (..) a) cr) o) = < 0) C) = -) C) a) C = a a? >, cu 2 a) a? 8_ < 0 0 LO 0 04 MANX ELECTRICITY AUTHORITY MEA 00/13 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 • • • • • • • • O 0 N- O c0 Ig) 0 co CD O ti c0 c0 aD O 3 0 la r. co LO I— N N CC CD Cr) N CO 71- U) "E- 0 NI N M N C CO. co tr) N N • o 4T DS" (.6 1,-; 1• N.- 1— CL) < N N N 0 .4- 0 U) III N r N '4'5"e CD CD •n— CD N- U) N r N co FEBRUARY 2000 h 29t "aR o "ag oe '812. C"•* ;-,3 e • ce, (..) 0 0 O N N N- N N N •Cr •Cr 1.• O1 o co U) c0 0) NI- 0 N 0 ei oi co co c; ci tri C,). m ▪ I C') NTHS ENDED MO el en O (0 c0 0 .4-- CO To• O O 4A in el N- 0) U) CO CD CD CO N EN N CO n CO 0.1 el 0) 0) CO CO ID N N ▪ Cu CIS fD •cF N N ▪ CD 0 0 ti O 0 CO N- ti O N.- 0 N n ce) n O 01 O CO to O N 0) Lr) CO. 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N tol co, (171 a) 0) N corq 03 cNi ti CD • cf U) tB 0 0 c0 N CO V cr) co 00 1.1 N 4.1 Z W(a CIS 5 2 00 ARY 20 "In a) E FEBRU 7. h C 29t E O 0 AT a) .75 ts AS ca ETS TY AUTHORITY IES 0 S S ls SS ICI c TS a Co IQ OAN SET h Accoun L SHEET UJ .0 ASSE & Accru d Cas ELECTR TERM CURRENT A W 1-4 G k an X o) ditors ET I- ON FIXED ASSETS MANX BALANCE Ban N L CURRENT AS CURRENT CURRENT LIABILIT Cre O c NET ASSETS MANX ELECTRICITY 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 eb Engineers have confirmed these studies and have agreed the instal ation of an enhanced protection scheme subject to a financial contri 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 anager 24 March 2000 MANX ELECTRICITY 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. MANX ELECTRICITY AUTHORITY MEA 00/15 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 iin 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 el efficiency achieved now is less than previous years. Taking data from 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 . see that a step change occurred in 1998 coincident with the change to HFO t Pulrose. The change from MFO to HFO at Peel was accomplished witho t serious loss of efficiency, by the advancing of the fuel injection timing at abo t the same time. 12. Effect of lub 'eating oil consumption 12.1 Comm dent with this time frame, we have managed to reduce the lubricating oil co sumption of the Pulrose engines to less than a third of their early lub. oil de and. Often at 18 litres per hour or more the lub. oil use was more than 1% o the fuel consumption. This was oil passing the piston rings and being burnt, and as such represented "free" fuel in so far as it was not included in the fuel e ficiency calculations. Current consumption of lub. is less than 5 Uhr and the sh • rtfall of energy released by unmetered lub. oil has to be made good by meter d fuel consumption. 13. The Future 13.1 The P lrose sets have now accrued c70,000 running hours each, against a nomi . 1 life span of 100,000 hours. They are decidedly not 'new' any more but e in remarkably good condition after such service. Turbo-charger comp ssor wheels are due for replacement this year and next, but no other major omponents require renewal. 13.2 At Pe 1 one engine is fitted with an experimental fuel "filter" that is designed to ch mically modify the fuel to produce a more homogeneous molecular struc e of mid-range hydrocarbons. The lighter fractions, that bum early produ ing high temperatures and NOx, are combined to make heavier molec les (oligimerisation), whilst the heavy molecules, that bum late and produ e unburnt hydrocarbons, particulates and smoke, are split into lighter fractio s ( isomerisation). Other engine users claim significant reductions in fuel c nsumption, but our results to date show little improvement. We are contin ing with the trial to try to achieve the desired result. MANX ELECTRICTY AUTHORITY MEA 00/15 13.3 Mirrli es Blackstone are trying an engine modification on their test engine at Stock port that will be applied to the next Peel engine to be overhauled if result s look promising. The engine compression ratio is increased whilst at the same time retarding the fuel injection point. This is designed to give the high cycle 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