Minutes and Action Points from Board Meeting

Minutes and Action Points from board meeting

4th of September 2014

Gilbert, Gilkes and Gordon, Glasgow

Numbe Action r 1 Attending:

Chris Brett – Vice Chairman CB Simon Hamlyn SH Adrian Loening AL Adam Cropper AC Charles Crewdson CC Kieron Hanson KH

Apologies were received from :

Andy Billcliff Andrew Walsh Jamie Needle 2 Minutes of the BHA board meeting 3rd of June 2014

2.1 The minutes of the last meeting were agreed as a true record of the meeting. These are the outstanding action points.

1.6 Andy Billcliff sent SH details of membership for the North AB Wales Business Club. SH to consider BHA membership. Completed.

3.15 SH offered South Somerset Hydropower Group a discounted SH membership but there has been no uptake. Completed.

3.3.4 SH wrote to Thomas Telford Training about the BHA training SH courses. SH has followed up with a telephone call. To remain as an action point.

1 4.4 A list of BHA sponsorship opportunities is covered in agenda SH item 3.

3 Membership, Finance and Events

3.1 Membership

3.1.1 SH circulated a membership update.

1st June – 31st August 2014

New Members

4c Engineering Ltd Correspondent Elan Valley Trust Academic Ondeo Industrial Solutions Company Octicom Technologies Private Andy Billcliff Private Micro Hydro Association Academic [reciprocal] Employer First Academic [reciprocal] Blue Engineering Correspondent Keyline Builders Merchants Principal Company Kevin Sharpe Private

Pending new member applications

Sanjay Ursal Private [International] Deepbridge Capital LLP Sponsor [SH to meet 10/9] Peter Stokes Private [OAP] Gary Hayes Private Carruthers Renewables Ltd Correspondent Dickins Hydro Limited Company

2 TSL Contractors Ltd Principal Company David Johnston Private

Cancelled memberships

River Energy Systems Ltd Correspondent Engenius Limited Correspondent Potential Energy Projects Ltd Company Zebec Energy Company

Prospect pipeline Likelihood of joining

Kennedy Renewables Average Nature Save Average NQ Power Average RBS Good/average Scout Property Average Scottish Power Average VBA Consulting Average Baileys and Partners Good Baileys and Partners client Good

3.1.2 As a result of the work previously reported with Smartest Energy to identify customers of theirs who were not BHA members, a mailing was sent to a list of c25 prospects. No new members have yet to be recruited through this initiative. SH/Wendy King 3.1.3 CC requested that the board be made aware of members wishing to lapse their membership. It may be that board members know the particular business and could intervene on behalf of the BHA. SH 3.1.4 CC drew attention to a company called Variable Pitch [VP]. On their web site are list of all deployed schemes, their capacity and postal address. Staff will work on de-duping the BHA membership list against the VP list, though there are over 350 schemes listed. SH will keep the board updated on progress. SH 3.1.5 We are targeting UK Water companies [excluding Welsh and Scottish Water as they are members] with membership that will include an incentive which will be a discounted offer to attend this years BHA conference.

3.2 Finance

3.2.2 Current account balance [03/9/14] £107,845.25

3 Deposit account balance [03/9/14] £20,196.06 SH/CB 3.2.3 A set of financial reports had previously been circulated to members which will be done prior to every board meeting. There was a request from CC that income figures be set against expenditure in respect of the events/training courses listed in the Profit and Loss report. SH 3.2.3 SH reported that Santander has confirmed an improved savings account interest rate which will move the rate the BHA currently earns from 0.1 to 0.75%. SH to arrange this with Santander.

3.3. Events

3.3.1 Training

All courses have now been completed for 2014. There will be a meeting with the 2 trainers – Gordon Black and David Williams on the 18th of September.

Subjects to be covered will include a review of this year’s courses, the promotion of courses, the 2015 course plan, bespoke training courses, working with RBS, Synergie training, Thomas Telford and Employer First, promotional materials required for 2015 and possible course programme sponsors.

None of the courses that ran this year made a loss - they all made a surplus. The most recent course made a surplus of c£2k which will be shared between BHA and the 2 trainers.

3.3.2 Annual dinner

a] The 2015 Annual Dinner will be at the Grand hotel, Glasgow on the 19th of March. There was a discussion about other possible venues, but it was agreed to remain at the Grand for AB another year.

b] There will be an auction and any surplus will be shared equally between a board nominated charity and the BHA. Andy All to note Billcliff agreed to be the Auctioneer.

d] We need to source a maximum of 4 quality auction lots. Board members were asked to work on 1] sourcing auction lots and 2] suggesting a charity to support.

4 3.3.4 Hydro 2014

This will take place at Lake Como, Italy on the 13th – 15th of October. We have sublet the stand real estate to companies including Gilkes, KGAL and Trelleborg. SH 3.3.5 All Energy, Glasgow - 2015

The board discussed a number of options on BHA attending the event. The consensus was that the BHA should remain responsible for hosting and chairing the main exhibition ‘Hydro Seminar’ session. We would also investigate a separate opportunity for regular ‘In exhibition’ BHA talks as suggested by CB. This would be as an alternative to taking exhibition space.

There was also agreement that having extra BHA resource at the venue, such as Wendy King, would mean that with SH, more SH time could be spent on membership recruitment over the 2 days.

SH to investigate with the exhibition organisers and discuss with Ellan Long

The idea of sharing stand space with Gilkes was not an idea that found any favour and will not be considered further.

3.3.6 Members social events

2 Members ‘social’ events are planned. On the 30th of September in Northern Ireland, organised by Andrew Fraser and on the 26th of February in North Yorkshire with Jamie Needle.

In brief these events include a site visit and talk followed by a social evening in a local pub with a talk on our work from SH. They are not designed as fundraisers, but as networking and membership engagement activities.

3.3.7 The list of sponsorship opportunities has been produced SH and as a result of this work, a sponsor, e-Power has agreed to sponsor the 2014 BHA Annual Conference.

There is also a possibility that there may be a sponsor for the Annual Conference dinner. SH will keep the board informed on progress.

5 3.3.8 We are seeking a sponsor for the 2015 Annual dinner

4 Head office operations

4.1 SH confirmed that there had been no Health and Safety incidents since he reported at the last meeting.

Post meeting note – NB – in August a large wasps’ nest was removed from outside the building in which the BHA office is located.

4.2 The current staff contracts makes it mandatory for staff to use 4 days of their annual leave to take time off between Christmas and New Year. After discussions it was agreed that this condition be lifted to allow staff who wish to do so, to work during this period.

SH to work on amending contracts to reflect this agreed change. SH

4.3 SH confirmed that he will be presenting a paper to the board SH before their next meeting that will propose the recruitment of a part time Office Assistant. The purpose of the role would be to provide an important day to day link between the 2 existing staff, Christine Brocklehurst and Wendy King and at the same time learn the main aspects of both their jobs as part of succession planning.

4.4 SH explained that an Italian Apprentice Engineer from EDF, currently based in Mulhouse, Eastern France, is requesting a 4 week immersion stay with a UK hydropower company for 4 weeks in July 2015. The board have requested more information from Baptiste Caqueux so a more informed decision can be made.

SH to contact BC and request more details. SH

Annual General Meeting and Conference 5 AGM

5.1 All current board members, either at the board meeting or in All to note advance of it, have confirmed that they wish to remain as board members for a further 12 months after the 2014 AGM.

5.2. It was agreed an email will be circulated to members SH/CB

6 informing them that we need to appoint a new Vice-Chairman to succeed Chris Brett this October. This email will be sent on the 8th of September.

Any nominations will need to be received by close of play on the SH 23rd of September. If there are nominations an email ballot will be arranged amongst the membership.

Annual conference

5.3 KH requested a ‘slot’ in the opening session of the SH conference and a ‘private’ facility on that 1st day to meet with members.

5.4 KH agreed to confirm the title of his conference talk as soon KH as possible, as the conference programme is now ready for full publication.

6 Work review updates

Business

6.1 Feed – in Tariff

6.1.1 There was a wide ranging discussion about the current position with regard to FiTs degression. SH outlined the current strands of activity –

1] The post Edinburgh Hydro summit meeting planned on the 8th of September between the Scottish Government economist and the DECC economist to review the DECC hydrofit model 2] The proposal from Kenny Hunter previously circulated to the board 3] The ongoing plan of placing political pressure on Ed Davey 4] The proposal from Edmund Robb [ER] at Prospect Law setting out the possible production of an Initial Advice (IA) in respect of the potential public law challenge against the government with regard to FiTs degression. 5] The need for BHA to decide how they want a future FiTs scheme to operate as part of DECC’s 2015 review. A working group of board members will meet on the eve of the annual conference, the 27th of October, to design such a proposal. SH will circulate the list of the options that DECC have SH proposed to date, as part of this review 6] The option of a meeting with Amber Rudd at DECC.

7 SH will circulate the email from ER for further board comment. SH

6.1.2 It was agreed that strands 1, 3 and 5 were the most To note practical that we should take forward, though there was subsequent discussion about a further conversation with Edmund Robb.

6.1.3 OFGEM

7.1.5 There will be a follow up OFGEM conference call on the SH/AL 23rd of September. CC raised 2 issues that he asked be covered during that call.

1] How easy is it going to be to transfer from pre accreditation to accredited?

2] What leeway is there at the end of the two years if the scheme commissions late?

6.2 Consents

6.2.1 SH provided an update on the hourly rate applied by the EA after the initial 15 hours of free advice for pre-applications. Charging for pre - application advice will be £125 per hour, but this is a voluntary arrangement and it comes into force from January 2015. All applicants are entitled to 15 hours of free advice, including a site visit.

6.2.2 With regard to charging, the rates for Abstraction licences were confirmed at the last Industry Liaison meeting as –

• New abstraction licence £1500 • Variation on an existing licence £1500 • Renewal under different terms £1500 • Renewal under same terms £135

We have raised our concerns with the EA about the increase in the abstraction charges and the effect that this will have, in particular on small hydropower development.

SH has written to Liz Truss, the new Minister for Secretary of State for Environment, Food and Rural Affairs to raise these concerns and to request a meeting, but this has been declined due to a “busy dairy”.

SH will continue to request a meeting SH

8 6.2.3 SH listed the main outcomes from the recent EA meeting to discuss the European Eels regulations [EER’s]. A fundamental issue for BHA is that the EA need to provide the evidence of the origination of 2mm screens for eels. There is no reference to 2mm screens in any of the DEFRA or EA Eel management plans. SH SH has written to the EA asking that they present the evidence of the requirement for 2mm screening.

The main points arising from the meeting –

a) There will be an internal eel panels set up if the proposed solution is accepted – the customer will not liaise with panel. Advisory rather than decision making b) Further evidence on scheme passage rates through different turbine types may help to inform the debate and the EA wants industry to consider gathering evidence c) EA to look at process for validating schemes, to give industry an option to appeal d) Industry would like a list of ‘critical’ hydro schemes. e) EA to confirm that Archimedes screws will currently be exempt for legacy and new build f) EA will distribute a map of eel areas g) EA to look into the possibility and desirability of issuing licences with eel monitoring prior to build, to then ascertain screen aperture size. h) EA to communicate with staff to encourage a more flexible approach. i) EA to circulate a paper on criteria for exemptions in relation to existing abstractions j) EA to provide evidence used to support the 30km threshold, and any evidence on how this relates to gradient of rivers k) EA to clarify what happens to existing hydropower schemes after 2015 that have not received a letter from EA l) EA to circulate list of priority barriers to eel migration – for hydropower only m) EA to provide information on how the 40% escapement targets were set n) EA to consider what can be done about those schemes that have been offered pre-app advice, but where EA haven’t advised on eels

9 6.2.4 We will continue to make members aware that the European Eel regulations [EER] [England and Wales] will come into force on the 1st of January 2015.

6.2.5 SH updated the meeting on 3 of the main areas of activity with Natural Resources Wales [NRW] -

1] NRW Charge Payers Consultative Group

A meeting of this group was held recently to begin the consultation process with stakeholders about the level of charging for water use. At this meeting, NRW indicated that they are already minded to consider a new fee for an abstraction licence of £1,500.

This proposal to charge £1500 is based on a ‘cost recovery’ basis - no other reason. There had been absolutely no consultation with BHA on this matter and SH has made NRW know our genuine disappointment at their current position.

In return NRW have confirmed that nothing has been agreed and that all of this is ‘up for grabs’. The charging consultation starts on 1st October for planned implementation 1st April 2015.

A further meeting of the group is due to be held before the consultation begins.

2] Rights of Access

There is a NRW/BHA conference call with Infinis and Carter Jonas on the 9th September to discuss some significant issues around ROA. NRW are being intransigent with regard to the evidence applicants are required to provide to demonstrate they have rights of access over the land from which they wish to abstract water. SH It may well be that an outcome will necessitate BHA funding a legal opinion or legal support on this matter.

3] Pre application correspondence

As requested by Natural Resources Wales (NRW), BHA have worked with Carter Jonas to revise the NRW pre-application advice letter in order to provide a more user friendly format which will include an executive summary at the front of the letter that outlines the aspects of the application that have been

10 agreed.

6.3 Regulatory

6.3.1 SH updated the meeting on the 3 meeting he has held with rating specialists to date. There is a meeting planned for the 19th of November with the VOA to discuss the revaluation 2017 approach to HEP schemes. Attending this meeting with the BHA will be Richard Rees from North Wales Hydro, Mark Cropper from Ellergreen and the MHA.

The VOA has stated that “they are firmly of the opinion that input from industry experts will assist in the VOA consideration of the new Rateable Values. The VOA has also stated the valuations eventually determined must be arrived at having close regard to rating principles, legislation and case law” SH SH acknowledged that at this meeting the BHA must be supported by one of the business ratings specialists with a sound knowledge of hydropower. This means that a representative from either CKD Galbraith or Colliers International will be invited by BHA to attend. There will be a cost to this which will be c£500 plus VAT.

6.4 Micro hydropower

6.4.1 The BHA continues to enjoy a positive relationship with the Micro Hydropower Association which has been helpful in particular for reviewing and working on joint responses to consultations.

6.5 Regional groups

6.5.1 A members ‘social’ event, previously reported [3.3.6] is being held on the 30th of September in Northern Ireland, organised by Andrew Fraser SH 6.5.2 SH confirmed that his intention is to meet with his counterpart at Scottish Renewables to discuss the BHA/SR relationship, post the Scottish independence vote.

Any Other Business CC/AW/KH/AL 7.1 SH asked that CC, Andrew Walsh, KH and AL send to him a head and shoulders photograph and a brief biography that will be added to the ‘BHA board’ section of the BHA web site.

11 7.2 KH confirmed that he is involved with SEPA in a Workshop KH 7 to be held on the 23rd of September. KH agreed to send the details to SH. SH to determine if he can attend.

7.3 KH requested a 10 minute ‘slot’ in the opening session of the SH first day of the BHA conference. KH to forward to SH the title for this slot and also for his main conference presentation.

7.4 The board unanimously agreed that they must agree on an upbeat ALL message to members for the close of this year’s conference. All board members were asked to consider this and send suggestions to SH.

Next meeting date SH 2nd of December at a venue to be confirmed.