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Our Strategies and Highlights of the Year 2017/18 Contents Ofgem stakeholder engagement and consumer vulnerability incentive Part 1 Our strategies and highlights of the year 2017/18 Contents Part 1 – Our strategies and highlights of the year 2017/18 1 Introduction 2017/18 headlines 2018/19 priorities 2 Holistic, embedded strategy Our stakeholder strategy Our social responsibility strategy Embedding our strategies 3 Our approach to engagement End to end meaningful engagement approach Embedding our approach Tailoring our approach 4 Understanding our stakeholders Gaining greater insight through data Sharing data insights and understanding Our shared priorities 5–6 Developing our people, culture and capacity Developing our people – Senior management engagement – Embedding engagement Developing our partnerships – Industry collaboration and best practice sharing – Cross utility approach driving customer benefits – Partnerships driving innovation 6–8 Delivering meaningful engagement A range of tailored channels Engaging the hard to reach – tailored and targeted approach 9–10 Measuring, improving and delivering benefits Informed decision making External assurance and learning Meaningful engagement leading to clear, measurable benefits Introduction 1 to look to the future, to provide a flexible valuable (including partnerships, and a strategic energy system which enables our communities framework). Internal groups then channel the to use energy in the wider variety of ways that stakeholder voice more effectively within our the future will offer. business. As a consequence, in this report you will read about the impact our stakeholders Our Distribution System Operator proposals have had on our policy responses, our capital have been driven from the outset by our programme (undergrounding, flood defences), customers. Outlined further in Part 2, we have our customer contact and commitment to built a programme of engagement to harness a smart energy grid for future generations. our plans for an innovative new approach to the needs, views and priorities of all our Our aim has always been to ensure that our I am privileged to lead a regional infrastructure stakeholders and customers. stakeholders and customers are heard within business that provides an essential service to Northern Powergrid, driving the quality of the communities in which we live and work. Our company and our customers share a proud planning and the effectiveness of outcomes. Our vision is “To be the best energy company heritage in both energy and industry. Our lead Our new approach makes these debates be in serving our customers, while delivering role in the Northern Energy Taskforce responds heard more clearly and brings us closer to sustainable energy solutions.” In reality that to the wider strategic needs of our regional the people we are proud to serve. is more a journey than a destination, and it stakeholders. Many believe that the means that every day we strive to find ways recommendations of the Northern Energy to deliver and then improve upon a Strategy could unlock the economic potential consistently high standard of service for all the North has to offer as an energy-rich region. of our customers, particularly those whose We believe we have an obligation to play an need is greatest. We have to hear the voice active part in helping our stakeholders explore of our customers if we are to do that. possibilities that might otherwise be lost. Phil Jones President and CEO The entire energy industry is on a journey of In the past year, we have transformed the unprecedented change. Yet our customers’ quality and outcomes of our engagement by needs remain straightforward; time and again retaining the successful elements of the past they tell us they want reliability and value. (our pioneering Stakeholder Panel) and adding And they also tell us we have a responsibility elements our customers find particularly 2017/18 headlines 170 18,000+ Leadership 95% Policy meaningful stakeholders Executive team satisfaction Stakeholder voice outcomes engaged leading stakeholder with webinars – influencing policy delivered for discussions on broadening reach – local energy, stakeholders strategic issues through digital undergrounding channels and charging methodology 2018/19 priorities Keeping our promise to deliver Pioneer the use of smart meter Work with our stakeholders to more for less for our customers – data to realise benefits for prepare for a successful transition innovation driving improvements our stakeholders to being a DSO “ Northern Powergrid continues to embed CASE STUDY Stakeholder voice influencing policy good practice in stakeholder engagement across the business and to develop innovative Feedback and insight AONBs to discuss and agree approaches and collaborations where Stakeholders want to be engaged early and undergrounding investment schemes possible. As in previous years, the strengths influence strategic decisions in our business and then engaged Ofgem to discuss of the company’s approach are its business and also at a policy level. further investment. culture, the strategic nature of the response to stakeholder needs, and the provision of Stakeholders do not always have the right channels for being heard collectively Outcomes and benefits sufficient resources to deliver engagement We have responded to a number of and respond to stakeholders. There is evidence on policy. that systems are maturing, and that NPG consultations reflecting the collective views is seeking to strengthen the culture of What we did of our stakeholders, e.g. Industrial Strategy, engagement and spread good practice further Introduced consultation response Innovation, Electricity Storage, Last Resort through the business. We particularly welcome discussions at our stakeholder panel. Supplier and RIIO2 consultation. the current focus on deepening the integration Engaged 10 Local Authorities to discuss Our stakeholders’ views are being put to of stakeholder engagement within core policy makers on specific issues such as the strategy and business planning.” their local energy needs and wrote to Ofgem to raise their issues. discussions about new connections in areas where cable undergrounding is taking place. SGS AA1000 Stakeholder Audit – May 2017 Engaged with all our National Parks and Holistic, embedded strategy 2 We have a clear strategy in place that guides the delivery of our initiatives, projects and programmes, which we have highlighted in this submission. Our stakeholder strategy “ The new business planning process for Our stakeholder strategy defines how the role subsequently agreed with our executive and stakeholder engagement includes new of engagement underpins the delivery and stakeholder panel. reporting templates and processes, in which stakeholder reporting is integrated with development of our business in the short, existing reporting against key business medium and longer term. Our activities and The three areas of the strategy that stakeholder improvement initiatives and business plan initiatives ensure stakeholders and customers engagement underpins are Unlocking our objectives. This is a powerful way to integrate and their priorities are influencing our business energy future, Keeping our promises and reporting and monitoring progress into the plans and service improvements. The strategy Looking after our communities. core of strategy and operations, and ensure is not rigid. It is informed by our research and Examples of the outcomes and stakeholder that Directors are kept aware of progress.” engagement activities and the increased benefits we are delivering within these areas SGS AA1000 Stakeholder Audit – May 2017 learning this brings; adjustments are are illustrated throughout Part 2. 2017 2023 2028 ED1 ED2 Strategic Engagement > 1 Keeping our priorities relevant Strategic Engagement > 2 Future priority setting and co-creation Unlocking our energy future – Part 2 pages 8-10 Tactical Engagement > 3 Informing our service Tactical Engagement > 4 Defining and delivering future service standards Keeping and exceeding our promises – Part 2 pages 2-5 Operational Engagement > 5 Going above and beyond BAU Engagement > 6 Building mature relationships Looking after our communities, customers and vulnerable customers – Part 2 pages 6 and 7 Our social responsibility strategy Our five Social Pillars (see below) are the As a regional infrastructure business that serves submission and our consumer vulnerability and foundations on which our social responsibility the communities in which we also live and work, affordability programmes are detailed in Part 3. strategy is built. They were developed in 2015 our pillars bring a focus and approach to with guidance from our external panel, the different social issues which are impacting our Social Issues Expert Group, and have been customers and wider communities and show tested with wider stakeholders’ groups since how we can make a difference. Details of our then. The Social Pillars link our strategy to our community engagement and education social programme. programmes can be found in Part 2 of our Vulnerability Affordability Community Education Engagement Providing targeted support Helping customers and Strengthening communities Creating a more informed Empowering our people to our most vulnerable communities by alleviating whilst ensuring and securing and aspirational generation to improve our engagement customers before, during the effects of fuel poverty. safer places to live and work. for our industry and the and deliver a timely response and after a power cut. communities we serve. to
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