A leading energy union has urged Ofgem to reopen its current price control review because the trajectory of demand is “not yet clear” as the UK emerges from the coronavirus pandemic.
In its response to the business, energy and industrial strategy (BEIS) committee’s ongoing inquiry into the impact of the coronavirus on business and workers, Prospect says that workforce pressures in the energy industry have been exacerbated by the current crisis.
It says that while most companies have not furloughed their direct employees, pressures in the supply chain are “starting to bite” as it has proved challenging to find sufficient roles for contractors due to the reduction in the volume of work in areas like planned maintenance.
However, a spike in faults, due for example to a major storm, could leave the energy system “dangerously under-equipped to cope”.
“Retaining these skilled staff is critically important at present for maintaining resilience and will continue to be so as work volumes ramp up, but the trajectory of demand is not yet clear.
“It is for this reason that we have proposed reopening the existing price control review as the most flexible but robust way in which to maintain the contractor community and therefore to ensure continued resilience.”
The union suggests that Ofgem could allow network companies financial leeway to make advanced payments to contractors in order to maintain staffing levels above those required for temporarily suppressed workflows.
The union also warns about tensions surrounding the carrying out of planned maintenance under safe working distances as the industry enters its peak time for planned outages.
“Prospect understands the need for maintenance to underpin generating and network resilience during the winter months but we are equally aware that not all such activities can be undertaken on the basis of social distancing.
“The longer that social distancing is required, the greater will be the pressure to widen the scope of operational activity including tasks that can only be undertaken in close proximity.”
The union says that other pressures include facilities being due for mandatory inspection and that others may be required to cease operation due to expiration of insurance cover as operational limits are reached.
The union says that it expects there to be a gradual ramping up of activity to be carried out in consultation with union representatives with strategies adapted over time as the industry enters a “new normal”.
It says that it is important that energy employers first assess the necessity for work to be done and, following that, undertake a risk assessment with a view to adapting operations so that work can be undertaken whilst maintaining social distance.
In its response, Prospect also calls on BEIS to provide a “clear political commitment to a long-term energy policy”.
“Time is running out for the UK to invest in low carbon infrastructure that will avoid returning to dependence on fossil fuels or increased imports.
“The Covid-19 pandemic has demonstrated the government’s willingness and ability to respond quickly to major national challenges. Such economic pragmatism should also underpin a reappraisal of the UK’s future energy systems.”