Globalisation Zero Incidents Business Drivers Strategic Green eld Approach Added Value Ageing Workforce Multisite Improvement

Result Services M

Risk Based Maintenance EAM Maintenance Plan Steering Wheel of Asset Management Materials Management I

Root Cause Analysis Life Cycle Costing Ageing Assets FMECA Data Integrity Technical Interim Employe

Training Integrated Solutions Asset Performance Management Sta ng Partner R

The Dutch high-voltage grid

Reliability and quality through welldefined maintenance

Case Leaflet

Grid operators have to face up to increasing challenges when it comes to the Dutch highvoltage grid. For example, the split in the sector, liberalisation and privatisation. Consumers have more freedom to change their energy suppliers, but what are the consequences of all these changes for the grid operators? Does that new freedom not mean more rules in actual fact? Consumers want reliability and quality for an affordable price. Grid operators want the same but have to make a profit as well. The supply of energy plays a crucial role in society. An adequate supply of electricity has to be available at all times. In the Netherlands, a number of regional grid operators and a single grid operator for the national high-voltage grid are charged with ensuring a ready supply of electricity at all times. The tasks and responsibilities of these grid operators are laid down in the Dutch Electricity Act (Elektriciteitswet 1998). Against a background of European legislation, this

Act creates a framework for allowing market forces to act in the Dutch electricity sector. The Act defines clear conditions and guidelines that are designed to ensure that the electricity supply sector continues to operate effectively. In addition, new legislation is added regularly in order to guarantee quality. For example, the Dutch DTe (supervisory directorate for energy) published an information and consultation document in 2002, which introduced quality regulation measures for the second regulation period, which is due to end in December this year. These quality regulation measures are intended to guarantee the reliability of the Dutch electricity networks. The extra costs of achieving greater reliability must be justified by corresponding benefits for consumers in the form of increased grid quality and fewer power failures. If investments lead to increased reliability, the grid operator is rewarded under the dictates of the regulation system by the ability to generate extra turnover through a rate

increase. This increase is decided by the DTe as a quality rating, the so-called q-factor. Risk analysis Risk analysis allows a grid operator to justify why it carries out maintenance and thereby improves supply quality. For example, the grid operator can justify why no maintenance is carried out in certain cases as the risks are acceptable. As of 1 December 2005, the Regeling kwaliteitsaspecten netbeheer elektriciteit en gas (Dutch Regulation on the quality aspects of grid operation in relation to the electricity and gas supply networks) came into force. This means that grid operators must be capable of demonstrating control of risks by recording maintenance and resolving faults and power failures. The implementation of this

ministerial Regulation has provided even greater security in terms of reliable grid operation. There are definitely benefits for the grid operators as well. Clear identification of the risks provides clearer information about the plant and makes planning maintenance easier. In addition, the financial aspects of maintenance are also better quantified. MaxGrip has already helped various customers in the energy market to identify their risks. These customers include Westland Energie Infrastructuur, CoGas, Eneco Energie and TenneT. For example we helped one of the grid operators generate input for the quality and capacity plan that had to be submitted to the DTe. For a different grid operator, we set up a risk classification system that allowed the subsequent execution of risk analyses for the operators assets. The FMECA method was used to create a link between the business objectives and maintenance. This resulted in the ability to take well-founded decisions regarding whether or not to perform preventive maintenance for the assets. A further benefit of the method is that the grid operator now also has a clear picture of the risks. Furthermore, drawing up a long-

term maintenance plan becomes much easier when the maintenance requirements have been clearly defined. Because of increased competition in the energy market, maintenance will play an increasingly important role in ensuring the quality of service that consumers demand. Particularly now that the grid operator is held accountable for service quality, the ministerial regulation is more necessary than ever. At the end of the day, both the grid operators and consumers benefit from the regular flow of new legislation that is intended to ensure continuity of supply. A further factor is that the costs are made transparent. Once all the risks have been identified and appropriate maintenance concepts drawn up, quantifying the costs of maintenance and also of a possible loss of production is a simple matter.

MaxGrip B.V. Postbus 4149, 3006 AC Rotterdam, The Netherlands

Tel: +31 (0)10 - 747 01 07 Fax: +31 (0)10 - 892 46 63 www.maxgrip.nl