One respondent to New Power’s latest Expert Forum survey, in which we asked about ­resilience issues, said: “Resilience issues for us are about data safety and communications. Very ­little else.” But few resilience risks can be considered in isolation.

Who should set the baseline for resilience? Who should underwrite the cost of events that may be low ­probability – but high impact? And what is the experience of maintaining resilience in companies and other organisations?

New Power’s asked the industry for its views in our regular Expert Forum. (Give your own views and experience anonymously here.)

As before, our survey was carried out with market research company Accent. The Water Report asked similar questions of experts in the water sector.
The response was much lower than for earlier Expert Forum surveys, when we asked about whether we should switch to an Independent System Operator or the likely effect of Brexit. That may reflect the fact that industry participants, like the respondent above, have ‘ring fenced’ the issue and assume that much of the work of resilience is done elsewhere.
We asked who should have the most influence on decisions about resilience. Most respondents agreed that national or devolved governments should have the most influence. Local authorities were seldom seen as important. Among others with influence, customers and the companies involved were mentioned most often. One respondent said you “cannot rely on companies to provide for resilience, particularly if it is in regard to low probability, high impact events” – although one water industry respondent said: “If organisations are set up correctly, then they should naturally seek to resolve resilience issues.”
If the government has an important role in decision-making, it has a less important one in funding ­resilient infrastructure. For most, the right place for the cost to fall was largely on the customer – albeit with some support from national and local governments.
One respondent to the survey done by The Water Report summed up the importance of the customer relationship, saying: “It is key that customers understand what level of risk we are managing against, for them to feel reassured that we are acting in their best interests.”
Among a raft of potential risks that could affect companies, loss of power or gas supply was seen as the most important, along with maintaining cyber security and telecoms. Terrorism was rated very low.
Staffing issues were also named, and one respondent said that issue was the most under-rated – and the key to all the others. They said: “Strategic workforce resilience and renewal is missing from all of the major government and regulatory resilience plans and strategies, leaving the issue to ‘the market’. The sector has many pressures in this area, including increasing competition for talent from UK rail and wider construction and engineering. Workforce renewal should be a key resilience consideration, and be approached for the entire sector at strategic level and not left to company-by-company efforts. Without the right workforce in place with the right skills at the right time, at an affordable price, the rest of the resilience planning is meaningless.”
When it came to responding to emergencies, New Power respondents all placed a heavy reliance on the supply chain. Some expected their own employees to respond and around half thought ­customers had a role to play and few would call on local groups or people.
That was in marked contrast to the responses to The Water Report. Almost all the companies in the water sector thought that customers had a role to play in the event of an emergency and many would also call on non-governmental organisations and local people.
That may reflect the fact that the variety of companies in the energy sector is greater at this stage, whereas many water companies still focus on infrastructure in a defined geographical area. The growth of competition in the water sector may change that.
But the energy sector should also be aware of how its responsibilities are seen outside the ­industry. Respondents to the survey conducted by The Water Report named energy utilities among those they would call on to respond, or to help maintain supply to customers, if an event occurred that threatened it.

 

Click here to complete our survey of your own thoughts and experience on resilience (anonymous).

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