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We’re committed to always putting our customers and the environment at the heart of everything we do to make a positive and lasting difference to the communities in which we work.
We want to make things easier, fairer and greener whilst continuing to deliver an essential public service. As we work towards fulfilling this purpose, we strive to be known for exceptional performance in terms of safety, customer experience, employee engagement, diversity, equity, inclusion, environmental and social responsibility, and financial results.
This past year has exposed just how vulnerable we are to unexpected natural events and made the threat of climate change even more apparent. The good news is that this realisation is spurring change: Sustainability has become a global priority across public and private sectors, and with policymakers and individuals alike. At Cadent, we’re working with all our stakeholders to ensure sustainability is at the core of our business strategy, and every day we work alongside customers and partners to ensure their decarbonisation journeys are just as ambitious as ours.
Dr Tony Ballance
Chief Strategy & Regulation Officer
Our priorities for 2021/22
Firstly, I would like to thank my colleagues at Cadent for their outstanding commitment and dedication during the past year. Everyone truly stepped up to the challenge of continuing to safely deliver energy to our customers during unprecedented times through hard work and determination. I am very proud of what has been achieved over the last 12 months and excited by what the future will bring.
At Cadent, we are constantly striving to demonstrate to our customers and broader stakeholders that we are a force for good; an organisation committed to easier warmth, fairer opportunities and a greener society. Underpinning this commitment is a relentless focus on customer service and safety, of our employees and the public.
As a monopoly license holder we have responsibility and opportunity to continue to deliver sustainable services for the long term public good. We'll continue to operate efficiently and drive innovation to benefit society and our customers.
Perry Noble
Chair of Sustainability Committee
Safety is the foundation of our business. We are committed to ensuring the safety of our people, our customers and the general public.
Renewing our network for the future, and delivering a reliable and resilient network to keep the energy flowing safely and reliably to all of our customers.
We are committed to our role in tackling climate change and as a responsible company for the communities we serve.
We are committed to creating a culture where people feel valued, included, and have the equal opportunities to succeed to support the creation of an environment where we can deliver outstanding customer experiences time after time.
Our Board and leadership at all levels are committed to operating as a responsible and ethical business, from our regulatory commitments and practices to our social actions.
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Safety remains the key value at the heart of our business and foremost in the minds of our employees; it is who we are and the foundation on which the business is built. We are trusted to keep the nation’s households safe and warm every day of the year and we take that trust very seriously indeed. We aim to ensure that every aspect of our work is as safe as it can be, whether that’s as part of our gas operations or in our non-operational activities. We also understand that only by being transparent about our performance can we continue to deserve that trust.
Springers into action: The pawsome sniffer dogs assisting North West gas engineers
Our pipes can run for long distances underneath footpaths and verges, gardens and driveways. It is hugely disruptive if engineers need to dig it all up to find the source of problems such as leaks or water in our pipes. We heard about former police dog instructor Steve Foster and his specially trained English Springer Spaniels, and brought them to the North West network. Over two days, they worked in Skelmersdale, Huyton, Blackburn, Stockport, Oldham and Middleton, looking for previously elusive points through which water was getting into gas pipes. The clever canines amazed even the most experienced engineers by tracking down small hairline fractures in the underground gas pipes; the dogs are going to be a great asset for us. We’re determined to find innovative ways to tackle this and prevent our customers from losing supply. Introducing the gas detection dogs into the network has seen fantastic results.
2020 saw most of the key elements of HyNet becoming a reality: industrial scale hydrogen production takes the form of the UK’s first low carbon hydrogen plant at Essar Oil UK’s Stanlow refinery in Ellesmere Port.
We have continued with our operational transformation to a customer- focused organisation. Our operational teams have worked tirelessly throughout the pandemic to deliver the critical services needed to support our communities and colleagues during a challenging period of uncertainty and significant change.
Never leaving a customer vulnerable without gas
In order to maintain and upgrade our network and respond to gas emergencies, occasionally we have to isolate a customer’s gas supply, leaving them without gas for a period of time; this is when the true impact of having no gas supply is really understood. On average customers can expect to have their gas supply interrupted once every 40 years, so it isn’t something many have ever experienced.
Anyone can find themselves in a vulnerable situation when this happens and therefore, we offer an extensive suite of additional welfare options, ranging from portable heaters and showers, to meal vouchers and even temporary alternative accommodation. Our innovative approach of recognising the transient nature of customer vulnerability and supporting customers when they are off gas was recognised by Ofgem in their final determination of our business plan. We were the only Gas Distribution Network to be noted for providing a customer value proposition that goes above and beyond expectations.
Putting customer preference at the forefront of the energy transition debate
In November 2020, we undertook a comprehensive customer research study to assess customers’ understanding of, and attitudes towards the UK’s net zero targets and the implications for how they heat and power their homes. We believe that the energy transition will be shaped predominantly by customer preference and the decisions that they make.
Our study built upon the insights that previous work in this area had generated and has provided a much richer understanding of preferences and how these differ between different segments and demographics. The study revealed a strong preference for future home energy systems to operate in much the same way as their current systems, with minimal disruption (from time off gas or changes to their homes). It also revealed that those living in fuel poverty prioritise the ability to control the cost of heating their homes higher than the absolute cost itself, and those living in vulnerable situations often have a much higher emotional attachment to their current solutions and a lower willingness to change. It is these customers who, if the energy transition is not fully thought through, are likely to be left behind and as we undertake more research in this area, we will be focusing on how policies need to be shaped in order to mitigate this risk.
Angels in orange spread their wings at Utility Week Awards
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During the virtual awards night in February 2021, we were awarded the Customer Experience award, recognising the lengths to which our engineers went to restore gas supplies quickly and safely to the small town of Wirksworth, in Derbyshire, 2019.
A water main burst in Wirksworth in October 2019, damaging a gas main which resulted in over 10,000 litres of water flooding the local gas network. 900 homes and businesses – including 215 priority service customers – lost their gas supply, which we immediately responded to by mobilising over 200 colleagues for several days to restore supplies as safely and quickly as possible.
Utilities unite as we roll out robots to deliver vital work faster in historic Whitechapel
The streets of Whitechapel have seen many famous and infamous events take place over the centuries and in December 2020 , we collaborated with other utilities to ensure the historic area stays connected to safe and reliable gas and water supplies in future years. By working together, we reduced time spent working in the area by up to 28 days. Working in partnership with Thames Water to deliver the essential work, we worked in partnership with the London Borough of Tower Hamlets and Transport for London (‘TfL”).
Our work involved using CISBOT to give an ageing 170m section of gas mains a new lease of life. The innovative robotic technology enables work to be done much faster than using traditional methods with fewer and smaller excavations. It has the additional benefit of being able to work in live gas mains, meaning gas supplies will not need to be turned off during the work. In addition to the trailblazing robots, we also used high-tech real time information boards during the initial phase of the project.
This approach allowed TfL and the London Borough of Tower Hamlets to plan essential work during this time. Cadent Area Manager Kane McLoughlin said: “It’s great how everyone has come together to agree a plan which will deliver great future utility services for the local community with minimal inconvenience to local residents and commuters.”
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“As a responsible company, we are fully committed to our role in tackling climate change.”
Dr Tony Ballance
Chief Strategy & Regulation Officer
Say Hy to the home of the future
The UK’s first public homes with household appliances fuelled entirely by hydrogen are now built in Low Thornley, Gateshead, providing the public with a glimpse into the potential home of the future where no carbon emissions are released.
The two semi-detached homes, funded with the help of the UK Government’s Hy4Heat Innovation programme, Cadent and NGN, opened in April 2021, showing how hydrogen has the potential to be used as a clean replacement to natural gas in the home.
Now 86% of homes in the UK use gas to heat their homes. The new hydrogen homes will use 100% hydrogen for domestic heating and cooking appliances including boilers, hobs, cookers and fires. Unlike natural gas, which is responsible for over 30% of the UK’s carbon emissions, hydrogen produces no carbon at the point of use, with the only by-product being water.
The project secured a £250,000 grant from the Government’s Hy4Heat Innovation programme and is being run by Cadent and NGN, who have both input £250,000 of funding each.
The houses will open to members of the public, who will be able to view appliances and see how they compare to existing ones. Local schools, colleges and universities will also be welcome to learn about the new technology, as well as potential careers in the emerging green economy and in science, technology, engineering and maths (‘STEM’) subjects.
Our first hydrogen-powered construction site
Off-grid energy generators are required to power welfare facilities at our construction sites where a connection to the electricity power grid is not possible. Traditionally this would be a diesel-powered generator.
We are targeting the first hydrogen-powered construction site through a pilot project due to begin this summer. We approached GEOPura supplier of off-grid renewable solutions, to see if they could work with us to help reduce the emissions we generate from our major construction projects recognising that we need to look across our work activities to deliver a net zero ambition. Meriden Water, dubbed the greenest re-development in London was chosen to pilot our ambition to deliver net zero construction projects and this involves powering our construction site with zero emissions hydrogen.
A hydrogen fuel cell will be placed in a storage container on site, powered by a tanker full of hydrogen which will remain on site until low in supply, at which point the tanker will be replaced with a full one enabling the site to be supplied with clean, hydrogen-fuelled power. If the project were to go ahead and be traditionally powered then 28,066 tonnes of CO2 equivalent would be emitted into the atmosphere, we hope to save this amount of CO2, the equivalent uptake of 2,200 trees, by trialling our first hydrogen-fuelled construction project paving the way for this to become the new way of working in the future.
Transport Pathways
Over the past year, we have led a study, in conjunction with the other gas networks, to understand the transition from the economy today to a decarbonised economy, focusing on how the transition is achieved, and the competing and complementary nature of different low emission fuels and technologies over time. Whilst the project has considered the whole economy, it focuses predominantly on transport, especially HGVs, as an early adopter of green gases and as a key enabler to net zero emissions.
The project has highlighted that biomethane has an important role to play in the pathway to net zero but will need to ramp up quickly to maximise its potential. Biomethane and hydrogen- powered trucks represent a substantial opportunity for green gases to accelerate transport decarbonisation by 2030.
A large-scale deployment of these trucks would lead to a 38% reduction in emissions from trucks by 2030, compared to just 6% if decarbonisation efforts in this segment focus solely on zero-emission options. Beyond 2030, hydrogen trucks are expected to begin deployment at scale, but they will not initially compete for the same use cases as gas trucks, as early hydrogen vehicles are likely to be better suited to medium-range applications. The project also explores the associated infrastructure needs, suggesting that around 170 re-fuelling sites for gas trucks will need to be deployed over the next decade to meet the growing demand for these vehicles.
The project has therefore enabled development of a green gas decarbonisation narrative, supported by a wide range of stakeholders which clarifies the path ahead and demonstrates how the use of biomethane and hydrogen are scaled up over time, and how they compete and complement one another.
Hynet
HyNet North West is a full chain hydrogen / carbon capture, utilisation and storage (‘CCUS’) project located in the North West, which is aimed at delivering full industrial decarbonisation across the cluster and providing the backbone for wider cross-sectoral decarbonisation. HyNet North West plans to be producing around 3.8GW of low carbon hydrogen by 2030, nearly 80% of the UK’s target set out in the Government’s 10-Point Plan. In development since 2016 by Cadent and partners Progressive Energy, HyNet North West has been through origination, feasibility and Front-End Engineering and Design (‘FEED’) pre-phases.
In 2020, we have seen the emergence of the HyNet consortia, which consists of Progressive Energy (project integrators), ENI (CO2 transport and storage), Essar (hydrogen production), Cadent (hydrogen network), Inovyn (hydrogen storage), CF Fertilisers (capture plant) and Hanson Cement (capture plant). Our role in the consortium is the delivery of a FEED and consenting package for the hydrogen network. This past year has been dominated by completing a Pre-FEED on the hydrogen pipeline, assembling a Basis of Design (‘BoD’) and Scope of Work (‘SoW’) for the FEED and consenting.
There have also been several smaller work packages looking at detail in potential pipeline routes and some high-level Hazard Operations Assessments, to ensure that there is a level of integration across the hydrogen production, distribution and storage work packages. On the 1 March 2021 the FEED and Consenting phase commenced, which will ultimately lead to a final investment decision for the baseline projects in 2023 and operation in 2025.
Hydeploy
In 2019, HyDeploy became the first project in the UK to inject a blend of up to 20% by volume of hydrogen into the existing gas supply.
Over the 17-month trial period at Keele University, the project focused on the safe management of the blending process. The project followed a strict management regime, which included checks on how the blend smelt, how it burned and how safe it was. There were also regular gas quality checks, to ensure the incremental increases in blending over the trial period could be safely managed, allowing up to 20% concentration of hydrogen to be blended into the gas network and on to the end user.
The project has proved successful, with the hydrogen blends having been safely and efficiently distributed to a broad range of users within the Keele gas network. This includes 100 domestic properties and up to 30 university campus buildings, such as, office blocks, lecture theatres and laboratories.
During the trial, COVID-19 led to restricted site access and reduced demand on the network, with students returning home. The project was therefore extended until March 2021, to provide the opportunity to undertake further blending over what would be a vital winter period, with high probability of increased gas demand.
The HyDeploy project has been very successful in realising what it was set out to deliver. Consumers noted no difference between the hydrogen blend and that of their former gas supply and are proud to be advocates for this innovative project. The outputs of this project will be crucial in closing the evidence gaps needed to facilitate the future roll out of hydrogen blends.
Developing decarbonisation pathway of Greater Manchester
We collaborated with Electricity North West on a sector-first piece of whole-systems planning to show how Greater Manchester (‘GM’) could reach its ambitious target of being net zero by 2038, 12 years ahead of the UK’s legally binding target. The scale of change required for GM’s urban fabric, its residents’ lifestyle and the way businesses operate is unprecedented. It will require concerted effort from all stakeholders. GM’s existing building stock will have to be upgraded and heating technology replaced with zero carbon options (such as hydrogen and hybrid heating systems), at a rate of 400 properties a day – a scale which has never before been demonstrated anywhere in the world.
Commuters will be encouraged to walk or cycle, whilst all transport will be decarbonised. Industrial processes will have to be re-engineered to run on renewable electricity and low-carbon hydrogen instead of conventional fuels. The work produced a pathway of cross-sector actions that need to take place over the remaining timeframe for GM to reach its goal. It also provided near to mid-term certainties over the future of energy in order to stimulate investment in low carbon technologies, inform stakeholders’ net zero plans and signpost political lobbying and the necessary supportive regulatory framework.
The Greater Manchester Combined Authority has been positive about the work, which is now informing Local Area Energy Plans being developed for its 10 local authorities. It has also led to continued collaboration between Cadent, Electricity North West and the Combined Authority to progress actions on the pathway. Further collaboration took place to develop decarbonisation pathways for Lancashire and Cumbria in the North West and we are also working with Scottish Power Energy Networks to develop a plan for the Liverpool City Region, Cheshire West, and Chester and Warrington local authority areas.
Zero-emissions vehicles that will get our engineers to emergencies pollution free
We’re taking the road to a greener future by starting the journey to convert our fleet to zero-emissions vehicles enabling our gas engineers to respond to emergencies across our London network pollution free. Engineers are now using five electric vans and five hydrogen response cars to patrol our North London network which includes parts of Berkshire, Buckinghamshire, Surrey and Essex. The new cars are hydrogen-fuelled Hyundai’s with a range of almost 400 miles. The only product of their emissions is water. The fleet decarbonisation initiative has seen demonstration vehicles operating in the North West and Eastern networks. The new vehicles have been bought as part of our commitment to introduce zero-emission First Call Operative ( ‘FCO’) vehicles and to have over 1,000 zero-emission vehicles across all our networks by 2026. This ambition provides a unique opportunity to encourage the development and supply of a new product, hydrogen vans, into the UK market.
The new hydrogen fuel cell cars and e-vans are a first for us and represent a major step forward in working to achieve our RIIO-2 environmental goals. The London network was chosen as the first recipient of the new vehicles because of the availability of charging points and fuelling stations.
Our growing green fleet includes a pair of Iveco repair CNG vans in the North West and West Midlands network, with another CNG van expected to join the North West Network soon. For movement of large items, we have invested in a fleet of nine biomethane trucks. These vehicles will significantly reduce greenhouse gas emissions and help improve air quality. The trucks are cheaper to run, generating savings of around 38% compared to diesel.
“It’s a really exciting time to introduce these vehicles to our fleet as the required infrastructure is growing and developing rapidly. These vehicles will allow us to gain valuable feedback which will be used to determine our pathway to reducing the emissions of our fleet.”
James Harrison
Director of North London network
MyHeat
Our regional modelling tool, MyHeat, has been developed to serve two purposes. Firstly, to assist us in modelling future net zero pathways for the impact on our network, so that we can ensure we invest in the right infrastructure going forward, and secondly to assist in visualising to Local Authorities how the impact of net zero pathways might impact on their planning needs. With the independence provided by Element Energy, we have created a model that enables us to compare how some of these aspects influence the applicability of specific technologies in the home. The MyHeat model allocates homes based on their Energy Performance Certificate data to a specific architype. This architype is then assigned a merit order of applicable low carbon heating solutions, based on both the lowest whole life cost and specific applicability of that heating system to the home architype. This enables us to explore street by street the likely low carbon heating solutions of the future, based on best fit for the home. Our model enables a view both on choices that might be made on the lowest whole life cost of a technology, but also on the lowest upfront cost. The outputs of the model include information on the specific heating technology changes required, along with information on future hydrogen and electricity demand.
Future Billing Methodology
As we move to a network that conveys low carbon gases, such as hydrogen and biomethane, we need to develop a way of recognising the wider energy range of the gas we supply. The Future Billing Methodology project led by Cadent, is exploring ways to attribute energy values that are reflective of the gas being supplied at a local level. This will remove the cost of enriching biomethane to standardise energy content and enable hydrogen to be blended into the network, while ensuring consumers are billed in a fair and equitable way.
The project has involved the installation of sensors within the network to validate modelling software used across the industry today. The software has the ability to model zones of influence and mixing of gases from different sources to allocate energy content at a local level for consumer billing. The ultimate objective of the project is to ‘prove the concept’ and provide a recommendation of a future billing methodology that unlocks the full potential of the gas network to deliver low carbon energy.
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Although our customers do not pay us directly, a proportion of their energy bill goes towards supporting the services we provide and they are directly impacted by the work we do in the communities we serve.
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Celebrating International Women in Engineering Day
This year’s annual celebration showcases the ‘the best, brightest, bravest women in engineering, who recognise a problem, then dare to be part of the solution.’
Our West Midlands Network Director Kate Grant has been named in the Women’s Engineering Society’s Top 50 Women in Engineering. Kate is a champion of renewable technologies and finding solutions to the climate change crisis. Her journey has taken her all the way from South Africa to the West Midlands, where she now manages a 15,000+ mile underground gas distribution network from North Staffordshire to Herefordshire, and the M1 to the Welsh border.
“I am thrilled and honoured to be among such company,” said Kate. “There can be no better feeling than being acknowledged by your peers for doing something you really care about and love doing.
Achieving anything in life is not done independently; it is so important to surround yourself with a network of support – family, friends, work colleagues. You also need to learn flexibility and resilience – our profession is continually evolving, and you need to keep broadening your knowledge, so that you’re ready for what’s coming next.”
The head of our Eastern Network Investment Planning Office, Monisha Gower, is among a further 50 women named in a highly commended list. Monisha joined Cadent four years ago and established an engineering delivery unit to deliver improvements to our asset health. Now, and another step up the ladder, she leads the new Investment Planning Office (‘IPO’) for the Eastern Network, covering asset management, network design, and delivering £1.2bn of asset investment over the coming years.
As a member of our diversity and inclusion steering group, Monisha challenges our supply chain partners to promote gender and ethnic minority representation in their workforce, with the launch of our new contracts. “I’m passionate about securing the Eastern IPO’s resource ‘pipeline’ through new talent initiatives such as Apprenticeships, Industrial Placements, Engineering Training Programme and Graduate schemes. I am a Member of the Association for Project Management (‘APM’) and Institution of Engineering and Technology (‘IET’) with ambition to secure charterships. I also have the honour of mentoring a number of very talented young professionals through their career journeys.”
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We are now at a pivotal point to reflect on the critical role we play in our communities; from transforming our operations and culture to maintaining safety and service levels, investing in our people, processes and systems.
Our employee communities
Women in CadentCreating a network of colleagues from across our business, who are all committed to creating equality and supporting women’s professional and personal development.
EmbraceRaising awareness of the different faiths, discuss issues that affect colleagues from an ethnic minority background, and to help develop a workforce that reflects the communities we serve.
Cadent Military CommunityActively supporting service leaders entering the business, our current reservists and those that have previously served. We are proud signatories to the Armed Forces Covenant, and it is important that we demonstrate that we are an Armed Forces friendly employer.
Pride at WorkAllowing current and future generations of LGBTQ+ colleagues to feel comfortable, safe and included at work. Our employee-led community, Pride at Work, is a welcoming and safe space where our Lesbian, Gay, Bisexual, Transgender, Queer (‘LGBTQ+’) and allied members can thrive.
Thrive!Raising awareness of and supporting disabilities in the workplace. Our community is made up of both disabled and non-disabled employees who share a common vision of focusing on ability and making our workplace accessible and supportive to all. We raise awareness of the spectrum of disabilities, what this means to our people and how we can support the business to become a leading employer for those with disabilities.
Our commitment to racial equality
We have joined over 570 employers and become the first UK gas distribution network to sign up to the Race at Work Charter, an initiative designed to improve outcomes for Black, Asian and minority ethnic employees in the UK. Launched in partnership with the UK Government in 2018, the Charter builds on the work of the 2017 McGregor-Smith Review, which found that people from Black, Asian and minority ethnic backgrounds were still underemployed, underpromoted and under-represented at senior levels.
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By signing the Charter, we join a community of signatories across a wide range of sectors in the UK, who are committed to embedding the five calls to action in everyday business.
Ranjit Blythe, Executive Sponsor for Diversity & Inclusion said: “We are holding ourselves accountable for ensuring equal opportunities for people of all ethnicities. We’re proud of the work that’s already underway to make Cadent an increasingly inclusive environment for all, and we’re committed to going further with each passing day.”
Major community outreach launched in Central Lancashire with support of the region’s utility networks
Age Concern Central Lancashire, along with partners – Electricity North West and United Utilities – forged a new and exciting collaborative venture, alongside the Preston North End Community and Education Trust, to reach and support greater numbers of people in vulnerable situations. The project takes the form of a 7.5-tonne, 56-square-metre vehicle, to bring information and advice to communities. The Mercedes Atego van, secured through Preston City Council, had a £50,000 refit to convert it into a Mobile Advice Centre (‘MAC’). Its complete overhaul includes two consultation booths, open space for group activities and talks, air-conditioning and facilities to make refreshments. In addition, it is specially designed to be dementia friendly and is accessible for people of any age and ability to get the information and advice they need.
All three of the utility networks will be offering MAC attendees free advice on safety and energy efficiency measures, as well as tips on how to stay safe and warm in their homes. The vehicle will be used at supermarket car parks, community events both large and small, and throughout Lancashire’s towns and villages with a full schedule of locations to be released in due course and once COVID-19 restrictions allow. Residents across the county will be able to ask Age Concern Central Lancashire about support regarding independent living, memory loss and dementia care, benefits advice and legal services.
Gas safety campaigns
We recognise our responsibility to educate local communities about gas safety, providing key information and simple tips to access gas supplies safely and reliably.
This year we increased our engagement to tackle this critical issue, conducting extensive research into gas safety awareness with 8,000 customers across the UK, with the support of the Energy Networks Association and our fellow gas distribution networks.
Since then, we have used this insight to improve our approach to gas safety education, using trends from the research to identify ‘hotspots’ that require further education on this topic, and identify methods we can use to effectively reach out to these communities.
Our ‘Be Winter Ready’ campaign saw us distribute 5,000 information packs and resources to local communities via established, trusted partners such as Fire and Rescue Services and Carers Trust. We were also delighted to launch our new animated awareness campaign, to educate our communities in a simple, accessible format.
We supported national campaigns Gas Safety Week and CO Awareness Week, using a new collaborative approach to provide joint information and advice with partners Gas Safe Register and Derbyshire Fire and Rescue Service. This included new webpages, two radio campaigns tailored to the hotspot areas identified by our research, personal case studies from emergency engineers, and Q&A videos launched across social media and surveys to engage our employees in the conversation.
