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Hugo Gallagher

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Title: Hugo Gallagher


1
Building Services Engineering Design 2 Module
BNEE483
  • Hugo Gallagher
  • Room M709
  • h.gallagher_at_gcal.ac.uk
  • hugo_at_logis-tech.co.uk
  • Tel 0141 331 8836
  • Lecture 1

2
Building Services Eng. Design 2 -Syllabus
  • Electrical Distribution Tariff Schemes
  • Lifts Escalators
  • Emergency Lighting
  • Fire Alarm Systems

3
BNEE483 (Exam Coursework)
  • 8 x 20 mark questions
  • 2 questions (20 marks) from 8 set by Hugo
    Gallagher
  • Attempt 5 from 8 questions
  • Coursework No 2 discussion paper

4
Power System in the UK (pre-1990)
  • After world war II, UK had 560 interconnected
    electricity suppliers, of which approx. 1/3 were
    privately owned.
  • Full nationalisation occurred in the wake of the
    electricity act 1947, which established the CEA
    as a public corporation responsible for the
    generation and supply of bulk electricity
  • 14 Area Boards created, each constituted as a
    separate public corporation responsible for the
    distribution of electricity in its own region.

5
Following Electricity Act 1947
  • Organisation of the industry became highly
    centralised with the CEA being given general
    control over the area boards as regard policy and
    finance.
  • Electricity reorganisation (Scotland) Act 1954
    reduced vertically integrated in the generation,
    transmission, distribution and supply of
    electricity.

6
Electricity Act 1957
  • Structure was further revised by the electricity
    Act 1957 which separated the functions of
    generating and supplying bulk electricity from
    the functions of co-ordinating and controlling
    the system as a whole.
  • CEGB was established to handle the former tasks,
    in particular the ownership and operation of the
    national grid.

7
Twelve Area Boards
  • 12 Area Boards given greater power by the 1957
    act, w.r.t. financial matters and continued to
    have responsibilities for the distrib. of
    electricity in their respective areas.
  • These boards took HV electricity from the grid
    and sold it to domestic, commercial and
    industrial consumers in their area, on the basis
    of published tariffs.
  • Some very large consumers had agreements or
    contracts with the Area Boards or directly with
    the CEGB.

8
Electricity Council (EC)
  • 1957 Act also established EC, as a replacement
    for the CEA, to exercise a co-ordinating role on
    matters of industry wide concern.
  • Council had certain specific responsibilities
    including offering advice to the Government on
    behalf of the industry as a whole.
  • Authority for regulation of the industry lay with
    dept. of Energy.
  • 1957 Act did not affect the organisation of the
    industry in Scotland.
  • In Scotland, generation, distribution and supply
    of electricity continued to be the responsibility
    of two independent regional boards the SSEB and
    NSHEB, between them serving the whole of Scotland
    and part of Northumbria.

9
England and Wales Industry
  • Feb 1988, Secretary of State for Energy published
    a White Paper, outlining the government's plans
    for the restructuring and subsequent
    privatisation of the electricity supply industry
    in the UK.
  • White Paper proposed CEGB should be divided into
    3 parts
  • National Grid Company (NGC).
  • NGC would be jointly owned by the 12 regional
    electricity companies (RECs), each holding a
    stake proportionate to its size.
  • NGC would also take control of the
    interconnectors
  • Remaining power stations would be split National
    Power, which would take 70 of the generating
    capacity
  • PowerGen, which would take the remaining 30.
  • There would be competition in power generation
    between those two companies and existing
    alternative sources

10
Nuclear Generation
  • Each regional electricity company would be
    required to obtain a proportion of its power
    supplies from non-fossil fuel sources (mainly
    nuclear).
  • A fossil fuel levy was subsequently introduced to
    compensate companies for the additional costs of
    such power.
  • The levy is charged at a fixed on the value of
    sales of electricity generated either by a fossil
    fuelled power station or by a non-fossil fuelled
    power station.
  • For 1990/91 the levy was set by the Secretary of
    State at 10.6.
  • This was subsequently increased to 11 from April
    1991, but was reduced to 10 with effect from
    April 1993.

11
July 1989
  • The government announced in July 1989 that the
    Magnox nuclear power stations (the first
    generators of reactors) would be withdrawn from
    the sale on the grounds that they wereing to the
    end of their lives, and it would not be
    appropriate to burden the private sector with
    the significant costs of their operation and
    closure.
  • This U-turn - due to pressure from large
    investors and the stock market.
  • Nov. 1989, government decided that the remaining
    nuclear power stations should stay in public
    ownership on the grounds that unacceptable
    financial guarantees were being sought by the
    markets.
  • Nuclear Electric Plc (floated in 1995) was
    established for this purpose.

12
Monopoly of Regional Companies
  • Monopoly in power supply of the 12 RECs was to be
    curtailed large customers would be able to enter
    into direct contracts with the generators, with
    the new entrants into the generation market or
    with regional electricity companies other than
    their local company.
  • Customer interests were to be protected by
    regulation.
  • Electricity Council was abolished.
  • Responsibilities for regulation lay with the
    Secretary of State for Industry

13
Electricity Act Royal assent
  • Subsequent legislation, the Electricity Act,
    received Royal Assent in July 1989.
  • After a period of preparation and negotiation,
    the new industry structure was introduced on
    March 1990.
  • The 12 RECs were privatised in December 1990,
    followed by the sale of 60 of the shares in
    National Power and PowerGen in March 1991.
  • Government offered its 2nd offer of shares in
    both companies in Feb 1995.

14
The Scottish Industry
  • Scottish electricity supply industry
    privatisation was set out in a White Paper issued
    by the Secretary of State in March 1988.
  • SSEB and NSHEB be privatised as two separate
    companies, each having a mix of generating
    capacity and access to the capacity of the
    nuclear generating stations, then owned by the
    SSEB, which were to be transferred to a company
    jointly owned by these companies.
  • Nov 1989, secretary of state announced that this
    jointly owned company (Scottish Nuclear) would
    remain in public ownership and would supply
    electricity to SP Plc and HE Plc.

15
Under the Nuclear Energy Agreement
  • Scottish Nuclear is required to supply all the
    electricity generated from its Hunterston B and
    Torness Nuclear generating stations to Scottish
    Power (SP) and Hydro Electric (HE) and imposes an
    obligation on SP and HE to take and except in
    limited circumstances, pay for 74.9 and 25.1
    respectively of all the electricity declared
    available by Scottish Nuclear.
  • There is no fossil levy in Scotland as, being
    vertically integrated, SP and HE are able to pass
    on directly to their customers the additional
    costs associated with nuclear generation.

16
The White Paper
  • SP and HE have the monopoly of transmission and
    distribution of electricity within its own area.
  • They would also have the monopoly of the supply
    of electricity within this area, except that they
    would have to compete with each other and with
    other generators for the supply of electricity to
    large commercial customers in Scotland.
  • They would would be able to export and import
    electricity to and from England and Wales where
    they would be in competition with other
    generators and suppliers.
  • Sale to the private sector of all the shares in
    SP and Hydro Electric was completed in June 1991.

17
Competition in Generation
  • With privatisation, its aim was to promote
    competition where ever possible in the belief
    that competition was the best guarantee of
    customers interests.
  • In the short term such competition had to come
    from existing generators with existing capacity.
  • In the first year National Power and PowerGen
    accounted for 74 of the electricity sold through
    the pool.
  • Nuclear Electric and other generators, primarily
    SP and HE accounted for the remaining 26.

18
Competition in Generation
  • Dec 1992 Nuclear Electric, SP and HE and other
    generators had expanded their share to nearly
    30.
  • In the longer term, it is possible for rivals to
    build more capacity.
  • SP and HE have carried out work which has doubled
    the capacity of their interconnector.
  • New entrants building power stations will
    contribute more to electricity generation.
  • There are currently seven independent stations in
    operation with a total capacity of 3268MW.
  • Impact on competition of these stations will be
    increased by National Power and PowerGens
    substantial closure programme of older less
    efficient stations.

19
Tariff
  • The electricity boards adopt a tariff structure
    which enables them to recover their costs.
  • The costs consist of two parts, e.g. fixed cost
    and running cost,
  • the tariff is also known as two- part tariff.

20
Fixed cost
  • Fixed cost include capital investment, which can
    be considered on a annual basis as depreciation
    and interest charges, labour, insurance, taxes
    and other irrespective of load
  • Since a tariff is charged at periodic intervals,
    typically on a per annum basis for large users,
    the fixed costs are similarily apportioned
  • A (per kVA) x M.D. (kVA)
  • A is the full cost, M.D. represents the maximum
    demand.
  • This part of the tariff is in terms of /KVA in
    order to encourage the consumers to operate at a
    power factor.
  • The cost per kVA is usually higher at lower
    voltages.

21
Running cost
  • These mainly relate to fuel costs and are in
    terms of p/k Wh.
  • It includes the cost of fuel, water, control of
    losses, purchase and sale of power.
  • Hence the total running costs p.a. are given by
  • B (per k Wh) x M.D. (kVA) x P.F. x L x Hours
    p.a.
  • B is unit cost, M.D. represents the maximum
    demand, l is the load factor and P.F. is the
    power factor.

22
Maximum Demand
  • This is the maximum load on a system during any
    specified period (half-hour period).
  • Since electrical energy can not be stored on a
    significant scale it is also, by definition the
    maximum output of the system during that period.
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