EirGrid plc Annual Report 2011

EirGrid plc Annual Report & Accounts 2011
Chief Executive’s Review
I am proud to report that EirGrid Group delivered
successfully against all of its core areas of
responsibility during 2011.
These included operating the transmission systems
in Ireland and Northern Ireland reliably and securely,
operating the Single Electricity Market efficiently and
transparently, progressing vital infrastructure projects
including the East West Interconnector, facilitating
growing renewable energy levels, and contributing
authoritative analysis on the future of the electricity
sector.
At a time of uncertainty in other spheres, secure
electricity supplies are vital for all of our customers in
their homes and businesses, as well as for the growth
and recovery of the economies of Ireland and Northern
Ireland. The Group pays the highest attention to
ensuring that “the lights stay on” across the island.
Secure System Operation
EirGrid’s security of supply standards were met
throughout the period. During the period from January
2011 to December 2011, all island system demand
totalled approximately 35 terawatt hours (TWh),
representing a 3% decrease on the previous 12-month
period. The all island peak system demand for 2011
of 6,383 MW occurred in December 2011. However
this peak demand level was down 7% on the record
all island peak system demand of 6,845 MW which
occurred in December 2010, largely attributable to the
extreme weather conditions experienced in that month.
Financial Results
Revenue across the Group for the financial year to
30 September 2011 increased to €470.7 million, from
€443.8 million the previous year, and operating profit
rose to €30.3 million, compared to €15.7 million in
2010. This increase in statutory profit largely reflects
actual outturns in costs and revenues different to the
assumptions made in setting EirGrid’s regulated tariffs,
giving rise in this instance to an over-recovery.
In accordance with normal regulatory practice, this
over-recovery will be corrected for in future tariffs.
The Group has continued to maintain strong banking
relationships, which have enabled it to continue to
invest very substantially in the East West Interconnector
Project and also to manage the variable liquidity
requirements associated with constraint costs in the
SEM.
Customer Service
A core aim of the EirGrid Group is to deliver high
quality services to all electricity customers. Our
customers include generators, suppliers, and traders
in Ireland and Northern Ireland, as well as large
directly-connected customers who need power in large
quantities and who include many well-recognised
names in industry. Our customers also include all of
those who rely upon the high voltage system – that
means every home, small business, factory, hospital
and farm on the island – as well as stakeholders,
external bodies, and those who depend upon us for
authoritative analysis and information.
We are committed to providing an efficient, professional
and high quality service at all times. We conduct regular
surveys of our customer base, which provide us with a
benchmark on our service levels, allowing us to identify
priority areas for improvement. In 2010 the key areas
identified for improvement, across the EirGrid Group,
were responsiveness, communications and the need for
mutual understanding of our respective businesses.
Throughout 2011 we implemented a series of initiatives
in these key areas: we implemented improvements
in our response times from our SEMO helpdesk
and have rolled out a Query Management system in
EirGrid; we provided regular communications on major
projects such as Grid25, Gate 3, DS3 and EWIC; and
we have implemented a series of improvements in the
management of communications on customer projects.
7