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Gas mains replacement could be drastically scaled back The multi-billion pound gas mains replacement programme is set to be reviewed and could be scaled back, Utility Week understands. Steve Smith, Ofgem's senior partner responsible for local grids, said the £24 billion programme, which has seen costs double over the past seven years, may no longer make economic or safety sense. Speaking at an industry meeting about the future of gas supply and demand, Smith said the Health & Safety Executive (HSE) was looking again at the programme, which constitutes the largest single component of the gas distribution networks' capital expenditure regulated by the watchdog. Under the 30-year programme, 91,000km of mainly iron gas mains, principally in urban areas, are being replaced with either polyethylene or steel pipework. It was prompted by a series of high-profile accidents in the 1980s and 1990s involving old-style ductile iron mains, which claimed 20 lives. Smith said it was no longer clear whether the programme was "proportionate and sustainable", calculating that at current levels of expenditure the network operators were spending around £275 million per life saved. A spokesman for the HSE said the exact terms of the review had still to be settled. "As you would expect with a 30-year programme, it is important to take stock at key points. As we approach the ten-year anniversary of the start of the programme there is a good opportunity to consider how it can continue to deliver improved safety." He said the HSE is discussing with Ofgem how the review findings could inform the watchdog's price review. Source: Utility Week © Faversham House Group Ltd 2010. News articles may be copied or forwarded
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