Skills North East - The Regional Skills Partnership

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Energy and Utility Skills

Energy and Utility SKills Regional Contact:

Mrs Ronnie Stephenson, Skills Director - NE and Y&H

Friars Gate Two

Shirley

Solihull

B90 4BN

M: 07739 456137

E: ronnie.stephenson@euskills.co.uk

www.euskills.co.uk

Learning and Skills Council Contact: sally.gardner@lsc.gov.uk

Click here for the Energy and Utility Skills North East Fact Sheet

Overview of the Sector in the North East

Energy & Utility Skills is the Sector Skills Council (SSC) for the electricity, gas, waste management and water industries.

The industries comprising Energy & Utility Skills form the top tier of the UK’s energy and utility supply pyramid representing all facets of the creation and delivery of electricity, fuel for heat, water, the removal of waste management sector. These industries support the needs of industry, commerce and the nation.

The safe, reliable and affordable provision of electricity, gas, waste management, water and related services are essential to the UK economy and well being of domestic customers.

There are around 28,100 people employed in this sector with decline forecasted at 1% between 2006-2014.

99% of the workforce is white, a higher percentage than nationally at 96%.

26% of the workforce is female, a higher proportion than nationally.

Waste management has a promising long-term future because it is essential to the efficient and safe operation of a developed society. Legislation in the EU is raising the standards in the general waste management and in specific industries; the growth in legislation will provide a platform for new and commercial technological opportunities. (Regional Fact Sheet 2005)

Estimates suggest that over the past 20 years, the size of the UK water industry workforce have not changed dramatically. This is largely a reflection of the maturity of the industry. Significant changes are occurring however in terms of job roles, occupations and the need to up skill employees. Changing roles within the supply chain has meant that employees have been re-skilled and updated to meet the demand for new skills and to fill the gap during periods of retrenchment. Changes that have taken place and have affected the distribution and extent of the supply include:

Establishment of the regulatory system and associated organisations
Transfer of duties and activities from the water companies particularly to contractors and consultants
The movement of labour across different supply chain sub sectors, e.g. when a company works in other utility sectors and moves labour from one utility contract to another. (Regional Fact Sheet 2005)

Since 1990, the electricity industry has undergone radical changes with the privatisation of the industry and the introduction of competition. The industry has undergone changes in ownership, structure, operating regime, business focus and culture and now embraces a large number of players with diverse interests. The main catalysts have been growing competition in the generation and supply markets, a strong regulatory framework, and new legislative requirements.

Since privatisation in 1986, the gas industry has changed beyond recognition. The resulting fragmentation of the industry, and the radical changes to the roles of major players has made it difficult for the industry to have a clear view of its future. It is probable that there will be rationalisations at all levels in the industry. (Regional Fact Sheet 2005)

Key issues facing the sector now and in the future

The average length of service is 13 years in the water industry and by 2010 people over the age of 45 will make up 45% of all employees. Replacement demand is therefore a key issue facing the sector now. (Regional Fact Sheet 2005)

Workforce Development in the North East

Skills shortages/gaps in existing workforce and latent skills issues

The skills required to provide these services are diverse in their scope. The range of these skills is continually evolving as the industries continue to be at the centre of significant change.

Structural change is leading to innovative multi-utility developments, which in turn are impacting on the scope of future skills requirements.

A key demand from government, producers, suppliers and users is for greater efficiency in the use of natural resources. This includes both fuel for energy or water for supply. Pressures such as these will have growing impact on the people and skills required to run these businesses more efficiently. The impact will be felt throughout the entire process chain.

EU Skills research with gas employers in the NE indicates at this time there is a need for upskilling of present gas employees in the upstream and downstream sector. Typically, the upstream skills requirement is for:

Team leader role
NVQ Level II craft technicians
Managers
Multi disciplined craft level operatives

Typically, the downstream skills requirement are:

Upskilling existing NVQ Level II gas engineers into Level 3’s and beyond
Upskilling existing gas engineers in new technology and legislation driven activities
Pilot the provision of other areas of gas activities such as industrial and commercial gas, LPG, emergency eervices, etc.
The new Apprenticeship and Advanced Apprenticeship in Domestic Gas

What is clear is that the skills needs are across the sector for all types of employer. EU Skills are especially keen to focus on the needs of the SME gas companies who indicate the need for the Apprenticeships to be accessible by all age groups. (SH, EU Skills)

Prioritisation of skills issues within the industries

The water and electricity sectors both need Apprenticeship Frameworks and upskilling activities, similar to gas sector. EU Skills is still working with employers to establish need and numbers. (SH, EU Skills)

Learning and Skills Infrastructure in the North East

A lack of suitable courses in the area was stated to be a barrier for only 19% of companies in this sector compared to 20% nationally. (Regional Fact Sheet 2005 from NESS 2003)

Similarly, a lack of suitable courses generally was considered a barrier for only 11% of companies in the NE compared to 17% in England as a whole. (Regional Fact Sheet 2005 from NESS 2003)

Relevance and quality of existing provision

The following extract is “from the about to be launched” new framework for Gas Apprenticeships;

In Downstream Gas the Foundation/Advanced Apprenticeship Framework must meet the needs of very different types of employers and very different levels of work, covering not only the traditional concept of level 2 craft, engineering technician and incorporated technician engineer at Level 3 but across the diversity of engineering sectors, including high levels of customer focus. The framework must also cater for the modern work methods in industry such as multi skilling, team working, and modern installation and maintenance techniques.

Foundation/Advanced Apprenticeships provide work based training and development for young people aged between 16 and 24 years.

The framework can also be used by others aged 25+, as a model for their own work based training programme, in these instances these programmes may not be eligible for funding by the local LSC/ELWa under the Apprenticeship Programme. A nationally recognised Apprenticeship Certificate can be awarded, provided there has been quality assurance of the programme at the discretion of EU Skills.

Entry is at two levels, Craft and Technician, and depends upon the potential of the young person to achieve the requirements of the programme the level and range of activities they will be undertaking in the workplace.

Apprentices should be employed from the start of the apprenticeship except in exceptional circumstances. In this case, the Apprentice must be linked with an employer from the outset, even if they are not actually employed.

The Gas Sector view is that employed status should be the norm in the Foundation/Advanced Apprenticeship.

The employer or provider pays the apprentice a wage if they are employing the Apprentice or an allowance if they have non-employed status. Non-Employed Apprentices are entitled to a minimum learning allowance per week set by the LSC/National Council – ELWa.

An employer should be aware of the National Minimum Wage (NMW) regulations which apply to their employers.

LSC funding for Foundation and Advanced Apprenticeships is normally prioritised for 16, 17 and 18 year olds. For those aged 19 and over, funding is available at the discretion of the local LSC and subject to the availability of resources. The LSC is currently able to fund learners who start their Apprenticeship before their 25th birthday.

Barriers to employers accessing the skills provision they need

Far fewer companies in the NE reported having barriers to training than in the rest of England. The most significant barriers were a lack of time, cover and funding for training. (Regional Fact Sheet 2005)

Any Other Employment and Skills Issues in the North East

Prospects of a multimillion pound ship breaking centre might be disappearing. The former A&P yard has had 3 1m cranes removed. The site and cranes are central to plans by Dutch firm NV Ecodock to build a ship breaking yard in the UK (EC 30.06.05) Half the site is owned by Newcastle council who are backing the scheme but the other half is owned by the A&P Group who want to sell it off for redevelopment.

Somerset based Wessex Grain has begun a feasibility study into the creation of bioethanol facility that would turn the cereal into bioethanol which is then mixed with petrol – the company has a plant in the SW but is optimistic about opening another on Teesside. The move comes after the company was approached by NE Biofuels – a cluster group developing supply chains in renewable industrial, domestic and transport fuels such as biodiesels and bio ethanol made from non food crops. Teesside is emerging as a major centre of biofuels. Billingham based Biofuels Corporation is building the world’s largest biofuels plan at Seal Sands where it will turn oilseed rape into fuel. Petro Plus is already producing Bio-Plus a 95/5% blend of its conventional ultra low sulphur diesel with oils from a variety of renewable seed-based oils at its Teesside Crude Oil Refinery at North Tees. DI Oils is developing plans to produce biofuel from extracts form the Jatropha plant at refineries all over the world. Jatropha plant is remarkable – fuel for stationary engines, living fences around crops (animals don’t eat it), soap, oils, halts erosion, etc.

The renewable energy sector could be worth more than £2bn to the NE economy one day! Wind turbine manufacture + bio energy, resolution - one of the only ships in the world that can erect the steel platforms for offshore wind turbines in the world Middlesbrough marine Projects aims to corner the offshore market.

A Greenpeace report recently estimated that the UK would have 50k jobs in the offshore wind industry alone – with the NE looking to grab half of those jobs.

A pioneering initiative involving companies more than 100 in the NE operate in the sub northsea sector. Frank Siedlok (DUBS) wants to ensure that expertise and knowledge of this sector remain in the NE by creating a CoEx for sub sea technology. The initiative is gaining support from Subsea UK, NCC and industry organisation Northern Offshore Federation. (Sun Echo 31/05/05)

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