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Misalignment of expectations can lead to disputes
- Nov 30, 2022
- Latest Journal
An expert’s perspective on electrical connection disputes involving utilities and customers
By: Rose Campbell, IRMCert and Mamoon Alyah, PE, CEng
Recently, we have been acutely made aware of our dependence on electric energy by the recent events in Europe and the looming energy crisis that governments are warning us about. Considering the average energy usage in the UK for small businesses ranges from 15,000kWh to 25,000kWh, with larger businesses exceeding 50,000kWh annually, it is understandable why having continuous and reliable access to electricity remains a priority to business owners.
Over the years we were instructed on behalf of business owners and utility operators alike to investigate and provide expert opinions in relation to disputes stemming from electric connections in different types of property. Our experience taught us that power connection disputes are complex on many levels, both legal and technical.
Despite their complexity, disputes arise from discrepancies in the interpretation of basic terms of the connection contract. Misunderstanding the technical aspects of the connection contributes to the complexity of the dispute. This can be as simple as misunderstanding of the supply cable rating or current carrying capacity, the electric load of a property, the function of the fuses in the cut-out at the property or even the incorrect perception of the role of the utility engineers.
Recently our experts were instructed to investigate and opine with regard to a Dangerous Situation Notice (DSN) issued by the utility after disconnecting the service connection to a food processing business in London. The customer made a claim against the utility disputing their decision to declare a DSN at their property despite the repeated blown fuse incidents, stating that the supply cable rating was never exceeded. The utility insisted that the load exceeded the cable rating on multiple occasions and regardless of the supply cable size, they had the right to limit the power supplied to the property under the connection contract.
In another claim we analysed, we had to evaluate the quality and availability of the redundant supply and whether it met the legal definition of the contract following a failure in the distribution substation. Again, understanding of the connection terms and what was being supplied by the utility and was expected by the customer was behind a complex dispute.
Obviously, there are many legal issues involved in the way the connection contract defined the DSN and what to do about it. Legal issues were also abundant in the way a contract to supply redundant feeder was prepared. To analyse either of these claims or any other claim, it was necessary to consider several technical issues as well. These issues related to both the utility’s supply side and the consumer load side. To understand and ultimately opine on the issues, experts need to analyse both sides of the connection.
A main challenge to experts is access to information necessary to understand the design of the equipment on both sides of the connection. The utility, understandably so, are keen to protect their infrastructure and thus limit access to their proprietary design. The customer has the right to protect their processes and thereby access to their equipment and operations. To access information, it was necessary to review documents of the original design, connection application forms, equipment specifications and volumes of correspondence between the utility and their customer. Visit to the site always helps the expert develop an understanding of the issues involved.
Once enough information is secured, it is necessary to analytically review standards, regulations and connection codes. With the age and complexity of the distribution system in the UK, it is necessary to analyse many publications and know exactly which one applied to which situation. An electrical system built over several decades and regulated by several governments and different bodies, tends to change over the years in many ways, some of which are difficult to understand. Evolution of technology and introduction of renewable energy adds to the complexity of the codes and regulations.
Technical analysis is further complicated by changes in the electrical system in any given connection. Growing businesses tend to refine and expand their processes by upgrading equipment and introducing new technologies that require more power. When production grows, demand for electricity grows with it.
Even on the utility side, the grid and the equipment are constantly upgraded in response to increased demand from existing and new customers. These changes introduce significant complexities to the system which poses a significant challenge to solicitors and experts alike.
Utilities must consider many factors before they agree to supply power to any of new customers or upgrade the supply to existing customers applying for more power due to growth in their operation. Utilities must also consider the impact of any new connection application on their equipment and other customers. Most of these factors are not clearly explained to the customer, which lead to misunderstanding of the responsibilities assigned to the utility and what the customer should expect.
In the example of the food processing business in London, the DNO believed that it was a question of safety violation created by the load exceeding the rating of the supply, while the business thought it was a misinterpretation of the connection contract where the maximum amount of power permitted to their business was defined incorrectly.
Critical properties such as hospitals and infrastructure facilities, which require continuous power to operate equipment, measures must be in place to maintain the connection’s availability, because a lost connection can be life-threatening or at minimum incredibly costly. That’s why supply is not limited to availability of one feeder, but also includes redundant measures that must be available.
In most situations, the DNO’s understanding of their responsibility to provide power and a business owner’s expectation about the service that they receive align. When a disruption occurs, or when these two expectations do not align, issues arise. This is the reason why so many claims regarding grid connection occur between DNOs and business owners.
Rose Campbell is a Risk Analyst and Legal Services Coordinator at CEERISK Consulting. She oversees service delivery by the firm’s Network of Experts in addition to providing risk management services to clients. She can be reached at rcampbell@ceerisk.com
Mamoon Alyah is the Managing Director and Principal Engineer of CEERISK Consulting Limited, an engineering firm that advises insurer and solicitors in matters involving electrical engineering disputes. He has over 35 years of experience and have been qualified as an expert in the UK, USA and many other countries. He can be reached at mamoon.alyah@ceerisk.com
CEERISK Consulting limited is a global engineering firm that provides expert witness services in numerous disciplines through its offices in UK, UAE, Jordan, Morocco, Egypt and Turkey. More information is available at www.CEERISK.com
