Cadent Annual Innovation Summary 2023-24

Innovation Summary Annual 2023/24

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Welcome Navigation

To help you understand the relevance of each project in this report, we’ve categorised them as detailed below. Keep an eye out for our quick reference icons throughout the document.

Network Innovation Allowance (NIA) Projects NIA provides funding to network licensees to enable them to take forward innovation projects that have the potential to address customer vulnerability and/or deliver longer term financial and environmental benefits for customers.

Contents

Strategic Innovation Fund (SIF) Projects Funding designed to drive the innovation needed to transform gas and electricity networks towards a low carbon future.

Welcome from David Goldsmith Head of Process and Innovation

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Operational Funding (Totex) Projects This funding will address regional issues relating to our customers or assets; using technology that already exists to drive process, cultural or commercial improvement.

Network Innovation Allowance (NIA) Projects

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Strategic Innovation Fund (SIF) Projects

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Our innovation strategy is driven by our company purpose to ‘Keep people warm, while protecting the planet.’

Operational Funding (Totex) Projects

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Welcome

We continue to deliver great innovation. Our Annual Summary 2023/2024 takes us through our innovation delivery for the third year of RIIO-2. We have continued to work closely with the Energy Networks Association (ENA) and our colleagues in the other energy networks to ensure collaboration and ensure our work weaves into the approved innovation strategy. The NIA and SIF provide regulated funding opportunities which we aim to maximise. If a ‘good idea’ can provide benefits to the business, our customers, and align with our strategy, then our network innovation leads will take these forward. We strive to deliver innovation and recognise the changing landscape of future energy across the world. Our priorities have not changed in the last year; we continue to drive and support the UK’s energy transition; we seek innovations to support customers in vulnerable situations as well as driving operational innovations to improve our efficiency. David Goldsmith Head of Process and Innovation

We strive to deliver innovation and recognise the changing landscape of future energy across the world.

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7 23 Collaborative projects

34 Reportable projects

Projects completed

RIIO-2 in Numbers 2023/2024

Our vision is to set standards that all of our customers love and others aspire to.

Total NIA spend

£5.2m Total NIA spend

*These figures reflect nominal prices

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Network Innovation Allowance (NIA) Projects

Supporting customers in vulnerable situations

EasyKey

Welfare Decision Tool

Working together with Oxford Gas Products (OGP) The EasyKey was progressed as a result of our EasyAssist project. It was determined that if a customer has access issues turning off the ECV, then they will also be unlikely to open up the gas meter box with a standard key. EasyKey is very much about supporting accessibility as well as dexterity. The design means that a small addition is added to the existing meter box door – a bit like a collar, which means that issues making it difficult to operate a typical gas meter box key are eradicated, because it’s much easier to click the new key in to place. There’s also an option to leave it there in situ, but also remove it, by pressing the large button in the middle.

Phase 1 - The Additional Welfare Decision Tool (AWDT) project commenced in April 2020 in collaboration with Fraser-Nash Consultancy.

Phase 2 - Building upon phase 1 of the project, improved functionality has involved key features being added to the software: • Encompassing the alternative heating and cooking form. • Expanding the Priority Services Register (PSR) datalink to a real-time API. • Inclusion of a direct API to accommodate a streamlined process for the delivery of bespoke additional welfare items. • FCOs will have a welfare kit issued with a broad range of standardised items, where a customer in a vulnerable situation requires additional welfare. • FCOs will have a tool at their disposal to effectively assess the customer’s needs based on information gathered at the property and from existing needs codes linked via the PSR. The project has been deemed a success and delivery and rollout of the system is expected to be completed autumn 2024.

The prototype interactive software tool was designed to provide First Call Operatives (FCOs) with a list of welfare items and service recommendations for customers in an off-gas situation. The provisions are tailored to each customer and the Priority Services Register (PSR) is also considered. Customers are provided with the best welfare available for their specific needs and the process for our field operatives is simplified. Linked into the list of provisions is also a range of additional welfare products which can be ordered for delivery to customers via a next-day delivery service. The tool was rolled out to all our first call operatives (FCOs) during the second half of 2023 and is now being used across all networks.

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Network Innovation Allowance (NIA) Projects

Customer safeguarding immersive training

EasyAssist ™ Remote Actuation EasyAssist ™ Remote Actuation is a follow-on from the EasyAssist ™ ECV (Emergency Control Valve) project. EasyAssist ™ enables customers to press a button to close the ECV, rather than turn the handle. This gives customers who would physically struggle to turn the handle, the ability to isolate their gas supply in the event of an emergency. The project started in November 2022, with research establishing that a new cable operated version of EasyAssist ™ would be required. As with EasyAssist ™ , it will be resistant to high temperature. We also have an approved specification document, which will give the supplier, Oxford Gas Products (OGP) clear guidelines as to what needs to be considered from a policy and safety perspective. This document is constantly reviewed to ensure that any updates discussed are included and confirmed as current and within requirements for the project to keep moving forward. Throughout the year the project has progressed. For the first five months of the year Alpha build and testing was completed, this involved building Alpha units and testing them for activities such as thermal triggering, leak tightness test, button trigger force test and button trigger

The customer safeguarding training platform project aims to deliver a suite of training scenarios centred on supporting customers in vulnerable situations. This highly engaging, simulation-based training aims to improve conventional e-learning based training for customer facing colleagues (field-force and office) by helping them to re-imagine customer situations by allowing them to practice in a safe environment - with the use of various tools and techniques available to support them when interacting with specific additional safeguarding needs. The solution uses developed environments and designed scenarios that take place in various customer properties that trainees can ‘play’ through, receiving personalised feedback on their actions.

The project commenced in June 2023 by developing two customer environments; the first is a typical semi- detached property and the second is a townhouse-style multi-occupancy building. Following the creation of the two environments, the first two scenarios have been developed to a ‘release candidate’ level. These scenarios address mobility issues, non-English speakers, hoarding and scams, and include our emergency and mains replacement works. Two final scenarios are currently being developed as part of the project with a focus on the emergency call centre and an incident – both will include several safeguarding themes. The aim is to have both completed by summer 2024, with integration into our learning platform taking place shortly afterwards, allowing staff to undertake the new training as part of their mandatory annual safeguarding training.

endurance. This phase also provided updates and design modifications that would be required for Beta build and test phase. At this point, the project was delayed for a few months due to procurement and legal activities regarding design for manufacture documents, as they could not be released until an appropriate manufacturer was agreed. In January, we were able to release the Beta test plan and tooling activities to commence the next phase of the project. In the preliminary stages of the Beta testing, it was established that the original requirement of the device working for up to 2m away from the ECV would not be possible due to the inconsistencies of results, when compared to 1m cable. This was due to increased resistance within the cable housing and the device being unreliable if it incurred any bends. Following discussions and further testing the project agreed that 1m distance would be optimal and suitable. Due to the earlier delay with procurement activities, the project has since been extended and we now expect to finish autumn 2024.

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Network Innovation Allowance (NIA) Projects

Low Power Hot Water

Digital Exclusion

Low Power Heat

Low Power Hot Water is a project we started in April 2022 with Haydale Ltd. The project aims to achieve an alternative solution to current hot water and heating appliances provided when a customer in a vulnerable situation is off gas and there is a health or PSR need where hot water is required for hygiene reasons. This project is working to remove risk, where market ready products currently require someone potentially in ill-health or of older age, to carry hot water to an appliance, whereas this product sees cold tap water being poured into the device in situ and then the water heats. Haydale Ltd offer a potential low power usage solution to heat water in domestic premises when the gas supply is interrupted. The solution can be easily adapted into assorted designs, by using a graphene ink-based heater. The heater will function as the inner layer within the product; in this case a container, therefore when connected to an energy source, will heat the product, which will in turn heat the water in the container. This potential solution will enable many customers in vulnerable situations to be able to heat water to an optimum temperature for hygiene, allowing them to wash and clean in their home whilst their hot water is impacted by a gas outage. The solution will also be cost effective to run, ensuring that customers are not impacted by further energy costs. The project, which we completed in November 2023, successfully designed two 3D prototypes that could be used

in the kitchen and the bathroom. The kitchen unit would allow our customers to keep hygienic by allowing them to clean their dishes, as well as wash their hands, and the shower unit would allow our customers to keep clean, whilst they are in an off-gas situation. These prototypes were reviewed by the project to establish how easy they could be used by customers and how effective they were in heating water to the required temperature. The review highlighted a few areas for improvement and modification, so the customer could feel the full benefit of the unit. These areas ranged from having the rechargeable battery integral to the device rather than separate, ensuring the lid at the top of the device was easy to manoeuvre, having the display unit simplified so it was easy to recognise when the device was switched on or off and at the required temperature and extending the tap, so water did not leak onto the kitchen side. As a result of these modifications, the project was extended by a further three months. With the development being successful, we are now pursuing an opportunity to further progress the project. This will involve creating two workable prototypes that could be used in an operational environment and ensuring that the materials used in manufacturing the devices are recyclable and environmentally friendly.

Working collaboratively alongside Energy Catapult Systems, NGN and National Grid Electricity Transmission, Digital Exclusion was a research project that aimed to establish how energy networks can communicate effectively with customers who currently do not have digital ways of communicating, either through choice or poor digital connection. It is estimated that 20% of the population are digitally excluded, therefore potentially missing key communication messages such as gas/electricity supply interruptions, as well as future information about changes to services to meet the UK’s net zero challenges. The project conducted research in two principal areas, to establish good practice methods by other industries in how they communicate with digitally excluded customers and identifying good practice regarding energy outages and what needs to be communicated.

The project conducted activities such as literature reviews, stakeholder interviews and stakeholder workshops to establish: • High-level communication needs of digitally excluded customers. • Current messages being sent to customers in planned and unplanned events. • Considerations for customers when sending messages. The research identified communication challenges, messages that need to be sent, and good practice communication methods that can be used in planned or unplanned energy outages. The project closed in September 2023. Should there be a further phase of this project, then these activities would form a key part of the scope. The project also validated that the gaps in communicating with digitally excluded customers are already understood within the energy networks.

In August 2023, we commenced a project with Haydale Ltd to establish if we could provide an additional alternative heat source for customers in vulnerable situations. Utilising the innovative graphene ink solution that we have been exploring with Haydale in our Low Power Hot Water project, we will look to explore if this solution can be used to provide heat, at a low cost, to enable customers to stay warm in an off-gas situation, ensuring that the customer has no or minimal disruption to their normal day to day life, make them feel safer in an off-gas situation and be able to still live independently in their home. The initial idea of the unit is to have a device that can be positioned over an existing radiator. We have currently completed Stage 1 of the project, which conducted feasibility studies in terms of technical requirements, size and weight of the device, heat transfer rates and power options. We will then move into Stage 2 of the project which, based on the feasibility study, will look to develop a proof of concept demonstrator. We aim to have this ready at the beginning of autumn, which will then allow pre-production unit to be built and scaled up ready for internal testing prior to deployment.

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Network Innovation Allowance (NIA) Projects

Supporting the UK’s energy transition

This project focused on larger non-domestic spaces, which are commonly protected by the installation of AIV systems under natural gas service today. An AIV system typically includes a gas detector, a control system, and a solenoid valve, which can be actuated to close upon detection of a specified concentration of gas. These valves are often interlocked to other safety systems within a premises (e.g. fire alarm) and can also be operated manually via an emergency stop button. Over the course of 23/24, we conducted site visits to non-domestic properties and used the learning from other research, such as hydrogen dispersion to inform the optimal location of detectors, with the setting up of a full AIV system to demonstrate how an AIV system could be used under hydrogen service. The final report was submitted to the HSE in late 2023 ahead of wider publication. Use of Automatic Isolation Valve (AIV) systems with hydrogen – AIVs in LP and MP Services

Dispersion of Helium Releases in Domestic Properties This is one of the EUSE projects, which is looking at the role that ventilation and gas detection may play in the conversion of domestic properties to use hydrogen in the UK. Utilising helium, the project has aimed to look at the behaviour and movement of a buoyant gas and how it will disperse in a range of real, lived-in domestic properties and how the layout of a property may impact its dispersion and accumulation. These findings will help enable decisions to be made on the use of ventilation and optimal locations of hydrogen detectors to support the first use of hydrogen in the home. End User Behaviour – Impact on Safety This project commenced in 2022/23; looking at bridging the gap between technical research and consumer attitudes towards gas safety in the home, covering current gas safety practice and how this might change with hydrogen. Over the course of 23/24, we have surveyed over four thousand people to supplement a literature review and focus groups. The project is on track to submit its final report to the HSE for peer review in June 2024.

Over the past year we have continued to deliver research projects focused on the provision of evidence to support the government’s decision making over the role of hydrogen, both as a blend into our networks and for use in heating. As part of this work, we have supported the Department of Energy and Net Zero (DESNZ) with a programme looking at End User Safety Evidence (EUSE). This work has been undertaken in collaboration with all the Gas Distribution Networks (GDNs) and National Gas Transmission and has consisted of a programme of circa 19 projects, focusing on hydrogen applications downstream of the Emergency Control Valve (ECV). The research was initially to support the hydrogen village trials, however in the absence of a trial, the evidence is now forming part of the evidence being submitted to the Health and Safety Executive (HSE) in support of the use of 100% hydrogen in our networks. The policy decision on hydrogen’s use for heating is anticipated in 2026, with the HSE on track to review the evidence from ours and other GDNs research in the year leading up to this.

It is accepted that with a transition of our networks to 100% hydrogen, contaminants will be introduced to the hydrogen supply on its journey to the end user, with hydrogen quality standards specifying a purity of at least 98% for safe combustion in typical domestic/non-domestic appliances. This project has looked to understand the impact of the typical contaminants that will be present in repurposed gas networks, to understand if the presence of certain trace components in the hydrogen supply will have an impact on materials and combustion processes for domestic end users. The project started in 22/23 and has made substantial progress over 23/24, with both the materials and combustion testing programmes now complete and final report submitted to the HSE earlier this year. Implications of hydrogen purity

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Network Innovation Allowance (NIA) Projects

Hydrogen technical and safety case for domestic heat During 2023, we led the project to review the Safety and Technical evidence for its completeness against the HSE considerations and identifying any remaining gaps in evidence. The outputs included a view of the completeness and current position of the evidence gathered to date, along with projections of the position after the current projects are delivered. The project delivered a complete plan to both the HSE and DEZNZ, as to how all the evidence would be delivered through the projects underway. The plan gave them confidence that that the comprehensive formal assessment due in September 2024 can be efficiently and effectively conducted.” The stage 2 of this project has been taken forward by SGN.

Great Britain hydrogen distribution QRA

This project is aiming to quantify the risk profile of the UK gas users if they swapped to hydrogen. The study uses mature risk modelling techniques and applies the vast amount of knowledge and evidence being generated as part of the hydrogen technical and safety case projects. The project’s outputs will be submitted alongside the evidence being submitted to the HSE for their formal assessment later this year.

Blending We have continued to champion the role of hydrogen as a blend into our gas networks, as we believe it will have a positive impact in reducing the carbon emissions from domestic heating, without the need to make significant changes to infrastructure. In late 2023, the UK Government set out their ‘minded to position’ on blending hydrogen into our gas networks. The policy decision whilst favourable, is subject to blending being safe, which will be determined by the HSE upon reviewing the evidence that has been generated from our HyDeploy2 project. HyDeploy2 is a project we have delivered in conjunction with Northern Gas Networks, where we have completed trials on both private and public

networks to determine how the pipe and component materials performed and how the residents found the experience. The project received positive support locally. The project team have spent 23/24 exploring the impact of hydrogen blends on industrial and commercial customers’ heating appliances and developing the resultant evidence for submission to the HSE for their formal assessment. The project team have subsequently submitted the conclusive evidence to the HSE and will now seek to respond to any queries. Hydeploy 2 is a project we have delivered in conjunction with Northern Gas Networks, under the former National Innovation Competition funding.

Winlaton blending site at NGN’s site.

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Strategic Innovation Fund (SIF) Projects Digital Platform for Leakage Analytics (DPLA) – Beta Phase

The Digital Platform for Leakage Analytics (DPLA) project aims to develop and demonstrate a prototype for how data, analytics and models can be used to identify and locate gas leaks in the gas distribution network. The core functionality of the DPLA is data-driven leakage modelling, unlocking proactive leak detection capabilities, combined with testing the application of novel gas sensor technologies. This will create opportunities to reduce the reliance on and cost of in-field specialised sensor. Shaping the future network, the DPLA’s mission is to reduce carbon emissions, realise customer benefits and improve safety in a cost-effective manner. The overarching DPLA deliverable is the demonstration of the viability of the completed system of models, combining upgraded modelling capabilities with innovative leak sensor technologies to detect, localise and characterise gas leaks. DPLA’s innovative nature consists of enhanced network coordination, reduced operational complexities, and improved user experiences, all evidenced via a key project output: the user interface. The user interface is designed to enable networks to view and interact with leakage data quickly, and effectively through real time alerts, visual heatmaps and detailed reports.

What are the benefits of DPLA? • Environmental impacts - Key quantifiably evidenced benefits from DPLA implementation will be the 1) avoided gas loss and 2) avoided greenhouse gas emissions. • Cost reductions in operating the network and wider energy system - Net cumulative discounted financial benefits across GB of up to £2.86 billion by 2050 for our core modelled scenario in the Alpha phase. The benefits are dominated by the cost of avoided emissions (~90% of the £2.86B), given the high GWP of the gases whose leakage is being minimised. • Cost savings for network services users - The avoided volume losses could feed through as direct customer benefit by decreasing the cost of shrinkage and leakage gas which is passed on from GDNs to consumers’ bills. • Economic benefits to users and any other parts of the supply chain, broader (UK) economy - Improved certainty on operating conditions and modelled outlooks, resulting in gas shippers having to build less risk into their pricing strategies. This will lead to a narrower spread of prices which can feed through to consumer bills.

• Impacts on government priorities - The estimated decrease in methane emissions from pipes and AGIs between 2020 to 2030 via DPLA is up to 58%, which supports the government priority to tackle methane emissions as a Participant of the Global Methane Pledge which was committed to at COP 26 in November 2021. • Expected regional or wider energy supply resilience benefits - In future, the platform could be developed to perform predictive leak prevention as well as leak detection. This would further improve energy supplyresilience by minimising system losses.

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Strategic Innovation Fund (SIF) Projects

Digital Inspector – the future of welding quality The methods currently in place to address welding quality issues are not applied to every weld, due to the effort required in connecting to the technology, and the volume of data which is handwritten. This inevitably results in variable weld quality, excessive amounts of data duplication and human error when converting paper records to a digital format. Digital Inspector is an innovative solution to welding problems that are faced by industries that use welding and inspection services. The system is being designed to bring several paperwork elements together, using new hardware and software. This will allow customers, engineers and inspectors to monitor, complete and approve weld quality, in real-time. We have partnered with National Gas Transmission, United Living Infrastructure Services, Triton Electronics, The Weld Institute (TWI) and Human System Interactions to develop an innovative technology that addresses the risks to weld quality and construction sector scalability.

Benefits of Digital Inspector • Revolutionises pipeline welding by allowing digital tracking of all welding activity and quality documents. • Significantly reduces the manual tasks currently being undertaken on site and in the office. • Connects back-office engineering and quality functions to live site tasks with real-time weld data acquisition, creating a digital thread to welding and quality outputs. • The customer will be able to see live project costs weld by weld. • The engineer will be able to transmit, monitor and collect data on weld requirements and the inspector will monitor compliance. • All paperwork associated with these activities will be digital and populated live, available to all parties as soon as they are completed.

EMstor We are developing a 100% hydrogen pipeline network in the East Midlands to connect clusters of potential hydrogen users and producers. This project will investigate options for medium and large-scale storage of hydrogen to enable the flexible use of hydrogen in the region. This SIF project is looking for a local storage option. We will explore how the geology of the East Midlands can facilitate gigawatt and terawatt scale storage, considering options such as lined rock caverns, depleted hydrocarbon fields and onshore saline aquifers. We will compare options to storage requirements, looking for pilot sites that could be developed and connected into our hydrogen network, enabling additional industrial connections and carbon saved.

Storage means that more electrolytic hydrogen can be produced and saved for when it is needed at times of peak consumption. This is a real benefit because it means that we can use up renewable electricity that is produced when demand is low, reducing renewable energy curtailment (wastage) which means lower customer bills. The core innovation aspect of this project is to undertake a first of its kind feasibility study into the suitability of the geology of the Midlands to host these storage technologies. This will produce a catalogue of the cost-effective medium and large-scale hydrogen storage options in the Midlands, determining their pros and cons – such as capacity, Technology Readiness Level and developing an understanding of costs for different options and technical issues. We will then match these against the determined hydrogen production, demand and storage needs, in order to identify the most viable storage options to progress to the next Research & Development stage.

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Operational Efficieny (Totex) Projects

Hilti Breaker The Hilti Cordless Breaker is a powerful and lightweight battery-powered tool for use on concrete, tarmac and other demolition work. The breaker tool weighs 21.4kg, just under 10kg lighter than current breakers used, and is much slimmer than comparable battery-powered breakers. The breaker is ideal for medium-scale and controlled demolition jobs where handling, tool control and mobility are most important for productivity. The breaker has been assessed and approved to be used in scenarios where it may be hard to gain access — cordless improves accessibility issues — and where it has been confirmed that it is a non-gaseous atmosphere. The Hilti Breaker offers a significant reduction in hand arm vibrations (HAVS) for users when compared to incumbent instruments. For breaking up concrete and other demolition work the Hilti Breaker will not replace pneumatic breakers as a standard issue item, however, will provide a different solution in situations where is it difficult to and onboard van power cannot be used. Total body weight 17.4kg + 3.68kg with batteries. The tool is equipped with an Active Vibration Reduction (AVR) system which reduces vibration noticeably.

Smart Methane Detector The Smart Methane Detector is a self-monitoring methane detection device designed to be used in situations of failing but gas tight pipework and other areas that are at risk of leakage. The Smart Methane Detector is a revolutionary safety device that offers the ability to provide more frequent leakage checks in and around customer properties or specific sites minimising the need of physical checks. The Smart Methane Detector provides capabilities to monitor gas assets 24/7, providing assurance that the asset is in safe condition. One of the most notable outcomes of the Smart Methane Detector is the commitment to customer safety. With this device, GDNs are now able to monitor failing pipework, which is planned for replacement, much more frequently whilst also reducing disruption to customers. Traditional methods meant that customers would experience an engineer coming to their home or property once a week or month to check pipework which has the potential to cause distress and customer dissatisfaction.

Hornet ® Rockdrill To help keep our engineers safe and well, we have recognised the importance of reducing their exposure to Hand Arm Vibration Syndrome (HAVS). HAVS can be created through the use of powered tools and equipment. The Hornet® Rockdrill uses a proprietary drill stand and drive mechanism that has been designed to accept a standard pneumatic rock drill. The system is designed to be self-supporting when in operation and minimise contact with the drill during the rockdrill operation. This significantly reduces the vibration operatives are exposed to during the leakage survey activity. Compatibility of the product is particularly good because it is powered similarly to the existing rockdrill — it works on existing pneumatic source air meaning no additional power source requirements.

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Operational Efficieny (Totex) Projects

PeopleSafe PeopleSafe is an industry leader in lone worker solutions. The service includes a suite of SOS devices and apps to provide people working alone with a way to call for help in an emergency. The SOS alarm is then managed by an Alarm Receiving Centre (ARC) managed by PeopleSafe. The PeopleSafe ARC is accredited to all five parts of BS 8484:2022, ensuring the fastest police response if required, through their unique reference numbers (URNs), which are held for every UK police force. We have been trialling the service from PeopleSafe since the start of 2024 to help shape our lone worker policy and to understand how SOS devices can be used to manage the risks associated with lone working. The use of these devices also aligns with HSE recommendations in their guidance on protecting lone workers. Trials so far have been conducted by a group of FCOs in our West Midlands network as well as by our Land Support Team. We are now undertaking further trials with our Women in Cadent focus group, as well as a selection of Line Walkers.

LZ-30 The GAS TRAC LZ-30 is a methane laser-based gas detector. It uses Tunable Diode Laser Absorption Spectroscopy (TDLAS) technology, which generates a specific wavelength of light that is sent through the gas monitoring area, partially absorbed by any methane source, and reflected back to the instrument by the reflection surface. The higher the methane concentration, the larger the absorption will be, resulting in a higher reading. Using this technology in an open path allows for the instrument to detect gas remotely, simply by pointing at the target anywhere from 0.5 to 30 meters away from the operator. The GAS TRAC LZ-30 methane detecting instrument, is being used by FCOsto find leaks that cannot be found utilising incumbent devices and procedures. It has proven beneficial when used in situations where full access is not granted and when monitoring risers on multi-occupancy buildings.

The GAS TRAC LZ-30 has a number of benefits, including: • Instantaneous and accurate detection: The TDLAS technology allows for fast and accurate detection of methane gas. • Remote detection: The instrument can detect methane gas from a distance of up to thirty meters, allowing operators to safely and effectively monitor areas that are difficult or dangerous to access. • Ease of use: The instrument is easy to use, with a simple interface and clear display. • Durable and reliable: The GAS TRAC LZ-30 is built to withstand the rigors of field use and is backed by a two-year warranty. • Versatile: The instrument can be used for a variety of applications, including leak detection, environmental monitoring, and safety monitoring.

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PROJECTS WHICH ALIGN WITH OUR STRATEGY

Innovation Strategy We work hard to deploy innovations across our footprint; firstly, ensuring we support the UK’s energy transition, secondly supporting our customers in vulnerable situations and thirdly, our localised operating model continues to enable innovations into our networks to further improve our operational efficiency.

For RIIO-2, we have a number of completed and in progress projects with a potential spend of circa £22m

Our Performance

The new reporting framework has been introduced in to our RIIO-2 governance arrangements. Continuing to improve the quality and relevance of our data is an ongoing commitment to us. Innovation Management Framework (IMF)

35 exciting projects which help drive the business forward, of these - 3 x demonstration 7 x development 24 x research 1 x development ready solution

Of these projects 29 align to the Network Innovation Allowance (NIA) 6 align to the Strategic Innovation Fund (SIF)

We have collaborated with many suppliers

Guidehouse Limited Element Energy Savanta Progressive Energy Limited

OGP Haydale Limited EIC Dave Lander Frontier Economics Limited White Space Energy

WSP Kiwa DNV

38 will be progressed (55%) 69 IDEAS

received in to the business of these

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The Future

Homeshield

Collaborating with other GDNs and UIS Technologies Ltd, we are working on the development of a retrofitted alarm, either battery or mains powered, that will support those who are not able to respond to a standard audible alarm, or who may lack the understanding and/or ability to process the purpose of the audible alarm, and as a result would not respond to it if it were sounding. Homeshield has the capability to detect an alarm sound within a property and recognise the difference between an alarm sounding for safety verses a battery change notification. It will then communicate to the occupier, and a key contact of the occupier through the device via a text message. The key contact can then make checks to ensure the occupier is safe. Video capabilities We are committed to delivering a good service to our customers; in a safe, efficient, and caring way. We want our customers to interact with us easily and swiftly whilst also ensuring our sites are safe and secure before we work, during and after we have finished for the day. We are currently working on a Video Intelligence system that will do just that. A simple, smart and sustainable solution that will improve operational efficiency, reduce risks and costs. We will achieve this by combining human, visual and verbal data with industry leading AI-powered video intelligence to drive productivity and build our customers’ trust. We are working through proof of concept and trials across multiple networks. With AI at its heart, it drives a better performance from our own teams and contracting partners alike.

The capabilities so far are: • Customer web app – to allow customers to share experience and issues such as complaints with us, with more accuracy by using a video platform and providing dialogue of the issue along with precise point accuracy of the location. • Eyes on the ground – AI supported self-auditing site walk for the start and end of day to ensure site is correctly set up and left in a safe manner. Utilising AI with computer vision and speech analytics with intelligent alerts for safety and quality of works. Keeping people safe but also reducing fines and penalties from third parties. • Customer self-service solution – improving interaction on site readiness and pre-quote survey process, all within the New Connections domain, providing faster connections at less cost for our networks to serve, improving customer experience and serve vulnerable customers better. The remote surveying capability means geography is no longer a boundary and we can survey more jobs than ever before. It is just the start of our journey, as we continue to develop the capabilities and requirements of video intelligence for our various processes and customers. Our future attention will also be focused on the innovation needed to convert our networks, both to facilitate a hydrogen blend, but also for the transition to 100% hydrogen concentration, if and when the Government announce their decision on hydrogen’s role in heating.

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flowing Keeping the conversation

If you would like to talk to us about any of our existing projects or a new idea, contact: innovation@cadentgas.com

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