We have a massive problem in keeping the lights on over the next 5 years, never mind building the billions worth of grid upgrades and connections that we will need for Net Zero.
The problem is skills and people – we have nowhere near the number of skilled design engineers, project managers, commissioning engineers, operational engineers (SAPs), fitters, jointers, OHL workers and technicians.
According to the Institution of Engineering and Technology (IET), the number of electrical engineers employed in the UK power industry stood at approximately 66,000 in 2019 (IET, 2019). This number provides a baseline for evaluating the gap between the demand and supply of engineers in the industry.
The Energy Networks Association (ENA) and Ofgem estimate that the industry requires around 6,000 new engineers annually to meet these demands (ENA, 2021; OFGEM, 2020). A big number by any standard!
To assess the potential supply of engineers, it is crucial to examine the number of graduates entering the field each year. Data from UK universities indicates that the annual number of electrical engineering graduates has been steadily increasing. For example, in 2019, the number of electrical engineering graduates reached 5,340, demonstrating a consistent supply of engineering talent (HESA, 2019). But of course, not all engineering graduates end up in engineering…..
Despite the availability of engineering graduates, the number of graduates entering the UK power sector remains relatively low. The IET highlights that only around 1,000 engineering graduates join the industry each year (IET, 2019). This discrepancy suggests that a considerable proportion of engineering graduates choose other career paths instead of entering the power sector – highly analytical graduates that have completed a difficult numeric degree are in high demand in finance and other industries.
So what is being done? In RIIO ED1 (the DNO regulatory settlement for the period 2013 – 2023 just ended), the DNOs were asked to submit detailed workforce renewal plans. Some were very detailed (UKPN), so had very little detail (ENW), but all included detail on graduate recruitment (I know not all engineers are graduates, but a significant proportion are so it’s a good proxy to use to get a feel for the numbers).
Below is what each DNO committed to in their business plans:
DNO | Graduates Per Year | Cost (£, Year) | Cost (£, ED1) |
|---|---|---|---|
UKPN | 15 | £556,215 | 4,449,270 |
WPD (NGED) | 10 | 400,000 | 3,200,000 |
SSEN | 4 | 160,000 | 1,280,000 |
NPG | 4 | 120,000 | 960,000 |
ENW | 6 | 240,000 | 1,920,000 |
Total | 39 | 1,476,215 | 11,809,720 |
Summary of RIIO ED1 graduate recruitment from the DNOs RIIO ED1 Business Plans.
Around 40 graduates per year would be recruited each year, costing £1.5m each year adding up to a total of 312 graduates over the 8 years, at a cost of £12m. This is funded from everyone’s electricity bill though DUoS charges we all pay though our suppliers.
Given we need 6,000 engineers in the industry per year – a portion of which will need to be graduates – 40 per year feels a very, very low number.
What about actuals? The above is what the DNOs were funded to do, it is important to know how many were actually recruited. Even if they leave the company, the industry as a whole needs these graduates.
Well, here we have a problem. I asked Ofgem though a Freedom of Information Request (FoI) the following question:
Information Requested
Can you please provide the following information for each UK DNO group (DNO licence areas in common ownership):
Number of craft apprentices, graduate engineers and other skilled external recruitment numbers committed to within each respective DNO RIIO ED-1 business plan.
Actual amount of the same categories actually recruited, up to and including the last actual regulatory year Ofgem has data for
Underspend/overspend associated with the above.
Any underspend/overspend split by shareholder return or shared with customers via lower DUoS charges
Fair question I think. Below is the answer I got back:
“I can confirm that Ofgem does not hold information correlating to DNO recruitment or the related financial figures and therefore we are unable to provide the information you have requested”.
So there you have it – Ofgem allowed 40 engineers per year to be recruited by the DNOs, which was fully funded from everyone’s electricity bill to the tune of £1.5m, but has no idea how many were recruited. This is against a backdrop of the industry needing 6,000 engineers per year, all critical to keeping the lights one and delivering Net Zero.
The cost numbers may feel small – but that is only graduates. WPD’s funding for total recruitment was £22m per year, £177m over ED1.
I have no doubt the DNOs spent this money and we have more graduates………(!)…but to me this proves Ofgem (who is the only body really who can address this problem given they control the money) are not taking the skills gap seriously.
The Solution
It’s easy to identity the problem, but we need solutions. Here is my 5 point plan:
1. Massive expansion of craft, graduate and other skilled engineering management allowances from Ofgem, which is measured
2. Large and sustained campaign jointly run by the IET, ENA and DNEZ to highlight how rewarding a career in engineering really is
3. Taskforce set up to investigate and put in place solutions to break down the very real barriers preventing women entering engineering
4. Large subsidy of engineering degree tuition fees paid from general taxation (society benefits)
5. Large expansion in ‘technical’ vocational education – fitters, jointers, technicians etc.
What to you think? Please leave comments below!
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About the Author
Simon Gallagher is the Managing Director of UK Networks Services and is an expert on electricity networks and strategies around using electrification to get us to Net Zero by 2050.
Having held senior position across the electricity industry over the last 15 years, he advises on electrification strategy, e-mobility and heavy electrical infrastructure.
Simon holds a degree in Electrical engineering from Queen's University, Belfast, an MBA from Warwick Business School, is a Chartered Engineer and is an active Fellow of the Institution of Engineering and Technology (IET).
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