Utility Week

8 | 14TH - 20TH FEBRUARY 2020 | UTILITY WEEK Utility of the Future: Business models and skills The problem: a skills crisis they are not covered in this chapter, but they remain critical." The Infrastructure and Projects Authority referred to sits at the heart of government and reports directly to the Treasury. It is responsible for the National Infrastructure Plan for Skills, but this plan is years out of date, mis- aligned with the restricted labour market and Brexit, and all but ignores the utility infrastructure that the prime minister is now relying on for growth. The arrival of a new chief executive, Nick Smallwood, will hopefully see this recti• ed. While the NIC explicitly knew that skills were critical, when its moment came to give the very "strategic nudge" the chancellor asked for, it stalled. In 2018, the chancellor commissioned the NIC to study the resilience of UK infrastructure. Asked to advise government on how to best assess resilience, plan for unexpected shocks, and review the costs and bene• ts of measures to improve resilience, the terms of reference were odd, advising: "Issues relating to foreign ownership … the security of supply chains and issues relating to the EU withdrawal" are out of scope. It did, however, say: "Analysis of malicious threats, skills and the • nancial stability of infrastructure opera- tors are expected to be limited to the scoping stages of the study." Hopes quickly rose, with expectations that the NIC would call for a joined-up approach to labour market resilience. But despite extensive consultation evidence to point to, the NIC advised: "Analysis of malicious threats, skills and the • nancial stability of infrastructure opera- tors were limited to the scoping stages of the study, which this report completes, and so will not be considered in future work." And: "These wider issues are all important for delivering resilience overall. However, they will not be a focus for the main study, as where action is necessary, it continued from previous page "When the NIC's moment came to give the very 'strategic nudge' the chancellor asked for, it stalled." The 400,000 people challenge The UK will need to recruit 400,000 people into the energy sector and in all regions of the UK if it is to meet its target to deliver net zero emis- sions by 2050, according to research published by National Grid. The report identi• es four strategic chal- lenges, warning of a looming retirement crunch, sti• competition for talent with other sectors, a pipeline of young people pursuing STEM quali• cations that is still too narrow and an ongoing lack of women in the sector. These issues are not new, but fresh consumer research shows that tackling climate change could be the motivator to unlocking new talent. Around 144,000 people are currently directly employed by the energy sector. Key trends identi• ed in the research: • 20 per cent of the current energy sector workforce is set to retire by 2030 (Energy & Utility Skills); • Only 12 per cent of the energy workforce is female with 75 per cent of women not returning to work following maternity leave and career breaks (Engineering UK, Gender Disparity in Engineering report, 2018); • Only 22 per cent of 37,000 A-level physics students are female; 15 per cent of 42,000 engineering and technology undergradu- ates are female; and women only make up 8 per cent of all STEM apprentices (Engineering UK, Women in Engineering research); • 40 per cent of physics graduates are opting for careers in banking and • nance over anything else (Prospects Luminate); • 56,000 annual enrolments are needed for engineering and technology degrees mov- ing forward ; • YouGov research surveyed 4,143 UK adults online between 1-4 November 2019. The sample is representative of all UK adults (aged 18+). will need to be taken forward in the short term by govern- ment. Skills and malicious threats will manifest very dif- ferently across the system and diŽ erent sectors." A wide-open door slammed shut. With European exit now fully under way, infrastructure and skills are both cited as long-term energisers for the UK economy and environment. A rare and vital second door has opened, oŽ ering the chance to ensure that the UK utility sector is recognised as of key strategic value, and that the labour market and skills policies are aligned to help ensure a skilled, safe, diverse, innovative and productive workforce can deliver success for the nation. Nick Ellins, chief executive, Energy & Utility Skills source: National Grid 25,100 6.3% Wales 48,700 12.2% Scotland 21,500 5.4% North East 17,200 4.3% Yorkshire and the Humber 18,600 4.6% East Midlands 27,900 6.9% East 43,900 11.0% South West 60,500 15.1% North West 54,900 13.7% South East 34,200 8.4% London 13,700 3.4% Northern Ireland 35,100 8.8% West Midlands Jobs needed to get the UK to net zero by 2050 Signifi cant employment opportunity created in the North source: EU Skills

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