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The Topic: Resilience UTILITY WEEK | 12TH - 18TH FEBRUARY 2016 | 13 CYBER SECURITY Energy systems are already recog- nised as critical infrastructure but the advent of smart meters will put them under even closer scrutiny Cyber security is an increas- ing and material concern for the energy industry. With the sector soon to introduce smart metering to the masses and the increased deployment of smart grid solutions to the network, this nervousness is extending to the consumer and a wide range of industry stakeholders. Energy market participants need to reas- sure shareholders and custom- ers that progress has been made, so that media activity does not dictate stakeholder confidence. Celebrating success Data security is a massive prior- ity for all firms and industry bodies, and energy market participants must be vocal in communicating the investment and work that has already taken place. The data and commu- nications infrastructure that will support the mass rollout of smart meters has been desig- nated as critical national infra- structure by the government. Throughout the development of the UK's smart metering pro- gramme, the nation's most well equipped security agencies have been engaged to ensure a secure end-to-end solution. Knowing this alone would go some way to providing comfort and reassur- ance for energy consumers and shareholders. Under new smart metering and data privacy licence obliga- tions, energy firms are required to put in place robust security measures to militate against data security breaches. Learning and evolving While infrastructure and data breaches are clearly damaging for all consumer-facing firms, any crisis results in strong learning points that can be used ity, told Utility Week that the shi to total expenditure, or totex, for the current asset management plan period (AMP6) "allows more space for innovation" by water compa- nies to deal with resilience issues. This freedom will be expanded in the next price review, with Ofwat consulting on whether outcomes with rewards and pen- alties should be set over two or more price reviews – with a focus on resilience and resource management. The former chair of the taskforce, Jacob Tompkins (see column, p16) said the group would hold a "task and finished" meet- ing in about a year's time, to evaluate the progress of the implementation of the recommendations. Responsibility for a resilience action group has been passed to industry body Water UK, which will decide on the members and the independent chair. MB Many water sector organisations are finding innovative ways to meet service outcomes by engaging in collaborative networks. Examples include collaboration with third parties to implement catchment- level rather than end-of-pipe solutions, and advanced technologies to recover energy from sludge. To maximise carbon reduction, we must combine such approaches with greater material efficiency – for example, instead of addressing water supply deficits with large transfer pipelines, we devise leaner solutions combining some construction with other smart measures. Combining water initiatives with energy efficiency, transport initiatives, and so on will bring us closer to a truly integrated urban infrastructure. The Paris agreement will speed up the process of delivering low-carbon and climate-resilience infrastructure essential to the rising populations living and working in cities. The water sector must continue playing a leading role in delivering on the commitments. Adrian Johnson, MWH technical director and sustainability expert This is an extract of a longer article, which can be found at: utilityweek.co.uk/blogs THE TEN TASKFORCE PROPOSALS The taskforce for wa- ter resilience came up with ten recommen- dations of how Ofwat could improve the co-ordination of plans to ensure resilience in the water sector. 1. Agree a shared definition of resilience for the sector. 2. Increase public engagement and education. 3. Ensure clear routes for funding legitimate resil- ience measures. 4. Ensure coher- ent planning for resilience at both national and regional level. 5. Establish waste- water, sewerage and drainage plans. 6. Improve under- standing of risk and failure. 7. Ensure services are resilient under different water sector structures. 8. Develop bench- marking, stand- ards and metrics. 9. Ensure existing plans are stress- tested. 10. Establish a water and wastewater resilience action group. WORLD WATER RESOURCES Sources: Shiklomanov (1993); UN FAO Aquasat database; International Energy Agency Total water resources Freshwater resources Human freshwater use Freshwater (2.5%) Surface water (0.3%) Saline water (97.5%) Industrial (19%) Municipal (11%) Agriculture (70%) Ice caps and glaciers (70%) Groundwater (30%) to improve industry standards. Other sectors have successfully reduced their risk and improved their processes as a result of cyber attacks. The utilities sector is well placed to accelerate its learning from these experiences and ensure appropriate levels of investment are provisioned to support changes to all elements of the energy value chain. Organisations that have recovered from major attacks have oen done so through cre- ating a "security culture", devel- oped through procedural and behavioural training. Businesses should also take advantage of government resources and schemes, such as Cyber Essen- tials, the GCHQ checklist, and internationally recognised secu- rity frameworks. Only through taking these proactive steps can firms avoid complacency and be able to project a trustworthy image to their customers and stakeholders Moving forward Due to the potential scale and impact of any cyber attack, the utilities sector will always be under close scrutiny. Utilities and industry parties are putting an immense focus on readying themselves for the mass rollout and operation of smart meters, and the evolution of the digital grid. Effort needs to continue, and all parties need to evolve and adapt to new and more sophisticated threats. However, despite some lurid headlines, it is important to step back and look at the wider picture. The industry as a whole has a positive story to tell and firms should not shy away from talking about their own invest- ment in security. Utilities should also aim to take advantage of the plentiful opportunities to improve their security offering, to create an energy network for all stakeholders that is both smart and secure. Stephen Haw, energy and utilities partner, Baringa Partners