THE SUBJECT OF planning and managing the aftermath of natural disasters may not always be front of mind for electrical utility companies . But to the public , restoration of power in the event of such events is a critical activity and to many , a life-saving one . If a disaster strikes , millions of people may be impacted by the inefficient and uncoordinated efforts of just one organisation .
Penalties for damage
INSIGHT
THE SUBJECT OF planning and managing the aftermath of natural disasters may not always be front of mind for electrical utility companies . But to the public , restoration of power in the event of such events is a critical activity and to many , a life-saving one . If a disaster strikes , millions of people may be impacted by the inefficient and uncoordinated efforts of just one organisation .
In June this year , severe thunderstorms downed trees and power lines affecting the supply of electricity to 112,000 residents in Kansas City , USA . In the past 12 months , natural disasters around the world cost utilities an estimated $ 10bn in repairs and fines . Hurricane Irma knocked out power in over four million homes . Losses as a result of calamities or natural disasters have risen to the highest levels seen in four years . The question is : can utilities confidently say they have a robust disaster operations management plan in place ? If not , there is a steep price to pay . When a disaster strikes , to minimise both disturbances and recovery times to the public , regulators are imposing heavy fines on utilities for extended outages – when services are not restored within a stipulated time .
In the next three years , the global incident and emergency management market is expected to grow by over 20 %, to $ 101.33bn
Penalties for damage
In the UK in 2013 , SSE & UKPN were fined £ 8mn for management failures of slow power restoration following a major storm , with 660,000 customers affected . SA Power Networks in Australia was ordered to pay $ 20mn in compensation to 75,000 customers who were affected by a blackout following a storm late last year . Regulators are sending a clear message that negligent
16 October 2017