How robust in your power contingency plan?
The National Grid has warned the risk of UK power cuts this winter has increased. The Grid explained that a fire knocked out a high-voltage subsea power cable importing electricity from France, with half of the 2GW cable expected to be unavailable until March 2022. Planned shutdowns at gas plants and the retirement of two nuclear reactors are also factors in the tighter margin for this winter.
The ripple effect this can have on manufacturers could be significant. In a survey of 200 UK energy decision makers, we found that 82 per cent described power continuity as a major or significant concern. However, as many as one quarter admitted they did not have a plan in place. And even if a plan is in place, it is not guaranteed that it will able to be implemented.
And it is not just power outages that are a disruptor. Ageing equipment and failure to replace old machinery can lead to equipment downtime, and production delays. Research estimates that in the UK alone, downtime costs manufacturers around £180 billion each year (Source: Oneserve).
Although outages can often be beyond the organisation’s direct control, what companies can do is have a robust contingency plan in place that helps provide extra stability to operations. Improving resilience can reduce downtime, protect quality and safeguard relationships and reputations.