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Insecurity in the Supply of Electrical Energy: An Emerging Threat?
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Transcript of Insecurity in the Supply of Electrical Energy: An Emerging Threat?
D
Simon Bennett, Director of theUniversity of Leicester’s Civil Safety
and Security Unit (CSSU), has aB.A. in Public Administration from
Sheffield City Polytechnic, SouthYorkshire, an M.A. in
Communications and Technologyand a Ph.D. in the Sociology of
Scientific Knowledge, from BrunelUniversity, Middlesex. His research
interests include resilience, riskperception, and human factors. He
has consulted to the airline andrailway industries. An advocate of
the interdisciplinary approach toknowledge-generation, and championof Actor-Network Theory, he draws
on political science, sociology, historyand psychology. When working forthe airline industry he uses actionresearch (observation, survey, and
interview) to develop and test theoryand improve safety. He has spent
many hundreds of hours on the jump-seat observing crews.
ecember 2011, Vol. 24, Issue 10 1040-6190/$
Insecurity in the Supply ofElectrical Energy: An EmergingThreat?
As populations grow and budgets are cut, the resilience ofthe electricity sector becomes an issue. This article usesqualitative data gleaned from case studies to illustrate theconsequences for advanced industrialized societies of thesudden loss of electrical energy, and argues for agovernment-led response to the ‘energy-gap.’Keynesianism may provide a remedy.
Simon Bennett
I. Introduction
This article has two objectives:
First, to understand the
consequences for advanced
industrial societies of major
power failures. Secondly, to
discuss how such societies can
improve their resilience. The
analysis is informed by actor-
network theory (ANT). ANT
posits that systems are composed
of numerous, more-or-less-
aligned human and non-human
actors (‘‘actants’’). Systems are the
product of ‘‘heterogeneous
–see front matter # 2011 Elsevier Inc. All rights
engineering.’’1 Resilience has
most often been viewed from a
technical standpoint.2 This article
broadens the analysis to include a
wider range of actants (activists,
economists, bureaucrats,
politicians, markets, ideology,
topography, geopolitics, etc.). The
analysis is holistic and inclusive.
A s well as being one of the
main pillars of economic
growth, a secure electricity
supply helps maintain public
confidence in politicians,
businesspeople, bureaucrats, and
other authority figures. Insecurity
reserved., doi:/10.1016/j.tej.2011.11.003 51
There arefew
more obvioussigns of
52
of supply breeds distrust in
institutions and undermines
prosperity. As evidenced by
Edward Heath’s ejection from
office in February 1974, blackouts
can also undermine governments.
In the winter of 1973, with
industrial unrest spreading and
energy supplies dwindling, the
government was forced to act:
By 30 December [1973], the Gov-
ernment was forced to put indus-
try on a 3-day week because of
energy shortages, to reduce heat-
ing and lighting in offices and
shops, introduce a 50-m.p.h. speed
limit and force television to close
down by 10.30 p.m.3
he lesson is simple: if you
politicalfailurethan a
blacked-outcity.
T want to stay in office you
must keep the lights on. There are
few more obvious signs of
political failure than a blacked-
out city. There is nothing more
wasteful than an industrial base
disabled by power cuts. There is
no more disaffected public than
one that is deprived of heat, light,
and home entertainment.
As societies develop, their
systems (of industrial production
and distribution, power
generation, finance, public
administration, etc.) become more
complex and tightly coupled.
Systems are linked (often via ICT)
to produce ‘‘systems of systems’’
(mega-systems). Although more
efficient, mega-systems are
vulnerable.4 Systems can be
undermined by ignorance or
denial of vulnerabilities, less-
than-optimal system redundancy,
cost-cutting in the matter of
system architecture and
component quality, and
1040-6190/$–see front matter # 2011 Elsevi
‘‘trans-boundary propagation of
disturbances.’’5 Mega-systems are
also vulnerable to malfeasance
and terrorism.6,7,8 Institutional
responses have included
government task forces like the
U.S. President’s Commission on
Critical Infrastructure Protection,
which ‘‘concluded that the
security, the economy, the way of
life, and perhaps even the
survival of the industrialized
world were dependent on the
er Inc. All rights reserved., doi:/10.1016/j.
triad of electric power,
communications, and
computers.’’9
Complex systems fail for a
number of reasons. Breakdown
may result from either structural
vulnerability,10,11 a sequential
process of failure,12,13 gradual
degradation occasioned by
reactive ‘‘patching,’’14 the
emergence of deviant cultural
norms,15,16,17 a gradual and
difficult-to-detect migration
towards the boundary of safe
operation (‘‘safety
migration’’)18,19 or subordination
of system safety and security to
economic objectives –
Hollnagel’s20 Efficiency-
tej.20
Thoroughness Trade-Off (ETTO).
ETTO ‘‘may lead to . . . an
increasing gap between design
assumptions and work as it is in
reality.’’21
P errow’s22 normal accident
theory (NAT) argues that
system failures are unavoidable –
the result of tight coupling and
interactive complexity. Drawing
on the safety migration argument,
Oak Ridge National Laboratory
physicist Ben Carreras talks of
mega-systems’ ‘‘self-organized
criticality’’: ‘‘[C]omplex systems
tend to rearrange themselves to be
close to their limits, living at the
edge of chaos.’’23
High reliability organization
(HRO) theory argues that the risk
of failure can be reduced through
the purposeful variation of
authority structures,24 the
cultivation of a flexible,
responsive and ‘‘mindful’’
organizational culture25,26,27 and
bureaucratic and technological
redundancy – the ‘‘belt-and-
suspenders’’ to design.28 Some
enterprises duplicate critical
infrastructure.29 Wackers30
reminds us that the risk of failure
can never be eliminated:
‘‘[V]ulnerabilities can arise in
system design, in maintenance
regimes, in operational practices
or in the planning and execution
of modification programmes.’’
The complexity, tight coupling,
and mutual dependency of
systems of systems mean that
failures may cause widespread
disruption: ‘‘[W]hat happens to
one infrastructure can directly
and indirectly affect other
infrastructures, impact large
11.11.003 The Electricity Journal
An over-stretched
D
geographic regions, and send
ripples throughout the national
and global economy.’’31
Addressing the problem of power
outages from an HRO perspective
Lovins and Lovins32 make the
case for engineered resilience: ‘‘A
resilient energy supply system
should consist of numerous,
relatively small modules with a low
individual cost of failure . . .. [A]
resilient supply system delivers
energy to its users via short, robust
links. Finally, such a system
should rapidly detect, isolate, and
repair failures.’’
electrical powergeneration anddistribution system can II. Case Studiesbe thought of as a latenterror or residentpathogen within anation’s technologicalinfrastructure.
The world economy is in a state
of flux. While many western
economies suffer the effects of the
2008–2011 financial crisis,33 rising
stars like China, India, and Brazil
forge ahead.34 While it is difficult
to predict what the future holds
for Japan, Germany, Britain and
the United States, one thing is
clear: without a reliable source of
electrical energy the pioneers of
mass production, mass
consumption, and informatics
will be overtaken. To maintain
their pre-eminence the pioneers
must ensure that investment in
power generation and
distribution technologies keeps
pace with demand for electricity.
T he less spare capacity a
generation and distribution
system has, the greater the risk of
that system failing. Redundancy
or ‘‘slack’’ promotes resilience.
Over-optimization and tight
coupling erode resilience.35
ecember 2011, Vol. 24, Issue 10 1040-6190/$
Rinaldi, Peerenboom and Kelly36
offer this analysis:
Information technology, deregula-
tion, and the many business mer-
gers during recent years are three
forces that have dramatically
affected the economic and business
aspects of the infrastructure envir-
onment . . .. [T]he move toward
deregulation of some sectors (such
as energy) resulted in the shedding
of excess capacity that had . . .
served as a shock absorber against
system failures. Mergers further
eliminated redundancy . . .. The
combination of these . . . forces has
created an environment in which
infrastructures are much more
interdependent than in the past,
have little or no cushion in case of
failures, and have few if any alter-
native sources of service.
An over-stretched electrical
power generation and
distribution system can be
thought of as a latent error or
resident pathogen37 within a
nation’s technological
infrastructure. Backup generators
and battery packs are no
substitute for a robust and reliable
mains supply (see below).
Advanced industrial societies
require an adequate supply of
–see front matter # 2011 Elsevier Inc. All rights
electrical energy. Without this the
entire edifice is put at risk.38
A. Introduction to the U.S.
case studies
The case studies concern the
Great Northeast Blackout of 1965,
the New York Blackout of 1977,
and the Northeast Blackout of
2003. All three failures affected
significant numbers of people, the
latter affecting an estimated 50
million people across the
northeastern United States and
Canada. Ironically these events
occurred in the country that
pioneered urban electrical
generation and distribution
systems.39 During the Twentieth
Century heavy investment in
generating and distribution
technologies bestowed significant
benefits on the U.S.’s industrial,
business, and domestic
consumers. Electricity’s unit price
fell dramatically.40 Despite the fall
in the price of electricity,
increased demand meant that
returns to investors soared. (In
each of the three decades
following World War Two
consumption of electricity
roughly doubled). The country’s
electrical power generation
industry seemed in rude health:
‘‘To the casual observer . . . the
utility industry in mid-1965
appeared to be the picture of
success. Manufacturers produced
continuously improving
technology for generating
electricity, and utility companies
employed it to benefit their
companies, their stockholders,
and their customers. What could
reserved., doi:/10.1016/j.tej.2011.11.003 53
54
have been better than this
smoothly running electric utility
system that provided universal
benefits?’’41 The Great Northeast
Blackout of November 1965
showed the industry in a different
light.
The innovationsserved the
industry until1977, when four
lightning boltsstarted a chain reactionthat plunged New York
into darkness for asecond time.
1. The Great Northeast
Blackout
In the 1950s America’s power
generating utilities installed
interconnectors to boost system
resilience. The new ‘‘grid’’ helped
balance supply and demand.42
A t 17:27 on Nov. 9, 1965, a
single faulty relay started a
progressive collapse that left
some 30 million people without
power: ‘‘This small failure
triggered a sequence of escalating
line overloads that quickly raced
down the main trunk lines of the
grid . . . Investigators [the Federal
Power Commission] referred to
the 1965 blackout as a ‘cascade
effect’ – much like a row of
dominoes falling one after
another.’’43 Lerner44 talks about a
‘‘chain-reaction’’: ‘‘If certain parts
of the grid are carrying electricity
at near capacity, a small shift of
power flows can trip circuit
breakers, which sends larger
flows onto neighboring lines to
start a chain-reaction failure. This
happened on Nov. 10 [sic], 1965
. . .. ‘‘The Northeast power grid
was a tightly coupled system. The
grid’s limited slack magnified
perturbations. Loosely coupled
systems with high levels of
redundancy dampen
perturbations. Shocks are
absorbed with little or no damage.
Rosness45 notes:
1040-6190/$–see front matter # 2011 Elsevi
‘‘Tight coupling’’ means that a
system lacks ‘‘natural’’ buffers, so
that disturbances propagate
rapidly throughout the system,
and there is little opportunity for
containing disturbances through
improvisation.
espite being without
D electricity for some14 hours, New Yorkers reacted
with restraint. There were no
major disturbances. Looting was
small-scale. There were several
positive outcomes. First,
consumers improved their
personal resilience: New Yorkers
stocked up on candles, flashlights,
and battery-powered portable
radios. Secondly, there were
administrative and engineering
responses: ‘‘After the 1965
blackout the industry set up
regional reliability councils, co-
ordinated by the North American
Electric Reliability Council, to set
standards to improve planning
and co-operation among the
utilities. A single-contingency-
loss standard was set up to keep
the system functioning if a single
unit, such as a generator or
transmission line, went out.
er Inc. All rights reserved., doi:/10.1016/j.tej.20
Utilities built up spare generation
and transmission capacity to
maintain a safety margin [slack]’’.
There was a concerted effort to
learn the lessons of failure,46 a
process known as isomorphic
learning.47 The innovations
served the industry until 1977,
when four lightning bolts started
a chain reaction that plunged
New York into darkness for a
second time. On this occasion
New Yorkers were not so pacific.
2. The New York Blackout
The New York of the 1970s was
very different to the New York of
the 1960s. The 1960s Big Apple
was, for the most part, a place of
optimism and wealth, of
community and civic pride. Oil
was cheap, jobs were plentiful,
confidence was high,
entertainments, automobiles and
white goods were accessible to
most. America was the most
powerful nation on earth. In the
final year of the decade the U.S.
sent men to the moon. Nothing
seemed impossible. Then came
Vietnam, the ‘‘oil shocks,’’
inflation, political assassination,
and Watergate. America, and its
East Coast jewel, New York,
seemed to lose its way. In July
1979 President Jimmy Carter
made reference to what he called
a ‘‘crisis of the American spirit.’’
New York’s politicians and
officials were losing their battle
against bankruptcy, crime, and
urban decay. The Big Apple was
rotting from the inside.
Residential blocks were
demolished and the land left
vacant. Worn-out brownstones
11.11.003 The Electricity Journal
At aroundthe timeof thesecondNew Yorkblackoutthe U.S.embracedderegulation.
D
were fired by arsonists or
unscrupulous landlords and left
as hulks.
J ust when it seemed things
could not get any worse, they
got worse: on the night of July 13,
1977, four lightning bolts disabled
New York’s power supply. There
followed what can only be
described as a city’s descent into
hell. In Working-Class New York
social historian Joshua Freeman48
writes:
Within minutes of the electrical
shutdown, looting broke out in
widespread parts of the city . . .. In
the South Bronx and Bushwick,
fires burned out of control. By the
time Consolidated Edison restored
power the following evening,
looters, rioters and arsonists had
caused an estimated three hun-
dred million dollars in damages
and the police had arrested more
than three thousand people.
Over 1,000 fires burned across
New York. The neighborhoods of
Harlem, Brooklyn, and the South
Bronx were hardest hit. Fifty cars
were stolen from one Bronx car
dealership. The violence and
destruction drew widespread
comment. According to Time
magazine New Yorkers had
suffered a ‘‘Night of Terror.’’ The
events of July 13, 1977, confirmed
what many had suspected, that
New York had been balkanized
by racial discrimination,
inequality, and poverty. Society –
and the city – had fragmented.
Charles Luce, Consolidated
Edison’s chairman, attributed his
system’s collapse to an ‘‘act of
God.’’ Luce’s analysis was
greeted with derision by the
Mayor of New York, who claimed
ecember 2011, Vol. 24, Issue 10 1040-6190/$
Consolidated Edison (Con Ed)
was guilty of ‘‘[At] the very least
gross negligence – and at the
worst something far more
serious.’’49 With the benefit of
hindsight it is clear that New York
City’s power generating and
distribution system lacked
resilience. When the grid became
unstable New Jersey and New
England were automatically
disconnected. This left New
Yorkers in the hands of the Long
Island Lighting Company
(LILCO). LILCO prioritized its
own customers. It cut New York
loose, throwing a blanket of
darkness over the Big Apple:
‘‘New Jersey’s lighted shoreline
stood in stark contrast to the
darkened skyline of Manhattan.50
Two theories – high reliability
and organizational mindfulness –
can help us unpick the 1977
blackout. As mentioned above,
HROs have numerous reliability-
enhancing characteristics,
including a commitment to
organizational learning,
operational reliability, intellectual
openness, objective self-appraisal,
flexibility, and safety. These
–see front matter # 2011 Elsevier Inc. All rights
objectives are underwritten by
‘‘Strong support for the
maintenance of the organisation’s
technology.’’51 HROs also possess
what Pettersen and Aase52 call
‘‘slack,’’ specifically ‘‘an
extensiveness of resources such as
time, knowledge, competence and
tangible assets (e.g., tools and
spare parts).’’ Slack supports safe
and reliable working.
The theory of organizational
mindfulness53 also contributes to
our understanding. To be mindful
an organization must evidence a
love of detail, intellectual
curiosity, reflexivity, alertness,
sensitivity to perturbations,
deference to expertise (regardless
of where it resides in the
hierarchy) and a commitment to
resilience.54
It is reasonable to suggest that
the northeast seaboard’s power
generation and distribution
industry lost its way in the 1970s.
Insufficiently mindful (lacking
reflexivity), it fell short of the
ideal-type HRO. The net result
was that the Northeast’s power
grid lacked the engineering
resilience to absorb four lightning
strikes.
At around the time of the
second New York blackout the
U.S. embraced deregulation, a
process that rolled back the state,
promoted entrepreneurship, and
delegated key resource allocation
decisions to the markets.
Deregulation and marketization
were accelerated in the 1980s. This
was the era of Reaganomics and
Thatcherism. In the 1990s the
complementary impulses of
deregulation and marketization
reserved., doi:/10.1016/j.tej.2011.11.003 55
56
penetrated the U.S. power
generation and distribution
industry.55
F or most of its history the U.S.
power generation and
distribution industry had
consisted of regulated, vertical
monopolies. Under this system
‘‘A single company controlled
electricity generation,
transmission and distribution in a
given geographical area. Each
utility generally maintained
sufficient generation capacity to
meet its customers’ needs, and
long-distance energy shipments
were usually reserved for
emergencies . . ..’’56 These
interlinked providers constituted
a single machine – ‘‘by many
measures, the world’s biggest
machine,’’ claims Lerner.57
It is important to note that
Lerner’s ‘‘single machine’’
(consisting of interlinked vertical
monopolies) was not designed to
support the marketization of
electrical power generation and
distribution, which required the
continuous long-range
transmission of power between
generators, purchasers, and
consumers. The architecture of
the single machine was
antithetical to marketized power
generation and distribution.
There was a mismatch between
technology and policy,
specifically that enshrined in the
1992 Energy Policy Act (which
launched the marketization
initiative):
In the view of [former utility
executive John] Casazza and many
other experts, the key error in the
new rules was to view electricity as
1040-6190/$–see front matter # 2011 Elsevier
a commodity rather than as an
essential service. Commodities can
be shipped from point A through
line B to point C, but power shifts
affect the entire singlemachine
[sic] system. As a result, increased
long-distance trading of electric
power would create dangerous
levels of congestion on transmis-
sion lines . . . The problems would
be compounded, engineers
warned, as independent power
producers added new generating
units at essentially random loca-
tions . . .. If generators were added
far from the main consuming
areas, the total quantity of power
flows would rapidly increase,
overloading transmission lines.58
here is a clear lesson here:
T namely that policy changeswith implications for the way a
technology is used must be
accompanied by a comprehensive
technology assessment. For that
assessment to be accurate it must
draw on both expert and ‘‘lay’’
knowledge (which in the case of
the power generation and
distribution industry means not
just administrators, scientists and
engineers, but also power station
employees, computer
programmers, fitters, electricians,
Inc. All rights reserved., doi:/10.1016/j.tej.20
line maintainers, and other craft
workers). Policy should emerge
from a process of risk
communication (see Irwin59 and
Bennett and Shaw60).
Successful implementation of
the 1992 Act required
organizational mindfulness. It
required that politicians,
entrepreneurs, administrators,
and engineers reflect upon the
ability of the grid to accommodate
the new modus operandi (the
routine switching of current
across large distances). This did
not happen. Consequently the
grid began to fail: ‘‘[E]lectricity
trading skyrocketed . . .. As
predicted the new trading had the
effect of overstressing and
destabilising the grid.’’61
Marketization had undermined
the largest machine in the world.
The scene was set for a
catastrophic failure.
3. The Northeast Blackout
On Aug. 14, 2003, the Northeast
grid, operating at near capacity,
was unable to accommodate a
series of failures. The failures,
which included a power station
dropping off-line, tripped
breakers, and failed transmission
lines, caused the progressive
collapse of the entire grid. It being
summer, many consumers were
running air conditioners.
Demand for electricity was high.
Operating at near capacity, the
grid had too little slack to absorb
major perturbations. Lerner62
writes: ‘‘When energy shifted
from one transmission line to
another, overheating caused lines
to sag into a tree. The snowballing
11.11.003 The Electricity Journal
D
cascade of shunted power that
rippled across the Northeast in
seconds would not have
happened had the grid not been
operating so near to its
transmission capacity.’’ The
marketization of electric power
generation and distribution had
created a delivery system so
tightly coupled that it was unable
to cope with concurrent system
failures (power stations going off-
line, cable breaks, the degraded
performance of FirstEnergy’s
computer system that saw screen
refresh rates telescope from three
seconds to fifty-nine seconds, etc.).
W ith reference to Reason’s63
‘‘Swiss cheese’’ model of
failure, on Aug. 14 a specific
combination and pattern of
failures breached the grid’s
engineering (‘‘hard’’) and
procedural (‘‘soft’’) defenses,
causing it to collapse. Some 50
million U.S. and Canadian citizens
were affected. The grid lost 80
percent of its load. Bill Richardson,
former head of the Department of
Energy, said the U.S. had a third-
world electricity grid. The impacts
were many and varied.
i. Information and communi-
cations technologies
Communications were
disrupted. Land lines were
overwhelmed when cell phone
sites failed. Although such sites
had backup supplies, some
emergency generators ran out of
fuel. Cable and Internet networks
also failed. The demise of the
battery-powered domestic radio
meant that the civilian powers
found it difficult to communicate
ecember 2011, Vol. 24, Issue 10 1040-6190/$
advice to the general public. As
might have happened in the
aftermath of a nuclear attack,
amateur radio enthusiasts passed
on messages to neighbors. The
scale of ICT disruption was much
greater than in 1965 or 1977
(because of ICT proliferation). A
survey of 500 IT managers
revealed the outage’s ICT costs:
‘‘Two percent of those surveyed
said they suffered more than
$10m in productivity losses; 1%
reported losses of between $1m
and $5m, and 10% reported losses
of $100,000 to $500,000’’
(Thibodeau, 2003). Managers said
they planned to improve backup
power supplies. The total
cost to the U.S. economy was
estimated at between $7 and $10
billion.64 Government agencies
incurred $15 to $100 million in
overtime and emergency service
costs.65
ii. Transportation
Transportation was affected by a
gradual drying up of fuel supplies.
Many East Coast refineries ceased
production. Those stations with
–see front matter # 2011 Elsevier Inc. All rights
reserves of gasoline were unable to
pump it. Gas stations that were
able to use their pumps cranked up
the price. Some motorists drove
their vehicles until they ran out of
fuel. Abandoned vehicles clogged
the roads. Electric rail and
tramway systems stopped.
Underground systems stopped.
Regional airports that had no
means of powering screening
equipment closed.
iii. Industry and utilities
Road congestion meant that
factories operating tightly
coupled just-in-time supply
chains ran out of components. At
one point trucks were queuing for
seven hours to cross the
Ambassador Bridge between
Windsor and Detroit. Many
factories shut down immediately.
It took some industries a week to
return to full production. As
water pumps cut out water
pressure fell, creating a
contamination risk.
iv. Law and order
The lawlessness of 1977 did not
repeat, even in New York’s most
deprived inner-city
neighborhoods. The incident did
demonstrate the fragility of the
grid to those who would harm the
U.S. and Canada, however. It
became clear that the system was
so tightly coupled that it could be
disabled with a relatively small
number of simultaneous attacks.
This fact would not have escaped
the attention of would-be
terrorists, either homegrown or
foreign.66
reserved., doi:/10.1016/j.tej.2011.11.003 57
58
4. Post-mortem
High-reliability systems have
significant levels of engineered
redundancy. In 2003 the
Northeast power grid was shown
to be lacking in engineered
redundancy. Something had to be
done. The U.S. and Canadian
governments either had to change
the way the grid operated, or find
the money to improve it.
I n September 2003 the U.S.
House Energy and Commerce
Committee held a two-day
hearing. FirstEnergy was
criticized. FirstEnergy retorted
that it was they, the politicians,
who had sanctioned the long-
distance transmission of large
amounts of electrical power
across a grid designed to deliver
locally produced power to local
communities. ‘‘Events in our
system, in and of themselves,
could not account for the
widespread nature of the
outage,’’ said CEO Peter Burg.67
The fact that the Northeast
power grid had been stretched to
breaking point supports
Rasmussen’s68 observation, here
paraphrased by Rosness,69 ‘‘that
human activities tend to migrate
towards the boundary of
acceptable risk’’ and Reason’s70
observation, again paraphrased
by Rosness, ‘‘that organisations
tend to drift passively towards
increasing vulnerability unless
they are actively driven towards
the resistant end of the safety
space.’’ Given the new demands
placed upon them the grid’s
engineers had little room for
manoeuvre. Their ability to
‘‘navigate the safety space’’71 such
1040-6190/$–see front matter # 2011 Elsevi
that they maintained an adequate
margin of safety was
compromised. Their job was to
make the technology fit the
politics of marketization. The
reflexive analysis of design
assumptions, capability, and
performance (i.e., double-loop
learning72) was, perforce,
abandoned. With reference to
Hollnagel’s73 ETTO theory,
FirstEnergy’s employees were
obliged to prioritize efficiency
over thoroughness. With
reference to Snook’s74 theory of
practical drift, FirstEnergy’s
employees responded
pragmatically to changed
environmental conditions.
5. Summary
The Great Northeast Blackout of
1965 and the New York Blackout of
1977 warned of the dangers of
letting the lights go out. Amory B.
Lovins and L. Hunter Lovins
reminded America of the dangers
in Brittle Power: Energy Strategy for
National Security:
The United States has for decades
been undermining the foundations
of its own strength. It has gradually
er Inc. All rights reserved., doi:/10.1016/j.tej.20
built up an energy system prone to
sudden, massive failures with cat-
astrophic consequences. The
energy that runs America is brit-
tle—easily shattered by accident or
malice . . .. This danger comes not
from hostile ideology but from
misapplied technology . . .. A brief
faltering of our energy pulse can
reveal—sometimes as fatally as to
astronauts in a spacecraft—the
hidden brittleness of our interde-
pendent, urbanized society.75
nfortunately for the
U approximately 50 millionAmericans and Canadians
affected by the 2003 blackout, the
authorities failed to remedy the
demonstrated fragility of the
electrical supply industry. The
lesson for industrialists,
businesspeople, and the general
public is that politicians
sometimes fail to learn from
experience. Priorities change.
Events intercede. Bennett76 notes:
‘‘[W]hile the theory of isomorphic
learning would appear to work on
paper, in the real world our
capacity to learn and apply the
lessons of the past may be
compromised by interceding
social, economic and political
dynamics.’’ Dynamics include
‘‘loss of momentum . . . financial
constraints [and] processes of ‘de-
sensitisation’.’’77
B. Introduction to the UK case
study
Determined to roll back the
state, in 1990 the Conservative
government privatized the UK’s
electrical power generation and
supply industry. The National
Grid, a state monopoly, became
National Grid Transco (NGT).
11.11.003 The Electricity Journal
D
The London Electricity Board
(LEB) was wound up. London’s
electricity was sourced from EDF
Energy (a subsidiary of Electricite
de France). Britain’s reconfigured
system of electrical power
generation and distribution
(a reification of free-market
ideology) was overseen by the
Office of the Gas and Electricity
Markets Authority (Ofgem).
Ofgem was tasked to deliver ‘‘a
reliable electricity supply.’’78
National Grid Transco’s duties
included the maintenance of ‘‘an
efficient, co-ordinated and
economical system of electricity
transmission.’’79 NGT achieved a
higher rate of investment than that
of its predecessor. In the runup to
the 2003 power cut NGT’s network
had been 99.9 percent reliable.
However, at 18:20 on Aug. 28,
2003, that record suffered a major
setback when large parts of South
London and Kent were blacked
out for up to 55 minutes.80
1. The London and Kent power
cut
Following the 2003 blackout of
the northeastern United States and
Canada, Britain’s Energy Minister
stated: ‘‘[It] could never happen
here [in the United Kingdom] . . . it
is highly unlikely that a single fault
could lead to the collapse of the
whole system.’’81 The progressive
failure of the electricity supply to
South London and parts of Kent
started with a malfunction in a
substation at Hurst in Kent (a
county to the southeast of the
capital). Taking the substation off-
line meant that supplies to South
London were dependent upon a
ecember 2011, Vol. 24, Issue 10 1040-6190/$
single transmission circuit in
Wimbledon, a suburb located on
the western side of the capital.
Unfortunately a June 2001
maintenance error had left the
Wimbledon substation with a non-
optimal protection relay. When the
Hurst substation was switched out
this latent error became active:
‘‘The change in power flows due to
Hurst being disconnected caused
the protection relay to be
triggered.’’82 It is interesting that
both this blackout and the 1965
blackout (see above) were caused
by the failure of a single small
component – a relay. Tight
coupling and limited redundancy
amplify small shocks.
W ith reference to Reason’s83
‘‘Swiss cheese’’ model of
failure, at 18:20 on Aug. 28, 2003,
National Grid Transco’s system
defenses (compromised since
June 2001 by maintenance error
and inadequate technical audit)
were successively (and rapidly)
breached, causing a system
failure. Had the correct protection
relay been fitted at Wimbledon, or
had the initial error been spotted
during an inspection, the power
–see front matter # 2011 Elsevier Inc. All rights
cut might have been avoided. The
power cut – the biggest in British
history84 – had significant
consequences for the capital,
some of which are listed below:
i. Transport
About 1,800 trains on London’s
above-ground railway network
were affected.85 According to
London Underground about 60
percent of the tube network was
affected. Thousands of tube
passengers were trapped in trains
for up to an hour.86 According to
the Greater London Authority87
the timeliness and quality of
London Underground’s internal
communications, and of its public
information broadcasts left much
to be desired:
The lack of information caused the
chaos . . . to deepen. London
Underground and railway staff
had received little information . . .
tube, rail and road users were left
with little or no information. This
resulted in dangerous flows of
people moving across London’s
main road junctions, that were no
longer traffic-signal-controlled . . .
ii. Emergency services
The London Fire Brigade took
around 400 calls and rescued some
100 people stuck in elevators.88
The Metropolitan Police Service’s
initial response was hampered by
a lack of information about the
cause and nature of the power
outage. National Grid Transco
received a good deal of criticism on
this count:
re
The National Grid did not inform
New Scotland Yard until 30 min-
utes after the power cut that the
served., doi:/10.1016/j.tej.2011.11.003 59
60
loss of power was not due to a
terrorist incident . . .. [T]here is
manifestly room for improvement
in communications.89
St. Thomas’s Hospital, one of
London’s largest National Health
Service (NHS) assets, had to rely
on backup generators. The Mayor
of London’s reaction was
unequivocal. ‘‘We’ve never had
this catastrophic failure before,
and we clearly can’t have it
again,’’ said Ken Livingstone.90
Mayor Livingstone attributed the
outage to ‘‘under-investment in
the National Grid.’’91 National
Grid Transco defended itself:
‘‘This was a quite exceptional
event in a transmission system
which is modern, well invested,
well maintained and has
consistently demonstrated
impressive reliability.’’92
iii. Crisis-management ICT
systems
London Underground’s crisis-
management protocols and ICT
systems were found wanting. On
its own admission, London
Underground’s Network Control
Centre (NCC) was ill-equipped to
deal with such a large-scale crisis.
As more and more London
Underground staff tried to contact
the NCC its switchboards became
congested. Although deficiencies
in the train radio network had
been identified in the 1990s, the
new CONNECT system was not
scheduled to be fully implemented
until 2006. Regarding the ejection
of passengers from London
Underground’s (LU’s) premises
with little or no information,
London Underground’s general
1040-6190/$–see front matter # 2011 Elsevi
manager for customer services
commented: ‘‘My priority is
to ensure that we close the
system and we have got
everybody out.’’93 Howarth’s
balkanized view of public safety
was criticized by the Greater
London Authority94:
We believe that LU must take
account of the safety of those
members of the public displaced
from their system by any such
failure. Thousands of people were
milling in the streets . . .. Traffic
lights were out of action. There
were no extra police officers on the
streets . . .
n July 7, 2005, Islamic
O fundamentalists launchedterrorist attacks in London.95 In
March 2009, after a period of peace
in Northern Ireland, two dissident
Irish Republican groups, the Real
Irish Republican Army (RIRA)
and Continuity Irish Republican
Army (CIRA), murdered two
soldiers and a police officer.96 In
April 2011 a Catholic police officer
was murdered. There is still a
residual risk of Republican
terrorism.97 It is important that the
ICT systems of key infrastructure
er Inc. All rights reserved., doi:/10.1016/j.tej.20
providers (like London
Underground) are able to function
under all conditions.
iv. Image
Some of those caught up in the
chaos felt that things could have
been done better. ‘‘There must be
something wrong with the
finances if they can’t fund a back-
up system for it’’ said a day-
visitor. ‘‘It’s quite amazing that a
big city like London can be
brought to a standstill like this.
The infrastructure is terrible – it’s
really quite worrying,’’ said a
teacher.98 During the outage
Andrew Pelling, chair of the
London Assembly’s Public
Services Committee, found
himself in the company of an
American tourist:
I walked with an American whom I
had not met before trying to find a
train from Waterloo Station having
left an evacuating London Bridge
Station . . .. My American compa-
nion for that walk to Waterloo said
he thought the English had said it
could not happen here and that it
would teach limeys for being so
cock-sure.99
n Sept. 10, 2003, the
O government asked theDepartment of Trade and
Industry to investigate the Aug.
28 power cut in London and Kent
(and the Sept. 5 power cut in the
West Midlands).
v. Impacts on business and
industry
Although the power cut
occurred after the end of the
working day it caused alarm
among London’s business
leaders, many of whom voiced
11.11.003 The Electricity Journal
D
concerns that the Aug. 28 power
cut could be a portent of things to
come. ‘‘It is an event of enormous
concern to businesses across
London. We estimate that the
cost will run into millions of
pounds. If it had happened
during the working day, the cost
would have been much greater.
What is even more alarming are
suggestions that this could
happen again. At a time of
economic weakness, London
cannot afford a series of
potentially crippling power
cuts,’’ said the chief executive of
the London Chamber of
Commerce. He also noted the
potential damage to London’s
image: ‘‘Having the tube go
down at the height of the evening
rush hour is the very worst
possible advertisement for
London.’’100
T he chairman of the policy
and resources committee at
the Corporation of London said:
‘‘The transport system has
enough problems without the
threat of power cuts.’’101 The
Confederation of British
Industry’s (CBI’s) London
director pleaded that such a
failure should not be allowed to
happen again: ‘‘What is needed
now is a calm assessment . . ..
Then we can judge if action is
needed . . ..’’102 London First
spokesman Andrew Marre
observed: ‘‘This underlines the
importance of having continuity
plans . . ..’’103 ‘‘The digital
economy is putting extreme stress
on what are elderly localised
[grid] systems,’’ claimed one
manager.104
ecember 2011, Vol. 24, Issue 10 1040-6190/$
III. Power Cuts: Cost andResponse
Power cuts threaten business
and industry. In September 2004
Berkeley National Laboratories
published a study of the 2003 U.S.
power outage. In 2006 UK-based
information technology firm
LogicaCMG used the Berkeley
study to estimate the cost to the UK
economy of a major power outage.
LogicaCMG calculated the hourly
cost to UK industry of a power
failure to be £800 for small to
medium-sized enterprises (SMEs)
and £8,500 for large commercial
and industrial enterprises. PR
Newswire Europe105 applied
LogicaCMG’s algorithms:
–se
[If] power outages led to the loss of
just one day a week, which could
be quite possible by 2015 [the year
when demand for electricity in the
UK might outstrip supply], the
annual loss to each SME would be
in the region of £300,000 per year.
For larger industrial and com-
mercial [I&C] companies the
average figure would escalate to
over £3.5 million . . .. These figures
denote economic losses that are
clearly unsustainable.
e front matter # 2011 Elsevier Inc. All rights
In their March 2009 report A
Decade of Living Dangerously,
Patrick Woodman and Vidal
Kumar106 wrote: ‘‘[T]he
percentage of managers reporting
that continuity is regarded as
important in their organisation
has fallen over the past year from
76 percent to 64 percent.’’ The
mechanics of continuity
assurance can be problematic:
‘‘[B]ack-up generators may not be
practical, particularly in the City,
owing to safety and space
constraints.’’107
One response to fragile grids is
demand-side management: the
more efficient use of electrical
energy may reduce consumption
to the point where demand-
incurred outages are reduced or
eliminated. New homes are better
insulated. Monies are available
for insulating older properties.
Many of today’s white goods use
electricity more efficiently and
have power-saver modes. While
such developments are to be
welcomed, house building
continues while sales of
electrically powered consumer
items soar. Demand-side
management may be a zero-sum
game. Conceivably, design-based
reductions in power consumption
will be negated – or outstripped –
by the consequences of economic
and population growth.
In one sense arguments over
demand-side management and
preparedness are secondary to the
main issue: security of supply.
Without a secure supply of
electrical energy the whole
industrial, bureaucratic, and
business edifice is placed in
reserved., doi:/10.1016/j.tej.2011.11.003 61
62
jeopardy. The key question,
therefore, is ‘‘How secure is my
mains supply of electrical
power?’’ As far as the United
Kingdom and United States of
America are concerned, the
answer is quite possibly ‘‘Not as
secure as it should be.’’ While
users should invest in resilience
where they can (not easy in the
current financial climate) they
should also argue for security of
supply.
IV. Energy Security inthe United Kingdom
In 2006 LogicaCMG reviewed
the health of Britain’s electricity
industry. The Energy Review
concluded that by 2015 peak-time
demand for electricity could
exceed supply by 23 percent and
that the energy gap could cost the
UK up to £108 billion per annum.
LogicaCMG’s managing director
for energy and utilities warned:
Action needs to be taken now to
reduce the energy gap . . .. If this
doesn’t happen, it is almost certain
that the power will go off and
businesses will lose money . . ..
While nuclear . . . may be a viable
solution for the 2020 period, it is not
going to be ready in time for 2015
. . .. We believe that . . . planning
laws around the . . . construction of
new generation facilities will need
to be changed . . ..108
n May 2007 the House of
I Commons Library publishedResearch Paper 07/42: Energy
Security.109 The paper identified
several threats to Britain’s oil and
gas supplies, including
‘‘heightened competition over
1040-6190/$–see front matter # 2011 Elsevi
depleting energy sources,’’ ‘‘the
new scramble for Africa’s oil and
gas,’’ ‘‘security of supplies from
the Middle East,’’ and ‘‘energy-
rich countries using energy supply
and price as a political
weapon.’’110 As the 2011 popular
uprisings in Bahrain, Egypt,
Tunisia, Syria, and Libya evidence,
supplies of oil and gas from Africa,
the Middle and Near East cannot
be guaranteed. In politics the only
certainty is uncertainty:
With continuing protests in Gulf
countries like Yemen, Bahrain and
recently Oman, some market ana-
lysts are beginning to mention the
unmentionable. ‘‘What if the
revolution spreads to Saudi Ara-
bia?’’ . . .. Saudi Arabia is often
viewed as the one country that can
offset oil production declines that
follow on from natural disasters or
from conflict situations. So the
immediate reaction to the troubles
in Libya has been for the Saudis to
engage in emergency talks with
European oil refiners on how best
to cope with any expected short-
falls. Analysts at Goldman Sachs
. . . consider that the chance of the
‘contagion’ of civil unrest spread-
ing to the large energy producers
in the Gulf is ‘relatively low.’ But
what if they are wrong? Are we
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prepared for an oil shockwave? . . ..
The term oil shockwave relates to a
policy war-gaming scenario
played out by various U.S. gov-
ernment agencies back in 2005.
Under this scenario, hypothetical
events, including civil unrest and
terrorist attacks, affected oil pro-
duction in Nigeria, Saudi Arabia
and Alaska. One participant, for-
mer CIA director Robert Gates and
current US Secretary of Defence,
stated after the exercise that, ‘‘[t]he
American people are going to pay
a terrible price for not having had
an energy strategy,’’ and, he con-
tinued, ‘‘the scenarios portrayed
were absolutely not alarmist;
they’re realistic.’’111
Responding to the Arab
rebellions, the UK’s energy
secretary said: ‘‘Getting off the oil
hook is made all the more urgent
by the crisis in the Middle East.
We cannot afford to go on relying
on such a volatile source of energy
when we can have clean, green
and secure energy from low-
carbon sources.’’112
T he European Union imports
about half its gas from
Russia. Russia limited the
flow of gas in 2006 (to Ukraine)
and 2009 (again to Ukraine). The
2009 dispute had serious knock-
on effects in many countries.
Slovakia declared a state of
emergency. Hungary, Poland,
Germany, Austria, and France
‘‘reported substantial drops in
supplies.’’113 Because gas
supplies from the North
Sea are dwindling, Britain is
becoming increasingly
dependent on Europe’s volatile
energy market. The Russia-
Ukraine dispute constitutes a
(political) latent error/resident
11.11.003 The Electricity Journal
D
pathogen in the European gas
supply system.
T he consequences of the 2009
dispute (the restriction or
curtailment of supplies across
Europe) demonstrated the tight
coupling of Europe’s gas supply
network. The impact of the
dispute on the gas supply system
supports Weick’s114 argument
that coupling is not a fixed but a
dynamic property of socio-
technical systems. Unanticipated,
extraneous factors can act to
tighten coupling. Given this fact it
is possible that the perturbations
that result from international
competition and dispute (which
will surely intensify as
competition for resources
sharpens) will act to destabilize
large infrastructure systems (like
oil and gas supply networks and
power grids). Systems running at
near capacity would be especially
vulnerable. Some years ago
Lagadec115 observed: ‘‘Major
crises . . . are no longer
exceptional events. Indeed the
risk of crisis is even becoming
structural as large networks
become more complex, more
vulnerable . . ..’’
In their 2008 critique of UK
energy policy, A Pragmatic Energy
Policy for the UK, consultants
Candida Whitmill and Ian Fells116
commented: ‘‘Security of energy
supply must now be seen as
taking priority over everything
else, even climate change.’’ In an
interview with The Guardian Fells
observed: ‘‘We had a power cut in
2003 for about 12 hours in the City
of London – the consequential
loss was about £700m because
ecember 2011, Vol. 24, Issue 10 1040-6190/$
everything stops. All your IT
stops, the stock market doesn’t
work.’’117 Industrialist Andrew
Cook wrote an introduction to the
report:
We are increasingly dependent on
gas from Russia and other unstable
parts of the world . . .. We need
more electricity, yet increasingly
we lack the means to generate
it . . ..118
In December 2008 NATO
Secretary General Jaap de Hoop
Scheffer stated: ‘‘I do believe that
in a crisis situation NATO should
be ready to provide necessary
practical assistance, such as in
response to energy blackmail.119
In response to the 2011
insurrection in Libya, NATO
implemented a UN-sanctioned
‘‘no-fly’’ zone to protect civilian
populations. Libya is an oil and
gas producer, and potentially a
rich nation.120
In 1956 Britain became the first
nation to produce electrical
energy from nuclear fission on an
industrial scale.121 In 2003 the
Blair government rejected nuclear
power in favor of energy
efficiency and renewables. In
–see front matter # 2011 Elsevier Inc. All rights
March 2006 the Sustainable
Development Commission
claimed there was no justification
for a new nuclear program. In July
2006 the government reversed its
position. In November 2007
Gordon Brown, Blair’s successor,
called for an accelerated nuclear
building program. In 2008
Russia invaded Georgia.
Describing Russia’s action as
‘‘dangerous and unacceptable,’’
Brown spelled out his energy
policy: ‘‘Without urgent action
we risk sleepwalking into an
energy dependence on less
stable . . . partners. That is why
we in the UK are . . . looking to
replace our ageing nuclear
power plants . . ..122 A Financial
Times/Harris poll conducted in
February 2008 revealed that six
out of 10 Britons ‘‘regarded
Russia as a foe.’’123 In November
2008 The Guardian’s Ian
Traynor124 observed:
Europe currently gets 42% of its
gas, a third of its oil and a quarter of
its hard coal from Russia. The
commission estimates that by
2030 Europe will be importing 84%
of its gas needs, up from 61% at
present.
Energy security is threatened
also by the world financial crisis.
It is fashionable to look to the
private sector for major
investments in energy
generation. This approach
only works, however, if banks
are willing to lend. On Nov. 25,
2008 the chief executive of
Ofgem explained the problem
to the House of Commons
business and enterprise
committee:
reserved., doi:/10.1016/j.tej.2011.11.003 63
64
I don’t want to be a prophet of
doom. This does not mean I’m
not confident the market would
deliver. But I think we need to go
back and check [that our assump-
tions] still stand up to the new
world in which we live.125
I n September 2008 the world’s
first commercial wave-power
project went live off the coast of
Portugal. In mid-November 2008
the generators were towed back
to land. There were two
problems. First, the buoyancy
tanks leaked. Secondly, a
major investor withdrew its
support. ‘‘[T]he Agucadoura
project points up the risks of a
strategy relying on cutting-edge,
and potentially costly,
technology’’ observed Patrick
Blum126 in the International Herald
Tribune. According to Fells,127 if
nuclear technology is complex
and costly, so too are the new
technologies that support
renewable energy generation.
V. Conclusions
Several conclusions can be
drawn. First, unless there is
significant investment in
electricity generating and
distribution systems, the lights
may go out in the developed
world. As Perrow,128 Siemieniuch
and Sinclair129 and Petersen and
Aase130 have established,
reliability is partly a function of
redundancy and ‘‘slack’’ (a
sufficiency of physical and
human resources). Reliability is
also a function of financial
liquidity (because investment in
1040-6190/$–see front matter # 2011 Elsevi
physical and human resources
costs money). In September 2009
The Daily Mail revealed that the
UK government was predicting
power cuts of 3,000 MWh per
year by 2017 and 7,000 MWh per
year by 2025.131 In 2011 the UK’s
Conservative-Liberal Democrat
coalition government
implemented an austerity
budget.
Secondly, utility managers must
be wary of political interventions
that put undue strain on tightly
coupled systems operating at near
capacity. Thirdly, politicians must
assess whether a distribution
system designed to accommodate
one set of operating assumptions
can accommodate another. A grid
designed to deliver electricity over
short distances may not be up to
the task of routinely distributing
electricity across a region or
country. Changing the way in
which a system is used may render
that system less effective. In
extremis it may cause it to collapse.
A technological system is a
social construct – the
physical embodiment of a
particular world-view.132,133
er Inc. All rights reserved., doi:/10.1016/j.tej.20
Change the politics of use (as
happened in the United States
with the marketization of electrical
power generation, and
transmission of electrical energy
over large distances), without
checking it is technically feasible
and the system may be
undermined.
Fourthly, resilience
engineering and contingency
planning cannot guarantee
continuity: Backup generators
are expensive and cumbersome.
It is argued that staff can work
from home. But what if there is
no electricity? How many
householders have backup
generators or battery packs?
If a company has a working
backup generator, how do staff
get into the office if public
transport is affected? What if
there are no trains or tubes?
What if there is gridlock? If
there is public disorder (for
example, looting), who would
risk going to work anyway? If
schools are closed, someone
has to stay at home to look
after the children. Power cuts
have myriad technical,
economic, political, and social
impacts. As Perrow134 explains,
complex systems (like aircraft,
nuclear reactors, or urban
societies) are prone to
unanticipated and difficult-to-
identify-and-control inter-
component interactions.
Fifthly, politicians’ preferences
change – for good or ill. In 2003
Tony Blair invested significant
political capital in green energy
(wind power, solar power,
energy conservation, etc.). In
11.11.003 The Electricity Journal
D
September 2008 John Hutton,
Labour’s Business Secretary,
said:
The battle for energy security is
going to define the fight for Brit-
ain’s future . . .. No coal and no
nuclear equals no lights, no power,
no future.135
Table 1: Cost of Downtime for Public and Private Sector (Per Hour)
Industry Average Cost Per Hour US$
Brokerage 6,400,000
Energy 2,800,000
Credit card operations 2,600,000
Telecommunications 2,000,000
Manufacturing 1,600,000
Retail 1,100,000
Health care 640,000
Media 340,000
P oliticians’ volatile
relationship with nuclear
power should be considered
against the wider social backdrop
of a general disenchantment
with high technology, the
rejection of a dominating,
mechanistic science, a growing
fear of ‘‘technopathology’’ and
the dawn of the Risk
Society.136,137,138 The ‘‘euphoric’’
period of scientific and
technological development
peaked in the 1960s.139,140 Iconic
high-technology failures like the
Love Canal, Seveso and Bhopal
chemical poisoning incidents,
and the Three Mile Island (1979),
Chernobyl (1986), and
Fukushima Dai-ichi (2011)
nuclear accidents have
heightened public skepticism of
‘‘big science.’’ In the United
Kingdom skepticism has
manifested in a post-Fukushima
review of Britain’s revived
nuclear program.141,142 It has
manifested in the ‘‘climate camp’’
phenomenon where
environmental activists picket
airports, coal-fired power
stations, and other perceived
polluters.143 The Association
of Electricity Producers has
pointed out that the new
generation of coal-burning
power stations are some
ecember 2011, Vol. 24, Issue 10 1040-6190/$
20 percent less polluting
than the old.144 MacKenzie
and Wajcman145 observe:
‘‘It is notoriously impossible
[sic] to find consensus on the
environmental risk posed by
controversial technologies.’’
Finally, and perhaps most
crucially, it is clear that even the
most rigorously planned and
cleverly executed energy policy
can be undermined by events on
the world stage. A war in the
Middle East, for example, would
pose a serious threat to oil
supplies.146 A war in Eastern
Europe would threaten gas
supplies.147 The British
government may have
recommitted itself to nuclear
power, but it takes at least 10
years to build a plant. If a year
is a long time in politics,
10 years is an age. Much can
change.148 It is imperative that
industrialists, businesspeople,
and publics keep pressuring
government. While resilience
engineering and business
continuity planning are
important, the best way to
secure a society is to keep
the electricity crackling down
the line.
–see front matter # 2011 Elsevier Inc. All rights
VI. A Plan of Action
Business continuity
management is predicated on the
assumption that situations can be
recovered and reputation
preserved. The argument
presented in this article is that one
risk – that posed by power
outages – can be mitigated, if not
eliminated at source, via
engineered resilience and
elimination of the energy gap.
Prevention is better than cure.
Why address the symptoms when
one can remove the cause?
In April 2008 the U.S.
Association for Facilities
Engineering (AFE)149 estimated
the cost of downtime per hour for
the private and public sector
(Table 1).
Boosting the resilience of the
U.S. supply grid could cost $100
billion.150 The figures shown in
Table 1 put that cost into
perspective. America – and other
countries with fragile grids – can’t
afford not to act. Improving
security of supply requires first,
that interested parties persuade
governments to act, and secondly,
that governments keep an open
mind: investing in infrastructure
reserved., doi:/10.1016/j.tej.2011.11.003 65
66
will save money in the long term.
Instead of transferring the cost to
end users (the hardware and
software of business continuity
are expensive), governments
must internalize it. It is up to the
user community to make the case
for preventive action through
trade associations, consumer
groups (like ELCON, which
represents some two dozen
major corporations), and
consultancies. Pluralistic societies
offer numerous platforms. Now is
not the time to retreat from the
energy debate. The case for
foresight and active learning151 in
the matter of energy security is
cast-iron.&
Endnotes:
1. John Law, Technology andHeterogeneous Engineering: THE CASE OF
THE PORTUGUESE EXPANSION, IN THE
SOCIAL CONSTRUCTION OF TECHNICAL
SYSTEMS: NEW DIRECTIONS IN THE
SOCIOLOGY AND HISTORY OF TECHNOLOGY,Eds. W.E. Bjiker, T.P. Hughes and T.J.Pinch (Cambridge, Mass.: MIT Press,1987), at 113.
2. Myriam Dunn, The Socio-PoliticalDimensions of Critical InformationInfrastructure Protection (CIIP),INTERNATIONAL JOURNAL OF CRITICAL
INFRASTRUCTURES, 1 (2–3): 258.
3. David Childs, BRITAIN SINCE 1939:
PROGRESS AND DECLINE (Basingstoke:Macmillan, 1995), at 173–174.
4. Arjen Boin and Allan McConnell,Preparing for Critical InfrastructureBreakdowns: The Limits of CrisisManagement and the Need for Resilience,J. CONTINGENCIES & CRISIS MGMT., 15 (1):50.
5. Wolfgang Kroger, CriticalInfrastructures at Risk: A Need for a NewConceptual Approach and ExtendedAnalytical Tools, RELIABILITY
ENGINEERING & SYSTEM SAFETY, 93:1781.
1040-6190/$–see front matter # 2011 Elsevi
6. Robert M. Clark and Rolf A.Deininger, Protecting the Nation’sCritical Infrastructure: The Vulnerabilityof U.S. Water Supply Systems, J.CONTINGENCIES & CRISIS MGMT., 8 (2): 73.
7. Adilson E. Motter and Ying-ChengLai, Cascade-Based Attacks on ComplexNetworks, PHYSICAL REV. E, 66,065102(R), 2002.
8. Jeffrey S. Simonoff, Carlos E.Restrepo and Rae Zimmerman,Risk-Management and Risk-Analysis-Based Decision Tools for Attacks on
Electric Power, RISK ANALYSIS, 27 (3):547.
9. Myriam Dunn-Cavelty, CYBER-
SECURITY AND THREAT POLITICS
(Abingdon: Routledge, 2008), at 10.
10. Brian Toft and Simon Reynolds,LEARNING FROM DISASTERS: AMANAGEMENT APPROACH (Oxford:Butterworth-Heinemann, 1994).
11. Charles Perrow, NORMAL
ACCIDENTS: LIVING WITH HIGH-RISK
TECHNOLOGIES (Princeton, NJ: PrincetonUniv. Press, 1999).
12. Barry A. Turner, TheOrganisational and InterorganisationalDevelopment of Disasters,ADMINISTRATIVE SCI. Q., 21: 378–397.
13. Barry A. Turner, MAN MADE
DISASTERS (London: Wykeham, 1978).
14. David T.H. Weir, Risk and Disaster:The Role of Communications Breakdownin Plane Crashes and Business Failure, inDEBATES IN RISK MANAGEMENT, Eds.Christopher Hood and David K.C.
er Inc. All rights reserved., doi:/10.1016/j.tej.20
Jones, (London: UCL Press, 1996), at114–126.
15. Diane Vaughan, THE CHALLENGER
LAUNCH DECISION. RISKY TECHNOLOGY,CULTURE AND DEVIANCE AT NASA
(Chicago: Univ. of Chicago Press,1997).
16. Scott Snook, FRIENDLY FIRE: THE
ACCIDENTAL SHOOTDOWN OF U.S.BLACK HAWKS OVER NORTHERN IRAQ
(Princeton, NJ: Princeton Univ. Press,2000).
17. Sydney W.A. Dekker, TEN
QUESTIONS ABOUT HUMAN ERROR (NewJersey: Lawrence Erlbaum, 2005).
18. Jens Rasmussen, Risk Managementin a Dynamic Society: A ModellingProblem, SAFETY SCI., 27: 183–213.
19. James Reason, HUMAN ERROR
(Cambridge, UK: Cambridge Univ.Press, 1990).
20. Erik Hollnagel, BARRIERS AND
ACCIDENT PREVENTION (Aldershot:Ashgate, 2004).
21. Ragnar Rosness, Derailed Decisions:The Evolution of Vulnerability on aNorwegian Railway Line, in RISKY WORK
ENVIRONMENTS. REAPPRAISING HUMAN
WORK WITHIN FALLIBLE SYSTEMS, Eds. C.Owen, P. Beguin and G. Wackers(Aldershot: Ashgate, 2009), at 54.
22. Perrow, supra note 11.
23. Keay Davidson, How a Butterfly’sWing Can Bring Down Goliath: ChaosTheories Calculate the Vulnerability ofMegasystems, S.F. CHRONICLE, Aug. 15,2003, at A6.
24. Todd R. La Porte and PaulaConsolini, Working in Practice but Notin Theory: Theoretical Challenges of High-Reliability Organisations, J. PUBLIC
ADMINISTRATION RESEARCH & THEORY, 1:19–47.
25. Karl E. Weick, OrganizationalCulture as a Source of High Reliability,CALIF. MGMT. REV., 29: at 112–127.
26. Ellen J. Langer, MINDFULNESS
(Reading, MA: Addison-Wesley,1989).
27. Karl E. Weick and Kathleen M.Sutcliffe, MANAGING THE UNEXPECTED:ASSURING HIGH PERFORMANCE IN AN AGE
OF COMPLEXITY (SF: Jossey-Bass, 2001).
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28. Karlene H. Roberts, SomeCharacteristics of One Type of HighReliability Organisation, ORGANISATION
SCI., 1: 160–176.
29. Kathryn M. Bartol and David C.Martin, MANAGEMENT (NY: McGraw-Hill, 1998).
30. Ger Wackers, OffshoreVulnerability: The Limits of Design andthe Ubiquity of the Recursive Process, inRISKY WORK ENVIRONMENTS, supra note21, at 81–98.
31. Steven M. Rinaldi, James P.Peerenboom and Terrence K. Kelly,Identifying, Understanding andAnalysing Critical InfrastructureInterdependencies, IEEE CONTROL
SYSTEMS MAGAZINE, Dec. 2001, at 11–25.
32. Amory B. Lovins and L. HunterLovins, BRITTLE POWER: ENERGY STRATEGY
FOR NATIONAL SECURITY (Andover, MA:Brick House Publishing, 1982).
33. VINCE CABLE, THE STORM (London:Atlantic Books, 2009).
34. Dominic Wilson, Alex Kelston andSwarnali Ahmed, Is This the ‘BRICSDecade?’ BRICs MONTHLY, Issue No:10/03, May 20, 2010, at http://www2.goldmansachs.com/ideas/brics/.
35. Perrow, supra note 11.
36. Rinaldi et al. supra note 31.
37. Reason, supra note 19.
38. Simonoff et al., supra note 8.
39. Richard F. Hirsh, The ElectricUtility Industry in 1965: At the Pinnacleof Success before the Blackout, 1999, athttp://blackout.gmu.edu/archive/essays/hirsh_1999.html.
40. Id.
41. Id.
42. Blackout History Project, Events/1965 (Great Northeast Blackout), 2000,at http://blackout.gmu.edu/events/tl1965.html.
43. Id.
44. Eric J. Lerner, What’s Wrong withthe Electric Grid? THE INDUSTRIAL
PHYSICIST, Oct./Nov. 2003, at 8–13.
45. Rosness, supra note 21.
46. Blackout History Project, supranote 42.
ecember 2011, Vol. 24, Issue 10 1040-6190/$
47. Toft and Reynolds, supra note 10.
48. Joshua B. Freeman, WORKING-CLASS
NEW YORK: LIFE AND LABOR SINCE WORLD
WAR II (New York: New Press, 2000).
49. Blackout History Project, supranote 42.
50. Id.
51. Carys Siemieniuch and MurraySinclair, How Roles Change whenDisaster Strikes: Lessons Learnt from theManufacturing Domain, in DECISION
MAKING IN COMPLEX ENVIRONMENTS,
Eds. M. Cook, J. Noyes and Y.Masakowski (Aldershot: Ashgate,2007), at 179–187.
52. Kenneth Pettersen and KarinaAase, Explaining Safe Work Practices inAviation Line Maintenance, SAFETY
SCIENCE, 46, at 510–519.
53. Weick and Sutcliffe, supra note27.
54. Andrew Hopkins, Working Paper 7:Safety Culture, Mindfulness and SafeBehaviour: Converging ideas? (Canberra:Australian National University,2002).
55. Rinaldi, et al., supra note 31.
56. Lerner, supra note 44.
57. Id.
58. Id.
59. Alan Irwin, CITIZEN SCIENCE
(London: Routledge, 1995).
60. Simon A. Bennett and Andrew P.Shaw, Incidents and Accidents onthe Ramp: Does ‘Risk Communication’
–see front matter # 2011 Elsevier Inc. All rights
Provide a Solution? HUMAN FACTORS &
AEROSPACE SAFETY, 3 (4), at 333–352.
61. Lerner, supra note 44.
62. Id.
63. Reason, supra note 19.
64. Inner City Fund (ICF) Consulting,The Economic Cost of the Blackout(Fairfax, VA: ICF, 2003).
65. Electricity Consumers ResourceCouncil (ELCON), The EconomicImpacts of the August 2003 Blackout(Washington, DC: ELCON, 2004).
66. Keay Davidson, How a Butterfly’sWing Can Bring down Goliath: ChaosTheories Calculate the Vulnerability ofMegasystems, S.F. CHRONICLE, Aug. 15,2003, at A6.
67. British Broadcasting Corporation,U.S. Blackout Firm Had ‘No Clue,’2003, at http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/1/hi/business/3082000.stm.
68. Jens Rasmussen, Risk Management,Adaptation and Design for Safety, inFUTURE RISKS AND RISK MANAGEMENT,Eds. B. Brehmer and N.E. Sahlin(Dordrecht: Kluwer AcademicPublishers, 1994).
69. Rosness, supra note 21.
70. Reason, supra note 19.
71. Id.
72. Chris Argyris, GoodCommunication That Blocks Learning,HARVARD BUS. REV., July/Aug. 1994, at77–85.
73. Hollnagel, supra note 20.
74. Snook, supra note 16.
75. Lovins and Lovins, supra note 32.
76. Simon A. Bennett, Case Studies inArchitectural Surety, DISASTER RESEARCH
REPORT Vol. 2, No. 1 (Worcester:Institute of Civil Defence and DisasterStudies, 2001).
77. Id.
78. Boaz Moselle, Ofgem Statement tothe Greater London Authority Regardingthe Public Services Committee’sEvidentiary Hearing on the London PowerCut – 16 September, 2003 (London:Ofgem, 2003).
reserved., doi:/10.1016/j.tej.2011.11.003 67
68
79. Id.
80. National Grid Transco (NGT)Statement Regarding Power Cut in SouthLondon, Statement One – 21:25 hrs.(Warwick: National Grid Transco,2003).
81. Greater London Authority, ThePower Cut in London on 28 August2003, A Report from the LondonAssembly’s Public Services Committee(London: Greater London Authority,2004).
82. Id.
83. Reason, supra note 19.
84. Power Cut Phenomenon StrikesAnother Two Countries, THE INSIDER,2003, at http://www.theinsider.org/news/article.asp?id=414.
85. British Broadcasting Corporation,Power Cut Causes Chaos, 2003, athttp://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/1/hi/england/london/3189755.stm.
86. Sky News, Transport Back On TrackAfter Power Cut, 2003, at http://news.sky.com/.
87. Greater London Authority, supranote 81.
88. BBC, supra note 85.
89. Greater London Authority, supranote 81.
90. BBC, supra note 85.
91. Transport Back On Track AfterPower Cut, Sky News, 2003, at http://news.sky.com/.
92. NGT, supra note 80.
93. Greater London Authority, supranote 81.
94. Id.
95. Patrick Woodman, BUSINESS
CONTINUITY MANAGEMENT (London:Chartered Management Institute,2007).
96. John F. Burns, Police Chief in UlsterPlays Down Dissidents, INT’L. HERALD
TRIBUNE, Mar. 16, 2009, at 3.
97. Independent MonitoringCommission, Twentieth Report of
1040-6190/$–see front matter # 2011 Elsevi
the Independent Monitoring Commission(London: The Stationery Office, 2008).
98. British Broadcasting Corporation,Commuters’ Blackout Misery, 2003,http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/1/hi/england/london/3190055.stm,accessed Mar. 2009.
99. Greater London Authority, supranote 81.
100. Jane Padgham and SteveHawkes, Blackout Costs ‘Run intoMillions,’ EVENING STANDARD, Aug. 31,
2003, at http://www.thisislondon.co.uk/news/article-6444607-blackout-costs-run-into-millions.do.
101. Id.
102. Id.
103. Id.
104. Id.
105. UK Energy Gap: Much Larger,Much Closer and More ExpensiveThan Reported, PR Newswire Europe,2009, at http://www.prnewswire.co.uk/cgi/news/release?id=184802,accessed Mar. 2009.
106. Patrick Woodman and VidalKumar, A DECADE OF LIVING
DANGEROUSLY (London: CharteredManagement Institute, 2009).
107. Users Need to Be Prepared for PowerCuts, ComputerWeekly.com 2003, athttp://www.computerweekly.com/Articles/ArticlePage.aspx?ArticleID=197067.
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108. PRNewswire Europe, supra note105.
109. Ruth Winstone, Paul Bolton andDonna Gore, Research Paper 07/42Energy Security 9 May, 2007 (London:House of Commons, 2007).
110. Id.
111. Brendan Barrett, From JasmineRevolution to Oil Shockwave, 2011, athttp://www.ourworld.unu.edu/en/from-jasmine-revolution-to-oil-shockwave/.
112. Toby Helm, Oil Prices: UrgentSteps Needed to Wean UK onto OtherEnergy Sources, MPs Say, THE
GUARDIAN, Mar. 5, 2011, at http://www.guardian.co.uk/business/2011/mar/05/oil-uk-energy-sources.
113. David Gow, Luke Harding andIan Traynor, Brussels to Host EmergencyTalks as Tens of Thousands Lose Heatingin Their Homes, THE GUARDIAN, Jan. 8,2009, at http://www.guardian.co.uk/world/2009/jan/08/russia-ukraine-gas.
114. Karl E. Weick, The VulnerableSystem. An Analysis of the Tenerife AirDisaster, J. MGMT., 16 (3), at 571–593.
115. Patrick Lagadec, Ounce ofPrevention Worth a Pound in Cure,MGMT. CONSULTANCY, June 1993.
116. Ian Fells and Candida Whitmill,A Pragmatic Energy Policy for the U.K.(Newcastle: Fells Associates, 2008).
117. Alok Jha, Energy Security ‘MoreImportant than Climate Change,’ THE
GUARDIAN, Sept. 17, 2008, at http://www.guardian.co.uk/environment/2008/sep/17/renewableenergy.fossilfuels.
118. Fells and Whitmill, supra note116.
119. Jaap De Hoop Scheffer, EnergySecurity: NATO Secretary GeneralSpeaks Out on the Need for GreaterPartnership, 2008, at http://www.lloyds.com/News_Centre/Features_from_Lloyds/Energy_security_09122.
120. In Oct. 2011 Muammar Gaddafiwas killed by National TransitionalCouncil soldiers, ending the popularuprising. As far as the Russian mediawas concerned (most especially the
11.11.003 The Electricity Journal
D
television station RT) NATO’s Libyacampaign was all about energysecurity.
121. Childs, supra note 3.
122. Gordon Brown, This Is How WeWill Stand Up to Russia’s NakedAggression, THE OBSERVER, Aug. 31,2008, at http://www.guardian.co.uk/commentisfree/2008/aug/31/russia.georgia.
123. John Thornhill, Western Fears onRussian Energy, FINANCIAL TIMES, Feb.17, 2008, at http://www.ft.com/cms/s/0/1bdaf4a8-dd7e-11dc-ad7e-0000779fd2ac.html#axzz1bnIIhIc0.
124. Ian Traynor, EU Unveils Plan toWeaken Russian Grip on Gas Supply, THE
GUARDIAN, Nov. 14, 2008, at http://www.guardian.co.uk/business/2008/nov/14/russia-europe-gas-gazprom.
125. Mark Milner and TerryMacalister, Credit Crunch Warning overUK Energy Security, THE GUARDIAN,Nov. 26, 2008, at http://www.guardian.co.uk/business/2008/nov/26/utilities-energy-security-ofgem.
126. Patrick Blum, Ocean Power CastAdrift in Financial Storm, INT’L. HERALD
TRIBUNE: ENERGY, A SPECIAL REPORT,Mar. 16, 2009.
127. Ian Fells, We Need an ExpensiveMiracle, THE GUARDIAN, Sept. 18,2008.
128. Perrow, supra note 11.
129. Carys Siemieniuch and MurraySinclair, How Roles Change whenDisaster Strikes: Lessons Learnt from theManufacturing Domain, in DECISION
MAKING IN COMPLEX ENVIRONMENTS,Eds. M. Cook, J. Noyes and Y.Masakowski (Aldershot: Ashgate,2007), at 179–187.
130. Pettersen and Aase, supra note 52.
131. James Chapman, Blackout BritainWarning as Government Predicts SeverePower Shortages within a Year, DAILY
MAIL, 2009, at http://www.dailymail.co.uk/.
132. Donald MacKenzie and JudyWajcman, THE SOCIAL SHAPING OF
TECHNOLOGY (Buckingham: Open Univ.Press, 1993).
ecember 2011, Vol. 24, Issue 10 1040-6190/$
133. Langdon Winner, Do ArtefactsHave Politics? in THE SOCIAL SHAPING OF
TECHNOLOGY, supra note 132, at 26–38.
134. Perrow, supra note 11.
135. British BroadcastingCorporation, Energy Security‘Vital’ – Hutton, 2008, at http://news.bbc.co.uk/1/hi/uk_politics/7628937.stm.
136. Ulrich Beck, Risk Society:Towards a New Modernity (London:Sage, 1992).
137. Pat Kane, There’s Method in theMagic, in THE POLITICS OF RISK SOCIETY,Ed. J. Franklin (Cambridge: PolityPress, 1998), at 76–82.
138. John Durant, Once the Men inWhite Coats Held the Promise of a BetterFuture, in THE POLITICS OF RISK SOCIETY,Ed. J. Franklin (Cambridge: PolityPress, 1998), at 70–75.
139. Robin Clarke, SCIENCE AND
TECHNOLOGY IN WORLD DEVELOPMENT
(Oxford: Oxford Univ. Press, 1985).
140. In Oct. 2011 the EuropeanCourt of Justice ruled against thepatenting of stem-cell products thatinvolve the destruction of humanembryos. Believing that humanlife begins at the embryo stage,religious groups had lobbied hard tosecure the ruling. The inability topatent stem-cell products will harmstem cell research. Companies thatare not able to secure theirintellectual property will not invest.It is feared that treatments forparalysis, blindness, and Parkinson’sdisease will be stymied. (EuropeanScience Stemmed, ECONOMIST, Oct. 192011, at http://www.economist.com/blogs/babbage/2011/10/stem-cell-research.
141. Robert Edwards, UK NuclearPlans on Hold after Fukushima, THE
GUARDIAN, April 5, 2011, at http://www.guardian.co.uk/environment/2011/apr/05/uk-nuclear-plan-fukushima.
142. The Review, published in Sept.2011 by the Health and SafetyExecutive’s Office for NuclearRegulation, emphasised the need forBritain’s nuclear industry to engage in
–see front matter # 2011 Elsevier Inc. All rights
active learning. Nevertheless,nuclear remains one of the pillarsof Britain’s low-carbon electricitygenerating plan. See MichaelWeightman, Japanese Earthquakeand Tsunami: Implications for theU.K. Nuclear Industry (Bootle:Office for Nuclear Regulation,2011).
143. British BroadcastingCorporation, Police Defend PowerStation Raid, 2009, at http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/1/hi/england/.
144. Id.
145. MacKenzie and Wajcman, supranote 132.
146. In November 2011 theInternational Atomic Energy Agencyclaimed Iran’s nuclear programmemay have a military dimension. ‘‘TheUN nuclear watchdog showed lettersand satellite images . . . pointing tomilitary dimensions to Iran’s atomicactivities’’ reported Reuters. If true,such a development would act tofurther de-stabilize an already volatileregion (thrown into turmoil by the2011 Arab Spring).
147. If, as looks likely, Vladimir Putinis elected President of Russia in 2012,the country may become even morenationalistic in outlook than it is atpresent. Putin says he wants to raiseliving standards and make Russia‘‘stronger.’’
148. Brendan Barrett, From JasmineRevolution to Oil Shockwave, 2011, athttp://www.ourworld.unu.edu/en/from-jasmine-revolution-to-oil-shockwave/.
149. Peter Curtis, Transition to a DigitalSociety: An Antiquated System Holds UsBack (Smithtown, NY: Association forFacilities Engineering, 2008).
150. Electricity Consumers ResourceCouncil (ELCON), ‘‘Consumers NeedMore Voice in Solutions to Blackout,ELCON’s Anderson Says,’’ ELCON
REPORT, No. 3, 2003, at http://www.elcon.org/Documents/ELCONReport/ELCONReport_3_2003.pdf.
151. Toft and Reynolds, supra note 10.
reserved., doi:/10.1016/j.tej.2011.11.003 69