HSE announced on 29 August 2008 that it is awarding the contract to run the new gas installer registration scheme from 1 April 2009 to Capita Group Plc.
The contract will be signed on 8th September 2008 after which further details on what this means for installers, gas consumers and gas safety generally will be made available.
The new scheme aims to improve gas safety, and bring enhanced benefits to gas consumers and installers across Great Britain.
Domestic (piped and LPG) gas is very widely used in GB (about 21 million homes). However, its increasing use over the years has coincided with an improving trend in the official statistics on gas deaths. Whilst the Gas Safety (Installation and Use) Regulations (GSIUR) 1998 have provided a framework for improving safety in gas work, other factors such as improvements in the inherent safety of gas appliances will also have contributed to this trend. An overview of the statistics on gas and carbon monoxide (CO) poisoning.
HSE believes there is no room for complacency and during 2006 a review of the domestic gas safety regime identified a case for change. The former HSC took a strategic decision to stay in gas safety and aim to do it better with greater industry leadership. HSE felt that stakeholder criticisms of the existing gas installer registration scheme which has evolved over time and is managed by CORGI, had some foundation. Even though the official statistics were showing an improving picture, it was felt that more should be done to raise public awareness of gas and CO risks. Greater industry ownership and accountability would enable HSE to refocus its own resource more productively. The core recommendation from this review, agreed by the HSC, was to deliver added value to consumer gas safety and benefits to gas installers through a reformed gas installer registration scheme and this was endorsed by Lord McKenzie in March 2007. Background to the gas scheme competition.
To deliver this change, HSE embarked on a procurement exercise to select a provider to run an innovative new scheme for a five year term. Regular updates were provided for HSC/E. The cross HSE project team drew heavily on expert external legal and procurement advice to establish a robust process aimed at creating a fair and open competition. This work was overseen by an HSE project board and evaluation of the bids undertaken by an independently chaired Tender Evaluation Board (TEB).
There was significant commercial interest from the outset and, at the Invitation to Tender (ITT) stage, the competition narrowed to two strong bidders: CORGI, the incumbent, and Capita, the professional and support services “Top 100” company. Evaluation of the ITT bids adopted broadly the approach of the new EU’s competitive dialogue and involved an intensive period of negotiation which proved extremely successful in improving both bidders’ offerings.
The new scheme has a modern, sustainable structure which will enable greater competition in the future together with safeguards to prevent the provider from taking undue commercial advantage of its position. The scheme is set to deliver a suite of changes to refocus and improve consumer gas safety whilst also simplifying the regime, and securing best value for money for installers. Further detail on the new scheme. Performance will be publicly measured through a series of outcome based key performance indicators (KPIs) aimed at continuous improvement in services for gas consumers and gas installers together with targets for promoting gas safety, managing stakeholder relations and delivering support to HSE. These KPIs are underpinned by a range of services with service standards and innovative measures to modernise the scheme. Further information on these developments with the scheme will be made public when the contract is finalized. Failure to deliver against the KPIs will require the provider to pay part of its profits to an improvement fund, which will be used to compensate installers for poor service that they have received from the provider, improve the scheme, or for consumer gas safety.
External stakeholders were widely consulted during the development of the specification of the new scheme. The project board and the procurement process has involved all interested parts of HSE, together with selected external stakeholders and external expert advice.
Detail of the concession agreement will be finalised over the coming weeks with a view to agreeing it by September. Transition to the new scheme will take place over the following months so that the new scheme can begin in April 2009.
HSE collects and publishes statistics on gas incidents involving piped and LPG derived from (Reporting of Injuries and Dangerous Occurrences Regulations) RIDDOR.
The number of fatal injuries reported in 2006/07 was the lowest on record and these data show some sign of a downward trend over time. Early provisional results for 2007/08 indicate that the number of fatals will be higher than 2006/07 but remains below 20 which would still indicate there is a downward trend overall. The incident and non-fatal data do not enable us to make a sensible assessment of trend because the numbers are relatively small, are not moving in a consistent direction and there can be quite large proportionate jumps year on year.
The fatals data in the chart below shows the series with a 3 year moving average plotted alongside to smooth out some of the variability. This clearly suggests a decline over the period although smaller falls have been seen in more recent years. Given the short time series involved forecasting a future trend is just not possible. Quarterly data shows that the series is extremely seasonal which masks the underlying trend and highlights further, that particularly cold years will have more incidents and warm years less and helps to explain the year on year variations.
Latest published figures show:
| 1997/98 | 1998/99 | 1999/00 | 2000/01 | 2001/02 | 2002/03 | 2003/04 | 2004/05 | 2005/06 | 2006/07 (P) | |
|---|---|---|---|---|---|---|---|---|---|---|
| Explosion/ Fire | 45 | 37 | 56 | 38 | 44 | 33 | 34 | 37 | 28 | 25 |
| CO Exposure | 119 | 114 | 118 | 136 | 110 | 81 | 93 | 110 | 119 | 123 |
| Other Exposure | n/a | n/a | n/a | n/a | n/a | n/a | 5 | 7 | 2 | 2 |
| Total | 164 | 151 | 174 | 174 | 154 | 114 | 132 | 154 | 149 | 150 |
| 1997/98 | 1998/99 | 1999/00 | 2000/01 | 2001/02 | 2002/03 | 2003/04 | 2004/05 | 2005/06 | 2006/07 (P) | |
|---|---|---|---|---|---|---|---|---|---|---|
| Explosion/ Fire | 8 | 11 | 10 | 8 | 5 | 5 | 5 | 2 | 4 | 2 |
| CO Exposure | 28 | 37 | 26 | 25 | 22 | 20 | 11 | 18 | 16 | 8 |
| Other Exposure | n/a | n/a | n/a | n/a | n/a | n/a | 2 | 1 | 0 | 1 |
| Total | 36 | 48 | 36 | 33 | 27 | 25 | 18 | 21 | 20 | 11 |
| 1997/98 | 1998/99 | 1999/00 | 2000/01 | 2001/02 | 2002/03 | 2003/04 | 2004/05 | 2005/06 | 2006/07 (P) | |
|---|---|---|---|---|---|---|---|---|---|---|
| Explosion/ Fire | 43 | 30 | 61 | 36 | 47 | 38 | 43 | 42 | 29 | 30 |
| CO Exposure | 189 | 194 | 228 | 265 | 169 | 138 | 174 | 203 | 210 | 206 |
| Other Exposure | n/a | n/a | n/a | n/a | n/a | n/a | 3 | 5 | 2 | 1 |
| Total | 232 | 224 | 289 | 301 | 216 | 176 | 220 | 250 | 241 | 237 |
During 2006, HSE undertook a major review of the domestic gas safety regime. This involved extensive stakeholder engagement led by the consultants, Frontline, and research by the University College London, which found that 45% of those interviewed in a ‘snapshot’ survey of 597 homes had little understanding of the risks associated with gas and carbon monoxide. Full reports are available on the HSE website.
In December 2006, HSE Board paper B/06/110 set out proposals for change, principally involving changes to the gas registration scheme managed by CORGI. At its meeting on 6 December, the Board discussed the proposals for reform and agreed that there should be a ‘competition for the market’ to find a single provider to run a new registration scheme. The Board also agreed that there should be an acronym for the gas registration scheme that would be retained regardless of who currently carried out that work; that the governance arrangements should be expanded; fees should decline in real terms over the time of the contract. Minutes number BM/06/12 
.
In January 2007, the Health and Safety Commission paper HSC/07/09 set out the proposals agreed by the HSE Board. HSC strongly supported the recommendation that the gas installer registration scheme should be reformed to improve gas safety and that there should be a competition for a 5 year contract to run the new scheme. The Commission said that it would want to be satisfied that the scheme was well managed and appropriate key performance indicators were in place. Minutes HSC/07/M01
On 7 March 2007, Lord McKenzie issued a press release endorsing the HSC recommendations and announcing the new scheme to improve domestic gas safety. The core recommendation was to deliver added value to the gas consumer safety through a reformed gas installer registration scheme.
In July 2007, HSC paper Misc/07/09 reported on progress with developing the specification for the new scheme and the launch of the competition with the Pre-Qualification Questionnaire (PQQ) and an announcement in the Official Journal of the European Union.
In February 2008, HSC MISC/08/04 reported on the delivery of a major stage of the competition with the issue of the Invitation to Tender documents to selected bidders. The paper also advised of adjustments to the earlier timetable for delivery following complexities which had arisen with the novel procurement exercise. A recommendation on the new scheme provider was planned for the end of May with a decision in June and the new scheme set to start in April 2009. This timetable remains on course.
The new gas installer registration scheme will be subject to a concession agreement between HSE and the new provider for a period of [5] years. In exchange for approving the provider to run the scheme and collect registration fees, the provider agrees through the concession agreement, to deliver a range of services and commits to delivering a number of outcome based annual or quarterly key performance indicators (KPIs) in the interests of gas consumers and gas installers. Failure to achieve the KPIs will trigger the service credit mechanism which gives rise to financial consequences.
The concession agreement sets out in contractual terms the requirements on the service provider within a new financial and governance framework. The new scheme will deliver lower fees for gas installers together with a suite of actions aimed at improving consumer gas safety and reducing burdens on gas installers. The scheme also provides a mechanism for drawing funding into consumer gas safety but this will be subject to tests of proportionality and protection against the provider exploiting its monopoly position to the disadvantage of gas installers (see below).
The structure of the new scheme will address concerns of some industry stakeholders that the current arrangements risk anti-competitive behaviour. The scheme will operate on a financially transparent basis with stronger governance arrangements and clear accountability in how gas installer fees are used. The scheme will be ring-fenced from other commercial activities and there is a whole range of measures in the contract to prevent the new provider taking undue commercial advantage of its position. These include:
The new independent gas safety brand which will be created as part of the new scheme supports this ring-fencing from other commercial activity. HSE will be the custodian of the new brand on behalf of gas installers so that it can ensure it is protected in the interests of gas installers and gas safety and so that it can be made available for future competitions. The new gas safety brand provides an excellent opportunity to re-launch key consumer gas safety messages on behalf of gas installers .
Delivery will be publicly monitored through eight KPIs which set performance measures for continuous improvement in delivery of the scheme. The KPIs cover 8 areas.
This KPI requires annual increases in gas consumer awareness of gas safety risks and the need to get appliances installed and serviced by a registered installer. This will be measured against a baseline survey to be undertaken during transition. [ Where surveys are required these will need to be statistically robust and the scope agreed with HSE. The surveys will be undertaken independently and HSE will be the client.]
The survey will focus on measuring gas consumers understanding and management of gas safety risks including understanding of:
The survey will measure the proportion of households (both privately owned and rented) who, without prompting, report that they have had their gas appliances installed and/or serviced by registered gas installers, together with data about the frequency of service and checks, and the use of CO alarms etc.
This KPI sets out targets for establishing the new gas safety brand with gas consumers during the first two and half years of the new scheme.
This KPI is intended to:
This KPI will measure gas consumer satisfaction with the operation of the scheme, as measured in a survey with a target for the end of year one and consequent annual incremental increases in satisfaction levels. This will be measured in repeat surveys against the baseline survey. The survey will cover all aspects of the gas consumers’ interface with the gas scheme including:
The survey will also seek to identify areas where improvements might be made in order that these might be incorporated into the annual review of this KPI.
This KPI will set targets for continuous improvement in gas installer satisfaction as measured in a survey. Specific areas to be covered in the survey will include satisfaction with:
The survey will also seek to identify areas where improvements might be made in order that these might be incorporated into the annual review of this KPI.
This KPI will set targets for continuous improvement of relations with key stakeholder groups measured against a baseline survey undertaken before the commencement of service delivery.
This KPI is concerned with the constructive and effective management of relations with a range of gas stakeholders, both industry and campaign groups. The range of stakeholders will include all sections of the gas industry, the relevant trades unions, the relevant trade associations, active campaign groups, consumer groups with a particular interest in gas safety, and other organisations with which the scheme provider has regular contact including relevant government and public departments.
The survey will include perceptions of the scheme provider’s effectiveness/success in:
This KPI will set targets for increasing effectiveness in targeting unsafe gas work found through risk based inspection. This will be measured through an agreed annual increase in the proportion of unsafe gas work found in targeted inspection (excluding consumer complaints) as compared to that found in random inspection. This will be a value for money measure, based on measuring the efficacy of the risk and inspection models and the effectiveness of the approach to targeting inspection.
This KPI will set targets for reducing the amount of amount of unsafe gas work. The two measures will be:
This KPI sets out requirements in responding to requests from HSE and LAs for advice and assistance.
There will be a financial impact in the event that there is a failure to deliver the performance levels set out in the KPIS. This will depend on: