Annex 5: Asset Management Plan Information Disclosure Requirements
Introduction
Line owners must disclose certain AMP information in the manner set out in Regulation [ ], and listed in paragraph [ ] of this Handbook.
The AMP information must be disclosed during the 2000-2001 financial year (ie before 31 March 2001), and within 3 months of the beginning of each financial year.
Comments:AMPs are dynamic documents that are normally updated annually. AMPs will support annual performance measure disclosures and performance assessment.
Disclosed AMP information is intended to provide a window into AM practice and performance.
Comments: The requirement to disclose certain AMP information is not intended to necessarily result in disclosure of full AMPs, though these may be disclosed. The AMP disclosure requirements are intended to provide a reader with a clear insight into the AM practices and performance of the asset owner to the extent that the reader can make a reasonable judgement as to whether appropriate AM systems and processes are in place and are reflected in performance.
Furthermore, while the AMP disclosure requirements do not necessarily require disclosure of full AMPs, the disclosed AMPs must be consistent with any other AMP documents that have been prepared.
Disclosed AMP information must include a summary.
Comments: The inclusion of a summary will aid understanding and reliability. Minimum requirements for summaries are provided below.
Disclosed AMP information must consist of a single document.
Comments: Disclosure of AMP information as a single document will prevent disclosure of disjointed, poorly co-ordinated material that is difficult to understand. In some cases this will require companies to amalgamate information from various documents for disclosure purposes, for example separate network plans.
The disclosed AMP information should:
- Permit assessment of the suitability of asset management practice and assets for current and future service;
- Specifically support the achievement of disclosed AM and reliability performance targets; and,
- Provide a sound basis for on going risk assessment.
Comments: This is the over-riding intention of AMP disclosure. AMPs should be compiled with these primary criteria firmly in mind.
Disclosed AMP information must clearly identify limitations in availability or completeness of information, and include details of:
- The assumptions made and basis for asset management planning in the absence of such information, including estimation and assessment methodologies used; and
- Plans for improvement in information quality.
Comments: The detail and accuracy of information available will vary. Information gaps should be specifically addressed to enhance the transparency of disclosure, place emphasis on identifying deficiencies and promote improvement
Mandatory Disclosure Requirements
Summary
This section of the AMP information disclosure requirements is to include an overview of the following:
- Background and objectives;
- The date the information was completed and the period to which it relates;
- Asset management systems and information;
- Network and asset description;
- Service level objectives;
- Life-cycle asset management and development plans;
- Risk assessment; and
- Performance and plans for improvement.
Background and Objectives
This section of the disclosed AMP information must include the following:
- A description of the interaction between the AMP's planning processes, corporate goals, business planning processes and other plans;
- Planning periods adopted;
- Stakeholder interests (owners, consumers, etc);
- Accountabilities and responsibilities for asset management; and
- Description of asset management plans, systems and processes including asset management information systems/software and information flows.
Comments: The outline of the AMP's structure, and its links to and relationships with business, financial, human resource, business continuance, information systems and other plans will reconcile corporate objectives with asset management objectives, put the detailed provisions in context and reveal the overall approach.
Skills and resources must be available to support the asset management strategy, and the organisation and identification of personnel accountability support this requirement.
The AMP should explain how information systems support asset management processes and what major AMPs the organisation has in place.
Network and Asset Description
The network and asset description must include:
- Description of the physical scale of the system;
- Description, quantity and value of assets by major category;
- Statement on age profile and condition of assets in each major category.
Comments: What is owned, where it is and what condition it is in.
Service Levels
The disclosed AMP must detail proposed levels of service and actual performance where known, for:
- Consumer oriented reliability, security and availability (including those specified in Schedule 1); and
- Asset management performance (including those specified above); and
- Justification for target levels of service based on consumer, legislative, regulatory, shareholder and other requirements.
Comments: The asset management process is based on the identification of the business need for the use of the assets. For the purposes of information disclosure it is appropriate to concentrate on consumer-related performance measures, although the AMP should also state other commonly used efficiency measures for assessing asset management performance.
Most line businesses have documented service levels, so their inclusion in the disclosed AMP should not be onerous. The service levels will require careful consideration and definition by each pipeline owner.
Lifecycle Asset Management Planning
Disclosed AMPs must describe the planning processes and plans to create, operate, maintain, rehabilitate, replace, and dispose of system assets to provide the agreed levels of service while optimising life-cycle costs, including:
- A description of planning criteria and assumptions;
- Details of design and operating standards and parameters;
- Details of demand forecasts, network configuration analysis, and service quality assessments;
- Policies with respect to non-asset solutions to alter asset utilisation, upgrade of existing assets, acquisition of new assets, adoption of new technology and disposal of existing assets;
- Analysis of the options available and details of the decisions made to satisfy and meet target levels of service; and
- Description and details of maintenance policies and programme of maintenance/inspection activity planned for each asset group, including associated expenditure projections.
Comments: These requirements will probably form the largest part of the AMP. The requirements are intended to be sufficiently non-prescriptive to avoid compliance costs associated with undue adaptation of existing plans.
Adoption of asset management practice that recognises all elements of the asset life cycle, including design and planning, procurement, operation and maintenance and disposal costs assists in long term efficiency improvement.
Maintenance policies and strategies designed to specifically address the needs of individual asset groups must be disclosed. Disclosure will reveal whether appropriate steps are being taken to ensure that predictive, failure finding or scheduled maintenance tasks have been identified and are being undertaken.
Risk Management
Disclosed AMP information must include details of risk policies, assessment and mitigation, including:
- Methods, details and conclusions of risk analysis; and
- Description of emergency response, and contingency plans.
Evaluation of Performance
Disclosed AMP information must cover details of performance measurement, evaluation and improvement, including:
- Reviews of progress against asset management plans (both physical and financial);
- Evaluation and comparison of actual performance against targeted performance objectives; and
- Gap analysis and identification of improvement initiatives.
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