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Most societies are deeply dependent on the use of fossil fuel to support the lifestyles of their members. Actions to reduce the use of fossil fuel involve very high levels of complexity and uncertainty.  The use of the Engineer-it strategies is essential.
Most societies are deeply dependent on the use of fossil fuel to support the lifestyles of their members. Actions to reduce the use of fossil fuel involve very high levels of complexity and uncertainty.  The use of the system planning is essential.


Actions that governments take to reduce the use of fossil fuels has the greatest potential for reducing their use. It is therefore essential that their policies for energy are engineered.   
Actions that governments take to reduce the use of fossil fuels has the greatest potential for reducing their use. It is therefore essential that their policies for energy are engineered.   
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*After decisions have been implemented, the system is actively monitored to detect and correct flaws and to continuously improve performance.
*After decisions have been implemented, the system is actively monitored to detect and correct flaws and to continuously improve performance.


The consultation document has a section on Energy Market Design (p39). For example, the Capacity Market for minimising the price of providing power at peak demand is discussed. That provision only addresses the price of one of the features of the system.  It is the ''system cos''t that should be minimised; it is the ''system'' that needs to be designed.  Under system planning, proposals for what facilities should be built, where they should be built and when they should be built emerge from assessments. Suppliers would bid to provide facilities that had been specified by the FSO so as to be optimum in the context. Using cost planning strategies, suppliers would be adequately paid, but not overpaid, and customers would not be overcharged.
The FSO will coonsider the efficacy of market approaches as compared with system planning


Reasons why the electricity system requires to be subject to system planning include:
Reasons why the electricity system requires to be subject to system planning include:
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====Planning for the energy system====
====Planning for the energy system====
While the electricity system must be treated as an integrated entity that has to be subject to system planning, this is not the case for all aspects of energy supply and operation.  For example, it would not be appropriate for the government to take over planning of car manufacturing in order to convert to low emissions vehicles.  It is however essential that, whatever measures are adopted by government to effect changes to the energy system, they should be based on well thought-out proposals that have been tested against requirements, against options and against the risk of unintended consequences.
While the electricity system must be treated as an integrated entity that has to be subject to system planning, this is not the case for all aspects of energy supply and operation.  For example, it would not be appropriate for the government to take over planning of car manufacturing in order to convert to low emissions vehicles.  It is however essential that, whatever measures are adopted by government to effect changes to the energy system, they should be based on well thought-out proposals that have been tested against requirements, against options and against the risk of unintended consequences.  


===The importance of system planning===
==== Historical precedent ====
 
Despite opposition from members of the UK Parliament who believed that competition was essential, the 1926 Electricity Act enabled 'Electricity Commissioners' to use system planning to create the National Grid, that greatly improved reliability and, between 1926 and 1960, significantly reduced the price of electricity in real terms  - see [https://engineers.scot/office/resources/publications/engforenergy.pdf Engineeering for Energy], page  9.
====System planning for public works====
In October 2021, the Institution of Engineers in Scotland inducted [https://engineeringhalloffame.org/profile/james-newlands James Newlands] to the [https://engineeringhalloffame.org/ Scottish Engineering Hall of Fame]. In 1847 Newlands took up the appointment of Borough Engineer of Liverpool. In a 2014 [https://www.liverpool.ac.uk/media/livacuk/research/heroimages/Sheard,-,Newlands,and,the,Origins,of,the,Mun,Eng,ICE,2014.pdf paper] about James Newlands, Sally Sheard wrote:
 
"By the 1830s the deterioration in urban health in many towns and cities was provoking national debate, within a predominant culture of laissez-faire – the Englishman’s home is his castle principle.  The challenges Newlands successfully addressed in mid-nineteenth century Liverpool –integrated urban design, adequate funding, multi-disciplinary team working – remain critical to urban health now."
 
Newlands designed and built a sewer system for Liverpool that, after 20 years, resulted in a doubling of the life expectancy of the people of Liverpool who had lived in highly unsanitary conditions.  His appointment as Borough Engineer was a pivotal event in the improvement in public health in the UK. Liverpool Town Council recognised that that something radical had to be done about the condition of the town sewers. Despite opposition from supporters of the 'culture of laissez faire', the sewer system was planned as an integrated entity recognising that the dominant public good issues could not be addressed by private enterprise.
 
Following Liverpool's lead, the City of London created a Metropolitan Commission of Sewers that led to a new and highly effective sewer system. Other cities followed. The need for municipal planning for sewage and water supply became the norm - to the great advantage of the nation.
 
==== System planning for the electricity system ====
Just as the introduction of system planning by James Newlands was a pivotal event in the improvment of public health, a similar pivotal event occurred in 1926 for GB electricity supply Despite opposition from members of parliament who believed that competition was essential, the 1926 Electricity Act enabled 'Electricity Commissioners' to use system planning to create the National Grid, that greatly improved reliability and, between 1926 and 1960, significantly reduced the price of electricity in real terms  - see [https://engineers.scot/office/resources/publications/engforenergy.pdf Engineeering for Energy], page  9.


Pre-1990, the not for profit UK Electricity Boards (CEGB, SSEB and NSHEB) provided a reliable supply and worked successfully to keep costs down. They did forward planning that identified the optimum location and type of generation plant in relation to a range of issues such as system cost, fuel source proximity, operational flexibility, fuel supply security etc.
Pre-1990, the not for profit UK Electricity Boards (CEGB, SSEB and NSHEB) provided a reliable supply and worked successfully to keep costs down. They did forward planning that identified the optimum location and type of generation plant in relation to a range of issues such as system cost, fuel source proximity, operational flexibility, fuel supply security etc.
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