Risk of UK electrical oil shortages averted after workers call off strike

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WORKERS at an insulating oil supplier in northwest England have ended a fortnight-long strike after agreeing a pay deal with Electrical Oil Services, ending the threat of shortages of a critical component needed to run the power grid.

Eight plant operators at the site in Ellesmere Port had been picketing for the second week in a row before the Unite trade union today secured a 3% pay increase. The pay deal will include backdated payments to January and will be followed by a further 1% increase from September.

Insulating oil is a critical component of the electricity grid as it is used as an insulator and coolant for transformers. Electrical Oil Services (EOS) sent a letter to customers last week warning them of “unforeseen supply disruption that may impact our ability to deliver on schedule”. TCE understands that Electrical Oil Services’ (EOS) most significant customers are National Grid and Scottish Power Electricity Networks, who operate transformers in northwest England, North Wales and the midlands, covering the regions closest to Ellesmere Port. Unite regional officer Andrew Johnson warned yesterday that insulating oil shortages would have been “bound to get worse” the longer industrial action lasted.

The Energy Networks Association, which represents network operators across the UK and Ireland, told TCE that throughout the strike period there was no disruption to the normal operation of the grid and that operators had contingency plans in place to deal with supply issues.

EOS said in a statement yesterday that network operators had “multiple sourcing options”, adding: “While the supply chain for recycled transformer oil is affected, EOS customers continue to be served reliably”. EOS, owned by refiner Haltermann Carless, supplies both regenerated and unused insulating oil, which is used to immerse the copper windings and cores of transformers to dissipate waste heat. It prevents oxidation in the cellulose-based insulators wrapped around the electrical conductors in the transformer. Insulating oil is a high quality electrical insulator but the buildup of contamination and moisture degrades its performance over time.

The importance of maintaining oil quality in transformers was brought into focus after a substation in West London caught fire leading to the temporary closure of Heathrow Airport in March this year. An investigation by the National Energy System Operator in June concluded the fire was most likely caused by moisture entering a bushing in the transformer which caused it to short circuit, creating sparks that ignited the surrounding insulating oil.

Sharon Graham, Unite General Secretary, said: “Well done to the workers at Electrical Oil Services who achieved the pay rise they wanted and deserved by taking strike action.”