Internal Control for the Safety of Drinking Water Quality at Orkuveita Reykjavíkur

1. Internal Control for the Safety of Drinking Water Quality at OrkuveitaReykjavíkur Loftur R. Gissurarson Olgeir Helgason 7. juni 2010

2. Orkuveita Reykjavíkur (OR) OR is a power and utility company that produces, distributes and sells wholesale and retail: • electricity to homes and businesses, • cold water for consumption and fire extinguishing, and • geothermal water for space-heating and snow melting. • The company runs a sewerage system in municipalities, and • owns a subsidiary called Gagnaveita Reykjavikur (GR). GR owns and operates a fibre-optic system for data transfers. OR also runs a small seawater distribution system in Reykjavik to use in spas, animal pond at the local Zoo etc., and distributes methane from a landfill area close to Reykjavik. The company sells reserve power to companies and designs and sells street lighting.

4. Orkuveita Reykjavikur follows international standards: ISO 9001 Quality Control Management System ISO 14001 Environmental Management System ISO 27001 Information Technology Safety System OHSAS18001 Occupational Health and Safety System In 1999 the waterworks of Orkuveita Reykjavikur was audited according to the quality standard, ISO 9001. OR waterworks was the first water utility in Scandinavia to obtain a certification according to ISO 9001. Two years later, in 2001, the water utility in Trondheim received certification according to ISO 9001, and the water utility in Stockholm followed suit in 2003. Business- and operational management systems

5. Reasons for certified quality control systems Orkuveita Reykjavikur has implemented a quality control system to: • Ensure reliability of its systems and validity of its products to customers, both individuals and businesses. OR wants to guarantee reliable systems, safe delivery, stable management and continuous increase in product quality and services. The company takes Corporate Social Responsibility very seriously. • Ensure strong internal control and stability of processes, so that changes have little or no effect on the company’s internal function. All employees work in synchronization despite; rapid external or internal growth, new laws, standards and regulations, and changes made in the company. The internal organization is disciplined, adding new operational units does not affect the reliability of company’s processes.

6. Reasons for certified quality control systems Orkuveita Reykjavikur has implemented a quality control system to: • Always employ “best practices” in the management of the company. We think that international quality standards are the best prescription or method possible when it comes to good and reliable procedures and processes. • Be the first choice when competing for assignments and utility management, and receive the best possible score and evaluation, for example, when applying for credit-ratings and insurance premiums. • Build a strong image and brand name, and be a leader in our field. A company with an audited quality control system is better than an uncertified company because its customers know what they are paying for.

7. Internal control

8. The model for implementation of a quality control system starts by first building an internal control system for each medium. Then the missing ISO components are added to the internal control system. Model for implementation ISO Internal control

9. Internal auditors External auditors Internal control KPI’s Reports Vottun ehf. Umhverfissvið Rkv. (M)Heilbrigðisefl. Vesturl. Heilbrigðisefl. Suðurl. Vinnueftirlitið Environmental Report Managerial Review Internal assessm. (OR) Elmeri systemVSÓ, VST Línuhönnun Microorganism analysis Annual chemical analysis ISO 9001 Drinking water ISO 14001 HACCP OHSAS 18001 Vottun ehf. Umhverfissvið Rkv. (U) Heilbrigðisefl. Vesturl. Heilbrigðisefl. Suðurl. Vinnueftirlitið Environmental Report Managerial Review Internal assessm. OR) Elmeri systemVSÓ, VST Línuhönnun No oxygen content Temperature 80°C from pumping station ISO 9001 Managerial Review Report to OS Results of measurements of quality Geothermal water ISO 14001 HACCP OHSAS 18001 Internal assessm. (OR) Assessments and examinationsElmeri systemVSÓ, VST Línuhönnun Vottun ehf. Neytendastofa Rafskoðun Frumherji Orkustofnun Vinnueftirlitið System up time Quality / fluctuation of electrical charge ISO 9001 Electricity Öryggiskerfi rafmagns ISO 14001 OHSAS 18001 Internal assessm. OR) Elmeri system VSÓ, VST Línuhönnun Vottun ehf. Umhverfissvið Rkv. (U)Heilbrigðisefl. Vesturl. Vinnueftirlitið Environmental Report Managerial Review Report to Umhv.sviðs Pollution of dilution areas Minimum overflow activity ISO 9001 Sewerage system ISO 14001 HACCP OHSAS 18001 Managerial Review Internal assessm. (OR) VSÓ, VST System up time Quality of splicing Vottun ehf. Póst- og Fjarskiptastofnun ISO 9001 Fibre-optics system Home made ISO 14001 Annual Report Managerial Review (Financial) information available, correct and access-controlled Reliable (financial) processes British Standards Institution (BSI) KPMG (Financial) Information Internal assessm (OR) Internal auditors VSÓ, VST Capacent ISO 9001 ISO 27001 COSO

10. Orkuveita Reykjavikur as a food producer • In Icelandic regulation on food production control and health since 1994, waterworks were defined as food manufacturers. • Orkuveita Reykjavikur is therefore not only one of the main energy providers in Iceland. It is also the largest food manufacturer in the country, with regard to production and number of consumers. • In the food regulation, it is stated that food manufacturers should operate an internal control system to ensure food quality, safety and nutritional aspect. It also states that internal control systems should use the structure and the implementation of HACCP, which uses the analysis of risk factors and important control points.

11. Orkuveita Reykjavikur had its HACCP system for the waterworks section accredited in 1997. Orkuveita Reykjavikur was the first water utility in the world to implement a HACCP system and have the system accredited. The Australians were next and the first water utility in Australia to have its system accredited according to HACCP was Melbourne Water Works, in 1999. Milestones

12. ISO 22000 HACCP has now been incorporated in an ISO standard, ISO 22000. ISO 22000 specifies requirements for food safety management system where an organization in the food chain needs to demonstrate its ability to control food safety hazards in order to ensure that food is safe at the time of human consumption. a. Hazard Assessment b. Identify Critical Control Plan (CCP) c. Establish critical limits d. Identify monitoring procedures e. Corrective action procedures f. Verification and validation g. Documentation and record keeping Main points of HACCP

13. In ISO 22000 distinction is made between so-called PRP and OPRP factors. PreRequisiteProgrammes (PRPs) are controls (systems / plans) regarding sanitation of food production and distribution, that prevent or decrease the risk of the likelihood of food safety hazards. Examples of PRPs for water acquisition and distribution at OR are: cleaning schedules, pumping schedules, pesticide protection, training schedules, special design plans and inputs for tanks, pumping stations and the distribution system, personal hygiene, the treatment of hazardous chemicals, and so forth. Operational PreRequisiteProgrammes (OPRPs) are systems and programmes for monitoring control points to identify potentially dangerous situations. New terms introduced in ISO 22000

14. The result of OR’s HACCP system can be evaluated by analyzing whether the tap water is as good as we think it is: When assessing the microorganism status of the cold water, the percentage of measured deviations in water samples are examined. These water samples are taken in key locations and according to predetermined schedules and randomly by the health authorities. Every year Orkuveita Reykjavikur does a total chemical analysis of the quality of water based on the factors that are referred to in the regulation on drinking water. The concentration of all chemicals that are measured have always been below critical limits. Final inspection of water for consumption

15. Average following HACCP Average prior to HACCP

16. In a study done by Stefanie Böde and Loftur R Gissurarson on chemical analyses done on drinking water in Reykjavik from 1997-2002, the results were: Drinking water in Reykjavik fulfils the national as well as the European standards for the period 1997-2002. The concentration of chemicals reported in this paper are almost always very far below the limits. There are no trends to be found suggesting an increase in the chemical substances in the water. Results of chemical analyses

17. Sanitations (cleaning) schedule OR waterworks sanitary schedule is twofold. The first part involves cleaning tanks and pumping stations. The second part involves cleaning schedule while working in the distribution system.

18. Tanks: Once a year all pumping stations are washed and cleaned. Most tanks are emptied and cleaned every year, others are cleaned every two years. Only those chemicals are used that have been approved by the Icelandic Health Authorities for use in the food industry. Checklists are used when cleaning schedules are followed. Handheld computers are used now instead of paper forms, and the information collected into a database. Comments are made into projects. Water catchment areas: Water reservation areas are fenced off and guarded. Pests are removed, trails have been closed and cars that enter the area must have passed an emission and pollution test. Employees and contractors that have to enter the reservation area, receive a pollution protection kit and instructions to keep in the vehicles. Health: Employees that may get into direct contact with consumable water in their work, must have filled out a health status report. Cleaning tanks and pumping stations

19. Cleaning programme for working on water-pipes Laying pipes or lines: • All employees working in the field must have taken a course in HACCP. • While laying new pipes or conducting maintenance, check lists are filled out to prevent dirt getting into the distribution system. Stale water: • Where there is a risk of water becoming stale, such as in dead ends and pipe-lines to fire-hydrants, those dead ends are emptied twice a year. Design: • The design planning and input for water utilities and distribution systems have been defined. Following items are examples of the requirements: • A water-pipe should never be lower than a nearby sewage pipe if there is one. • The distribution system should whenever possible have the capacity of distributing water to a particular point from two directions • It is very important to prevent dead ends where microorganisms can thrive.

20. Check-lists for technicians

21. Cleaning items involve: Clean pipe before taking it apart. Close all open ends in absence of technicians. Stroke inside ends of pipes prior to connection Check for objects in ends prior to connection. Wash / flush out pipe prior to disconnection. Wash / flush out pipe following connection. Pressure test the pipe following repair. All check-lists are now electronic. Technicians collect them from SharePoint and fill out on their lap-tops in their cars, and return over the net for approval and further data insertion into the GIS system. Quality check-lists for technicians

22. Water protection in the capital area

23. Groundwater currents

24. Main water reservoir, roads and localities

25. Celebrating HACCP achievements

26. The cold drinking water is pumped to consumers from holes drilled into the ground, untreated and unsterilized. During heavy rain or when large quantities of snow melt the number of soil bacteria can exceed critical limits. So-called Rain and snow schedule kicks in and pumping is stopped in holes that are shallow and the ground water is close to the surface. In fact, some holes are closed during the period from October to March each year. A special technician supervises the water reservation area in Heiðmörk and he is in contact with the Health Authorities when needed. He escorts drivers of oil-carrying vehicles that have to enter the area.

27. How to react to contamination from pollutants • A contingency plan goes into effect in case of possible pollution • First response is to inform technicians at OR Emergency Room • They evaluate the response and, if need be, report and call for the fire department / police (through 112). • If there have been any damages, e.g. to properties, a report must be filed with the police. • The Emergency Room may have to confer with the chairman of the emergency control committee . • They may send a technician on-site who evaluates further the extent of pollution in cooperation with the fire department if they have been called to the scene. • The Emergency Room always calls for the fire department when pollution occurs in the water reservation area. • If the fire department has arrived on the scene they control proceedings and inform the relevant Health Authorities and/or the Environmental Agencies. • In case of an accident in the water reservation area: • Further damage must be prevented immediately by using the environment protection kit: Plastic box, leakage controllers and rugs, absorption materials and a shovel. • Get the damaged vehicle immediately out of the area with assistance if needed. • Inform the accident immediately to the appropriate Health Authorities. • Immediately clean up all chemicals that made contact with the soil.

28. The old version of our emergency plan

29. Corporate governanceOrkuveita Reykjavikur corporate governance involves putting quality first in all areas. Thank you