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2016 Annual Report Annual Report cover image: Gauge refl ection, by Howard Colvin, winner of the open category of the 'Waddamana in focus' photo competition this page: Low water level at Lake Gordon, photo courtesy of ABC News Directors’ statement To the Honourable Matthew Groom MP, Minister for Energy, in compliance with the requirements of the Government Business Enterprises Act 1995. In accordance with Section 55 of the Government Business Enterprises Act 1995, we hereby submit for your information and presentation to Parliament the report of the Hydro-Electric Corporation for the year ended 30 June 2016. The report has been prepared in accordance with the provisions of the Government Business Enterprises Act 1995. Grant Every-Burns Chairman, Hydro-Electric Corporation October 2016 Stephen Davy Director, Hydro-Electric Corporation October 2016 Hydro-Electric Corporation ABN 48 072 377 158 Our vision Australia’s leading clean energy business inspiring pride and building value for our owners, our customers and our people Our values We put people’s health and safety first We build value for our partners and customers through innovation and outstanding service We behave with honesty and integrity We work together, respect each other and value our diversity We are accountable for our actions We are committed to creating a sustainable future Contents Annual Report 2016 The year at a glance 2 About this report 4 Material issues 5 Statement of Corporate Intent 7 Message from the Board Chairman and Chief Executive Offi cer 11 Economic 15 Governance 17 Customers 22 Assets and water resources 28 Environment and heritage 34 Community 38 Our people 42 Financial report 47 Statistical summaries 116 Abbreviations and glossary 121 Global Reporting Index 123 Index 125 Hydro Tasmania Annual Report 2016 1 Entura’s Natalie Williams participating in the CSIRO’s Scientists and Mathematicians in Schools initiative (see page 40) The year at a glance Challenges Achievements Awards • Record-breaking low rainfall in • We delivered works to ensure the • Hydro Tasmania won the Corporate spring 2015 aff ected hydropower long-term sustainability of our Award in the Tasmanian Volunteering generation storages. generation assets, totalling $75 million Awards for the management and of capital expenditure. structure of our volunteering program, • The prolonged outage of the Basslink with participation by more than interconnector aff ected our ability • In August 2015, Entura’s Managing 25 per cent of employees. to import electricity for more than Director, Tammy Chu, was elected fi ve months. to the Board of the International • Hydro Tasmania’s Alan Evans was Hydropower Association. awarded Company Secretary of • Temporary diesel generation needed the Year in the Climate Alliance to be installed rapidly. • Our employees and stakeholders Leadership Awards for his leadership made remarkable eff orts to • Bushfi res interrupted the operation in addressing and mitigating the implement the Energy Supply Plan, challenges posed by climate change. and management of some of our including installing 220 MW of power generation assets. temporary diesel generation. • Hydro Tasmania won the Tasmanian project of the year in the Australian • High rainfall infl ows posed challenges • Momentum Energy continued to for managing our storages, and Institute of Project Management’s attract more gas and electricity category of Construction/Engineering fl ooding caused some damage to customers. our assets. for our Rowallan Dam refurbishment • We celebrated the centenary of our project. • We needed to keep the Tasmanian fi rst power station, Waddamana A. community and stakeholders • Hydro Tasmania’s Nicole Pace informed throughout Tasmania’s • Entura and Momentum Energy was awarded Vocational Student unprecedented energy supply achieved market-leading results for of the Year in the Tasmanian challenge. customer satisfaction. Training Awards. • Conditions in the National Electricity • Our Hybrid Off -grid Solutions team Market (NEM) were diffi cult in both started to deploy innovative and retail and wholesale energy. eff ective remote-area power projects to customers on Rottnest Island in Western Australia and Coober Pedy in South Australia. 2 Hydro Tasmania Annual Report 2016 Tasmania’s energy supply challenge 2015–16 Storages reach 29.1% at 30 June Heavy rainfall Storages at events Record dry cause 29.6% on spring starts 1 July flooding across Tasmania Major industrial load reduction; refilling storages allow full production to resume Record inflows start to refill Major storages industrial load reduction Storages fall below 13%, a record low 20 TOTAL ENERGY IN STORAGE %* ENERGY IN STORAGE TOTAL 10 JULY JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN Basslink returns to service and 0 exporting Temporary TVPS gas diesel turbines’ generation operations sites start reduced operating Tasmania Decision to return Basslink TVPS Trent gas turbine imports via the TVPS combined outage Temporary returns Basslink to cycle gas turbine starts diesel to service help meet to service generation demand turned o Planning for temporary diesel generation * Expressed as a percentage of the total begins Demobilisation of maximum amount of energy that our water temporary diesel storages could hold. The figure is not the same Cloud seeding generation as the level of water in our storages. begins begins TVPS combined cycle gas turbine is returned to service Hydro Tasmania Annual Report 2016 3 About this report Hydro Tasmania’s annual report integrates fi nancial, environmental and social performance. It covers the fi nancial year from 1 July 2015 to 30 June 2016. The report complies with the requirements of the Government Business Enterprises Act 1995 and the associated ‘Treasurer’s Instructions and Guidelines for Tasmanian Government Businesses’. We recognise that Hydro Tasmania belongs to the people of Tasmania, and our actions aff ect all Tasmanians. We have prepared this report for a primary audience of the Tasmanian public, to report on our performance across all areas of our business activity for the 2015–16 fi nancial year. Specifi c stakeholder groups—those interested Refl ections on yingina / Great Lake in our organisation and this report—are listed on page 41. across a range of economic, social and Measuring environmental sustainability topics sustainability including some specifi c to electricity Our sustainability utilities. GRI is a non-profi t organisation, vision performance founded by the United Nations Environment Program and The Investors Hydro Tasmania is Australia’s leading Key issues of 2015–16 and Environmentalists for Sustainable clean energy business. We are committed Prosperity. GRI off ers a high level of The content of Hydro Tasmania’s annual to balancing social, environmental and transparency, enabling readers of our report is determined by our reporting economic considerations to ensure the annual report to track our performance compliance requirements and by a set resilience of our business and the State from year to year and to compare our of key factors and concerns identifi ed of Tasmania. Our commitment is drawn performance with other companies through 2015–16, both positive from our values and our Sustainability that have adopted the same indicators. and negative, that we call ‘material Code, and frames business activities, GRI guidelines are regularly reviewed issues’. These signifi cant issues are policies and procedures. The structure of to ensure they remain relevant to determined from the input of external the annual report aligns with the seven changes in sustainability management. stakeholders and from opinions within principles of our Sustainability Code. Another benefi t of GRI is the possibility Hydro Tasmania. External stakeholder of including third-party validation or We believe that delivering on our seven perspectives are gathered from assurance. sustainability principles will allow our customer surveys, media monitoring, business and our communities to prosper community surveys and Tasmanian Hydro Tasmania has assessed that this in a changing world. parliamentary committee hearings report conforms to the ‘in accordance’ on government business enterprises. In 2015–16 Hydro Tasmania reviewed core level of GRI reporting. See the full Hydro Tasmania’s people identify issues and updated our Sustainability Code; we GRI index on pages 123–4. through executive interviews, and from have also approved and implemented a risk-management plans and operational Code of Ethical Behaviour. We regularly plans. We determine the priority of issues Assurance review these commitments and we by assessing how frequently they are External assurance provides valuable ensure that they are communicated raised and how signifi cant they are to feedback for improving Hydro Tasmania’s to all our employees and stakeholders. stakeholders. Our ‘material issues’ are All employees are required to formally business performance, processes and listed on page 5. acknowledge their understanding and systems, and provides greater confi dence compliance with these codes after for our readers that our reporting is completing a formal induction process, Why we use the Global accurate, transparent and balanced. in addition to ongoing training. (These Reporting Initiative Hydro Tasmania engaged KPMG to statements GRI indicator G4-56 and have sustainability indicators assure this report against the widely been assured by KPMG) used standard Assurance Engagements Hydro Tasmania has chosen to use the Other than Audits or Reviews
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