ANNUAL REPORT 2019-20 Energy is committed to connecting respectfully with Queensland’s Aboriginal and Torres Strait Islander peoples and communities. We acknowledge Aboriginal and Torres Strait Islander people as the First Nations people of and the Traditional Custodians of this land and its waters. We pay our respects to Elders past, present and future for they hold the memories, the traditions, the culture and knowledge of Aboriginal Australia.

Consider the environment before printing. As a community we faced the coronavirus threat head on and are now rising slowly from the far-reaching impact it’s had on our lives and on the economy. We knew we had an important role to play, being an essential service provider, to help those facing sudden financial hardship. While protecting the health, safety and wellbeing of the community and our people, we also had to continue delivering a reliable electricity supply across Queensland. The success of our response to this challenge built on what we’d already achieved during the year. We’ve continued to bring down what we charge for the use of our networks, and improve the service experience for our customers, as well as move to become more digitally enabled. We’re helping more people to benefit from solar energy. And supporting advances in energy storage, electric vehicles and other emerging smart technologies that will transition Queensland to a low carbon future. We’re empowering our people to lead the way. Our aim is to be a trusted partner, providing energy solutions that are affordable, reliable, and personalised. Our ‘electric life’ ambition is a transformational journey, towards an energy future that unites and serves all Queenslanders.

Energy Queensland's Annual Report 2019-20 3 Contents

About us 5 The year in a snapshot 7 Chairman and CEO’s message 9 Our performance report 12

Our customers 13 Customers are at the centre of everything we do. Our focus is delivering value both today and into the future.

Our communities 21 We are part of our communities – there keeping the lights on 24 hours a day, and working collaboratively to create benefits for all as the energy sector transforms.

Our people 34 Our priority is the safety of our people, then on embedding a people-centred culture to enable our people to thrive today, and to transition to a technology-driven future. About this report

As our key stakeholder report, Energy Queensland’s Annual Report covers our key sustainability impact areas – highlighting our economic, social, environmental and Our environment 41 governance contribution. We’re supporting the transition to a low carbon future and are committed to minimising our environmental impacts. This report covers the Energy Queensland Group’s (the Group’s) overall performance from July 2019 to June 2020, meeting best practice reporting standards with guidance from the Global Reporting Initiative and the International Integrated Reporting Framework, as well Our economic value 48 as our legislative requirements. We’re delivering economic value to the people of Queensland, through lower It covers Limited, Corporation prices and our financial returns to the . Limited, Ergon Energy Queensland Pty Ltd and Yurika Pty Ltd Limited. Commentary is also provided on the Group’s other subsidiary companies.

This and earlier Annual Reports are on our website at Corporate governance statement 51 www.energyq.com.au/annualreport Glossary and common industry measures 61 We welcome feedback to help us improve our reporting. Energy Queensland Limited Annual Financial Statements 62 Comments and requests for hard copies can be directed to [email protected]

4 Energy Queensland's Annual Report 2019-20 About us

Energy Queensland is Queensland’s 100% owned group of electricity distribution, retail and services businesses.

As a Government Owned Corporation, we deliver electricity across Queensland through our ‘poles and wires’ businesses Energex and Ergon Energy Network. Our retailer, Ergon Energy Retail sells this electricity to customers throughout EnebAQueensland regional Queensland.

These essential service activities are also supported by a range of innovative products and services delivered through Yurika and our other market brands.

The Group, formed in June 2016, energises Queensland communities from Tweed River to Torres Strait and from across to Birdsville. We also deliver services across Australia.

Our vision Our purpose To safely deliver secure, affordable and sustainable energy solutions We energise Queensland communities. with our communities and customers.

Our statistics

• 7,570 Employees • 35,000GWh electricity delivered annually

• 458 Total apprentices • 178,000km Overhead powerlines

• 3 Customer solutions centres • 1.7 million Power poles

• 3 Network control centres • 33 Standalone power stations

• 29,000km Underground power cable • 37 Total large-scale solar renewables connected

• 763,000 Regional retail customers • 617,000 Small-scale solar energy systems connected

• 2.3 million Connected customers • 10,800km Owned and operated fibre optic cable

Energy Queensland's Annual Report 2019-20 5 Our core service area Boigu Is. Saibai Is. Dauan Is. Our 17 service areas with 127 depots and offices ensure we are well placed to Ugar, Stephens Is. Erub, Darnley Is. Masig, Yorke Is. energise communities across Queensland. Mabuiag Is. Iama, Yam Is. Mer, Murray Is. 1 Far North 6 Central West 11 South West 16 Ipswich Lockyer Badu, Is. Warraber, Is. Poruma, Coconut Is. 2 Tropical Coast 7 Capricornia 12 Sunshine Coast 17 Gold Coast Kubin, St Pauls, Moa Is. Kiriri, Hammond Is. 3 Herbert 8 Bundaberg Burnett 13 Brisbane North Ngurupai, Wasaga, Horn Is. Waiben, 4 Flinders 9 Fraser Burnett 14 Brisbane Central Thursday Is. 5 Pioneer 10 Darling Downs 15 Brisbane South TORRES STRAIT Seisia New Mapoon Bamaga Regional network - Ergon Energy Network Injinoo Isolated supply - Ergon Energy Network Umagico Ergon Energy Retail Our 17 service areas South East Network - Energex 1 Far North Depot locations 2 Tropical Coast

Bamaga 3 Herbert 4 Flinders 5 PioneerGympie Mapoon 6 Central West Cooroy Napranum Lockhart River Yandina• •------. Aurukun 12 Maroochydore • Coen Landsborough

Pormpuraaw SOUTH Caboolture

Kowanyama Cooktown EAST 13 Esk Geebung Stafford Brisbane Greenslopes Mossman Oxley Cleveland Gununa, Mornington Is. 1 Gatton 14 0 Cairns Raceview Mareeba 2 Berrinba Stapylton Burketown Atherton Normanton Innisfail 16 15 Doomadgee Ravenshoe Tully Southport Georgetown • Boonah Beaudesert Ingham 3 QUEENSLAND Burleigh 17

Townsville Magnetic Is. Home Hill Camooweal Bowen Julia Creek Charters Towers NEW SOUTH WALES Mt Isa Cloncurry • Richmond • • • • Hughenden Proserpine Pinnacle Mackay 5 NORTHERN 04 Sarina Moranbah Winton • Clermont Boulia 7 • Middlemount Yeppoon Rockhampton Longreach Barcaldine SOUTHERN • Emerald Blackwater 06 • • Gladstone 8 Springsure Bedourie • Biloela Miriam Vale • Blackall Jundah Moura • Monto Bundaberg • Gin Gin Theodore Childers Windorah Biggenden Hervey Bay • Maryborough Mundubbera Gayndah Birdsville 9 Kilkivan Quilpie • Charleville Wandoan • • Kingaroy Murgon Roma • Chinchilla Yarraman

Tara Dalby 11 • 0 Brisbane Cunnamulla St George Millmerran • • Warwick Stanthorpe 10

6 Energy Queensland's Annual Report 2019-20 The year in a snapshot

Our customers

Bringing network Fast tracked COVID-19 Customer Enablement charges down relief package Index 6.9 Our Revised Regulatory Proposals included Disconnections were stopped and within Target ≥5.6 out of 10* – employee significant reductions in our revenue weeks we had credited customers the perceptions of how well we are delivering requirements, now flowing on to savings in Queensland Government’s $200 residential for our customers are up 10% from 6.2 in retail prices. and $500 small business bill relief payments. 2018-19.

260,000 using My Account Customer Index 7.1 With advancements in the functionality, more and more customers Target ≥6.7 out of 10 – steady improvements across our service touch are taking advantage of Ergon Retail’s self-service portal for easy points has seen a notable uplift in customer satisfaction over the last 12 access to their billing and energy information. months – from 6.7 in 2018-19.

Our community

Our community disaster 10 of 12 reliability targets met $1.1 billion investment response proved invaluable Result 83%: Target 100%* – planned outages in critical community during bushfres, storms associated with an increase in safety-driven infrastructure works on ageing sections of the network and COVID-19 has impacted the duration of outages across Result 86%: Target ≥90%* – with the Queensland’s traditional disaster period regional Queensland. COVID-19 restrictions the program was revised started early with bushfires, then storms, and to ensure critical programs and commissioned Satisfaction with reliability of supply overall later the challenges around the safety and projects were delivered. benchmarked, above the national average at restrictions associated with the coronavirus 76%. pandemic.

323 community electrical Help for those in hardship Supported 600 safety incidents Engagement with our customers, online access community groups While down 24% from 425 in 2018-19, this to rebates, and support at the first point of Through our Community Fund, sponsorship and will continue to drive our investment in building contact were all part of delivering on our volunteering, we supported groups from the SES community awareness about the dangers commitments in our Financial Inclusion Action to the Home Hill Choral Society. inherent in powerlines and other electricity Plan – helping to bring disconnection for non- Our employee volunteering, at 5,840 hours, was infrastructure. payment down by 12%. up 25%.

Energy Queensland's Annual Report 2019-20 7 Our people

2.3 Signifcant Incident 8.2 Total Recordable Injury 2.3 Lost Time Injury Frequency Rate Frequency Rate Frequency Rate Target ≤3.1 – this result is a notable Target ≤8.9* – we also outperformed the Target ≤2.0* – Unfortunately, the lost time improvement, following our safety leadership target set for total injuries for employees and injury measure fell short of target. Safety program and focus on learning reviews. contractors. continues to be a priority.

73% employee engagement 127 new apprentices Target ≥69%* – employee engagement increased significantly from a Increased the pipeline of future talent through our apprentice intake, score of 62% last year, far exceeding our target, and in the top quartile of which included 32 females and 13 First Nations people, and our graduate high performing organisations. program.

Our environment

1,000GWh roof top solar shared Gaining visibility of the solar Closer to being asbestos free In regional Queensland, $36 million was energy on our networks by 2030 credited to customers through Ergon Retail’s Tested an innovative state estimation capability Asbestos-containing materials, waste and feed-in-tariff, and $241 million as part of to provide an immediate forecast of the load soil have been removed from 87 substations the Queensland Government’s Solar Bonus on the local network at any point in time, and commercial sites, 27 depots, 23 owned Scheme. This was on top of 444GWh in critical to supporting solar connecting into our residences, and two vacant land sites. renewable energy power purchase agreements. networks in the future.

Our economic value

$643 million in $1,915 million $483 million Net Proft 5.8% Return on merger savings expenditure After Tax Capital Employed Multi-year target $562 million Target ≤$1,630 million* Target ≤$506.9 million* – this Target ≥6.0* – this result, – as a Group, we have achieved result was impacted by, among while down as expected on Expenditure levels for our core, merger savings substantially other things, increased COVID-19 previous years, is in line with Standard Control Services, was more than the original objective, related expenses and unrealised expectations, given the efficiencies maintained at levels consistent placing us well for the reduction losses from a decrease in forward and ultimately the profit result with 2018-19. in future revenues. electricity prices. achieved.

* Part of our formal performance agreement with our shareholding Minsters, set through our Statement of Corporate Intent.

8 Energy Queensland's Annual Report 2019-20 Chairman and CEO’s message This report covers We’d both like to personally thank From a workforce perspective, our We are committed to enabling Peter Scott, who led the Group as level of significant injuries dropped the transition of the Queensland Energy Queensland’s acting Chief Executive Officer for a by more than one third, showing electricity industry to a lower performance for our large part of 2019-20. He ensured that our investment in safety carbon future, including proactively a strong COVID-19 response leadership and processes is starting lowering our own carbon footprint fourth year as a Group, while overseeing the delivery of to pay real dividends. This will by reducing our controllable in what has been a a significant program of work remain a key focus. greenhouse gas emissions. challenging year for including the regulatory process for determination of the future revenue Enhancing the customer Sustainable business the whole community. for our electricity distribution experience efficiencies businesses. We have delivered good Our focus on efficiency and results across our key customer effectiveness has delivered $643 Bringing power prices performance indicators – exceeding million in savings to Queenslanders. down targets for both our Customer This is substantially more than We began the revenue Index, which measures customer the original target established determination process in 2018 experience, and our Customer as a key objective of the merger with a commitment to taking the Enablement Index, which measures of Ergon Energy, Energex and pressure off electricity prices, and how well our employees feel we’re SPARQ Solutions in 2016 by the continuing to drive down the cost meeting our customer needs. Queensland Government. Moving of distributing electricity across forward, our focus on sustainable With more work still to be done, Queensland, while ensuring we efficiencies remains. these improvements have come could deliver into the future. with advancements across both This year Energy Queensland As a result, we can report that all our Retail and Network online accelerated its digital capability to residential consumers are now customer portals, which are making ensure we can continue to enable saving on average about $73 per it easier for customers to engage our employees and deliver for our year on their power bill, and small with us, as well as success in the customers and communities in the business customers about $82, delivery of products and services to highly challenging and uncertain through the network component existing and new markets. We’ve environment. This journey will of the bill. While the new regulated also focused our organisation’s continue as we seek to be smarter revenue allowances will create culture on customers with new in how we operate, prioritise ongoing challenges for us, this is a tools and measures, improved where we invest, and continue to good outcome for customers. our internal customer advocacy, evolve how we interact with our and developed a shared-language customers. Safety remains our priority around our customers’ diverse The safety of our people, customers needs. A bright future – and communities always remains an electric life our priority. Enabling energy transition We thank our many stakeholders The energy industry is undergoing for their support as we navigate a This year safety was at the centre rapid technological change. To way forward. of our response to the COVID-19 respond we are transforming pandemic, from the logistics to Thanks also need to go to our our networks into an intelligent minimise potential exposure employees. Any business is only state-wide grid, with a focus on for our workforce and all of our as strong as the commitment of ensuring that our customers can communities, to the leadership their people. This year we saw our benefit from the growing take-up around mental health during these employee engagement move into of alternative energy solutions and uncertain times. the top quartile of high performing other emerging technologies. organisations. This places us well in To address asset safety and We’ve made advances in using the changing marketplace. Phil Garling reliability issues, we continued data to give us visibility of the solar Chairman to invest in older sections of our We see our role as energising our energy on our networks at any networks, especially in regional communities, bringing prosperity to point in time and delivered a range Queensland. This work on asset Queensland and empowering our of community-scale renewable and renewal will continue. customers and their choices around energy storage system projects. Rod Duke electricity usage. Chief Executive Officer

Energy Queensland's Annual Report 2019-20 9 What matters most

We are a customer Best practice engagement This has allowed us to again focus 2020 - refreshed priorities this report on the most material and community- We are committed to best-practice This year we have continued with engagement, as the first step to economic, social, environmental the same top 20 topics, however, centric organisation, delivering sustainably and meeting and governance topics. For Energy we have refreshed the rankings focused on delivering our corporate responsibility. Queensland, an issue is considered to remain in tune with our material if it is important to stakeholders’ expectations and the The electricity industry is a complex sustainable energy stakeholders and can enable or shifting operating environment. solutions for and challenging environment with prevent the Group from achieving a diverse range of stakeholders its purpose and/or medium to long- We took survey responses Queensland. both across our service area within term objectives. from customer representatives, Queensland, and nationally. community stakeholders and Our top 20 priority topics senior leaders in our business, Our stakeholders are the many Our material topics were along with discussions with our individuals, groups or organisations generated, with the assistance of Customer Council, and internally, we have service obligations to, who an independent external specialist, to reprioritise the 20 topics (the could potentially be impacted by from a comprehensive review of y-axis in matrix p11). This was our operations, or could support or the customer and other stakeholder then, once again, reviewed by our affect our ability as a business to insights gained through our Executive Committee to test their deliver for our customers. engagement/research programs thinking around each topic and Our stakeholder groups are: and an analysis of industry trends. their potential business impact (the x-axis). • Government The initial topics were refined and prioritised through external and • Industry regulators The topic that rose most notably in internal engagement, based on stakeholder importance this year in • End-user customers their level of importance to our the survey results was ‘Transition • Community stakeholders different stakeholder groups, and to a Low Carbon Economy’, their potential business impact. This • Industry partners reflecting the interest in renewables produced the final list of our top 20 • Our people. and growing concerns around priority topics published last year. climate change. We also choose We operate a coordinated program Following last year’s Annual to escalate the topics ‘Energy of engagement activities with our Report, to inform our strategic and Inclusion and Vulnerability’ and community stakeholders, end- operational discussions, further ‘Economic Development and Jobs’ user customers and our industry work was undertaken to map the in importance by an additional partners (who help service our Group’s performance against our half a point in recognition of the customers). We also engage with a stakeholders’ expectations around fact that the scale of the impact range of government stakeholders these topics. of the COVID-19 restrictions on and industry regulators. Queensland was still becoming We recognise that working The Energy Charter apparent at the time of this year’s Our principles for review, and later stakeholder engagement openly and collaboratively with This work was aligned with the our stakeholders increases our maturity self-assessment undertaken sentiment. We’re committed to ensuring: collective knowledge and improves for the first time this year as part Review and reporting • We’re accessible and inclusive in decision-making as a business and of our commitment to the Energy engaging, interested or impacted a society. It is also key to building Charter. The topics are shown here, with stakeholders our social and relationship capital, their rating for importance to reputation, and in turn, supporting Energy Queensland is one of 21 stakeholders and potential impact • Our communications are our licence to operate and grow. signatories from across the industry on our business. The challenges easily understood, timely and to the Energy Charter, which was and our response to these topics appropriate Our sustainability topics launched in early 2019 with a vision are addressed throughout this to ‘Together, deliver energy for a • Open transparency in our This year we reviewed the material report with performance outcomes better Australia’. Since then we have decision making processes and sustainability topics identified provided where appropriate. been at the forefront of developing outcomes in 2019 to ensure we were the Charter and encouraging • Our engagement is responsive appropriately articulating and collaboration across the energy and improves with feedback and continuing to prioritise the issues supply chain through its numerous measurement. that matter most to our many Better Together initiatives (p15). stakeholders.

10 Energy Queensland's Annual Report 2019-20 Most material topics

• HIGH IMPORTANCE • IMPORTANCE TO STAKEHOLDER To remainrelevant, themarket expectsapositivecustomerservice CUSTOMER SERVICE EXPERIENCE There isasignificantneedtoengage meaningfully, buildtrust, report TRUST ANDTRANSPARENCY Queensland’s exposuretonatural disastersandotherrisks(inclCOVID-19) DISASTER RESPONSE Community safety, aroundthemanyfacetsofelectricitysupply, andour HEALTH,SAFETY ANDWELLBEING As anessentialpartofmodernlife, affordableenergy, choiceandcontrol, ENERGY AFFORDABILITY ANDVALUE must beeasyandgenerate long-termvalue forcustomers. experience, howandwhenthecustomer wants toengage. The experience industry transforms. licence, through ‘doing therightthing’, willbecriticalas the energy transparently, beaccountableanddeliveronpromises. A strongsocial those mostvulnerable. response toensurecommunityresilienceandenablerecovery, andprotect requires ahighlevelofemergencypreparednessandelectricity-related resilience andproductivity). as itistothewidercommunity, andtoourbusiness(engagement, workplace health, safetyandwellbeingisascriticalatthepersonallevel competitiveness perspective. and asenseofvalue, isimportantfrombothacostoflivingandbusiness TRANSPARENCY VULNERABILITY INCLUSION AND ENERGY

TRUST AND IN TECHNOLOGY ADVANCEMENT

DEVELOPMENT AND JOBS DEVELOPMENT AND ECONOMIC

CARBON ENERGY LOWTRANITION TO

RELIABILITY OFSUPPLY SECURITY AND BUSINESS IMPACT EXPERIENCE CUSTOMER SERVICE

Energy Queensland's AnnualReport 2019-20

AFFORDABILITY

AND VALUE ENERGY

RESPONSE DISASTER

• Queensland. innovative solutionsandtobeeffectivelymanageddeliverfor sector works. The transition todecentralised energyresourcesneeds Digital andenergytechnologychangeis disrupting theway theenergy benefits. and future-focusedskillsdevelopment, andotherflowoncommunity central tosustainableeconomies. We alsocontributejobs, andtraditional Access tocompetitivelypricednetworkconnectionsandelectricitytariffsis energy literacy educationand ‘bill’ assistance. safety andothersocialimpacts. They requireaffordableelectricitytariffs, Many liveinvulnerable circumstancesandface ‘energy poverty’withhealth, renewable energy. investment, productsandservicesarerequiredtosupportanincreasein Queensland istransitioning toalowemissionsenergyfuture–advocacy, energy ecosystemiscritical. potential tocausemajoreconomicandsocialimpacts–awell-managed With theincreasingdependencyonelectricity, poweroutageshavethe ADVANCEMENTIN TECHNOLOGY ECONOMIC DEVELOPMENT AND JOBS INCLUSION ANDVULNERABILITY ENERGY TRANSITION TO LOW CARBONENERGY SECURITY AND RELIABILITYOFSUPPLY AND WELLBEING HEALTH, SAFETY

HIGH IMPACT

Data Access, Privacy andSecurity Asset CapacityUtilisation Government RevenueandSubsidies Diversity andInclusion Evolving ProductsandServices Effective BusinessOperations Environmental Leadership Workplace Cultureand Talent Market TransformationEnergy Compliance Corporate Governanceand Other materialtopics

11

Our performance report

12 Energy Queensland's Annual Report 2019-20 Our customers

We are committed to putting customers at the centre of everything we do, and to delivering affordable, sustainable energy solutions. With 2.3 million network connections and more than 763,000 retail customers across Queensland, we are committed to improving our customer’s service experience today and to meeting their needs into the future.

Customers in brief

Fast tracked COVID-19 Bringing network New EV Home Charging Customer Enablement relief package charges down Plan launched Index 6.9 Disconnections were stopped Our Revised Regulatory Plan launched to let electric Target ≥5.6 out of 10* – and, within weeks we had Proposals included significant vehicle (EV) owners take employee perceptions of how credited customers, the reductions in our revenue advantage of lower rates by well we are delivering for our Queensland Government’s $200 requirements, now flowing on to charging when the network is not customers are up 10% from 6.2 residential and $500 small savings in retail prices. in peak use. in 2018-19. business bill relief payments.

260,000 using My Account Customer Experience Customer Index 7.1 With advancements in the functionality, more Excellence Award Target ≥6.7* – steady improvements across and more customers are taking advantage Award received for the innovative use of our service touch points has seen a notable of Ergon Retail’s self-service portal for easy analytics to target customer experience uplift in customer satisfaction over the last 12 access to their billing and energy information. improvements. months from 6.7 in 2018-19.

38,000 self-read meters Triple zero beneftting from With 2,000 signing up each month, more and more customers are telecommunications capability taking advantage of our network businesses’ online service portal, for Nexium is connecting 1,200 police, fire, ambulance, and other self-reading the meter (an easy solution for all for homes with a dog in government facilities Queensland-wide as part of an $8 million the yard), for SMS or notifications of outages, and other services. package of network data services, with a 24-hour critical response capability.

* Part of our formal performance agreement with our shareholding Minsters, set through our Statement of Corporate Intent.

Energy Queensland's Annual Report 2019-20 13 Energy prices and afordability

We understand that Fast tracking COVID-19 financial relief energy prices and Our residential customers in regional Queensland are saving With the rapid escalation of about $84 off their annual electricity bill. affordability continue the COVID-19 impacts, and the to be an issue for difficult financial position many Queenslanders quickly found energy technologies. our customers (p11). themselves in, we knew, as developing our plans was that we would look, wherever possible, to We track price an essential service, electricity The updated approach in these help take the pressure off electricity affordability was going to again proposals, from our initial thinking and affordability prices, and continue to drive become a major issue. in January 2019, was informed down the cost of distributing the perceptions, and while by the extensive stakeholder We fast-tracked our support electricity across Queensland. engagement, as well as customer we were encouraged response for our customers and impacts modelling. The reforms are communities as the restrictions were Our Revised Regulatory Proposals, by progress this year aimed at delivering affordability, coming into force, in parallel with which we submitted in December simplicity, choice and predictability prior to the economic our own operational response (p23). 2019 as the final step in this for our customers, while at the same impact of COVID-19 With the Queensland Government’s process, proposed a reduction in time managing potential customer support, Ergon Retail moved our revenue requirement of 19.3% – with bill concern price impacts in the transition to quickly to stop disconnections (real) for Energex and 13.6% (real) cost reflective network tariffs and dropping over the past for non-payment. Then, within for Ergon Network in 2020-21; the energy market transition. weeks, we had credited electricity with our network tariff proposals three years since the designed to share the benefits of accounts with the Queensland While COVID-19 impacts have spike (with 42% of our these reductions equitably across Government’s Utility Bill Relief delayed the introduction of some of our customers. residential customers Assistance package, a $200 relief these reforms until 2021, the AER largely unconcerned) – payment for households, and The final determinations by the have approved mandatory network $500 for small business across AER in June 2020, in line with our demand tariffs for both residential electricity bills remain regional Queensland. The household overarching pricing goal, delivered and small business customers with the top household payment included the Queensland the average residential customers digital meters, using transitional Government’s second asset and small business customers rates to manage the move to cost cost concern among ownership dividend of $50. This in a reflective tariffs. regional Queensland was in addition to the pre-existing reduction in distribution network Other reforms include discounted 1 rebates many customers are already costs of $73 and $82 in 2020-21 households. daytime energy rates, and entitled to. respectively, followed by small shortening the peak charge increases in the following years.2 Additional financial support was, window to 4pm to 9 pm. We also These savings will also flow and continues to be, provided to flagged our intention to trial new on to regional Queenslanders those in need through our hardship capacity tariff options during 2021- through the Uniform Tariff Policy program (p31). 25, for potential implementation (p15) and together with similar beyond 2025. Network rates are Ergon Network savings support Reducing charges for our based on distribution charges, price relief to customers in the networks transmission charges and competitive retail market. As network businesses, to support jurisdictional scheme costs. the Australian Energy Regulator Network tariff reforms (AER) in setting what we are Retail prices to cater for emerging allowed to charge for the use come down again technologies of our networks from July 2020 In line with the reduction in In parallel with our Revised onwards, we have been going network charges achieved, and Regulatory Proposals, we submitted 1 Queensland Household Energy Survey through a multi-year process, improvements to the wholesale Revised Tariff Structure Statements 2019. Question. Indicate on the scale developing and revising our cost of energy, Ergon Retail (0-10), how concerned are you about your to the AER outlining network network strategies and investment customers will see regulated prices ability to pay your electricity bill? (% based tariff reforms for 2020-25, which on 0-5). Note, survey responses were from plans for 2020-25 and submitting continuing to fall for 2020-21, transition our current network November 2019. them to the AER as Regulatory a downward trend that has 2 tariffs to new tariffs that better Source: AER Energex – Determination Proposals for review. continued for the past three years. 2020-25 https://www.aer.gov.au/ reflect the cost of supplying power, The typical customer on the main networks-pipelines/determinations- One of our primary commitments to when it is used, and cater for the access-arrangements/energex- residential tariff (Tariff 11) will determination-2020-25/final-decision our customers and stakeholders in anticipated take up of emerging

14 Energy Queensland's Annual Report 2019-20 Bringing electricity distribution charges down

90,000 We are continuing to bring down what we charge for the 60,000 ·--•--•­-•-- use of the state’s electricity distribution networks, with • • • further savings for customers as 30,000 we move into the next five-year regulatory period. This is the 0 AER’s graph of the indicative

S/MWh (2019-20) S/MWh distribution price path for Energex’s network. 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 -•- Actual Revised proposal Final decision Source: AER see a retail bill saving of 5.9% or EVs for environmental purposes, through market research, as well outcomes for our customers. Our around $84 off their annual bill. The the option to add clean energy for as other attributes, we are now second disclosure report has typical customer on the main small a small monthly fee. With most much better placed to collectively been presented to the Charter’s business tariff (Tariff 20) will see EV owners charging their vehicles understand what drives customers’ Independent Accountability Panel, a saving of 3.2%, or $75 off the at home it makes sense, as a first decision making and behaviours, highlighting our progress against annual bill.3 step in our reform journey, and is and where there may be gaps in the Charter’s Principles, and another way we can support a low our current product and services. detailing our response to previous The regulated tariffs offered across carbon energy future (p42). The 16 end-user customers profiles recommendations from the Panel. regional Queensland by Ergon describe each segment’s energy Retail are set by the Queensland Following an earlier Agricultural needs, communication preferences, Strengthening our Competition Authority (QCA) in line Tariff Trial, which found 75% pain points, and their propensity to customer mindset with the Queensland Government’s of small farming customers on adopt new technologies. Pleasingly, this year, we realised a Uniform Tariff Policy. This policy transitional tariffs could be better 10% improvement in our Customer provides that, wherever possible, off on cost reflective tariffs, further To support the roadmap, the Enablement Index compared to last customers of the same class should work was done to develop options leadership of the Group’s customer year, exceeding our stretch target of pay no more for their electricity, for the agricultural sector. The and community strategies was 5.7, with a score of 6.9 compared and should pay for their electricity additional collaboration, the Tariff elevated to a dedicated position to 6.2 in 2018-19. The survey via similar price structures, Initiative for Irrigators, together on our Executive Committee measures employee perceptions regardless of their geographic with the first trial, helped inform (p55) by the Board at the start on how well we are delivering for location. The policy reduces the our final network tariff reform of the financial year. This led our customers. In addition to the prices customers pay in the eastern proposals. This led to three new to a refinement of the Group’s strength of the result, the survey zone of regional Queensland by controlled load network tariffs customer advocacy framework – uncovered valuable ideas from our around 10% compared to the cost being approved by the AER for reinforcing our priority on listening employees on how we can continue of supply, and by around 50% for 2020 to 2025, that can now be to our customers’ voice through to improve customer outcomes. those in the western zone.3 The cost incorporated into retail tariffs. our feedback channels and difference is met by the Queensland engagement forums, measuring To us a customer mindset is Government’s Community Service Putting customers performance (see Scorecard p18), about having empathy, humility, Obligation (CSO) (p50). at the centre and acting collaboratively to urgency and curiosity. To embed We have continued along a improve customer outcomes. this thinking, a part of our culture, New retail tariff options Customer Experience Roadmap Energex and Ergon Network make sense with a range of initiatives Driving for better together rolled out a new customer As well as price relief, we are also progressed to ensure the customer customer outcomes experience training program to continuing to progress new retail is always at the centre of our Our Customer Council, as our frontline employees, tailored for tariff offers. decision-making. umbrella external engagement different areas of the business forum, remained central to testing and the customers they serve. Ergon Retail’s first Electric Vehicle A highlight was the development our thinking around our customers’ Ergon Retail also continued to (EV) Home Charging Plan was of a new needs-based customer needs and expectations. We also, deliver its program of customer- launched, based on our controlled segmentation framework that is this year, hosted a range of other centred training. We continue to load tariff (based on Tariff 33). This now providing the Group with a customer representative forums. incorporate the customer into our lets customers take advantage of shared language to work more cultural journey (p32). lower rates by charging their cars collaboratively to deliver for We continued to collaborate when the network is not in peak our customers. By mapping our industry-wide through the Energy 3 Source: QCA Regulated electricity prices use. It gives the customer the residential and business customers Charter (p10), and through for regional Queensland 2020–21 https:// www.qca.org.au/project/customers/ option to track their EV charging under the macro-needs, connection, other memberships, to drive electricity-prices/regulated-electricity-prices- costs and, for those who are buying control and progression, identified a range of ‘better together’ for-regional-qld-2020-21/

Energy Queensland's Annual Report 2019-20 15 Ergon Energy Retail – simpler, easier, better

Ergon Retail continued Empowering our These online, self-serve options are EasyPay with greater not only benefiting our customers to make things simpler, customers online flexibility The transformation of My Account, using them, they are also freeing easier and better for up service representatives to help In July 2019 we updated our promotion, and the COVID-19 EasyPay Rewards offer with led community-wide interest those needing to talk in person. its customers across We’ve also made improvements, greater payment flexibility. This in all things ‘online’ during the offer, as part of the Queensland regional Queensland restrictions, has seen the number following insights from our new voice analytics technology, with Government’s Affordable Energy with a range of of customers logging on to take Plan, with bill smoothing across advantage of the self-service portal our call handling processes and customer experience systems no longer requiring us the year making budgeting easy, jump from less than 100,000 to and e-billing taking the hassle improvements. 260,000 customers this year. This is to ask customers to verify their personal data multiple times. out of paying a bill. This year, we now well over a third of our retail concluded the reward payments customer base. Ergon Retail received the NICE CX Excellence Awards’ Innovation and to the customers who took up the With ongoing advancements in Exceptional Service Award for this offer, crediting the final $75 annual functionality, the portal is now initiative. payment to residential customers providing a seamless and intuitive and the $120 to the business experience for both residential and Savvy, smart meters key to customers. smart energy use business customers, with over 57% This was just one of the of users surveyed saying it ‘saved To support the digital-energy Queensland Government’s support them a phone call’. transition, Ergon Retail rolled out initiatives. In addition to funding more than 73,000 digital meters Through My Account, customers our COVID-19-related support during 2019-20. This takes the total can see their account balance, view efforts and the asset ownership number of digital meters across and pay bills, source their account dividend (p14), we also continued our regional Queensland customer- history, apply for rebates and even to connect customers to the base to over 137,000, allowing make arrangements when moving government’s drought relief for customers to access the tools to house. And from within My Account, farmers and a range of other help manage home energy use, the Energy Analysis tool can be rebates (p31). and the benefits of remote meter accessed with a single log in. reading. Moving to the latest in online We also continued to embrace cloud technology this year, the technologies with the extension of Energy Analysis tool is allowing the Energy Savvy Families program our business customers to get the to give customers greater choice information they need to manage and control around their energy their energy use. They can explore use. Eligible participants received a their energy usage and costs over digital meter, monthly billing, and time with interactive charts and the HomeSmart Savvy electricity are even able, with a smart meter, and budget management tool from to better understand the ‘demand’ Ergon Retail. Participants were also they place on the network. And provided opportunity to take part it provides a tariff comparison to in CitySmart’s fun, interactive game makes it easy for a customer to find – Reduce Your Juice – designed to out if they are on the best available build energy literacy. energy offer. Energy efficiency is just one way to a cleaner future, we also showcase Ergon Retail’s solar story on page 42.

16 Energy Queensland's Annual Report 2019-20 A strong service focus for our networks

We are using insights New dynamic solutions New solar connections up improve communications from our customers 70,000 As part of our commitment to and stakeholders to continuous improvement, we introduced a range of new service target improvements 67,594 options through our online across the Network Customer Self Service portal. 52,763 customer experience. Through this 24/7 self-service 35,000 channel customers can interact with

us when and how they want to. 37,437 30,919

Customers can now perform 27,368 self-meter reads and report faulty 0 streetlights, power outages, trees growing in powerlines and graffiti 2019-20 or vandalism occurring in their area. 2015-16 2016-17 2017-18 2018-19 They can also see the status of their ABOVE: The total number of solar connections escalated notably again in 2019-20, service request, subscribe to receive up 28%, a trend that is expected to continue with the Queensland Household Energy a SMS and email notification for Survey showing that one in five households without solar intend to invest in solar in planned and unplanned outages, the near future. meter reads (if dogs are onsite), or when a crew is on their way to do Supporting economic We have continued to improve a job. growth our customer centric approach We have made significant and processes, building clear Since launching the SMS improvements across the accountability through the life of a notification, over 20,000 customers connections experience, across project. This is a very challenging have signed up for the service Energex and Ergon Network, environment, balancing our across the state, with over 38,000 especially for the major projects commitment to the safety, security customers submitting their own self- helping to drive the state’s and reliability of our existing meter read, averaging 2,000 each economic growth. network supplying our customers month. A great option for those with while enabling renewable energy dogs on the premise. There has been a focus on connections. We have again connecting large renewables to The success of the new supported customers through our our networks. During 2019-20, communication channel, and the dedicated Network Connections the number of applications for the alignment of Energex and Ergon team as the customer develops connection of large-scale (>30kW) Network processes across the and tests their large generator renewable energy generating state has created a more seamless performance standards required systems to our networks grew customer experience. This was also for connection. A single platform to again. Our dedicated project recognised within the industry with optimise the delivery of work is also sponsors and Network Connections Energex and Ergon Network being helping us to deliver to customers’ team have helped our customers finalists in the Best Contact Centre expectations. energise six new solar farms Award at the Contact Centre Week (>3MW) and one wind farm Our connection teams also Australia Excellence Awards. across the state this year (p43) supported an escalating number of and, at time of writing, were rooftop solar system connections helping another 66 developers of to our networks, with the strongest Energex and Ergon Network made finalists large-scale (>1MW) renewable growth in the South East. for the prestigious Customer Contact Week energy projects progress through Australia Excellence Awards, in the highly- the complex and changing rules, prized Best Contact Centre Culture award regulations and performance category. standards, from initial enquiry to connection and commissioning.

Energy Queensland's Annual Report 2019-20 17 Customer experience scorecard

Measuring to drive Complaints CALL TARGET RESULT better outcomes Ergon Retail has reviewed every ANSWERING

Through our Voice of the facet of our practices around Loss of supply, emergency calls Ergon Network 85% Customer program, to guide people, technology and policies Unplanned ≥77.3% answered in 30 secs Outage service improvements, we survey and processes to improve our Loss of supply, ≥85% answered Enquiries Energex Network 85% customer satisfaction following customers’ experience when in 30 secs our key service interactions for making a complaint with us. Network targets as set for the AER’s Service Target Performance Incentive Scheme. each customer group, from the We’re happy to report that this big end of town to our residential improvement initiative has led to customers. This is reported as a customers advising of a general Making contact Customer Index. The index has improvement in all drivers for shown steady improvement over satisfaction here. Ergon Energy the last three years, with a notable Retail received 0.04 complaints per CALLS Ergon Retail calls 819,380  uplift in customer satisfaction over 100 customers monthly through 1.1 million the last 12 months from 6.7 in the year, a strong performance Ergon Network calls 46,115  Customer calls answered by our Energex calls 291,891  2018-19. The above target result of when compared against other customer solutions service centres 7.1 out of 10 for 2019-20 (target retailers. ≥6.7) was supported by both For our Network businesses, our Ergon Retail and Ergon Network WEBSITE SOCIAL MEDIA improvement focus here has been and Energex service improvements on time to resolve issues at the first 2.4 million 210,000 (p16, p17). point of contact. This provides the Views of our outage information Followers on our platforms, best outcome for our customers, which represents a 13% increase Making it easy to from 2018-19 contact us and business efficiencies. This is not always possible, generally With localised Ergon Retail for complaints relating to quality Customer Solution Centres in of supply, our contractors, Rockhampton and , our meter reading and field delivery people are there to assist customers involve working with the relevant with their needs, from bill support managers and teams to resolve. to energy advice. With a continued focus on improving the customer Network referrals to the Energy and experience, customer survey results Water Ombudsman Queensland indicate satisfaction of 88% for the (EWOQ) are in line with best year, and a first call resolution for practice performance across the customers of 86%, both up slightly industry. Energex and Ergon compared to last year. Network received 0.02 complaints per 100 customers on average each For our Ergon Network customers, month through the year. overall call volumes have been less this year due to a less severe storm season.

As our customers navigated the impacts of COVID-19, we were there on the phone and online to support them, including launching webchat to help make it easier for our customers to get in touch with us.

18 Energy Queensland's Annual Report 2019-20 Yurika’s growth continues

Since its formation, Yurika’s activities in 2019-20 Yurika also continued this year at From ‘Triple zero’ to nbn, have built upon earlier successes, the forefront of maintaining the Nexium is connecting Yurika has continued under the Yurika, Nexium state’s transmission infrastructure to develop new Telecommunications and Metering with significant works undertaken As part the Yurika portfolio, Nexium Dynamics brands, capitalising for . Telecommunication continued to energy solutions in the on advancing technologies grow in 2019-20, with a number The team specialise in this type unregulated energy and the changing energy and of capstone projects and major of high voltage infrastructure telecommunications market. The advances in capability. market. At its core, work, delivering in the public group is delivering infrastructure and utility sector, for commercial Nexium is connecting police, Yurika’s approach is to and utility services, behind and industrial clients, and in the fire, ambulance, prison and court the meter distributed energy help business navigate community space, across the facilities Queensland-wide as resources (such as Yurika’s Smart breadth of Queensland and further part of an $8 million package of the complexity of Connected Solar™ solution), afield with projects underway in network data services. Under a the energy and telecommunications, smart the Northern Territory, New South contract for a major Queensland metering and other energy-related telecommunications Wales and Victoria. Government agency, they have services. connected over 750 sites so far, market. This expertise has expanded their Their approach, throughout recent with a 24-hour critical response presence this year in the high months, has been to work with capability. More than 1,200 sites voltage connection for solar farms. their customers to minimise the across the state will be connected This contribution to Australia’s impact of COVID-19 on delivery via a combination of fibre network transition to a low carbon energy commitments, while taking the and the National Broadband future is highlighted on page 42. necessary safety precautions, Network (nbn), plus fixed wireless Yurika’s Smart Connected Solar™ recognising many projects are and satellite services in remote is also proving itself in the market important for economic growth, regions. Nexium is also managing as a future ready, intrinsically safer and critical community services. a program for nbn to convert renewable energy system with hundreds of services from the older Delivering critical energy smart metering is also showcased copper technology sites to faster infrastructure on page 42. and more reliable fibre to the premise. Yurika’s infrastructure and utility Another exciting project is the services provide a range of end- installation of our first community- This year, Nexium also delivered to-end solutions, from feasibility scale battery at Bohle Plains in on an outsourced monitoring through to construction, as well as Townsville (p29). The 4MW/8MWh and management contract with operations and maintenance. Tesla Powerpack will enhance the Gold Coast City Council. This network resilience during summer arrangement supports the Council’s A highlight this year was the peak demand periods and allow future investment plans around on-time, on-budget extension of us to participate in the wholesale diversified large-scale Internet of the 66kV electricity network at market. Things (IoT) applications across the Glencore’s Hail Creek mine, south- Gold Coast, such as library Wi-Fi west of Mackay. The project team’s Yurika also continued to expand and free Wi-Fi in public areas. success, as Yurika’s first major Australia’s largest Electric Vehicle project for Glencore, in adapting superhighway (p44) and support Nexium now has independent to the nuances of the mine site, the Queensland Government connections from fibre network to as well as their uncompromising initiative to decarbonise the energy all 22 nbn points of interconnect approach to safety, is already supply of our remote communities in Queensland. Through this, we seeing more work awarded by (p43). can now provide competitively- Glencore. priced telecommunication solutions

Energy Queensland's Annual Report 2019-20 19 Queensland-wide, with plans to The Retail-led deployment follows extend services in to New South regulatory changes in February Wales and Victoria. We’re also 2019, as part of Power of Choice, delivering high-speed internet that mandated time frames for services with projects like the the installation of smart meters by Southern Bay Islands of North retailers. Our success in this market Stradbroke and Russell Islands is being supported by working in the South-East through a new closely with our clients to give them Nexium-owned fibre asset. These confidence in the delivery program. areas have previously been outside Building on these achievements, of the nbn roll-out. Metering Dynamics commenced In addition, Nexium has been system improvements during working with state-owned the year that will reduce costs- QCN Fibre to ensure its success to-serve, while also enabling and enable competitively future technology and further priced large-capacity backhaul improvements to our customer telecommunications services across experience. Queensland. QCN Fibre is jointly During the coming year, Nexium Owned, and delivers some services Telecommunications and Metering that were previously provided by, Dynamics will integrate further Powerlink Queensland and Energy under the Yurika brand, to better Queensland. reflect Yurika’s position as a Metering Dynamics national, integrated energy and scales up telecommunications solutions provider. Metering Dynamics continued to scale up its national footprint this year with record meter installs – now at 10,000 per month. As part of the Yurika portfolio, they have continued to focus on metering solutions for commercial and industrial customers across Australia, while also leading the deployment of digital meters for electricity retailers to households across Queensland and Tasmania.

20 Energy Queensland's Annual Report 2019-20 Our community

As an essential service, providing energy safely, reliably, and sustainably is central to our corporate responsibility, which is only highlighted by the role we play in disaster response. But our responsibility to the community goes much further – our social licence extends from our investment programs, to the way we work collaboratively to ensure equity, and to benefit all as the energy sector transforms.

Energy Queensland's Annual Report 2019-20 21 Community in brief

Community-disaster 10 of 12 reliability targets met Met electricity demand state-wide response proved invaluable, Result 83%: Target 100%* – planned 34,721GWh during bushfres, storms outages associated with an increase in total electricity delivered safety-driven works on aging sections of and COVID-19 the network has impacted the duration of South East demand Queensland’s traditional disaster period outages across regional Queensland. Max 5,069MW started early with bushfires, then storms, and Satisfaction with reliability of supply overall Min 1,136MW later the challenges around the safety and benchmarked above the national average at restrictions associated with the coronavirus Regional Queensland demand 76%. pandemic. Max 2,660MW Min 1,128MW

$1.1 billion investment Progressed a Micro-grid and Launched Home Energy in critical community Isolated Systems Test facility Management Systems Pilot infrastructure The purpose-built facility in Cairns is part This partnership with is testing the potential Result 86%: Target ≥90%* – with the of Our Future Grid Roadmap, which is role of market-led demand response solutions COVID-19 restrictions the program was transforming our capabilities so that our as a means to complement our existing load revised to ensure critical programs and customers can leverage the many benefits of control capability. projects commissioned were delivered. solar and other emerging technologies.

Look Up and Live tool a winner 323 community electrical Help for those in hardship Our Look Up and Live mapping tool was safety incidents Engagement with our customers, online awarded the “Best solution to an identified While down 24% from 425 in 2018-19, access to rebates, and support at the first electrical issue” category in the Safe Work this will continue to drive our investment in point of contact were all part of delivering on Awards as a lifesaving tool to help industries building community awareness about the our commitments in our Financial Inclusion improve powerline safety on work sites in the dangers inherent in powerlines and other Action Plan – helping to bring disconnection air and on the ground. electricity infrastructure. for non-payment down by 12%.

Thriving Communities First Nations Supported 600 RFDS partnership Partnership Connection Plan community groups celebrated 20 years Collaborated with other Endorsed Community Fund, sponsorship Ergon Retail’s continued to corporate, not for profit and The plan is our commitment and volunteering, we supported support the Royal Flying Doctor government organisations on a to reconciliation and to groups from the SES to the Service and its Local Heroes journey mapping activity around strengthening relationships Home Hill Choral Society. Our Awards, as an icon brand, like the 2019 North Queensland with Queensland’s First Nations employee volunteering, at 5,840 our, who are out there lending a Monsoon explore the people and to working together hours, was up 25%. hand, day-in, day-out. opportunities as a collective for to create positive futures. positive change in the disaster response space.

* Part of our formal performance agreement with our shareholding Ministers, set through our Statement of Corporate Intent.

22 Energy Queensland's Annual Report 2019-20 At the ready in times of needs

As an essential service, COVID-19 – a state-wide A season marked Collectively these storms brought down 282 powerlines impacting we know that our operational response by bushfires This response capability proved Prior to COVID-19, we had already 11,500 customers - 1,122 field disaster response vital in March 2020 with the had a challenging period. It began personal were involved in our capability and the rapid escalation of the COVID-19 early with what was to become an response. resilience of the state’s threat. In addition to customer and unprecedented, catastrophic fire With a focus on safety and community support (p16, p35), season Australia wide. community support, we continuously electricity network we stood up a major operational During September fires occurred in review, revise and update our response overseen by the Executive is critical. Across our across Queensland, in Stanthorpe, summer preparedness plans to put Committee. portfolio of companies, Peregian Beach and the Scenic us in the best position to respond Safety was our priority as we Rim of the Gold Coast. More than when these disasters hit. These our teams are well- followed government advice for our 70 crews from Ergon Network plans include network maintenance, versed in emergency depots and offices, for minimising and Energex were there to restore vegetation management, asset the risk of exposure to our crews supply to the over 8,500 impacted inspection and defect remediation, response and have (p35), customers and the wider customers. feeder patrols, pole top inspections, robust continuity plans community, while continuing to and network monitoring and control This was followed closely by deliver a reliable electricity supply capabilities. in place. November bushfires further north in across Queensland. We revised our Yeppoon, where 77 field personnel Along with our own internal works program with the restrictions were mobilised from surrounding planning, we also connect with to limit planned interruptions areas to support local crews to emergency management authorities to those working and schooling restore the impacted network. and other industry partners to from home. Then, as the health Toowoomba also had fires burning ensure a coordinated community threat lessened, we prioritised at this time in the outer regions of response in times of need. These and accelerated the delivery of Peachy, with our crews working relationships are key to building key capital projects to maximise hard to keep the water supply greater community resilience. This employee utilisation and support pumps for the region working at year we set up a Memorandum local contractors and suppliers Perseverance and Cressbrook dam of Understanding with Northern as part of the state’s economic water pumping sites. Territory Power & Water, a recovery. It was a response effort partnership at the ready for natural unlike any before, but one we faced The season also saw five major disasters and other emergencies. as a united community. storm events, all in the South East.

Ipswich Lockyer/ Yeppoon Fire Brisbane South Storm Brisbane South Storm 9/11/2019 24/12/2019 17/10/2019 (6 day response) (2 day response) (2 day response)

Stanthorpe Fire Sunshine Coast Ipswich Lockyer/Brisbane South Storm 8/9/2019 Storm 20/01/2020 (3 day response) 17/11/2019 (2 day response) (2 day response)

Tewantin Fire Toowoomba Fire Ipswich Lockyer Storm COVID–19 8/9/2019 18/11/2019 21/01/2020 01/03/2020 (3 day response) (5 day response) (2 day response) (75 day response)

SEP 19 OCT 19 NOV 19 DEC 19 JAN 20 FEB 20 MAR 20 APR 20 MAY 20

Energy Queensland's Annual Report 2019-20 23 Network performance scorecard

Satisfaction with Throughout 2019-20, network TARGET performance was favourable to ERGON NETWORK 2018-19 2019-20 reliability supply (MSS) target for all but two of the 12 Number of outages per customer (System Average Interruption Frequency Index) performance measures, an overall overall benchmarked Urban Distribution 1.30 1.77 ≤1.98 result of 83% of targets met. Short Rural Distribution 3.14 3.88 ≤3.95 above national These standards are set as part of Long Rural Distribution 5.86 6.34 v ≤7.40 average at 76%, our Distribution Authorities. despite ongoing Average length of outages - minutes (System Average Interruption Duration Index) In regional Queensland, Ergon Urban Distribution 148min 219min  ≤149min 4 Network’s Minimum Service challenges. Short Rural Distribution 410min 412min ≤424min Standard (MSS) for the Urban Long Rural Distribution 1,018min 1,037min  ≤964min and Long Rural System Average Interruption Duration Index (SAIDI) both exceeded target. TARGET ENERGEX 2018-19 2019-20 Planned outages associated with (MSS) an increase in safety-driven works Number of outages per customer (System Average Interruption Frequency Index) on ageing sections of the network CBD Distribution 0.01 0.02 ≤0.15 has impacted the overall duration

of supply outages across all Urban Distribution 0.64 0.62 ≤1.26 three SAIDI measures. This work Short Rural Distribution 1.46 1.31 v ≤2.46 is essential to the future safety Average length of outages - minutes (System Average Interruption Duration Index) and reliability of our networks. CBD Distribution 2min 5min  ≤15min Where we can, we are minimising Urban Distribution 71min 69min ≤106min the impact on our communities Short Rural Distribution 180min 156min  ≤218min through our approach to the Reporting based on the MSS exclusion criteria outlined in in each network’s Distribution Authority. program’s delivery. Ergon Energy Network data includes our regulated main network and excludes our isolated networks.

Across the South East, on the Energex network, reliability performance on the Urban and source of supply for not only the change for minimum demand – Short Rural networks improved owner of the solar system, but with comparative falls of over 6% compared to the previous others in the local area who share a year. There are currently around year. Urban network reliability the solar energy exported. This 60 substations experiencing some performance continues to remain has significant implications for the degree of load flowing in reverse well with the MSS targets. grid, as it lowers the minimum across the Energex and Ergon demand system-wide and creates networks. local network challenges around Managing a changing In contrast, the impact of solar managing reverse power flows demand profile energy generation on peak and voltages and, more broadly, The growing levels of solar demand has been limited, with impacts system stability. In South generation across Queensland the Energex and Ergon Network East Queensland, minimum are having an increasing impact peaks remaining relatively steady demand fell from 1,359MW to on how electricity flows through over the longer term, with 1,136MW, largely due to solar our distribution networks. This peaks of 5,069MW in the South generation. is changing the shape of load East and 2,660MW recorded 4 Energy Consumers Australia Energy profiles across the 24 hours of Historically, the key issue for in regional Queensland for the Consumers Sentiment Survey June a day, and throughout the year, networks was increasing peak 2019-20 summer. 2020. Question. How satisfied are you exemplifying the changing nature demand (driven largely by air with the number of times you’ve had Of interest is the impact of of our business. conditioners), with Energex’s loss of power, blackouts or other faults COVID-19 on demand. As the peak demand growth over 7% with your electricity supply in the Solar generation is ‘hollowing COVID-19 restrictions began past 6 months? Scale 0-10, Positive every year between 2001 and out’ the load during the middle of during the networks’ normal 7-10. Result 76% positive is above 2010. However, since 2010 we the day by creating an alternative shoulder season, they did not national average in this benchmarking have seen a similar magnitude of research.

24 Energy Queensland's Annual Report 2019-20 impact the year’s peak demand Guaranteed Service Levels ENERGEX 2018-19 2019-20 scorecard. However, we did Guaranteed Service Level (GSL) Number of connected customers 1,485,004 1,507,357  observe changes to daily demand failures, and associated payments, Network-wide peak/maximum demand 5,086MW 5,069MW  and consumption, most notably have reduced across most of our Network-wide minimum demand 1,359MW 1,136MW  in areas of the network servicing service categories during 2019-  commercial, retail and tourism 20. Of note, a less severe storm Electricity delivered 21,427GWh 21,154GWh businesses. The restrictions also season meant fewer extended impacted the overall energy unplanned power outages, and ERGON NETWORK 2018-19 2019-20 delivered and used for the year. fewer compensation payments Number of connected customers 740,726 745,477  While household energy use in this most significant service increased slightly during the category. Network-wide peak/maximum demand 2,612MW 2,660MW  restrictions, overall the impacts of Network-wide minimum demand 1,070MW 1,128MW  COVID-19 on the state’s economic Electricity delivered 13,504GWh 13,567GWh  activity reduced energy use.

We are continuing to improve our modelling and monitoring to ERGON ENERGY ENERGEX forecast future demand scenarios. GUARANTEED SERVICE NETWORK LEVEL PAYMENTS 2018-19 2019-20 2018-19 2019-20

Network reliability 9,608 4,859 28,192 1,349 Notification planned interruptions 1,154 885 1,151 423 Other 238 167 806 831 TOTAL PAYMENTS 11,000 5,911 30,150 2,603

Ensuring a safe and reliable supply Major projects delivered During the year, we commissioned the following 423,000 asset inspections major projects: • Replace transformer and switchgear at Hemmant 10,000 poles replaced Substation, Brisbane – $9.2 million

31,000 customer service wires replaced • Install 33kV single circuit feeder between Queensport and Bulimba, Brisbane – $7.3 million 8,500 powerline clearance issues addressed • Replace transformers at Toolara Forest Substation, Gympie – $4.9 million. 158km insulated low voltage powerline installed Other major projects well progressed across the state include the Suncoast Power Project, an upgrade substation at Redcliffe, a rebuild of the Tennyson 700,000 spans of vegetation managed Street Substation in Mackay, and the refurbishment of the Dysart Substation.

Energy Queensland's Annual Report 2019-20 25 Investing in critical community infrastructure

Across the state, Our focus on delivery saw us $471 million in renewing the Ergon Property positions for a achieve 86% for our program of Network this year, up from $380 Energex and Ergon sustainable future work delivery index, just below million in 2018-19. This has been A number of property projects Network delivered a our target of 90%. Delivery was part of a multi-year safety-driven continued this year, as part of $1.1 billion program challenging with the COVID-19 response to an elevated rate of a strategy to deliver further restrictions. The program of pole, cross arm and conductor efficiencies and ensure our sites of works this year works was revised to ensure defects, which will continue in the are fit for purpose; now, and into to ensure our critical programs and the final coming period. the future. This included major commissioning of key projects were We have also continued to use depot and office construction networks remained delivered to schedule. technology to deliver smarter works in Stafford and Greenslopes safe and reliable, This result was supported by solutions, including aerial asset in Brisbane, as well as other and to support the improvements to the way we and vegetation monitoring improvements to our property leases and state-wide portfolio. state’s economic forecast, program, schedule management technology. This and supervise delivery of our laser and imaging capture system Projects have also got underway development. works program. As part of provides a virtual version of the in Cairns, the Whitsundays, and a major transformation to a real world to allow the fast and Maryborough. single operating model state- accurate inspection and assessment As part of a newly-developed wide, embedded across our of the physical network and the security strategy for our offices and regions in stages this year, these surrounding environment. It depots, we invested in upgrades improvements are not only has proven especially useful in to the security systems of over delivering efficiencies, they have identifying powerline clearance 30 depots, connecting them to also contributed to improvements issues, both with nearby structures our in-house security monitoring in safety and better customer or the ground. centre, and consolidated employee outcomes. Work has also progressed access cards for our 42 primary sites into one system. These new Addressing an ageing with a proof of concept for cards are now being used by 1,700 network using smart devices on pole tops to monitor network and employees. Across the state, notably in the environmental conditions and Ergon Network, we continued more efficiently target investment. to invest in asset inspection, This data will allow us to optimise maintenance, refurbishment and safety outcomes and network replacement strategies to address performance, and help us plan for the performance challenges of the future. an ageing network. We invested

Ergon Energy Network Investment Energex Network Investment

$11M $23M $24M $33M $190M

$471M $152M $89M

$136M

• Renewing the network • Renewing the network • Connecting new customers • Connecting new customers • Meeting growth and demand • Meeting growth and demand • Investing in our generation assets • Reliability and other targeted investment • Reliability and other targeted investment

26 Energy Queensland's Annual Report 2019-20 Demand management capability strengthened

Together, Ergon Through discounted tariffs, our Collab on market-led Uptake of targeted load control capability ensures high Network and Energex response incentives is strong demand appliances (like hot water In October, we launched a Home Under the Demand Management have one of the largest systems and pool pumps) are not Energy Management Systems Plan, we also progressed targeted demand management overloading the network during the (HEMS) Pilot to test the potential incentives to reward business evening peak. Across Queensland role of market-led demand customers undertaking energy programs in Australia. the homes taking advantage of response solutions. Our industry efficiency, load curtailment, load Through our Demand these tariffs provided a peak load leadership in partnering with the shifting or embedded generation reduction of 740MVA this year `to Management Plan, five HEMS providers involved is to reduce demand. This program minimise network impacts. allowing us to learn how different can claim 69.8MVA under control we continue to offer ‘set and forget’ product solutions that can be leveraged to support PeakSmart continues add value to the customer and the network and defer network customer incentives to grow potentially complement our investment. to the broader, During the year we continued to existing load control capability. If market and targeted promote our PeakSmart program. a competitive energy management PeakSmart air conditioning market emerges it will present an to areas of where reduces peak demand by dropping opportunity to complement and the local network is the air conditioner into a lower build on the existing load control constrained, as an performance mode when the that we have today. The South East network is under stress. In the Queensland pilot, which is aiming alternative to costly South East there are now 74,900 to have around 500 households network investment. customers with PeakSmart participating, in the South East installations, making up to 121MVA across Chapel Hill, North Lakes, of diversified load available Springfield Lakes and Wakerley, will during periods of high demand. continue into 2021. The program in Ergon Network, launched in 2018, also continues to grow with 4,484 premises benefiting, providing up to 10MVA to help balance demand in regional areas.

Energy Queensland's Annual Report 2019-20 27 Planning for the future

Throughout the year This has been supported by a This digital capability, coupled with working with market aggregators coordinated engagement program, the other innovative trials underway, (p42), and we’re preparing to we have been refining culminating this year with further will help create the capability we support the growing adoption of our network strategies constructive engagement around need to continue to deliver on our EVs (p44). our Revised Regulatory Proposals vision and customer expectations and investment plans (p14). We will continue to engage into the future. Leading at the for the period from with our stakeholders on how best national level 2020 and beyond, to balance affordability outcomes Micro-grid solutions We have been instrumental in the with network safety and reliability A highlight here is our expansion development of a code of conduct with our priority on performance, and to navigate the of our testing capability with for new energy technologies and ensuring we can energy transition. the development of a $6 million services, following a Council of Micro-grid and Isolated Systems Australian Government (COAG meet the needs of Future Grid Roadmap Test (MIST) facility in Cairns. The – now referred to as National our customers and Central to our investment plans purpose-built facility will enable Federation Reform Council) communities into the is Our Future Grid Roadmap. This the development, simulations and recommendation, to better protect strategy, which was put in place in real-time testing of microgrids, customers, as well as an important future. 2018, anticipates a future energy diesel generation, renewable national standard on inverter environment characterised by rapid and battery storage systems. This connections designed to ensure technological change. It will see is particularly important for our the stability of the network while us transform our networks into an isolated communities where there is advancing the renewable energy intelligent state-wide grid, enabling the challenge of integrating diesel resources connected. our customers to leverage the generation with new renewable and We’ve also been working with many benefits of distributed energy energy storage technologies (p43). Energy Networks Australia to resources (such as solar energy, It is currently under construction consolidate the rules for our battery storage and electric vehicles) alongside the existing Innovation standing offers for renewable and the digital transformation. Lab, which is continuing to work and battery connections, which with suppliers of renewable and The key to unlocking the benefits is have been expanded and are now battery energy storage systems to understanding what our business, offered for residential and small improve product functionality. energy technology and digital commercial-sized systems. We also capabilities need to look like to At the community level, we have revised our connection standards, enable a future grid operational also been developing the tools with plans underway to introduce model. This year, we’ve focused available for the fringe of the grid dynamic standards that change with on the requirements to manage solution for an agricultural site. To local network conditions (p21). more customer-owned distributed develop this capability further we This all builds on our success, energy resources, in order to support have commenced two standalone over recent years, in modifying customer choice and avoid the power system trials at fringe of grid connection standards and driving need for costly investment in the locations – one near Mount Isa and improved installer compliance to network. This will require ongoing one on the coast near Gladstone support our customers in taking up transformation in core business – and scoped other opportunities. solar energy, and now batteries. functions, as well as leveraging We’ve also continued to engage advanced digital approaches, on the regulations around these services and technology solutions solutions. to provide greater visibility of In the technology area we’re also the network. We are taking an implementing an important network incremental approach to developing monitoring trial for community the building blocks for our future safety (p30), we have completed the business capabilities and monitoring ground-breaking Solar Enablement the market and emerging Initiative, trialled exporting solar technologies. with dynamic export limits, we’re

28 Energy Queensland's Annual Report 2019-20 The ‘energy storage’ future demand through Townsville’s Battery connections are increasing is here summers. The site for the grid- Our customers have started buying connected battery was chosen 7,000 batteries to store their solar energy because of the high number of generated during the day for use rooftop solar systems already at night. As well as providing value in the area and its proximity to other electricity infrastructure. The to the customer, this can help the 3,500 grid by reducing the solar energy community-scale battery is able .... exported during the day when to store energy equivalent to that ...... •· .. ------electricity demand in our residential typically consumed by more than ,,. ...--·~•:.::::•:;::.:.:------areas is low and reducing the import 500 average Queensland homes 0 from the grid in the evening, when per day. The battery will bring to the demand is at its highest. These capacity of Yurika’s Virtual Power Jun 17 Jun 18 Jun 19 Jun 20 Sep 17 Sep 18 Sep 19 Dec 17 Dec 18 Dec 19 demand fluctuations are key to our Plant (VPP), which is enabling a Mar 18 Mar 19 Mar 20 tariff reforms (p14). more resilient and reliable network state-wide by taking pressure off State-wide Energex Ergon Network The same idea is behind the - -- substations and other power assets, community-scale battery being to 135MW. installed by Yurika in Bohle Plains, The number of customers with batteries is growing dramatically, with Townsville. The 4MW/8MWh Tesla 6,861 now in the market. We expect around 150,000 energy storage Powerpack is designed to enable systems to be in use by 2030. more capacity on the network for residential solar while ensuring resilience during periods of peak

Energy Queensland's Annual Report 2019-20 29 Community awareness key to safety

From primary Our Community Powerline Safety and transport. It is accessible from state with another multi-media Plan 2019-20 outlines how Energex any mobile device, with printable campaign, highlighting a range school classrooms and Ergon Network are building maps for site induction kits and of hazards, from storms and to construction safety awareness, educating and quick links to request free safety cyclones bringing down powerlines, encouraging behavioural change in advice or powerline markers. to vehicle accidents and tree sites and farms, the wider community and high-risk trimming. The campaign was Principal Community Safety we’re empowering industries. We’re collaborating recognised as one of Queensland’s Specialist, Glen Cook was with the Electrical Safety Office best, taking a silver medal at the Queenslanders of instrumental in the development and Workplace Health and Safety Brisbane Advertising and Design of the lifesaving tool. Glen’s all ages and from Queensland to promote powerline Club awards. dedication and leadership in safety and reduce the risk of all walks of life with promoting powerline safety saw Our Safety Heroes education incidents with a focus on the most him honoured as the Health and program broke another the knowledge and at-risk sectors. tools to stay safe Safety Professional of the Year participation record in 2019 with Powerline safety wins for 2019-20 at the Australian 96% of Queensland primary around electricity, and Workplace Health and Safety schools putting their hands up for Our Look Up and Live powerline Awards. lessons on how electricity works we are using smart mapping tool has gone from and how to stay safe around strength to strength, winning the The community team continued to technology in the field electrical equipment. The program ‘Best solution to an identified deliver Look Up and Live awareness was delivered during Electricity to identify risks. electrical issue’ category at the sessions to connect directly with Safety Week last September, with Queensland Safe Work Awards. the industry and offer in-depth, 143 employees volunteering to first-hand advice on powerline With the ability to pinpoint present Safety Heroes to the safety, as well as a range of other the location of our overhead students. initiatives. powerlines and poles across the state, lookupandlive.com.au tool is Investing in smart Line aware message monitoring a valuable addition to the planning recognised toolkit that has been embraced by To keep the community safe, we’ve After its successful launch last year workers in high-risk industries like begun an important low voltage our ‘Take care, stay line aware’ agriculture, aviation, construction network monitoring trial. Supported message was promoted across the by the Queensland Government’s Advance Queensland initiative and Technology Partner, Redback Community contact with the networks Technologies, the trial will see 20,000 Redback network devices installed in switchboards across Queensland by early 2021. This 2% 1% investment downstream of our traditional monitoring devices will 34% help us to improve the safety and power quality of the network. It will During the year there were 323 10% also help us get ready for a future community electrical safety where more solar systems and new incidents involving contact with technologies, like electric vehicles our network, down 24% from 12% and battery storage systems, are 425 in 2018-19. While most 24% connected to our network. of these were motor vehicle, We are also using more road transport accidents and 18% sophisticated aerial surveillance vegetation management, the technology to give us a clearer building and construction, picture of potential safety issues agriculture and earthmoving • Road/transport across our networks. industries also recorded • Vegetation management • Agriculture • Aviation incidents. • Building and construction • Earth moving 0 Other

30 Energy Queensland's Annual Report 2019-20 Help made for regional Queenslanders

In these uncertain Talking to customers times our Retail in need Electricity is one of those everyday essentials that you can’t live To help, in addition to bill relief without. We’re here to help where we can to ensure financial customers across payments (p14), and improvements inclusion and to help address energy poverty. regional Queensland to ‘My Account’ (p16), Ergon Retail is putting a major focus on are experiencing engaging with customers at risk of unexpected financial financial exclusion. and save on their power bills – by positive change around our disaster facilitating the network connection response and supported collective pressure and needing In May this year we launched a of the rental properties installing engagement on key issues now a helping hand. For multimedia campaign to encourage solar under the trial. potentially compounded by customers to get in touch for COVID-19, from domestic violence our rural communities, support with bill extensions, More from our Financial to mental health. The goal of the the impact of payment plans or access to Inclusion Action Plan Thriving Communities Partnership COVID-19 comes on government rebates, concessions, Through our commitments in the is that everybody has fair access grants and services, or further Financial Inclusion Action Plan, to the modern essential services the top of the financial financial assistance. This year, under the program led by Good they need to thrive in contemporary stress associated with Ergon Retail became the first Shepherd, we have continued Australia, including utilities, and retailer to offer online access to the to broaden our approach to that together we build more years of drought, with Queensland Government Electricity supporting customers in vulnerable resilient communities and stronger two-thirds of the state Rebate for eligible card holders. situations. We have been organisations. During the year, outworking this plan, established Ergon Retail established a Domestic still drought declared. This followed an earlier focus, in January 2019, with the goals and Family Violence working party, pre COVID-19, on face-to-face of ensuring financial inclusion, who are looking at how we go engagement with key areas of the developing financial resilience, beyond legislative requirements community. A highlight was our promoting inclusive growth and and learn from Victoria’s model, in participation in a drought outreach reducing inequality. Delivery of developing our approach. program in September 2019, the action plan was independently with the Australian Government, Our key metrics audited, and we are now building visiting communities across on this foundation. Prior to stopping disconnection for Western Queensland. Farmers in non-payment due to COVID-19 these drought-declared regions Under the Plan, we continued to (p14), this year’s disconnection for were supported in managing their focus on the early identification non-payment was 9,350 (for the energy costs through tariff options, of customers at risk of financial first three quarters), down 12%, waiving charges and deferring exclusion. We introduced system when comparing like quarters. payment, as well as with access to changes to identify customers In addition to the efforts above, financial support. who could be facing financial this outcome was supported by hardship, to enable Ergon Retail improvements to the verification of Bringing the benefit of to more easily offer support at customer details. solar to more the first point of contact. This was To further support energy inclusion, supported by frontline training In regional Queensland we and not leave anyone behind in and a vulnerability focus overlaid supported over 5,900 customers the energy transition, our Sunny across our credit collection process. who rely on electricity to support Savers trial continued to provide These refinements, embedded in the management of a medical the public housing tenants the customer protections in our condition. Here Ergon Network participating access to the benefits Hardship Policy, are in line with works closely with Ergon Retail to of renewable energy. The trial in regulatory changes. ensure these customers in regional Cairns and Rockhampton, enables Queensland do not experience The changes allowed more lower electricity bills, online energy adverse impacts caused by power customers to take advantage of monitoring and monthly billing, outages. In the South East, there our Customer Assist program and making it easier for customers. are another 24,400 customers supported a downward trend in We also continued to support the reliant on powered medical disconnection for non-payment. Queensland Government’s ‘Solar equipment who are supported by for rentals trial’ – enabling rental Through the Thriving Community Energex and their local retailer. tenants in Bundaberg, Gladstone Partnership, we collaborated on and Townsville to benefit from solar

Energy Queensland's Annual Report 2019-20 31 Connecting with Queensland’s First Nations people

The Group’s first The Plan is a commitment to The kiosk was well received. The As part of the Journey 2 Jobs strengthening our relationship with insights gained will now guide any program, each year the Ergon Reconciliation Action Queensland’s First Nations people future technology investment as Retail Aspiration Award recognises Plan was endorsed – especially in the Indigenous we move to help customers engage an Indigenous student’s leadership communities we serve. Its focus with us in ways that suit them. and study commitment, and by Reconciliation has been initially on building our provides a small helping hand in Pre COVID-19, teams from Ergon Australia in early cultural capability internally, as the their transition through Year 12 Retail travelled throughout the foundation for investing in place- and into the workforce. We’d like to 2020, after an Torres Strait, Cape York and to based initiatives within the unique congratulate Trent Laffin for being other First Nation communities extensive co-design context of each community. the recipient of this award in 2020. to engage around our services process involving A service highlight this year was with community stakeholders, employees from the extension of Ergon Retail’s our Retail agents, and customers. across the business video kiosk trial to the Indigenous With the heightened health risk community of Woorabinda, in to Indigenous people associated and community Central Queensland. The kiosk with COVID-19, the year then stakeholders from 11 enabled the community to have saw a major focus on our face-to-face discussions with operational engagement with these communities across our teams in Rockhampton and communities. We also continued Queensland. Townsville at the touch of a button, to support the decarbonisation of for enquiries about their bill, their energy in our remote and isolated energy use and debt management. communities (p43).

32 Energy Queensland's Annual Report 2019-20 Part of the community

Our community The Ergon-Energex Community equipment at 16 of our remote The year saw a record-number of Fund was given a boost, providing depots and generation sites across teams from Coolangatta to Far investment program grants up to $5,000 to 31 Queensland. This project is now North Queensland self-organise continues to keep us community organisations across providing the real-time flight various types of ‘working bees’ the state. The many initiatives information needed when liaising and partner with charity groups connected, and create supported will now make a big with other medical providers on the to support the needs of their local shared value with our difference to people’s lives. ground. communities. Despite the COVID-19 restrictions, our employees local communities. As part of a special COVID-19 Ergon Retail also continued to supported around 300 community Community Support Package, in support the RFDS’s Local Heroes Our focus evolved groups with 5,840 hours of consultation with our Customer Awards, which, despite some volunteering – up 25%. We also this year, and with the Council, we have funded a COVID-19 delays, has again continued our long-established Diploma of Financial Counselling recognised those that give their impact of COVID-19 payroll-based Workplace Giving Scholarship Program as an industry time and energy selflessly to the on community program. collaboration with Powerlink Flying Doctors. They also continued organisations, we also Queensland. We also entered to support for Ronald McDonald All these activities complement our redirected community into major partnership with Rural House in North Queensland, local sponsorship program – taking Aid – this investment is about and the Carnival of Flowers in the total number of community investment to those in supporting rural communities who Toowoomba. organisations we support to around have been struggling with the 600. most need. Yurika targets business community long-term impact of drought, and partnerships showcase how its now COVID-19, to improve their Supporting local economies services can deliver sustainable community’s resilience, and spirit. Our state-wide presence provides energy outcomes. In 2019 economic benefits through local These new partnerships Yurika partnered with EnergyLab procurement, local employment complement our long-term Australia’s leading platform for and career opportunities in the partnerships with Queensland State launching new energy businesses communities we serve (p39). Emergency Services (SES) and Rural with a series of events to drive Fire Service volunteers, which are clean energy entrepreneurship In 2019-20, we spent more than about ensuring assistance is there across Northern Queensland. $818 million on direct purchases for all Queenslanders during their Yurika is continuing its partnership from Queensland suppliers. We times of need. This year, the SES with Energy Lab in 2020, with have incorporated the principles, partnership, another collaboration its sponsorship of a program targets and commitments of the with Powerlink Queensland, saw supporting later-stage clean energy Queensland Procurement Policy $200,000 of vital equipment start-ups to further accelerate their into our procurement processes, distributed across Queensland. growth and work in partnership with our communities to develop industry This year marks the 20th year for Our connections with educational capability and capacity, and secure Ergon Retail’s partnership with the institutions across Queensland broader economic and societal Royal Flying Doctor Service (RFDS) are showcasing STEM careers and benefits. (QLD section), and donations stimulating technology ideas that raised to date are more than $15.3 could power our organisation into million. 168,000 of our customers the future. (p40) and employees currently participate in the voluntary donation scheme, Volunteering generously with every cent going towards vital Our employee volunteer program, medical equipment or their aircraft with two days of paid volunteering replacement program. leave, continued to support our people in making a positive Keeping the Flying Doctors in the difference in their local community air was also the priority of an through their time, skills, talent or in-kind project this year that saw sheer energy. the installation of aircraft tracking

Energy Queensland's Annual Report 2019-20 33 Our people

Our people are at the heart of our business – with 7,570 employees across Queensland, and in the other markets that we are operating in, around half living and working in our regional areas. Our priority is their safety – we aspire to be an industry leader in health, safety, and wellbeing. We’re embedding a people-centred culture to enable our people to thrive and deliver for today, and to transition to a workforce for the future supported by ever advancing technologies.

People in brief

3,000 working from home with 137 leaders championing 57% reduction in serious COVID-19 restrictions Safety is Defence dog bites This was one of many initiatives to ensure The program is about field leaders driving Addressing this ever-present risk for field the health and well-being of our people workplace change for sustainable safety crews entering properties with dogs and the community during the height of the outcomes, complementing our front-line remains the driver of our Safe Entry Policy. pandemic concerns. Learning Teams.

2.3 Signifcant Incident 8.2 Total Recordable Injury 2.3 Lost Time Injury Frequency Frequency Rate Frequency Rate Rate Target ≤3.1 – this result is a notable Target ≤8.9* – we also outperformed the Target ≤2.0* – Unfortunately, the lost time improvement, following our safety target set for total injuries for employees injury measure fell short of target. Safety leadership program and focus on learning and contractors. continues to be a priority. reviews.

Mental health leadership 73% employee engagement Our Health and Wellbeing Strategy and Mental Health Action Plan Target ≥69%* – employee engagement increased significantly was launched to focus on building a healthy workplace for our from a score of 62% last year, far exceeding our target, and in the people both physically and mentally. top quartile of high performing organisations.

127 new apprentices 75% for Inclusion Index Ofce 365 delivers vital Increased the pipeline of future talent With a focus on diversity and inclusion, this capability through our apprentice intake, which 6-point increase in the index, as measured With the move to Windows 10, new included 32 females and 13 First Nations in the employee engagement survey, from applications, and digital enablement people, and our graduate program. 69% is a real indicator of progress. through our SAP systems we are fast building our digital capability.

34 Energy Queensland's Annual Report 2019-20 Safety is our priority

Built from our Safety during COVID-19 2019, bringing together front- safety and operational processes line personnel to undertake deep through the planning, schedule, people, our 2020 response The health and wellbeing of reviews across a multitude of supervision program. Health, Safety and our people, and the community, different processes and hazards Addressing key risks Environment Strategy was our top priority through the to identify learning opportunities. COVID-19 restrictions. The open sharing and learning In 2018, more than 200 employees covers the five focus of how work is done, has led were involved in safety incidents areas we will work In response, we developed a to many process improvements with dogs in the community – an business resilience strategy, and has been a key contribution average of four incidents resulting towards to becoming managed by a dedicated business- to a reduction in significant in injury per week. We knew a High Reliability wide Emergency Management incidents. Learning Teams have we had to do better to protect Team. This response included travel seen polarity incidents drastically employees and improve safe work Organisation. We restrictions, modified field working decrease since the introduction practices. This resulted in the finished the year with practices, such as limiting people of a Polarity App, which was a introduction of a Safe Entry Policy, a focus on keeping in vehicles and elevated work priority action from a Learning which in its first 15 months has platforms, limited access to depots Team held in 2019. The program seen a 57% reduction in serious our people safe and offices, and revised entry has undertaken nine Learning injuries. during COVID-19, well practices to customer premises Teams with topics ranging from in line with social distancing management of gravitational In June this year, we further positioned with the regulations. hazards, environmental related oil reinforced the safe entry message containment and efficient delivery with the public, featuring a roll out of our Safety is A strong focus was also placed on of asset inspection. targeted campaign highlighting the Defence program, new the mental health as our people importance that customers restrain tools and systems, and transitioned through the COVID-19 Providing the safety tools their dogs to ensure the safety of uncertainty, keeping our teams and systems our employees and contractors, and a focus on our key virtually connected as we rapidly promoting the option to do a self- We recently developed a new enabled more than 3,000 of our meter read or receive notification safety risks. front-line hazard identification workforce to work from home. of the meter read (p17). We are and management tool called also working with local councils HazChat – led by our field-based Safety proved to be our around identified dangerous dogs employees – to support a safe defence and providing our customers with work environment. Our data We continued the roll out of our alternative meter-reading options. shows most recordable injuries home-grown Safety is Defence are due to insufficient hazard program. This program is about New controls have been introduced identification and preventative empowering leaders to drive in the field to manage heat stress. action immediately before a task changes in the workplace to As many of our crews work is performed. To make it even achieve sustainable safety remotely or not within quick easier, and updatable, the initial outcomes. The one-day program access of emergency medical care, HazChat paper form is currently was attended by our field reducing their core temperature being transitioned to an iPhone leaders. The two-day Facilitators quickly can mean the difference application. Program focused on creating a between a quick and full recovery or significant illness with lasting cohort of leaders to facilitate the To simplify our front-line effects. During the summer months, continuation of field leader learning management system, over each field worker will have access groups. To date 137 leaders have 400 documents have been to a heat stress esky and towel to completed the training with 80 removed from health, safety and lower a person’s body temperature, remaining. Due to the positive environment management systems in addition to traditional first aid, if feedback from this initiative, we since 2017. This continuous a worker suffers from a significant also now plan to take up to 700 improvement to streamline our heat event. selected field staff through it to safety practices will shift the create more safety champions. focus from paperwork to worker capability and efficiency. We continued to build on from our success of Learning Teams, The focus of the past 12 months which were introduced in early has also seen the alignment of

Energy Queensland's Annual Report 2019-20 35 Employee safety scorecard

During 2019-20, we achieved We also outperformed our These results and targets for the a measured reduction in the a notable improvement in the target for Total Recordable Injury first time combine employee and number of contractor injuries due Significant Incident Frequency Frequency Rate with a result contractor safety performance. to dog interactions. Rate, with a result of 2.3, of 8.2. Unfortunately, however, This ensures the visibility of compared to 3.5 in the previous the results for Lost Time Injury contractor incidents to highlight year, and well below the target of Frequency fell short of target with their responsibilities. This 3.1. This measure was introduced a result of 2.3. followed an increased focus in 2019 to focus efforts on the on contractor results and work During 2019-20, we continued risks that have the highest undertaken with our contractors to record and track well for our potential for harm. The result was to reinforce a strong culture of health and safety conversations realised through the roll out of safe work practices. This led to to reinforce a strong culture our Safety is Defence program the development of the Safe of safe work practices. Safety combined with the success of our Entry Policy, which saw continues to a priority. Learning Teams.

Significant, Total and Lost Time Injuries WORKPLACE SAFETY 2018-19 2019-20 TARGET

10 Significant Incident Frequency Rate 3.5 2.3 ≤3.1 Target Total Recordable Injury Frequency Rate5 7.8 8.2 ≤8.9 Total – TRIFR Lost Time Injury Frequency Rate6 2.12 2.3  ≤2.0

Health and Safety Conversations 100% 100% 100%

5 5 Statement of Corporate Intent TRIFR and LITFIR target: 5% improvement. 6 2018-19 LTIFR target 2.4 Significant – SIFR Target

Lost Time – LTIFR Target

0 Jun 17 Jun 18 Jun 19 Jun 20 Sep 17 Sep 18 Sep 19 Dec 17 Dec 18 Dec 19 Mar 18 Mar 19 Mar 20

Both the Significant Incident Frequency Rate and the Total Recordable Injury Frequency Rate for employees and contractors improved during the year, ending the year pleasingly better than target (flat line) with less injuries. This is the first year that we have reported a combined safety performance of employees and contractors.

36 Energy Queensland's Annual Report 2019-20 Mateship for mental wellbeing

We launched our Here are some of the leadership share relating to suicide. Their highlights so far; powerful messages and the Health and Wellbeing • Our industry-first Mates in support they offer is helping Our people Strategy and Mental Energy program was rolled out people to seek help when they statistics Health Action Plan in to every employee across the need it. business, providing general • Check-ins through Mental order to a focus on awareness training around Health Surveys to help us • 7,570 Employees building a healthy mental illness and suicide understand how our employees • 7,276 Full time prevention. Volunteers across are feeling and what the equivalent workplace for our the organisation received barriers are to good mental people both physically additional training to become health. Through the survey we • 23% Female and mentally. a Mates in Energy Connector have identified key areas of (connects colleagues who work that we will address in • 77% Male are struggling with a trained 2020-21. • 40% Female senior professional who can provide leadership help) or ASIST trained volunteer (Applied Suicide Intervention • 45% Female Skills Training). executive leadership • Established our Lived Experience Group who are focused on • 4.9% Employees sharing their lived experiences from a non-english with suicide to assist others speaking background and contributing to suicide • 2% Employees with prevention activities. This year a disability we partnered with Roses in the Ocean to develop 10 of our • 2.6% First nations employees who have a story to employees • Location: Approximately half of our employees reside and work in regional areas - 47% South East - 27% Southern - 26% Northern - <1% Interstate • Age: - 6% - <25 - 19% - 25 ≤ 35 - 31% - 35 ≤ 45 - 27% - 45 ≤ 55 - 17% - 55 ≤ 65 - 2% - 65+

Energy Queensland's Annual Report 2019-20 37 A people-centred culture

We understand that Creating a great employee outstanding performance aligned to provide 100% study assistance to the SKILLED Values and the to those who are wishing to study placing our people at experience A highlight of the year was a categories of Industry, Customer, a course under the Australian the heart of what we significant 11-point increase Community, Operational Excellence Qualifications Framework that in employee engagement from and our Apprentice of the Year. is related to capability Energy do every day is central Queensland requires today and into 62% last year to 73%. This result Growing our people for a to the experience the future. benchmarks Energy Queensland in digital future of our customers. the top quartile of high performing We have also advanced in the use Our aim is to ensure that our organisations and is above the virtual reality (VR) to help deliver We are committed people develop and grow with average for the energy and utility training. An innovation approach the right skills, capabilities and to ensuring that our sector. The annual engagement has led to the development of safe, experiences that are adaptive to people have the survey coincided with the beginning effective and engaging platform for a rapidly changing, digital way of of the COVID-19 pandemic in our apprentices and tradespeople skills and capabilities working. Australia. The results showed a to navigate risk-free training positive increase across all aspects needed for the future This year we have focused scenarios replicating live electrical of the employee experience, with on identifying the skills and polarity testing. The training of the workplace, are safety and diversity and inclusion experiences required for the future simulator is being piloted for the being among the top dimensions. empowered and able of our industry and providing existing ‘Test and Verify’ unit of the to thrive and deliver These results are being used, the right learning opportunities. training. with other measures and tools, Research was conducted into the seamless, value added Our graduates and apprentices including the Customer Enablement underlying skills that our employees solutions and services. Index (p15), to track and report will need to help them meet the The changing nature of the our maturity along our cultural changing nature and expectations future workforce has also seen journey. Leveraging digital of work in our organisation. our graduate program evolve to technology, authentic leadership Amongst the enterprise skills include data and digital positions, and prioritising the safety of our are change agility and digital alongside the traditional electrical people has resulted in an increased literacy. Building our organisation’s engineering positions. We currently positive experience of work for capability to maximise new have 17 electrical engineering employees, which ultimately technologies and analyse and use graduates, in the fields of power benefits Energy Queensland’s more complex data is critical in and supervisory control and data customers and communities. today’s digital world. acquisition/telecommunications. Although our 2020 graduate Reward and recognition for the The recent introduction of the intake was amidst the COVID-19 efforts of our people are critical online, real-time learning platform, pandemic, we still attracted an and continued to be a focus. Over LinkedIn Learning has seen over increase in applications compared the past year, more than 21,000 50% of our staff access this online to 2018-19. We were also recognition cards were sent, and platform with approximately encouraged to see an increase in May 2020 we expanded our 700 hours of learning consumed in women’s and First Nations celebration of excellence with 26 each month. The diversity of applications. employees receiving the annual content means there are learning ‘Up in Lights’ award. Nominated opportunities relevant for all In addition, strong commitment by their peers, the awards employees to build skills and remains for our apprentice program recognised employees’ efforts in knowledge for their current job and as central to delivering a diverse transformational achievement, advance their career. We continue technical future workforce for

38 Energy Queensland's Annual Report 2019-20 our organisation and skilling Inclusion supports and Brisbane participated. Other New apprenticeships Queensland communities. We offer engagement highlights included participating in state-wide apprenticeships across the whole the CQUniversity Brolga Program Building an organisation that is We offered 127 apprenticeships to state and are proud to be building in Rockhampton, which assists best able to adapt and meet our local people in towns right across our workforce, recruiting in remote, Indigenous students with STEM customers’ changing needs is at our regions, from Thursday Island regional and city locations alike. career pathways. the core of our people focus. We to Southport, and out west, so the This year we recruited 127 recognise that a diverse workforce Energy Queensland was also part next generation can develop their apprentices, among them are that reflects the communities we of the Dream Big events, held to skills and a career while remaining communications technicians, serve, and one in which everyone inspire the next generation of year in their home community with their distribution and transmission feels valued and able to bring their 10-12 female school students family and friends. linespersons, mechanical trades whole selves to work is vital. to ‘dream big’ in STEM careers. (diesel fitters) and electricians, Our Diversity and Inclusion Strategy Support for women in technical taking our number of apprentices describes our approach, and and operational roles, as well as completing a qualification with us how we seek to build awareness, leadership roles, has also continued to 458. During 2019-20, Ergon promote and embed inclusive with a strong Championing Retail boosted recruitment with behaviours through five goals: Women’s network across the 66 new full time and part time organisation. This network has • a pipeline of future talent customer service roles in our increased the visibility and regionally-based call centres in • a workforce that reflects opportunity for women to connect Townsville and Rockhampton. Queensland with each other and women role • realising our employee potential models across the business. Skilled to lead with • a community leader. purpose Following on the previous year’s successful launch of EQL Pride, Leadership is critical to our In 2019-20 we’ve focused on the LGBTI+ Inclusion working success and our leaders need improving representation and party continues to play a strong contemporary, people-focused outcomes for key groups under- role in advocating, promoting and skills. More than 85% of our represented in our workforce. This celebrating the LGBTI+ community leaders have now completed has supported a 6-point increase in and creating an inclusive workplace the face to face SKILLED Leader our Inclusion Index, as measured in for our employees. program. The capabilities built the annual employee engagement during this program continue to be survey, from 69% to 75%. As an A first for Energy Queensland was embedded through learning groups indicator of continued progress, our participation in this year’s and supported by the availability we feel this is good for business AccessAblity week with local of targeted online leadership and good for customers and disability employment providers. development through the LinkedIn communities. Supporting this Australian Learning platform and our social We have been creating a Government initiative, enabled media channels. Due to COVID-19 more inclusive, culturally safe jobseekers with disabilities to we developed digital tools for our workplace for our First Nations connect and experience a day of leaders, to further support building employees. We’ve offered training job shadowing while also helping the leadership capabilities required opportunities for First Nations to build inclusion within our for our future-state culture and to people, holding an Introduction organisation. We will continue to inspire and engage our people. to the Electricity Supply Industry focus to improve their experience training program where First of our workplace. Nations apprentices in Mackay

Energy Queensland's Annual Report 2019-20 39 Transforming the way we work

As an organisation, The building blocks to incidents, conversations, Request Innovation is core to for Information (RFIs), public over the past year we digital future transformation The modernisation of our digital shocks and new environmental Energy Queensland has innovation have transitioned from platforms continued this year with monitoring capabilities, as well as a core business value and will the foundational work further deployments across a range as injury management and health apply innovative approaches to of ‘building blocks’. monitoring components. This increase efficiency, improve delivery of merging to building reporting is now instantaneous of value to customers, enhance By 2023 the Digital Enablement our organisational from any location across the state. employee contributions, increase Building Blocks (DEBBs), part safety and minimise costs. capability to deliver of the current Information and The new year has also seen the value to our customers Communications Technology (ICT) introduction of a range of other The Innovation Hub model being Strategy underway, will provide a elements in the suite including; used means that all areas of the and communities. consolidated and modern digital • deployment of capability to business are empowered and In particular, we platform, reducing duplication support the management of risk encouraged to lead and develop and improving the way we work. and controls in line with the their own approach to innovation. have accelerated our Our people will have access to corporate risk framework The Hub supports this through digital capability to the information sets they need, • establishing our core financial communication, coordination rapidly respond and via multiple device options, that capability that brings together of resources for approved ideas will enable better business and our Energy Queensland presented to the hub. ensure continued customer decision making and operating model and chart of delivery of service to long-term value for customers. accounts in SAP, supporting a more efficient way of delivering our customers and In the second half of 2019 our corporate financial we completed a significant communities in a reporting foundational step with Windows highly challenging and 10 Office 365 rolled out across the • delivery of the Enterprise uncertain environment. organisation. This proved critical Content Management (ECM) to the success of our workforce platform to lay the foundation transitioning to working from home to support the corporate due to COVID-19 restrictions. We records management objectives. also continued the implementation • the first round of tactical of foundational capabilities in improvements to the finance solutions, unified sourcing infrastructure and tools used to contract management and supplier support our network operations lifecycle management processes, and field teams (Unified and health and safety. Distribution Management Systems). Another highlight has also been the implementation of Other technology trials are also the Environment, Health and highlighted in the sections on Safety Management (EHSM) community safety (p30) and solar module of the SAP system. This (p42), both areas of significant featured new components for technology innovation.

40 Energy Queensland's Annual Report 2019-20 Our environment

We’re supporting the electricity industry’s transition to a low carbon future, and are committed to minimising our operational environmental impacts. Our efforts include purchasing green energy, delivering smart solar solutions, investing in new technical solutions to support distributed energy, and a focus on decarbonising transportation. We are also looking at our own carbon footprint, as well as ensuring best practice environmental standards across our operations.

Community in brief

Commitment made through a Low Carbon 1,000GWh roof top solar shared Future Statement In regional Queensland, $36 million was credited to customers As part of showing leadership in transitioning the Queensland through Ergon Retail’s feed-in-tariff, and $241 million state-wide electricity industry and mitigating the potential risks of a changing as part of the Queensland Government’s Solar Bonus Scheme. climate, we have committed to a target for reducing our controllable This was on top of 444GWh in renewable energy power purchase greenhouse gas emissions by 17% by 2030. agreements.

1.4GW of large-scale Gaining visibility of solar on Doomadgee moves to a solar projects the network cleaner energy future Yurika has continued to deliver high Tested an innovative state estimation Decarbonising Queensland’s remotest voltage connections for solar farms across capability to provide an immediate forecast communities is underway, with the Australia, and is now having success of the load on the local network at any installation of an extra 404kW of solar with Smart Connected Solar solutions for point in time, critical to supporting solar capacity in Doomadgee this year. commercial properties (p42). connecting into our networks in the future.

SmartCharge EV Progress on No Oil to Closer to being Improved waste research underway Ground Project asbestos free management As part of our Network EV Developing oil contamination Asbestos-containing materials, Through waste collection Tactical Plan, the three-year inspection processes, a waste and soil have been and separation process research program will form more systemic approach to removed from 87 substations improvements we are part of a rich EV-related management of hydrocarbons, and commercial sites, 27 depots, increasing the quality of data set to underpin our EV and measures for oil and chemical 23 owned residences, and two recyclable materials and initiatives. handling practices. vacant land sites. diverting waste from landfill.

* Part of our formal performance agreement with our shareholding Ministers, set through our Statement of Corporate Intent.

Energy Queensland's Annual Report 2019-20 41 Transitioning to a low carbon energy future

To show leadership, The statement also makes a Australia according to data from improve their carbon emissions, commitment to proactively reduce the Australian PV Institute. with its bundle of modular Energy Queensland our carbon footprint, with a target distributed energy components and This not only benefits the owner of for reducing our controllable smart metering. made a Low Carbon the system, in 2019-20 it added up greenhouse gas emissions. The to around 1,000GWh of renewable The latest site to benefit is Mater Future Statement this statement supports the Queensland energy being transported across Hospital in Townsville, with the year. This outlines Government’s target to achieve our networks with other consumers. installation of a 452kW rooftop 50% renewable energy generation our commitment to solar system, completed on time in Queensland by 2030. To support this, Ergon Retail and budget in the early part of enabling the transition credited thousands of residential 2020. The system includes an Supporting the economics and small to medium business of the Queensland online information service enabling of green energy customers a total of $36 million electricity industry to remote monitoring of solar We pay for the solar energy during 2019-20 for the solar production, grid usage and on-site a low carbon future, exported into the grid. energy they exported back into the consumption. It has also been set grid through regional Queensland’s to building greater up to enable connection to a large- Purchasing green energy 7.8c/kWh feed-in tariff. scale battery, EV chargers, and resilience in our Ergon Retail is one of the largest peak demand load control systems. purchasers of renewable energy Ergon Network and Energex also network, communities The site’s back-up generator in Queensland with 444GWh of passed on $241 million state- capacity can also be used through and across our renewable energy bought through wide for the energy exported by the VPP (p29) to offset their cost power purchase agreements in our customers on the Queensland businesses and to of energy. 2019-20. Government’s Solar Bonus mitigate potential risks Scheme’s 44c/kWh feed-in tariff Yurika has also recently won a In recent years, we have supported (p50). of a changing climate. landmark contract to design, install, the viability of a range of large- commission, own and operate scale renewable energy projects Taking our smart solar 15MW of renewables for 15 years through these agreements, expertise Australia-wide across five major shopping centres including the Mt Emerald Wind Yurika has also continued to owned by Queensland Investment Farm, south-west of Cairns, and deliver connection works for large- Corporation. With the aid of new Lilyvale Solar Farm, north-east of scale renewable projects across smart technologies, the centres Emerald. These partnerships have Queensland, New South Wales and in Logan, Toowoomba, Robina, secured affordable green energy for now Victoria as part of Australia’s Townsville and Melbourne will our customers with the 53-turbine transition to a low carbon energy be well placed to take advantage wind farm officially opened this future. So far, they have been of emerging opportunities in year, and the 400-hectare solar involved in 1.4GW of large-scale EV charging services, VPP and farm also now in full operation. solar projects around the country energy storage. The partnership with nine projects under way at the Our power purchase agreements is an example of how our end of the year. also support electricity from business is supporting commercial biomass, largely from Queensland’s The team recently completed a businesses with their energy many sugar mills – providing major high voltage connection for and environmental performance a major economic contribution 34MW solar farm at Middlemount objectives. to the industry and their local in Central Queensland for Biosar New solutions to support communities. Australia and SUSI Partners. This distributed energy project included several innovations Ergon Retail also continued to resources to deliver outcomes for the operate a 35MW gas-fired power customer. They also connected the We are continuing to explore station in Barcaldine to complement new 80MW solar farm, constructed new ‘visibility’ solutions to better our energy market needs. by FRV, in Goonumbla near Parkes monitor the impact of solar on network voltages and loads, as Queensland homes benefit in central-west of New South Wales well as other new technologies from solar into the Transgrid network. and capabilities as part of Our Around one in three houses now Commercial and industrial Future Grid Roadmap (p28) to have a solar energy system – the customers are also taking up cost effectively enable even higher highest penetration of rooftop Yurika’s Smart Connected Solar penetrations of solar and other solar energy systems on detached solution as the energy platform renewable resources. residential premises of any state in to manage their energy costs, and

42 Energy Queensland's Annual Report 2019-20 A highlight this year was the To remove the need for fixed or electricity networks are not Leveraging the learnings from completion of the ground-breaking nil export connections, we have breached. This innovative project the earlier Lockhart River project, Solar Enablement Initiative, a also trialled a potential solution includes collaboration with energy this year Yurika installed a new collaboration with the University for commercial solar installations market aggregators to explore community solar solution at of Queensland, and a range of that would allow customers potentially scalable capabilities Doomadgee in the Gulf, integrated other partners, and part-funded by to maximise renewable energy for coordinating energy resources with the local stand-alone grid and the Australian Renewable Energy exports, while managing network throughout the distribution diesel power station, with progress Agency, testing the application risks, by allowing the system to network. also in Pormpuraaw and others of state estimation on several export within a dynamic operating planned to follow. To advance the knowledge of how distribution feeders. This process envelope or limits based on the solar, batteries and other resources Yurika collaborated with, of estimating the status of the local conditions on the network. integrate with the network, we Doomadgee Aboriginal Shire solar energy on the network uses a These trials will help inform also supported the establishment Council and Queensland sample of near real-time network the national discussion on the of AEMO’s Distributed Energy Government to facilitate the data to provide an immediate integration of distributed energy Resources Register, which we now installation and connection of forecast of the load on the network resources, and build on the update daily to provide a granular 100kW of solar to Ergon Network’s at any point in time. Renewable evolution of our standards (p17). and up to date view of systems distribution system on four energy by its very nature fluctuates. Progress is also being made, as across our networks. Doomadgee community rooftops. With a clearer picture we can partner in the ARENA-funded In addition, an Ergon Network solar manage our networks more project ‘evolve’, to explore Renewables adding farm outside town was increased dynamically to maximise use of capability to increase the network sustainability to isolated by 304kW, with advanced available capacity, allowing more hosting capacity of distributed communities monitoring and control systems. systems to be connected. The energy resources by maximising This investment is delivering success of this trial will now see the We are continuing to support their participation in energy, savings for the community, training roll-out of targeted state estimation the decarbonisation of energy ancillary and network service and employment opportunities capability, complemented by a supply to our remote and isolated markets, while ensuring the for locals, and a win for the network monitoring trial underway communities. secure technical limits of the environment. (p30).

Our support for renewable energy More than 4.2GW of distributed energy resources are now connected

New solar farms 2019-20 to our networks – making them a sharing platform for renewable Existing solar farms energy. This is not only supporting renewable energy investors, but the Wind environment, our customers, big and small, and the wider community. Hydro Bioenergy (including bagasse, biogas, wood waste, landfill Major renewables on our networks (>3MW) Cairns gas, sewage) There are 21 solar farms connected* (with three more under construction). Six new solar farms were connected in 2019-20.

Townsville Our network also has two hydro-electric generators connected, in the Brisbane area, and two wind farms now connected in Atherton and Hughenden. Mackay We also provide the platform for 26 large bioenergy connections, mostly QUEENSLAND generating from bagasse, a by-product of Queensland’s many sugar mills, to export across the grid.

Our networks also support over 619,000 rooftop and other small-to-medium solar energy systems.

SOLAR ENERGY CONNECTIONS NUMBER TOTAL CAPACITY

Brisbane Small-scale (≤30kW) 617,491 2,737,504kW

Medium-scale (>30 – 1,500kW) 1,885 224,654kW

Large-scale (>1,500kW) 37 823,439kW *Five solar farms have two network connections each. TOTAL CONNECTIONS 619,413 3,785,597kW **Locations are indicative only.

Energy Queensland's Annual Report 2019-20 43 Yurika is also building a solar and A tactical approach to an volunteer participants have been this stage is preparing for the battery solution on a new retail electric vehicle future provided with a self-installed anticipated growth in demand for centre under construction on Palm In 2019, to support the Queensland monitoring device that captures public fast-charging stations. Island, off the coast from Townsville. where, when and how they are Government’s ‘The Future is In addition to the existing Yurika The system will provide about 15% charging their vehicles, and makes Electric: Queensland’s Electric charging sites, the 13 under Stage of the centre’s energy needs. it easy for users to monitor and Vehicle Strategy’, we developed 2 development will bring the total a Network EV Tactical Plan. analyse their own EV charging Helping to decarbonise to 31. This charging network is This articulates the EV-related activity via a portal. transportation helping to stimulate EV adoption initiatives being prioritised by our The data and insights from this in the Sunshine State, attract On Queensland’s roads there are network businesses over the next research provides a window into EV-driving tourists to regional now 2,300 fully electric Battery one or two years to deliver value this new and rapidly evolving Queensland, and meet future local Electric Vehicles (BEVs) and almost to customers. The 10 tactics to customer group. It builds on demand. 1,100 Plug-in Hybrid Electric prepare for future growth in EV findings from earlier trials as Vehicles (PHEVs). With a number adoption cover education, network well as our annual Queensland Transition to efficient of new and more affordable connections, energy management Household Energy Survey; helping public lighting vehicle models scheduled for (including vehicle-to-grid), us better understand the potential Energex and Ergon Network release over the coming year, the data, research and stakeholder impacts of EV charging, identifying have continued to work with upward trend in EV adoption is engagement. opportunities to manage EV-related Department of Transport and expected to continue. The implementation of this plan load growth, and informing future Main Roads (DTMR) and local For Energy Queensland, EVs will provide, among other benefits, product options. governments across Queensland present both challenges and this year to advance public a richer understanding of energy This research will form part of a opportunities. Our aim is to lighting services. Engagement flows, to the premises for EV rich and unique EV-related data set ensure we’re meeting customers’ sessions held with DTMR and charging. Network monitoring to underpin the other EV initiatives EV charging preferences while Local Government Association devices will provide data and across our network businesses. encouraging off-peak charging insights as to how multiple EVs and Queensland representatives to enhance network utilisation their charging may impact, or even Yurika rolling out EV assisted in developing our and place downward pressure on help, the low-voltage network. Our fast-charging stations Regulatory Proposals and tariff electricity prices. reforms (p14). The public lighting three-month trial of vehicle-to-grid Yurika is rolling out Stage 2 of the tariffs accommodate conventional During the year, we replaced technology in late 2020 will be Queensland Electric Super Highway. public lighting requirements such more than 10 of our fleet’s one of the first in Australia, lay a The string of public charging as sodium and mercury vapour and passenger cars across the state foundation for exciting new options stations allow Queenslanders and the transition to new technology with EVs. We also launched our for both our networks and our tourists to travel in an EV with Light Emitting Diode (LED) lighting. first EV Home Charging Plan customers. confidence from Coolangatta The tariffs also consider the (p15), and continued to work to Cairns or from Brisbane to Already underway is the three-year potential for smart controllers and with government and other Toowoomba. With the uptake SmartCharge Queensland Research trials of vandal-resistant options key stakeholders to develop of electric vehicles expected to Program to monitor the charging that minimise energy use, costs and regulations for EV charging. steadily climb in coming years, behaviours of EV owners. The 200 other environmental impacts.

Electric vehicle adoption in Queensland

4,000

2,000

After a slow and steady .------...... ----...... , .... -----·-·-"~---"""'"":':'·············_., ...... increase in EV volumes, the release of the Tesla Model 3 in 0 September 2019 boosted the number of EVs in Queensland. Further model releases in Jun 17 Jun 18 Jun 19 Jun 20 Sep 16 Sep 17 Sep 18 Sep 19 Dec 16 Dec 17 Dec 18 Dec 19 Mar 17 Mar 18 Mar 19 Mar 20 2020-21 will likely continue Total • • • • • PHEV BEV the recent growth rate.

44 Energy Queensland's Annual Report 2019-20 Our carbon scorecard

Energy Queensland’s overall carbon We are also looking to better Our direct emissions - Scope 1 footprint, including both direct understand our upstream indirect and indirect emissions, equated emissions (Scope 3) to identify to 1,747,234 tonnes of carbon other opportunities to reduce our 7% dioxide equivalent (tCO2-e) in overall carbon footprint. 2018-19 (the most up to date data Our direct emissions reduction at time of writing this report). This Electricity generation projects currently include: the 24% • footprint, reported annually to the Transport and other fuel use decarbonisation of energy supply • Clean Energy Regulator, is largely SF6 from switchgear to our isolated communities (p43), 69% due to the energy that is lost the introduction of an in-vehicle while distributing electricity across monitoring system to track and the network (an indirect Scope 2 optimise fleet usage and the emission). electrification of some fleet, and We are developing a greenhouse improving the management of SF6 gas emissions management plan gas (p47). We are also replacing Our indirect emissions - Scope 2 to support the emissions reduction over 200,000 mercury vapour target in our Low Carbon Future streetlights with more efficient LED 2% Statement (p42). Various projects alternatives, which will reduce our have been initiated to enable us indirect emissions. Collectively, the to reduce our direct, or Scope 1, projects are expected to reduce our 11% emissions, emissions, from our overall carbon footprint by more Network losses 2018-19 emissions baseline of than 80,000tCO2-e, the equivalent • Public lighting 131,420tCO2-e (up 3% on 2017- of removing approximately 33,000 • 18 with isolated community energy cars from the road for one year. Operational electricity use demand). These direct emissions 87% are from the fossil fuels used to generate electricity in isolated communities, our transport fleet, and fuel use in other plant, and include SF6 (sulphur hexafluoride) gas emissions from the electrical switchgear on the network. ISOLATED GENERATION STATISTICS 2018-19 2019-20 Diesel generation 116,929MWh 116,355MWh 

Renewable generation 945MWh 1,543MWh 

Total generation 117,874MWh 117,898MWh 

 Emissions saved by supplying with renewable generation 636tCO2-e 1064tCO2-e

Energy Queensland's Annual Report 2019-20 45 Ensuring best practice operations

We maintain our This year, we developed a new • developing more systematic assets including 87 substations and Environmental Sustainability and oil containment inspection commercial sites, 27 depots, 23 commitment to Cultural Heritage Policy, with five processes for improved owned residences and two vacant reducing impacts on focus areas: a low carbon future, assessment of systems land sites. In addition, our workers waste reduction, no oil to ground, integrity. Given the variety and contractors have removed the environment and cultural heritage, and reduced of oil containment systems more than 130 tonnes of asbestos- cultural heritage from natural disaster impacts. used, this work will inform the containing material from our establishment of a business- customer premises and from the our operations and Our environmental and cultural wide standard for reliable electrical networks. The aim of the heritage management systems to grow respectful device selection for future removal is to safeguard our people continue to expand and improve and refurbished sites and and the community from exposure relationships with all across Energy Queensland. Our assist in the prioritisation to materials containing asbestos certification to International the communities we of site rectification and any for good. Standard (AS/ISO 14001) has also service. remediation works. The been maintained this year. information gathering and Biosecurity management During 2019-20, Energy scoping portion of this work A new Energy Queensland Queensland notified the is now complete with design Biosecurity Standard and Department of Environment and reviews expected to take place Management Plan was developed Science of nine events. Four were during the 2020-21. this year, standardising and related to hydrocarbon spills from • developing a more systematic expanding our approach across all electrical assets and one handling approach to identification and our operations. Given our field crews event, one event occurred when rectification of hydrocarbon can be deployed across the state a recycled water pipeline was leaks from transformers. and travel greater distances than they may have in the past, the new ruptured during works and three • reviewing oil and chemical plan helps to reduce the potential notifications related to slight water handling management practices for biosecurity impacts specific to quality exceedances outside of site with a focus on our remote different regions. licence requirements. Improved generation site operations. This water sampling procedures were seeks to establish practices and Assurance activities were developed and implemented, with performance measures that will undertaken on the effectiveness no further water quality licence allow us to benchmark against of recently upgraded sensitive breaches. other organisations operating area signs (with Quick Response similar facilities within Australia. Minimising our (QR) codes), which provide access This work has recently been operational impact to important environmental and awarded and is expected to be cultural heritage information on Some of the key improvements complete by the end of 2020. properties. Findings resulted in this year were around soil improvements to training material contamination, asbestos, Asbestos free by 2030 for our meter readers and other biosecurity, waste recovery and Following our Asbestos external contract providers. cultural heritage. Management Plan, launched in 2017-18, we have now completed We are continuing to proactively No Oil to Ground Project 82% of the plan, bringing us work with customers, industry During the year we progressed closer to our goal to be asbestos- partners and other stakeholders the No Oil to Ground Project, free in our building and facilities on managing biosecurity threats. initiated in 2018-19, to address wherever reasonably practical by We worked on changes to the environmental events due to soil 2030. In 2019-20, 11,567m2 of Biosecurity Act 2014 regarding contamination from electrical asbestos-containing materials unauthorised access to properties, assets events. The project is divided and 12,000m3 of asbestos waste as well as changes to the National into three broad components: and soil was removed from 142 Farm Biosecurity – Property

46 Energy Queensland's Annual Report 2019-20 Biosecurity Management Plan. This Mapping cultural heritage ensures that our legislative access Cultural heritage and requirements to provide a safe and environmental field assessments reliable electricity supply can be are routinely undertaken for new maintained, while also supporting electricity connections to ensure we reasonable biosecurity requirements minimise any impacts. This year, a to protect landholders’ properties new cultural heritage assessment and livelihoods. process and an environmental assessment approach were Waste recovery improving developed in conjunction with a Improvements to waste collection new and improved spatial mapping and separation processes, we are tool that can be accessed broadly improving the quality of recyclable across the business. materials and diverting waste from landfill. Over the past 12 As part of revising training for months our average diversion of our people on the new processes, waste from landfill has been 53%, we are producing short videos to which is heading towards the enhance cultural heritage field Queensland State Government’s assessment techniques which will 2025 diversion target of 65%. This lead to better management of average equates to approximately cultural heritage which respects 613 tonnes per month. We will for First Nations people and their continue to focus on reducing the history. amount of potential waste entering In addition, we have been the organisation, and keep working collaborating with Indigenous with our waste contractors to find leaders to identify ways to improve markets for wastes that have the how we go about mapping cultural potential to be reused or recycled heritage for our infrastructure for other purposes. projects. We have also undertaken life cycle analysis of SF6 gas used in switchgear across our networks to improve how it is managed. This includes reviewing operations to pursue SF6 gas recycling opportunities and exploring alternative technology to minimise the use of SF6 gas-filled equipment in the future.

Energy Queensland's Annual Report 2019-20 47 Our economic value

Our financial performance continues to make a significant economic contribution to Queensland. Along with a commitment to playing our part in lowering electricity prices for our customers, we are delivering on our shareholder’s expectations, through careful spending decisions and delivery of business efficiencies. We see this as vital to delivering financial value to the Queensland Government, for the benefit of Queensland communities, and to the sustainability of our services into the future.

Our economic value

$643 million in merger savings $1,915 million expenditure Multi-year target $562 million – as a Group, we have achieved merger Target ≤$1,630 million* savings substantially more than the original objective, placing us well Expenditure levels for our core, Standard Control Services, was for the reduction in future revenues. maintained at levels consistent with 2018-19.

$483 million Net Proft After Tax 5.8% Return on Capital Employed Target ≤$506.9 million* – this result was impacted by, among other Target ≥6.0* – this result, while down as expected on previous years, is things, increased COVID-19 related expenses and unrealised losses in line with expectations, given the efficiencies and ultimately the profit from a decrease in forward electricity prices. result achieved.

* Part of our formal performance agreement with our shareholding Minsters, set through our Statement of Corporate Intent.

48 Energy Queensland's Annual Report 2019-20 Merger delivers on efciencies

We continue to Now at the end of the fourth state-wide energy-related These businesses operate under a year as a Group, our focus on initiatives, such as the $498 million five-year regulatory control period, improve our economic efficiency and effectiveness has Community Service Obligation with our revenue now reset by the performance, and delivered $643 million in savings payment (p50), the Utility Bill Relief AER for 2020-25. The AER’S final to Queenslanders, substantially Assistance package this year, which revenue determinations (p14), ability to deliver lower more than the original multi-year included $159 million of relief released in June this year, allow prices. target, established in 2016 as payments to over 690,000 homes Energex to recover $6,010 million a key objective of the merger of and businesses (p14), and other from its customers over the 2020- Ergon Energy, Energex and SPARQ customer rebates. 25 period, and for Ergon Network Solutions, of $562 million by to recover $5,926 million. The total expenditure for our core 2020.7 Standard Control Services was This reset will have significant The business is pursuing strategic $1,915 million, which reflects impact on our future financial initiatives focused on contemporary a continued focus on investing performance. As the largest systems, technology and processes in the Network to ensure we building block in the AER’s revenue that will deliver operating meet compliance and safety determination, the scale of the efficiencies and competitive requirements as well as fast reductions has come from the advantage to operate in a more tracked Non-network investment allowed rate of return on our dynamic environment. These, and to support remote access, and network businesses’ regulated further efficiencies, will be vital to network and perimeter stability due asset bases. operating within future revenue to COVID-19. These revenue allowances are constraints and keeping the The Return on Capital Employed lower than at any time during pressure off prices (p14). was 5.8% (7.1% in 2018-19). The which we have been regulated Energy Queensland made a lower ratio in 2020 was driven under the AER. While challenging, consolidated Net Profit After Tax of primarily by the lower Earnings they will provide vital price relief to $483 million (compared to $657 Before Interest and Tax (EBIT) our customers during the difficult million in 2018-19). This result reported by the Group. economic period ahead. was impacted by falling revenue, the impact of COVID-19 on bad Future revenue constraints debt provisions and operating As a Group, much of our revenue expenditure, higher depreciation comes from our regulated and unrealised mark-to-market distribution businesses Energex losses as a result of a decrease in and Ergon Network, collected as forward electricity prices. a component of Retail electricity bills. Other components of the bill Through dividends to the include generation, transmission Queensland Government, our and retail costs. economic contribution supports

7 Target set through 2016 Shareholder Mandate. For a like for like comparison, merger savings are based on 2015-19 Cost Allocation Methodology (CAM).

Energy Queensland's Annual Report 2019-20 49 Financial summary for Energy Queensland Limited (Consolidated)

This section explains the average debt balance and requirements, including $MILLION $MILLION A. OUR REVENUE key financial outcomes for interest rates of the last 12 capital investment. We remain 2018-19 2019-20 Energy Queensland Limited months. committed to maintaining a Revenue and Other for 2019-20. This commentary sustainable financial position 4,991 4,863 Payments made under the Income is not comprehensive – for by managing our long-term Queensland Government’s full disclosures refer to the debt levels to an appropriate B. OUR EXPENSES Solar Bonus Scheme continue Annual Financial Statements target gearing ratio as Transmission to decline as the number of for Energy Queensland Limited considered appropriate by our Charges and (840) (758) eligible customers gradually Electricity Purchases and its controlled Entities, Board, in consultation with reduces. Overall, we have paid available online at www. our shareholder. The Debt to Operating Expenses (1,759) (1,843) $277 million in feed-in-tariffs. energyq.com.au/annualreport. Regulated Asset Base Ratio is Depreciation, The Queensland Government’s 70.0% (2019-20: 70.7%). A. Where does our Amortisation and (971) (1,065) Community Service Obligation Impairment Expense revenue come from? E. What was our capital subsidy is disclosed as an investment? Finance Charges (764) (714) Energy Queensland’s total offset expense against revenue for the financial year We have delivered a $1,598 transmission charges and P50 OUR PROFIT is $4,863 million consisting of electricity purchases. Total million capital investment program, this is $140 million electricity Retail sales ($1,993 transmission charges and Net Profit After Tax 657 483

million) and Distribution electricity purchases, net of higher than the $1,458 revenue ($2,680 million). this offset, are $758 million, a million invested in 2018-19 C. OUR ASSETS continuing to reinforce our B. What are our main reduction of $82 million and commitment to meeting Current Assets 1,394 973 expenses? in line with electricity sales. the requirements of our Our total expenses have C. What assets do we communities and future Non-current Assets 24,389 25,069 seen an increase of 1% ($46 own? needs. We continue to Total Assets 25,783 26,042 million) compared to last year, Our total asset base is carried maintain our service levels mainly due to a combination and reliability and make at $26.0 billion. Property, D. OUR LIABILITIES of higher depreciation and plant and equipment are appropriate investment in operating costs, offset by the major components of the growth of the distribution Current Liabilities 1,891 1,700 lower transmission charges our asset base, at $24.2 network. Our network capital Non-current and electricity purchases, as investment is $949 million 20,265 20,992 billion, which includes mostly Liabilities well as lower finance charges. regulated electricity network (2018-19 $953 million). We continue to review assets. Our Network assets Total Liabilities 22,156 22,692 F. What dividends do we our operating and capital are revalued to fair value on return to our owners? Net Assets 3,627 3,350 programs and activities, an annual basis. identifying savings through Our 2020 dividend will increased efficiencies and D. What are our comprise 100% of Net E. OUR INVESTMENT initiatives. liabilities? Profit After Tax adjusted for Total Capital 1,458 1,598 Total liabilities are $22.7 non-cash items, which will be Investment Depreciation continues to be billion this year. Our largest paid to our shareholder, the a substantial expenditure due F. DIVIDENDS liability, the interest-bearing Queensland Government in to the considerable capital loan with Queensland 2020-21, ultimately benefiting Dividends Declared 657 443 employed in the provision of Treasury Corporation, is at the people of Queensland. electricity distribution services. $17.3 billion with $633 Our finance costs of $714 million in loan drawdown million correlate with the this year to fund business

50 Energy Queensland's Annual Report 2019-20 Corporate governance statement

Energy Queensland Energy Queensland Limited is the The Board Charter supports All new directors attend a parent company of a number of Directors and Executives in structured induction session to Limited is a operating subsidiary companies understanding their governance ensure they understand roles Government Owned including Energex Limited, Ergon responsibilities. The Charter is and responsibilities, functions of Energy Corporation Limited, reviewed every two years and is the Board and Committees, and Corporation reporting Ergon Energy Queensland Pty available online at www.energyq. corporate expectations. They also to the Queensland Ltd, Yurika Pty Ltd, Metering com.au receive an overview of Energy Government via Dynamics Pty Ltd and Ergon Energy The Board of Energy Queensland Queensland’s operations, and Telecommunications Pty Ltd whose Limited comprises seven the Energy Queensland Board two shareholding main business is the provision of independent directors. The activities Handbook. regulated electricity distribution Ministers – the of the subsidiary companies are Energy Queensland’s Executive and retail services to customers and overseen by their own boards made Committee comprises the Chief Treasurer and Minister other related unregulated business up solely of executive members. Executive Officer and eight other for Infrastructure and activities. Four committees to assist the executives. Other key roles within Planning, and the Energy Queensland Limited is Board in fulfilling its oversight, the organisation include the Chief Minister for Natural governed by a Board of Directors responsibility and performance Governance Officer (which includes whose primary role is to provide of its function in key areas in company secretarial duties) and the Resources, Mines and effective governance, oversight accordance with Committee Corporate General Counsel. and strategic direction of the Charters (also available online): Energy – on behalf Key Performance Indicators and affairs of the Energy Queensland • Audit Committee – financial of the communities targets for senior executives are Group. This ensures the interests integrity and reporting, agreed on an annual basis with we serve across of the shareholding Ministers are effectiveness of fraud and a performance review conducted 8 protected while having regard for internal control framework, Queensland . during the year. The performance the interests of all stakeholders, audit, policy framework, and review of the Chief Executive including our community investigations Officer, including setting of key stakeholders, end-user customers, • People, Safety and performance targets, is conducted industry partners, and employees. Environment Committee – by the Chairman in accordance Energy Queensland Limited’s people, safety, and environment with a defined evaluation corporate governance practices • Regulatory Committee process. Following from this, the are in line with the Australian – energy regulatory issues, Chief Executive Officer conducts Stock Exchange (ASX) Corporate ring-fencing, and regulatory performance evaluations of the Governance Council Principles determinations Executive Committee, including and Recommendations (4th • Risk and Compliance annual setting of key performance edition), where applicable, and Committee – risk policy and indicators along with a half-yearly the Queensland Government’s framework, risk appetite, risk check in pursuant to a defined Corporate Governance Guidelines identification and management, performance review process. for Government Owned risk culture, compliance policy PRINCIPLE 2 – STRUCTURE Corporations. These provide a and framework and compliance THE BOARD TO ADD VALUE framework of eight principles that culture. 8 2019-20 Shareholding Ministers are, guide our corporate governance Energy Queensland’s Board of In addition, the Governance and or were: arrangements. Directors, including the Chairman, Delegations Policy provides the • Hon Cameron Dick MP, Treasurer are independent, skills-based non- and Minister for Infrastructure and PRINCIPLE 1 – framework for decision making executive directors appointed for a Planning (from 11 May 2020) FOUNDATIONS OF and identifies the matters reserved set term by the Governor-in-Council • Hon Anthony Lynham, Minister for MANAGEMENT AND to the Energy Queensland Board in accordance with the Government Natural Resources, Mines & Energy OVERSIGHT and its subsidiary companies, Owned Corporations Act 1993 • Hon Jackie Trad MP, Deputy as well as the Chief Executive Premier, Treasurer and Minister for (Qld). Energy Queensland Limited’s Board Officer and Executive Committee. Aboriginal and Torres Strait Islander Charter outlines the role of the Partnerships (until 11 May 2020)* The reporting relationship and Principle 2 continued page 58. Board and sets the framework * The Honourable Annastacia decision-making responsibilities of Palaszczuk MP, Premier, temporarily for the Group’s long-term success the Energy Queensland Board and assumed shareholding Ministerial providing effective governance, subsidiary Boards are documented responsibilities for the period 9 oversight and strategic direction in the Energy Queensland Group to 10 May 2020 until 11 May over Energy Queensland’s affairs. 2020 when a new Minister was Governance Framework. appointed.

Energy Queensland's Annual Report 2019-20 51 Our corporate framework

Shareholding Ministers

Energy Queensland Limited

Board of Directors

Board Committees

People, Safety and Risk and Compliance audit and risk managementInvestment, functions Audit Committee Regulatory Committee Environment Committee Committee

Chief Executive Officer

Operating Companies

Ergon Energy Ergon Energy Queensland Energex Limited Yurika Pty Ltd Corporation Limited Pty Ltd Policies and Procedures Policies

Ergon Energy Metering Dynamics Telecommunications Pty Ltd * Trading as Nexium Pty Ltd* Telecommunications

Executive Committee

Divisions

Engineering Operations Retail Yurika

Finance Customer Services Digital

52 Energy Queensland's Annual Report 2019-20 Board of Directors Energy Queensland is governed by a Board of seven directors.

PHIL GARLING MARK ALGIE VAUGHAN BUSBY Chairman Director Director BBuild FAIB FAICD FIEAust BA(Politics) MBA CAHRI GAICD B.Pharm, MBA

Phil Garling joined the Board and was appointed Chairman in Mark Algie joined the Board in Vaughan Busby joined the Board in 2016. He is also member of the Regulatory Committee. 2016. He is a member of the Audit 2017. He is a member of the Risk Committee and the People, Safety and Compliance Committee and Phil brings to his role as Chairman 40 years of experience in the and Environment Committee. the Regulatory Committee. Australian energy, construction, infrastructure and investment sectors, gained through an extensive board and executive career. Mark is a highly experienced Vaughan currently serves as a human resources executive with non-executive Director for ASX He is currently a non-executive director of Downer EDI Limited more than 15 years’ experience listed EOL, a company providing and Charter Hall Limited. He has previously been a non- across numerous sectors including specialist software to the energy executive director of Network NSW, which was formed when defence, heavy engineering, industry and is the Chairman of Ausgrid, Endeavour Energy and Essential Energy merged in July construction, utilities, infrastructure Netlogix Australia, a supply chain 2012 and was the inaugural Chairman of the DUET Group for and media. logistics company. seven years. He has also completed the AICD Advanced Diploma. He is currently the Managing Previously, he was a Director Phil’s understanding of the energy sector and his broad Director of Human Outsource of Ergon Energy Queensland, corporate experience are valuable assets in guiding the future which specialises in the provision and the Managing Director for direction of Energy Queensland Limited. of human resources and psychology HRL Morrison & Co Australia, services. Mark is also a Non- an infrastructure fund manager Executive Director on the board of responsible for managing the NZX AEIOU Foundation. listed fund Infratil.

Previously Mark has held He has served as the Chairman of appointments as Director, Events Perth Energy, a vertically integrated and Custom Media for News Corp energy retailer in Western Australia Australia and Human Resources and as a non-executive Director Director with APN Australian for , an energy Regional Media. He also spent retailer operating in Victoria, four years with Tenix Australia in South Australia, New South Wales a number of HR roles, including and Queensland. He was also a as Manager Human Resources non-executive Director of Infratil Infrastructure, and two years with Energy Australia, a wholesale Ergon Energy Corporation Limited energy trading company. Vaughan as a Senior Employee Relations was the Chief Executive Officer and Consultant. He began his career Managing Director of Energy One, as an Army officer with the an electricity retailer. Department of Defence. He has extensive experience, not only in the energy industry, but also in turn-around and corporate restructuring. Vaughan holds an MBA from the IMD Business School in Switzerland.

Energy Queensland's Annual Report 2019-20 53 TERESA DYSON HUGH GLEESON KERRYN NEWTON HELEN STANTON Director Director Director Director LLB(Hons) BA MTax MAppFin BEng(Civil) FAICD FIE(Aust) LLM MBA MA GradDip(Applied BEng(Minerals Processing) GAICD Finance and Investment) GAICD FAICD FAIM FGIA

Teresa Dyson joined the Board in Hugh Gleeson joined the Kerryn Newton joined the Board in Helen Stanton joined the Board 2016. She is the Chair of the Audit Board in 2016. He is Chair 2016. She is the Chair of the Risk in 2016. She is the Chair of the Committee and a member of the of the Regulatory Committee and Compliance Committee and a People, Safety and Environment Regulatory Committee and the and a member of the Risk and member of the Audit Committee. Committee and a member of the People, Safety and Environment Compliance Committee. Audit Committee. Committee. Kerryn has over 25 years’ of Hugh has more than 30 years of experience working in various Helen brings strategy, risk and Teresa is also a non-executive experience in energy and utilities legal, management and governance expertise to the Board, director of Seven West Media and was the CEO of the electricity commercial roles in the private with extensive utilities governance Ltd, Genex Power Ltd, Energy and gas distribution businesses and public sectors, and as a experience. Her career includes Super, Shine Justice Ltd, Northern United Energy and Multinet Gas consultant working across the operational, leadership and Territory Power and Water for 12 years. He brings to the private, government, publicly- commissioning roles in the mining Corporation, the National Housing directorship significant experience listed, and not-for-profit sectors in industry. Finance & Investment Corporation in the areas of energy policy and an extensive range of industries. and the Foundation for Alcohol regulation, together with broad More recently Helen has worked Research and Education. experience in the operations and Currently, Kerryn is Managing as a consultant supporting management of utility businesses. Director of a national board organisations to formulate She is a member of the Gold Coast and governance advisory firm strategies for bottom line, Hospital & Health Services Board, Hugh is a professional engineer and advises a wide range of sustainable improvements. the Foreign Investment Review and has served on the boards of organisations in the areas of She was previously a non- Board and the Takeovers Panel. the Energy Supply Association of corporate governance, strategy, executive director of Ergon Energy Australia and the Energy Network board composition, risk and Teresa is a lawyer with more than Corporation Limited and Northern Association and has also been compliance. 20 years’ experience advising the involved in the water sector. Territory Power and Water private sector and governments Kerryn has held numerous Corporation. on complex infrastructure, He is currently a non-executive board roles in not-for-profit mergers and acquisitions, director of Melbourne Water organisations in the child care, finance transactions and social Corporation, gas distributor GDI education, aged care and housing infrastructure. She was formerly (EEI) Pty Ltd (Allgas Energy), sectors. She was a non-executive a partner of Ashurst Lawyers and electricity distributor Ausgrid and director of Energex Limited until Deloitte Australia. Collgar Wind Farm. 2016. In 2011, Teresa was named Woman Lawyer of the Year by the Women Lawyers Association of Queensland.

54 Energy Queensland's Annual Report 2019-20 The Executive Committee

Energy Queensland’s Executive Committee comprises a Chief Executing Officer (CEO) and ROD DUKE eight executive leaders. The team is based Chief Executive Officer across Townsville, Bundaberg, Maryborough and GradDipMgt BEHons (Chemical) Brisbane. Rod Duke joined Energy Queensland as Chief Executive Officer in April 2020. Prior to this he held the role of Chief Executive Officer of the Gladstone LNG project operating In April 2020, Rod Duke joined We would like to thank Charles company for Santos and its partners. the Group as CEO, following the and Cheryl for the contribution they interim leadership provided by made during their time with the Rod brings to the Group extensive executive and energy Peter Scott throughout 2019-20. Group. These divisions are currently industry experience gained from working in senior roles being led in acting capacities by at Santos, Singapore LNG Corporation, the Energy Market This was one of several changes Carly Irving and Ayesha Razzaq Authority and Woodside. to the executive during the year. respectively. Lastly, in June 2020, In January 2020, to further our He has a strong focus on safety and commercial outcomes Marianne Vosloo joined the Group focus on our customers and the with global experience in operations, commercial, marketing, as Executive General Manager, community, Michael Dart was trading, development, projects, engineering, construction Digital, reestablishing this position appointed to the newly created and commissioning areas of the natural gas industry, as well at the executive level. role of Executive General Manager as leading transformational projects. Customer. Then, March 2020 saw Since the end of the financial year, Rod holds a Graduate Diploma of Management from Deakin the departure of Charles Rattray, division names and executive titles University and a Bachelor of Engineering with Honours from Executive General Manager, Yurika, have been simplified with some the University of Queensland, where he is also a member of and Cheryl Hopkins Executive changes to accountabilities. the School of Chemical Engineering Industry Advisory Board. General Manager, Ergon Retail. He is a board director of the LNG Marine Fuels Institute.

Energy Queensland's Annual Report 2019-20 55 PETER PRICE PAUL JORDON AYESHA RAZZAQ CARLY IRVING Executive General Manager, Executive General Manager, Executive General Manager, Executive General Manager, Engineering Operations Retail Yurika BEng(Hons) MEng MCIPS FAICD GAICD, INSEAD BEng(Hons) GAICD FAMI GradCertBus BEd MBA GAICD

Peter Price was appointed to the Paul Jordon was appointed to the Ayesha Razzaq was appointed Carly is currently responsible for Energy Queensland Executive Executive Committee in December Acting Executive General Manager, spearheading Yurika’s unregulated in November 2016 and is 2017. Retail in March 2020. energy and telecommunications responsible for leading the services business, which includes He is responsible for leading the Ayesha is responsible for leading Group’s engineering and asset Metering Dynamics and Nexium. Group’s delivery, operations and Energy Queensland’s Retail management strategies, which She has been acting in the role maintenance of our electricity business, Ergon Retail. This includes the safe and efficient since March 2020. assets. This includes the includes delivering a positive management of the Group’s integration and transformation customer experience, managing Carly has over 25 years’ electricity distribution networks. of Ergon Energy Network’s and wholesale energy procurement, experience working in senior Prior to joining Energy Energex’s associated operational and the ongoing development of leadership positions, in general Queensland, Peter was a streams including works products and service choices for management, human resource member of Energex’s executive programming, field delivery, customers. management and business management team for ten years. substations and a dedicated operations, and as managing Ayesha brings a wealth of His career with Energex included emergency planning and response director/owner of a management commercial knowledge and managing and leading capital team into an innovative global consulting business. She brings expertise obtained through planning and program delivery, leader in the energy industry. to the team her expertise in her 20-year career as a senior asset management, procurement, corporate and strategic planning, Prior to his current appointment executive in the retail energy regulatory issues and the growth project management, logistics Paul led the customer service industry. With a customer-centric of new commercial businesses. and customer experience elements of the Ergon Energy focus, she has successfully management, as well as a deep Peter holds both a bachelor Network, which included implemented innovative strategies understanding of acquisitions, degree (with honours) and a ensuring the safe and efficient to deliver profitable growth and mergers, startups and businesses masters degree in engineering operation and maintenance of the has led large teams through in growth. from the University of Queensland, distribution network. a range of operational and and is a fellow of the Australian transformational programs. Carly is results driven, always Paul has more than 30 years’ Institute of Company Directors. ensuring sustainable business experience in the electricity Ayesha holds a Bachelor of Peter is also Chair of Energy Skills results, while maintaining the distribution and retail fields, both Engineering with Honours and Queensland and sits on the Board safety and wellness of her people. in Australia and internationally, more recently graduated from for Redback Technologies. She was a Queensland finalist in and brings a wealth of knowledge Harvard Business School where the Telstra Business Women of the to all aspects of his executive she completed the Advanced Year 2019 Awards for her work role including specialist levels of Management Program. She was challenging the traditional ‘way expertise in disaster preparedness awarded the 2017 Corporate we do things’ and rebalancing the and response and is a passionate Telstra Business Woman Award. power and gender dynamics. advocate for the safety of our employees and our communities.

56 Energy Queensland's Annual Report 2019-20 BELINDA WATTON MARIANNE VOSLOO PETER SCOTT MICHAEL DART Executive General Manager, Executive General Manager, Executive General Manager, Executive General Manager, Services Digital Finance Customer BCom MAppLaw BCom MAppLaw BSc (CompSc & DipBus BBus MPA MBA FCPA BSc (AusEnvSt) BSc (EnvHlth) GradCertAppFin GAICD Math) BSc (Hons CompSc) GAICD Dip(Mgt) GAICD

As an experienced senior Marianne joined the Group in Peter was appointed the Chief Michael Dart is the Executive executive, Belinda leads a June 2020, bringing international Financial Officer (CFO) in General Manager, Customer multi-functional, diverse and expertise in digital strategy, data November 2016. He is responsible responsible for leading the geographically dispersed team analytics and cybersecurity from for the financial, energy pricing portfolio’s community trust and of more than 1,000 people who her prior role as Chief Information and energy regulatory aspects customer value strategy, and drive the transformational and Officer at the Australian Federal of the Group of companies, investor relations strategy as a cultural change necessary to help Police, as well as senior leadership in addition to the company Government-owned Corporation, Energy Queensland realise its positions in the finance, mining, secretariat and general counsel as well as its strategic stakeholder vision of ‘energising Queensland healthcare, manufacturing, and functions. His portfolio also engagement strategies. He also communities’. ICT consultancy sectors. includes strategic procurement oversees the Group’s network and the provision of corporate customer and market operations, This is being achieved through the She is responsible for leading shared services. and corporate affairs functions, strategic direction and leadership Energy Queensland’s digital including the brand and marketing of the people and safety services, strategies, as well as overseeing Peter acted as the Group’s Chief strategy and the portfolio’s non-network assets (property, all major ICT investments, Executive Officer from July 2019 broader communications efforts. fleet, materials, inventory, business partnering, innovation to March 2020. He is also a These include media relations, warehousing), transformation and and support services. director of various subsidiary digital communications and innovation teams. companies of the Energy Marianne has worked in complex employee communications. Queensland Group. Belinda has a track record ICT environments with large, He has executive management, of transforming cultures and geographically dispersed teams, Prior to Energy Queensland, stakeholder relations, policy delivering strong business with a critical focus on cost- Peter was Energex’s CFO for development, media, social media, performance in complex public, effective digital enablement, as two years. Throughout his career and communications experience private and not-for-profit well as IT-OT convergence. These he has had senior executive stretching more than 20 years. organisations. Belinda also holds strengths will support Energy experience in both government- He has worked for state and local directorships with Ergon Energy Queensland’s focus on creating owned corporations and local governments and as a consultant Retail, Energy Skills Queensland, value for customers through government. His earlier career to the private and public sectors. the Electrical Safety Office and smart, secure digital investment included a variety of banking and HELP Enterprises. and service delivery. government/semi government Michael has spent more than roles across regional Queensland. a decade as an energy industry She has a Bachelor of Underpinning her wealth of leader and is also a Non- Commerce, Masters of Applied practical experience and expertise, Peter holds a Diploma of Business, Executive Director of Creative Law, qualifications in finance, Marianne holds a Bachelor of a Bachelor of Business, a Master Regions, with director experience is a graduate member of the Science majoring in Computer of Professional Accounting, and a in the government, arts and Australian Institute of Company Science (Hons) and Mathematics Master of Business Administration. environmental health fields. Directors and a member of Chief from South Africa’s University of He is also a Fellow of Certified Executive Women. Potchefstroom. Practicing Accountants.

Energy Queensland's Annual Report 2019-20 57 Principle 2 continued. PRINCIPLE 3 – PROMOTE PRINCIPLE 4 – SAFEGUARD Ministers have access to material ETHICAL AND RESPONSIBLE INTEGRITY IN FINANCIAL information regarding the company Details of the Directors’ DECISION-MAKING REPORTING and its subsidiaries including its qualifications, skills and relevant operations, financial performance, experience are on page 53. The Energy Queensland is committed The role of the Audit Committee is financial position and governance. number of Board and Committee to ethical and responsible decision to assist the Board in fulfilling its meetings held along with Directors’ making and has in place an oversight responsibility of Energy Energy Queensland has in place attendances, as well as the term Integrity Framework which supports Queensland’s financial integrity and a framework to facilitate the of Directors are set out in the this via policies and guidelines reporting, effectiveness of the fraud reporting of wrongdoing and the Directors’ Report, in the Energy as well as internal networks and and internal control framework, protection of those who disclose Queensland Financial Statements, support. audit, policy framework and wrongdoing and is required to investigations in accordance with on page 62. Culture is a key element of the comply with the whistleblower the Audit Committee Charter. The governance framework to promote protection requirements under The Board ensures that Directors’ Chairman of the Audit Committee ethical and responsible decision- the Public Interest Disclosure independence is maintained is not the Board Chairman. Details making. Energy Queensland has Act 2010 (Qld) (PID Act) and the through the Conflicts of Interest of the Directors appointed to the developed tools and measures to Corporations Act 2001 (Cth). The Policy which is supported by a Audit Committee are set out in the assess and monitor the culture of Public Interest Disclosure and Conflict of Interest Protocol. Directors’ Report, in the Energy the organisation to provide insight Whistleblower Policy encourages Queensland Financial Statements, Energy Queensland has also to the Board as to the state of the the reporting of Public Interest on page 62. adopted a Securities Dealing culture (p38). The Board has taken Disclosure matters under the PID Policy and an Appointment of a number of steps to ensure that The internal and external auditors Act (which are considered on their EQL Nominees to External Boards it engages with employees and are invited to attend Committee merits based on the nature, extent Policy to support the maintenance customers through regular Board meetings to present relevant and scope of conduct that has of Directors’ independence and visits and site tours. reports and discuss any concerns given rise to the complaint made by effectively manage conflicts of with the Committee, without employees or contractors of Energy The Code of Conduct sets the interest. In addition, the Board management influence. The Queensland) and Whistleblowers standard for how employees Charter provides that with the Queensland Audit Office is the Disclosures under the Corporations operate in accordance with prior approval of the Chairman, Group’s external auditor. Act 2001 (Cth) about Energy each Director has the right to seek business ethics, social objectives, Queensland’s operations or an access to independent professional and corporate values and The Audit Committee defines activity that could adversely impact advice required to fulfil their role at associated policies. Advisers, the internal auditor’s scope of the organisation. Public Interest the company’s expense. consultants and contractors are work through establishment and Whistleblower Disclosures expected to comply with high of an Internal Audit Charter. are properly dealt with, assessed Board performance evaluations ethical standards aligned with the Internal Audit is an independent and appropriately investigated are conducted by an external Code of Conduct. New employees function that assists the Board (where necessary) and managed. party every two years and are in receive induction training on ethical and Management in the effective Protection is provided to disclosers accordance with the Queensland business practices, including the discharge of their responsibilities. from reprisal and/or victimisation. Government’s Corporate Code of Conduct with regular A procedure for dealing with Public Governance Guidelines for refresher training and updates PRINCIPLE 5 – MAKE Interest Disclosure is available on Government Owned Corporations. provided to all employees. The TIMELY AND BALANCED available online on our corporate These evaluations include Board also has a Directors Code of DISCLOSURE website. assessment of skills and experience, Conduct to assist in its decision- The Board has reporting and Board culture and meeting making process. continuous disclosure obligations PRINCIPLE 6 – RESPECT THE dynamics, and the quantity, quality to the shareholding Ministers RIGHTS OF SHAREHOLDERS A declaration of Directors’ interest and timeliness of information and under the Government Owned Each year Energy Queensland is a standing agenda item at the decision making. Opportunities for Corporations Act 1993 (Qld) and develops a Statement of Corporate commencement of every ordinary improvement and development Corporations Act 2001 (Cth). Intent and Corporate Plan Board meeting. identified during the evaluation setting out the key strategies and Energy Queensland provides the performance conducted during the Decision making is delegated under performance targets for Energy shareholding Ministers with a copy 2017-18 reporting period have the Corporations Act 2001 (Cth) Queensland annually and on a of the audited accounts for each been progressed and monitored to and formalised in the Governance five-year rolling basis. The key financial year, a half-yearly report ensure the continued effectiveness and Delegations Policy. Decision performance indicators and targets and an annual report in accordance of the roles of the Board and making is further guided by policies on page 7-8 provide a summary with the requirements of the Committees, key relationships and established under the Energy of the Statement of Corporate Government Owned Corporations governance processes. The next Queensland Controlled Documents Intent for 2019-20. The Statement Act 1993 (Qld). A Quarterly Board performance evaluation is Governance model. of Corporate Intent is publicly Shareholder Report is also provided due to be conducted in September available online on our corporate to ensure that the shareholding 2020. website.

58 Energy Queensland's Annual Report 2019-20 In addition to regular quarterly 31000:2018 Risk management Fraud and corruption System, ISO14001 Environmental reporting and this Annual Report, – Principles and guidelines for prevention Management System, AS/ Energy Queensland reports to its managing risk. Energy Queensland is committed to NZS4801 Occupational Health shareholding Ministers in a timely and Safety Management System, The Group is committed to promoting and achieving an ethical manner on all issues likely to have together with Accreditation to embedding a risk management and transparent culture of integrity a significant financial, operational, International standards ISO/IEC approach across all levels of the and best practice governance. Fraud social or environmental impact 17020 – Inspection and ISO/IEC business to support the delivery and corruption are incompatible in accordance with obligations 17025 - Testing and Calibration of strategic and operational with this culture and present a risk under legislation and government to demonstrate competency, objectives. The Risk Management to the achievement of strategic guidelines. Energy Queensland authority, or credibility of technical and Resilience Policy sets out the objectives. We are committed works cooperatively with the competence. Certification overarching risk management to preventing, identifying and shareholding Ministers on these and Accreditation is a symbol and organisational resilience addressing fraud and corruption issues to deliver the best outcomes of assurance. In addition to architecture, principles and by raising awareness of potential for customers and the Queensland Certifications and Accreditations, expectations to enable the risks in this area and implementing community. The Board Chairman the Electrical Safety Office (ESO) appropriate integration of practices controls aimed at reducing the meets regularly with shareholding mandates a prescribed Electricity for a resilient, flexible, adaptable, opportunity to commit fraud or Ministers and their representatives, Entity must maintain a Safety and sustainable business. corruption and increasing the as part of a broader government likelihood of this type of activity Management System and that engagement program, to ensure The Board retains ultimate being detected. it is assessed and validated by active dialogue throughout the responsibility for risk management an accredited auditor, and this is year. and organisational resilience and All allegations of fraud or conducted annually. for determining the appropriate corruption are treated seriously, The Chief Executive Officer Internal audit level of risk that the Board is investigated and, when and various senior managers willing to accept in the conduction appropriate, action is taken. We The Group’s internal control and employees liaise with of business activities. notify and refer suspected or actual framework is comprised of representatives of shareholder instances of fraud or corruption policies and procedures, including departments on a regular basis. The Chief Executive Officer and the to the appropriate authorities compliance training and assurance Executive Committee have ultimate Shareholding Ministers require as required. The Group does not processes, to ensure the affairs accountability for ensuring that the certain decisions to be approved by tolerate victimisation or reprisals of across the Group are being Group has identified and managed shareholders under the Investment against persons who report conducted in accordance with material enterprise risks and has Reporting Guidelines for suspected fraud or corruption. relevant legislation, regulations and effective risk management and Government Owned Corporations. codes of practice. These procedures organisational resilience strategies. The Group’s Fraud and Corruption The current thresholds are enable the Board and the Executive Each executive is accountable Prevention Policy outlines notified through the Statement of Committee to monitor, in a timely for ensuring enterprise risks are obligations for fraud identification Corporate Intent and are set out in manner, any material matters identified and managed within and prevention, as well as the Energy Queensland’s Governance affecting our operations. their division and for having processes for reporting, recording and Delegations Policy. appropriate crisis, disaster, incident, and investigating allegations The General Manager Internal emergency management and including compliance with public Control and Audit reports PRINCIPLE 7 – RECOGNISE interest disclosure requirements. AND MANAGE RISK business continuity planning in administratively to the Chief place. New and emerging risks Governance Officer, and has The role of the Risk and External audit or issues are considered by the unrestricted access to the Chief Compliance Committee is to assist Executive Committee, Risk and Energy Queensland Limited submits Executive Officer to discuss any the Board in fulfilling its oversight Compliance Committee and then to a number of external audits in matter relating to the finances or responsibility of the Group’s the Board in accordance with risk pursuit of world-class practice to operations of the business, and approach to risk management, escalation processes. meet certification against Australian reports independently to the Audit compliance management and and International Standards for the Committee on progress against the organisational resilience and To ensure appropriate systems management of our electrical and Internal Audit Plan and resolution continuity. The Regulatory and processes to enable delivery data infrastructure and associated of issues raised in reports. The Committee also assists the Board in of Energy Queensland’s corporate services The Energy Queensland Internal Audit Charter (available fulfilling its oversight responsibility strategy are in place, the Risk Group achieves Certification online) adopted by the Board is of the regulatory matters for the and Compliance Committee and and Accreditation as a formal reviewed on a regular basis. Group. Both Committee Charters the Audit Committee provide attestation to International and are available online on our oversight in relation to the Australian standards demonstrating corporate website. appropriateness and effectiveness to customers, community and of risk management frameworks, interested parties our commitment The Group’s approach to risk processes and reporting, and the to empower an Electric Life. The management aligns with effectiveness of the internal control Group maintains certification for the principles of AS/NZS ISO framework. ISO9001 Quality Management

Energy Queensland's Annual Report 2019-20 59 Entertainment and hospitality between public accountability With the COVID-19 restrictions, in and transparency. Non-executive 2019-20 expenditure on corporate directors’ fees and executives’ entertainment and hospitality remuneration packages, including was down on the forecast in the any at-risk payments, are reported Statement of Corporate Intent, in the Financial Statements on page with no events costing more than 62. At-risk payments are contingent $5,000. upon the Board’s assessment of the company’s overall performance and PRINCIPLE 8 – shareholder expectations. REMUNERATE FAIRLY AND In recognition of the impact of RESPONSIBLY COVID-19 on Queenslanders The People, Safety and Environment and the state economy, Energy Committee assists the Board with Queensland’s Executive Committee its oversight of employee issues will not receive a wage increase in concerning: 2020-21 or performance incentive • developing and maintaining payments. a skilled workforce that meets Energy Queensland’s A performance management requirements framework linking performance to the strategic objectives of the • a remuneration policy which organisation promotes continual leads to remuneration that is fair performance and opportunities for and to market professional development for all • performance management and employees with reviews conducted behaviours which are consistent on an annual basis. with the values and goals of Energy Queensland and that The People, Safety and value the customer, probity, Environment Committee assesses teamwork and a successful the performance of the Energy organisation. Queensland Group based on key performance measures set by the Energy Queensland’s remuneration Board each year, and agreed with strategy and practices are aimed at the shareholding Ministers through ensuring attraction and retention the Statement of Corporate Intent. of highly competent and capable The Board also has oversight of the employees at all levels by providing performance assessments of senior an appropriate combination of executives undertaken by the Chief competitive, fixed and variable Executive Officer. remuneration components. Remuneration packages for The People, Safety and Environment executives comply with government Committee Charter is available guidelines to achieve a balance online on our corporate website.

60 Energy Queensland's Annual Report 2019-20 Glossary Common measures AER Australian Energy Regulator Reliability service standards AEMO Australian Energy Market Operator ARENA Australian Renewable Energy Agency SAIDI System Average interruption Duration Index. Network reliability performance index, indicating the total minutes, AS Australian Standard on average, that customers are without electricity during the ASIST Applied Suicide Intervention Skills Training relevant period (minutes). ASX Australian Stock Exchange SAIFI System Average Interruption Frequency Index. Network ATV All-Terrain Vehicle reliability performance index, indicating the average number BEV Battery EV of occasions each customer is interrupted during the relevant period (interruptions). CBD Central Business District Customer Customer minutes is a measure of the number of customers CEI Customer Enablement Index Minutes interrupted multiplied by the duration of a power outage or CEO Chief Executive Officer outages, incorporating any staged restoration. CFO Chief Financial Officer Workplace safety performance CI Customer Index CID Community Infrastructure Designation TRIFR Total Recordable Injury Frequency Rate reports a frequency rate of the number of total recordable injuries per million CSO Community Service Obligation hours worked on a rolling twelve month basis. ‘Total DEBBs Digital Enterprise Building Blocks Recordable Injuries’ is made up of Fatalities (F), Lost Time DER Distributed Energy Resources Injuries (LTIs), Medical Treatment Injuries (MTIs) and Medical Treatment Injuries – Suitable Duties (MTI-SDs) for EQL DTMR Department of Transport and Main Roads employees. ECM Enterprise Content Management LTIFR Lost Time Injury Frequency Rate reports a frequency rate of ENA Energy Networks Australia the number of Lost Time Injuries per million hours worked EWOQ Energy and Water Ombudsman Queensland on a rolling twelve month basis. ESO Electrical Safety Office SIFR Significant Incident Frequency Rate. Significant HSE Incident EV Electric Vehicle Frequency rate measure includes the number of significant injuries which include class 1 (actual or potential) incidents, FiT Feed-in Tariff work related SEIs and DEEs, expressed as a rate per million GOC Government Owned Corporations hours worked. GSLs Guaranteed Service Levels TRI Total recordable injuries. ‘Total Recordable Injuries’ is HSE Health, Safety and Environment made up of Fatalities (F), Lost Time Injuries (LTIs), Medical HEMS Home Energy Management Systems Treatment Injuries (MTIs) and Medical Treatment Injuries – Suitable Duties (MTI-SDs) for EQL employees. ISO International Organization for Standardization ICT Information and Communications Technology Customer related IoT Internet of Things CI The Customer Index is a score out 10, and measures customer experience. The metric is generated through our LED Light Emitting Diode lighting Voice of the Customer Program, which includes feedback LGBTI+ Lesbian, Gay, Bisexual, Transgender, Intersex and other communities from customers following interactions. MSS Minimum Service Standard CEI The Customer Enablement Index is a score out of 10, and is nbn National Broadband Network generated through key customer focused questions within NEM National Electricity Market the Aon Hewitt Employee Engagement Survey measuring customer centricity. MIST Micro-grid and Isolated Systems Test facility PHEV Plug-in Hybrid EV Electricity related PQ Power Quality MVA megavolt ampere: one MVA equals 1,000kVA PV Photovoltaic kW kilowatt: one kW equals 1,000 watts QCA Queensland Competition Authority MW megawatt: one MW equals 1,000 kilowatts QR Quick Response kWh kilowatt hour: the standard ‘unit’ of electricity which RFDS Royal Flying Doctor’s Service represents the consumption of electrical energy at the rate SAPS Stand-alone power systems of one kilowatt over a period of one hour SAP System Applications and Products system MWh megawatt hour: one MWh equals 1,000 kilowatt hours SES Queensland State Emergency Services GWh gigawatt hour: one GWh equals 1,000 megawatt hours or TCP Thriving Community Partnership one million kilowatt hours TSS Tariff Structure Statements VPP Virtual Power Plant VR Virtual reality

Energy Queensland's Annual Report 2019-20 61