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Tasnetworks Annual Report 2019-20

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Tasnetworks Annual Report 2019-20 Tas 1 Networks.com.au AnnualReport Powering a Bright Future 2019-20 Over the past year, we’ve invested some time as a business discussing ‘why’ we come to work each day, solidifying our drive, our reason for being – our Purpose. The carefully considered articulation of our TasNetworks Purpose as ‘Powering a bright future’ is personal to us. It represents our unique intention to secure a positive, sustainable future for our Tasmanian community through energy transmission and distribution. 2019 Star trails over Palmerston Substation near Poatina in Tasmania. Photo powered by TasNetworks’ Greg Gibson. Greg by TasNetworks’ Photo powered in Tasmania. near Poatina trails over Palmerston Substation Star - 20 AnnualReport 2019-20 2 3 CONTENTS ABOUT US 2 FROM OUR CHAIRMAN 4 FROM OUR CEO 6 RESILIENCE 8 OUR PEOPLE 18 OUR CUSTOMERS AND OUR COMMUNITY 28 SAFETY AND ENVIRONMENT 39 RENEWABLE ENERGY AND GROWTH 49 CORPORATE GOVERNANCE 56 PERFORMANCE AGAINST OUR STATEMENT OF CORPORATE INTENT 69 TASMANIAN GOVERNMENT REPORTING REQUIREMENTS 73 DIRECTORS' REPORT 75 AUDITOR'S INDEPENDENCE DECLARATION 79 TasNetworks acknowledges the Tasmanian AUDITOR’S REPORT 80 Aboriginal Peoples as the Traditional Owners of Tasmania, upon whose lands we live and CONSOLIDATED FINANCIAL STATEMENTS 85 work, and pay deep respect to Elders past, present and emerging. We acknowledge DIRECTORS' DECLARATION 141 the cultural connection that the Tasmanian Aboriginal Peoples have with land, sea, sky and community. Tasmanian Networks Pty Ltd ABN 24 167 357 299 PO Box 606, Moonah, TAS 7009 1-7 Maria Street, Lenah Valley, Tasmania 7008 1300 127 777 | tasnetworks.com.au The cover image shows star trails over Palmerston Substation near Poatina in Tasmania. Photo AnnualpoweredReport by TasNetworks’ Greg Gibson. AnnualReport 2019-20 2019-20 4 5 ABOUT US WHAT IT TAKES TO DELIVER YOUR POWER TasNetworks owns, operates and Project Marinus maintains the electricity transmission We delivered a positive Business Case TRANSMISSION and distribution network in Tasmania. Assessment and Regulatory Investment We deliver a safe, cost-effective and reliable Test – Transmission (RIT-T) Draft Report in 3500 electricity supply to more than 295,000 December 2019 demonstrating Marinus Link CIRCUIT KILOMETRES OF TRANSMISSION LINES residential, commercial and industrial and supporting transmission is technically customers. We facilitate the transfer of feasible and delivers benefits to customers 7600 electricity between Victoria and Tasmania right across the National Electricity Market (NEM). TRANSMISSION LINE via Basslink, the sub-sea electricity SUPPORT STRUCTURES interconnector. Marinus Link is a proposed 1,500 megawatt We also provide telecommunications and capacity undersea and underground 11000 technology services. electricity connection, together with HECTARES OF EASEMENT supporting transmission developments in We are owned by the State of Tasmania and Tasmania, that will link Tasmania’s renewable 49 operate as a commercial business with assets energy generation and storage resources to SUBSTATIONS of $3.5 billion. Victoria and the NEM. Our responsibilities include: In June 2020 the Prime Minister included • Keeping our people and our customers safe Project Marinus as one of 15 national priority DISTRIBUTION infrastructure projects to support Coronavirus • Tasmanian jurisdictional planner in the COVID-19 recovery. On 1 July 2020 Project 15000 National Electricity Market Marinus moved into the Design and KILOMETRES OF HIGH • Maintaining and replacing network Approvals phase. This is a key milestone as VOLTAGE POWERLINES infrastructure to ensure a reliable service for we work toward Marinus Link and supporting our customers transmission being ‘shovel ready’ by the mid 4900 2020s, and in service from the late 2020s, KILOMETRES OF LOW • Connecting new customers to the network as called for in the Australian Energy Market VOLTAGE POWERLINES (including small and large-scale generators) Operator’s 2020 Integrated System Plan (ISP). • Investing in the network to support capacity 2600 KILOMETRES OF HIGH AND LOW growth About this report VOLTAGE UNDERGROUND CABLES This report reviews the operations of • Operating the network on a day-to-day 100100001101010101100001 Tasmanian Networks Pty Ltd and its basis, including all power outage restoration 00111001011010101010100011 232000 subsidiaries TasNetworks Holding Pty Ltd, 01010101110100101010 101011 POLES • Maintaining the public lighting system Fortytwo24 Pty Ltd, Marinus Link Pty Ltd and 0101010110010101100001 Large Scale Renewables Pty Ltd for the 2019- 001110010101010100011 • Recording and providing regulated meter 010101011101001010100 data to retailers 20 financial year. 1010110101101100001 TELECOMMUNICATIONS • Providing telecommunications, data centre 00111001010101010001101010 1011101001010100 10101100001 and information technology services to 00111001010101010001101010 1900 customers, including those in the Tasmanian 1011101001010100 10101100001 KILOMETRES OF FIBRE electricity supply industry. 00111001010101010001101010 OPTIC CABLE 1011101001010100 10101100001 42-24 00111001010101010001101010 2 We own and operate a subsidiary 1011101001010100 10101100001 DATA CENTRES 00111001010101010001101010 business called 42-24 that specialises in 1011101001010100 10101100001 telecommunications, information technology and data centres services. PEOPLE 1 144 EMPLOYEES AnnualReport AnnualReport 2019-20 2019-20 6 7 contribution to Australia’s renewable commitment to keep the lights on across FROM OUR CHAIRMAN transition is one of the most important Tasmania. responsibilities TasNetworks has. It’s at the It’s that spirit of duty, dedication and forefront of our Purpose to power a bright service that underpins everything we do at future. The modern TasNetworks is more TasNetworks to achieve, now and into the than just poles and wires. As a For all that ambition, our truest heroes future. business, we’re right at the centre of continue to be the team members who respond any time of the day or night, in any some of Australia’s biggest energy Dr Dan Norton AO weather, and use their skill, courage and challenges and opportunities, both Chairman now and in to the future. Almost three-quarters of our nation’s power comes from coal-fired power stations, many of which are ear marked to close within the next 15 years. Transitioning through this will require new renewable energy and TasNetworks can be part of the solution by building and managing the supporting infrastructure needed. The planned increase of renewable generation in Tasmania puts the State in a strong position, and more interconnection through Project Marinus, will ensure that TasNetworks is leading the way as we transition to a low-carbon economy. As Project Marinus progresses towards financial close, recent endorsement as an actionable project from the Australian Energy Market Operator, through its 2020 Integrated System Plan, further highlights the benefits of increased interconnection to the National Electricity Market and, ultimately, customers. In June 2020, the Prime Minister announced Like any business with a customer focus, Project Marinus as one of 15 priority national we are acutely aware of people’s rising infrastructure projects which are part of the concerns in relation to personal data storage Commonwealth’s plan to drive economic and privacy. The protection of customer recovery and stimulate jobs in the wake information remains paramount and we have of COVID-19. The TasNetworks Board, established a dedicated cyber-security group leadership team and much of the business within the business to ensure that we have remains focused on progressing Project the systems in place to protect information Marinus as a priority. and respond to cyber-threats when required. In parallel with large-scale changes to We also remain cognisant of the fact that, as generation and transmission assets across an essential service, we are a target to cyber- the country, we are also seeing subtle criminals intent on disrupting energy supply changes in local networks in response and we are putting in place the necessary to increased embedded generation and security arrangements for protecting our changing customer needs. To respond to technology and your energy security. this, our understanding and operation of the These challenges are only made more acute distribution network needs to change so that by the COVID-19 pandemic still impacting our we can cater more effectively for household state, nation and the world. As communities and business adopting solar, battery storage and economies scramble to adapt to a new and electric vehicles. Our people are normal, both energy security and creating planning for these challenges, and working fresh economic opportunity will be crucial. on efficient, cost-effective solutions. That’s why managing Tasmania’s role and AnnualReport AnnualReport 2019-20 2019-20 6 7 make the Battery of the Nation possible. some of our people have one of the known FROM THE CEO This is one of the largest economic cancers caused by exposure to the herbicide opportunities Tasmania has had since hydro- in question. We can’t change the past; but industrialisation and TasNetworks is right we’re determined to support our people, past What a year. In times of crisis, the at the centre of building and delivering it and present, as much as possible. alongside the Tasmanian and Australian Our results and achievements in 2019-20 people who provide crucial services Governments. The inclusion of the project are extraordinary
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