2019-20 South Australian Water Corporation Annual Report FOR THE YEAR ENDING 30 JUNE 2020 FOR FURTHER DETAILS CONTACT SA Water Corporation ABN 69 336 525 019 Head office 250 Victoria Square/Tarntanyangga Adelaide SA 5000 Postal address GPO Box 1751 Adelaide SA 5001 Website sawater.com.au Please direct enquiries about this report to our Customer Care Centre on 1300 SA WATER (1300 729 283) or [email protected] ISSN: 1833-9980 0052R12009 28 September 2020 Letter of Transmittal 28 September 2020 The Honourable David Speirs Minister for Environment and Water Dear Minister On behalf of the Board of SA Water, I am pleased to present the Corporation’s Annual Report for the financial year ending 30 June 2020. The report is submitted for your information and presentation to Parliament, in accordance with requirements of the Public Corporations Act 1993 and the Public Sector Act 2009. This report is verified as accurate for the purposes of annual reporting to the Parliament of South Australia.. Andrew Fletcher AO Chair of the Board 3 SA Water 2019-20 Annual Report Contents A message from the Chair 5 Effective governance 56 A message from the Chief Executive 6 Legislation 56 Key regulators 56 About SA Water 8 The Board 56 Our vision 8 Directors’ interests and benefits 56 Our values 8 Board committees 56 Our organisation 8 Organisation structure 57 Our strategy 10 Financial performance 59 Financial performance summary 59 Our services 12 Contributions to government 60 Overview of our networks and assets 12 Capital Expenditure 60 Map of our supply areas 13 Consultants 6 1 Map of our reservoirs, water treatment plants, 14 borefields and major pipelines Supplementary reporting items 62 Map of our reservoirs, water treatment plants 15 Fraud 62 and supply areas, metropolitan Adelaide Strategies implemented to control and prevent fraud 62 Map of our reservoirs, water treatment plants 16 Public interest disclosure 62 and supply areas, outer metro Summary of complaints 62 Map of our wastewater treatment plants 17 Directions 63 Year in review 18 Appendices 73 Adapting to a changing world 18 Audited financial statements 74 Getting the basics right every time 22 Drinking water quality data 148 Working together 30 United Nations Communication on Progress 178 Leading the way 38 Capable and committed team 47 Keeping it simple 49 Water quality 50 4 A message from the Chair A reliable supply of safe clean drinking This year 150,000 solar photovoltaic panels water and dependable sewerage services were installed at sites across the state are fundamental to our health, public with effective forward planning ensuring amenity and our economy. In addition this and other critical equipment were to delivering our services and investing received ahead of schedule, mitigating in new and upgraded infrastructure, any construction delays from the COVID-19 we have also fulfilled responsibilities in pandemic. the State Emergency Centre during the During the year, the Board commissioned summer’s bushfires and supported the an independent review and comparison South Australian Government response to of SA Water’s water main management COVID-19. A key focus this year has also practices against global best practices, been to implement a heightened cyber- the findings of which have now been attack protection and resilience capability implemented and will lead to a further to combat the ever increasing threat reduction in water main leak and break arising in this area. disruptions to the community. In a time of great Throughout, the safety and wellbeing of SA Water has played a pivotal role in our people, customers and the community implementing the government’s reservoir change and challenge remained a priority. The safety culture in opening policy and now manages the SA Water continues to be strong and it is critical operations to support this initiative. in our community, pleasing to see a downward trend in the all injury frequency rate and high potential The Corporation is also stepping up its country and around the incident frequency rate. commitment to reconciliation, with a new stretch Reconciliation Action Plan world, water services Support for residential, business and developed for 2020-23. commercial customers has been equally remain essential. critical, with many feeling the impact of Recognising the need to respond to This year everyone’s bushfires and the COVID-19 pandemic. economic, social and technological The state government’s announcement change, the Board has also started work ability to adapt has of a significant reduction to water prices on a new business strategy. This will ensure from July 2020 will enable a lower cost we continue to adapt and prepare for the been tested and of living with no reduction to levels of future and meet the expectations of our the Board and I are service. Both residential and business customers. I look forward to sharing our customers will benefit from lower water vision and direction in the coming year. proud to report that prices with 36,145 visitors using the savings Building on our proud history, we remain the Corporation’s estimator on the SA Water website in committed to delivering services that June 2020. This has been made possible underpin a strong future for our business, efforts to maintain in no small part by the efficiencies our customers and the state of South achieved by our people in improving work Australia. services and support practices and exploiting new technologies I would like to acknowledge the efforts together with the Corporation’s very customers through of my fellow Board members and our comprehensive submission to the Essential new Chief Executive, David Ryan, for their bushfires and a global Services Commission of South Australia leadership, commitment and dedication to assist them in preparing their final to the Corporation. pandemic has been determinations. exceptional, thanks Our focus on the wider contribution SA Water makes to our state has also to the commitment been maintained. We have continued to and dedication of invest in renewable energy generation as part of our commitment to sustainability Andrew Fletcher AO our people. and to reducing the cost to produce Chair of the Board and deliver safe clean drinking water. 5 SA Water 2019-20 Annual Report A message from the Chief Executive At the end of the 2016-20 regulatory than 5,200 visitors enjoying the rugged period, our team delivered on landscape in the first six months. Around commitments to customers, with a 33,000 people visited Myponga Reservoir consistently strong performance meeting Reserve in 2019-20, with shore-based our service standards and the efficiency fishing introduced in December 2019. targets set for us by the Essential Services Through the cross-government taskforce, Commission of South Australia. we continue to work closely with the Our Plan 2020-24 was submitted to the community and government agencies Essential Services Commission of South on this priority initiative. Australia in early November 2019 and Investment in technology through smart during the next regulatory period we are water and wastewater networks helps proud to deliver customer bill savings, with early leak detection and reduces which is great news for our customers. disruption for customers, and our newly The large and varied investment completed wastewater treatment plant program outlined in the plan will result at Murray Bridge received a national in upgrades to water and sewerage sustainability award recognising Continuity of mains, expansion of our smart networks, excellence in all aspects of the project building new seawater desalination and its cultural, social, environmental essential water and plants to provide water security, and and economic benefits. upgrading Mount Bold Reservoir. Customers are embracing digital wastewater services Through this program of works, we service options with eBilling numbers will continue to maintain and improve continuing to increase with 154,054 to our customers services for our customers while pursuing properties registered to receive eBills, through a period of efficiency in our delivery and operations. up from 100,847 in 2018-19, and WebChat This financial year, 40 gigalitres of introduced for quick, online customer significant change water for metropolitan Adelaide was interactions. supplied from the Adelaide Desalination With teams based right across the state, has been our focus Plant completing stage one of the our people are part of the communities Water for Fodder program funded by they serve, with strong connections in throughout the year. the federal government. The plant’s regional and remote South Australia. operation model ensured it easily met Our community involvement continues the required demand with a seamless to build trusted partnerships. They supply experience for our metropolitan include using recycled water to create customers. an AFL-standard oval at Amata in the An increase in water sales through a Anangu Pitjantjatjara Yankunytjatjara low rain fall summer, reduced electricity Lands of far north South Australia. costs, operational efficiencies, and A focus on diversity and inclusion savings through reduced interest rates continued and we made achievements contributed to our strong financial in celebrating diversity of thought, performance this year, delivering experience and background among a return above budget. our people. This includes the rate of The opening of South Para Reservoir Aboriginal and Torres Strait Islander Reserve in late 2019 brought a new employment at 2.6 per cent, and two outdoor adventure offering to the internal network groups supporting southern Barossa region with more women and LGBTIQ+ people in our workforce. 6 A message from the Chief Executive Using a harm-based approach, our safety focus continues with emphasis on preventing potential or actual life altering events so our people remain safe: everybody, every job, every day. This year our all injury frequency rate reduced by 30 per cent to 19.52, compared to 40 gigalitres 27.72 in 2018-19 and our high potential incident frequency rate reduced to 1.56, of Water for Fodder was an improvement of more than 50 per supplied from the Adelaide cent on our 2018-19 result of 3.96.