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Building a Better Future

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Building a Better Future HUNTER WATER HUNTER WATER i 2007/08 ANNUAL CALL FOR ADVICE SEND A MESSAGE COME TO THE COUNTER REPORT Enquiries - 1300 657 657 PO Box 5171, HRMC NSW 2310 36 Honeysuckle Drive, Newcastle Mon-Fri (8am-5pm) [email protected] 128 Main Road, Speers Point ANNUAL REPORT 2007/08 Emergencies - 1300 657 000 www.hunterwater.com.au 285 High Street, Maitland 24 hrs, 7 days Translator - 131 450 Mon-Fri (8.30am-5pm) BUILDING A BETTER FUTURE Novatech is manufactured using Elemental Chlorine Free (ECF) pulp sourced from certified, well managed forests. PERFORMANCE CULTURE • Thinking, working and living safely • Building a high performance culture OPERATIONAL EXCELLENCE • Increasing value delivered to our community and shareholders • Increasing our competitiveness CUSTOMERS • Being open and collaborative • Providing superior customer service • Delivering highly reliable water service • Producing safe, high-quality water ENVIRONMENT • Protecting people’s health and enhancing the environment • Balancing water supply and demand Hunter Water Corporation Publication 36 Honeysuckle Drive, NEWCASTLE WEST NSW 2310 Hunter Water Production Team HWC October 2008 Tel: 1300 657 657 Fax: 02 4979 9414 TTY: 131 450 Report Manager and Editor - Leanne Reading ISSN 1836-3253. www.hunterwater.com.au Graphic Design and Coordination - Brock Harrison & The HWC 2007/08 Annual Report has Design Itch been prepared in accordance with the Copies are available at www.hunterwater.com.au. relevant legislation for The Hon Phillip Paper and disc copies are also available on request (1300 657 657) Thanks to: Craig Eardley, Paul Foley, Sam Sneddon, Kate John Costa, MP Farmer, Berni Tisdell, Tanya McNaughton, Carli Jackson, Anne Connors, Anthony Gentle, David Mantle, Corporate Express, Julia Irwin, Eric Vanweydeveld 17 October 2008 Reference: HW2008 - 1567 Telephone: 4979 9648 Facsimile: 4979 9414 The Hon Phillip John Costa, MP Minister for Water Utilities Minister for Rural Affairs Minister for Regional Development Parliament House Macquarie Street Sydney NSW 2000 Dear Minister, I have pleasure in submitting the Hunter Water Corporation 2007/08 Annual Report for the financial year ended 30 June 2008, for presentation to the Parliament of New South Wales in accordance with the Annual Reports (Departments) Act 1985. The 2007/08 Annual Report provides an overview of Hunter Water’s key performance and highlights, as well as the consolidated financial statements for Hunter Water Corporation including its subsidiary companies HWA and RLMC. Key features of the report include an insight into Hunter Water’s new strategic business plan and strategy map, features on our customer and environmental performance as well as highlights of our dynamic performance culture and commitment to operational excellence. Hunter Water Corporation will make the 2007/08 Annual Report available electronically at www.hunterwater.com.au following acceptance of this report in the Parliament of New South Wales. Yours sincerely Kevin Young Managing Director BUILDING A BETTER FUTURE OBJECTIVES OF THIS REPORT BEING OPEN AND This report outlines Hunter Water’s COLLABORATIVE activities and corporate performance Hunter Water is committed to being for the 2007/08 financial year. open and collaborative, this report 01 PERFORMANCE is an example of how it seeks to be CULTURE The front section of the report provides transparent in its decision making a summary and highlights of how and operations. Hunter Water has performed against the key pillars of its new strategic Hunter Water welcomes feedback on business plan – performance culture, this report, a feedback form can be operational excellence, customers and found on page 89. You can also send the environment. feedback electronically by emailing OPERATIONAL 02 EXCELLENCE [email protected] Further statistical information, performance against specific regulatory This report, past reports and other major frameworks, environmental reports Hunter Water reports and publications and financial reports are detailed in can be obtained from our website at subsequent sections. www.hunterwater.com.au or by calling 1300 657 657. For ease of use there is also a glossary 03 CUSTOMERS of terms on p87 and an index on p86. 04 ENVIRONMENT HUNTER WATER CORPORATION 2007/08 ANNUAL REPORT 3 PERFORMANCE CULTURE OPERATIONAL EXCELLENCE CUSTOMERS ENVIRONMENT CONTENTS TABLE OF CONTENTS HIGHLIGHTS 6-15 Overview 16 PERFORMANCE CULTURE 34 CUSTOMERS 16 Performance Culture 18 Human Resources 38 Water Supply System 26 Operational Excellence 19 ITIL Framework Introduced 39 Leak Detection Program 34 Customers 20 Performance Culture 40 Customer Service Highlights 50 Environment 20 Culture Change Program 42 Service Chain Mapping 68 Hunter Water Australia Pty Ltd 22 Internal Communication Initiatives 44 Sponsorship Program 72 Regional Land Management 25 Safety Program 46 Communicating with Customers Corporation Ltd 45 Charitable Support 48 Consultative Forum 76 Regulatory Information 26 OPERATIONAL EXCELLENCE 50 ENVIRONMENT VOLUME 2 28 Continuous Improvement 55 Environment Management Plan 4 Financial Report 29 ICT Programs 56 Wastewater Transportation Hunter Water Corporation 29 Electricity Optimisation Project 58 The New H 50 Plan 50 Financial Report 2 Hunter Water Australia 30 Network Planning 58 Recycled Water 86 Financial Report 30 Capital Works Highlights 59 Tillegra Dam Regional Land Management 33 Flood Damage Overview 62 Catchment Management Corporation 32 New Operating Licence 67 Graffiti Program 106 Statistical Information 126 Environment Performance Indicator Report 5 OUR BASIC BUILDING BLOCKS HUNTER WATER WHAT WE DO We deliver an average 205 megalitres IS COMMITTED TO Hunter Water is a State Owned (one megalitre equals 1 million litres) of Corporation (SOC) providing water water per day. Our raw water sources PROTECTING PEOPLE’S and wastewater services for over half are: Grahamstown Dam (190,000ML), HEALTH AND ENHANCING a million people in the lower Hunter Chichester Dam (21,500ML), Tomago THE ENVIRONMENT WHILE region. There are 220,600 properties Sandbeds (60,000ML) and Anna Bay connected to the water network and Sandbeds (16,000ML). PROVIDING A SUPERIOR 208,660 to the wastewater network. We collect, treat and then deliver LEVEL OF CUSTOMER Our total assets are valued at drinking water to our customers and approximately 2.2 billion dollars. SERVICE. WE ARE PROUD then transport, treat and dispose of TO SERVE OUR CUSTOMERS Our area of operation covers 5,366km2 the region’s wastewater. with a population of 517,273 in the local OF THE LOWER HUNTER Our water consistently meets the most government areas of Cessnock, Lake recent guidelines for drinking water AND LOOK FORWARD TO A Macquarie, Maitland, Newcastle, Port set by the National Health and Medical BRIGHT AND PERFORMANCE Stephens and small parts of Singleton. Research Council (NHMRC). DRIVEN FUTURE. Dungog joins us on 1 July 2008. Wastewater is collected and treated Bulk water is supplied to small parts of to a very high standard and clear the Great Lakes area. We have capacity effluent is discharged to waterways to supply up to 35 megalitres of water Grafton or reused where it is economically Bourke Armidale Coffs per day to the Central Coast. We also Harbour and environmentally beneficial. Tamworth provide some stormwater services to the lower Hunter, with 100km of stormwater Broken Hill Dubbo Taree channels in Cessnock, Newcastle and Orange NEWCASTLE Lake Macquarie. SYDNEY Griffith WOLLONGONG Wagga CANBERRA 0 200 400 SCALE IN KILOMETRES Eden HUNTER WATER’S AREA OF OPERATIONS AREA OF OPERATIONS N MAJOR URBAN AREAS CHICHESTER DAM MAJOR WATER SOURCE WILLIAMS RIVER PROPOSED TILLEGRA DAM CHICHESTER RIVER ALLYN RIVER DUNGOG WILLIAMS RIVER PATERSON RIVER KARUAH RIVER HUNTER RIVER MAITLAND GRAHAMSTOWN PORT STEPHENS DAM TOMAREE SANDBEDS CESSNOCK TOMAGO SANDBEDS HUNTER RIVER NEWCASTLE PACIFIC LAKE MACQUARIE OCEAN 6 HOW THINGS STACK UP Number of water connections 220,600 OPERATING AND CAPITAL WATER SOURCES $105.1M $95.1M Grahamstown Dam $94.6M 190,000ML $92.3M $85.7M $81.1M Tomago Sandbeds 60,000ML $77.2M $78.8M $76.3M $72.3M $71.7M Chichester Dam $69.4M 780 $68.4M $65.6M 21,500ML 01-02 02-03 03-04 04-05 05-06 06-07 07-08 Anna Bay Sandbeds OPERATING COSTS WATER AND WASTEWATER 16,000ML CAPITAL EXPENDITURE WATER AND WASTEWATER STORAGES AND RAINFALL The prices that Hunter Water charges its 100% 98% 97% customers for water, sewer 95% 1385mm 91% services, stormwater and 1365mm 1285mm trade waste are set by the NSW Independent Pricing and Regulatory 77% 920mm Tribunal (IPART). IPART 67% 810mm 780mm is an independent body 635mm 01-02 02-03 03-04 04-05 05-06 06-07 07-08 that sets prices for a range ANNUAL RAINFALL FOR LOWER HUNTER of government services ANNUAL TOTAL WATER STORAGE LEVELS including water, transport and aspects of gas and electricity. The current four year price path expires on Length of water 30 June 2009 and Hunter pipes in service Water will be preparing for a new price submission to IPART early in the 2008/09 financial year. 4,690km 7 MANAGING DIRECTOR AND CHAIRMAN Kevin Young | Managing Director Ron Robson | Chairman ENVIRONMENT CUSTOMERS EXCELLENCE OPERATIONAL PERFORMANCE CULTURE BUILDING A NEW WAY OF DOING BUSINESS A MESSAGE FROM THE MANAGING DIRECTOR AND CHAIRMAN THE WATER INDUSTRY So 2007/08 has been a time of Significant progress and consultation HAS MOVED INTO AN ERA significant learning and transition for us. has occurred on two major planks It was a foundation for us to build on. of that plan – Tillegra Dam and the OF UNPRECEDENTED Kooragang Recycled Water Scheme. Given the magnitude of the change CHANGE. ITS CHARACTER in this foundation year, we have In this new environment, where the IS NO LONGER DOMINATED performed extremely well but there future is more dynamic and less certain, BY THE STEADY CERTAINTY is more to be done. Hunter Water’s key challenge is to evolve quickly into a high performance OF ITS ENGINEERING AND Revenue was down by $15 million organisation, characterised by the because of reduced demand for water TECHNOLOGY FOCUSED business capability, achievement focus, in the Hunter and from the Central flexibility and adaptability of its people.
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