Further Information on the Annual Report 2003-04
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Further information on the Annual Report 2003-04 Contact Yarra Valley Water Telephone: 131 721 Web: www.yvw.com.au Email: [email protected] For language assistance call TIS 131 450. Y arra Valley Water Annual Report Annual Water 2003 Report arra Valley - 04 ANNUAL REPORT Yarra Valley Water Ltd ABN 93 066 902 501 Lucknow Street Mitcham Victoria 3132 DX 13204 Telephone: (03) 9874 2122 Facsimile: (03) 9872 1353 03-04 Printed on Australian made 100% recycled paper sourced from sustainable forest regions. 2 3 Yarra Valley Water Annual Report 2003-04 Our journey If sustainability is a goal to be attained after a long and perhaps arduous journey, how do we prepare ourselves and where do we start? Our business at a glance Yarra Valley Water assets Melbourne’s water supply structure 8,643 km water pipes has one water wholesaler, 8,207 km sewer pipes Melbourne Water Corporation, and 10 elevated water supply tanks three water retailers, of which we 40 ground-level water supply tanks are one. The retail water businesses 62 water pumping stations commenced operation in 1995 and, 72 sewer pumping stations although owned by the Victorian 43 water pressure reducing stations Government, each is a commercial 9 sewage treatment plants. concern with a Board of Directors appointed by the Government. Total water purchased and Yarra Valley Water is Melbourne’s supplied largest retail water business. 169,027 megalitres bulk water purchased* Yarra Valley Water provides water 149,994 megalitres water supplied and sewerage services to customers to customers*. within our licensed area. The area * The difference in water purchased and water covered by our Operating Licence is supplied to customers is referred to as ‘non- over 4,000 square kilometres in the revenue water’ and includes water used for fire-fighting, water lost in bursts, metering northern and eastern suburbs of inaccuracies, water theft, pipe leakage and our Melbourne and we provide water own usage for cleaning pipes (see p27). and sewerage services to more than 1.5 million customers. Total sewage collected, transported and treated Yarra Valley Water owns and 122,785 ML sewage is collected from manages assets valued at more than customers and transported to Melbourne $1.3 billion and has annual revenue Water Corporation’s Western Treatment in the vicinity of $350 million. Plant at Werribee and Eastern Treatment Plant at Bangholme (formerly Carrum). 8,269 ML sewage treated by Yarra Valley Water’s sewage treatment plants. OUR JOURNEY 01 4 5 Yarra Valley Water Annual Report 2003-04 ‘Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.’ Our fresh approach Sustainability and Yarra Reporting on our business The intended audiences for this report Yarra Valley Water exists to provide water Valley Water Driving service excellence and sustainability include: our shareholder the State and sewerage services that contribute to the Sustainability — to be able to continue through collaboration. This is more than a Government, auditors and regulators, the health and wellbeing of customers and indefinitely — is an idea most frequently token statement. It is our business Yarra Valley Water Board and Committees, the environment. applied to the physical and biological commitment in the changing and challenging customers, current and prospective environment, but it also includes the social environment we find ourselves in. By employees, our contractors and suppliers, In this regard, we strive to lead the global and ethical dimensions. The most widely maintaining our customer focus and the water industry and government and water industry in serving the Customer and used definition is derived from the innovation, working smarter and partnering non-government organisations. the Environment supported by a high Brundtland Commission of 1987. more, we can achieve this. We would like to performing business Culture and We appreciate your comments and feedback It effectively incorporates the concepts tell you how we are getting there and our continuously improving our Efficiency. on our business performance and how we of justice and fair play as follows: progress so far. report it. Feedback from last year’s report is incorporated in this report and includes ‘Sustainable development meets the Yarra Valley Water’s 2003-04 Annual Report continues the focus on sustainability, based summary pages for each chapter, a glossary needs of the present without of terms and other improvements. Please compromising the ability of future on triple bottom line reporting principles. We have addressed social, financial and complete the feedback page at the back of generations to meet their own needs.’ this report and provide it to us, so we can Customer Environment environmental reporting within our own Sustainability is a concept to which many strategic framework of culture, efficiency, continue to improve our reporting. pay lip service but few find easy to translate customers and the environment. The report into a program of practical action. covers the financial year from 1 July 2003 We cannot claim to have become to 30 June 2004. Culture Efficiency sustainable simply by changing a few of our more wasteful practices. It must We have referred to VicWater’s Triple Bottom encompass all that we do and our entire Line Reporting Guidelines and have included way of life. This will happen not through the results of the regular independent auditing Yarra Valley Water carries out during To inspire and encourage us to be innovative a magic transformation but by progressive the year. During the development of this we accept the following challenges: steps, rather like a journey. But if sustainability is a goal to be attained after report we consulted a number of To improve environmental outcomes and a long and perhaps arduous journey, how stakeholders including Yarra Valley Water’s increase efficiency do we prepare ourselves and where do Customer Consultative Committee, To improve customer satisfaction and we start? The report outlines the beginning Environmental Consultative Committee and increase efficiency of our journey. employees to develop an easy to read and To achieve responsible financial outcomes informative account of our progress. We have and reduce water consumption Our MD’s report describes our approach to described our disappointments and sustainability and our Chairman’s report To attain higher levels of staff satisfaction challenges, as well as our achievements. OUR JOURNEY describes our actions in support of our and embrace change. sustainability strategy. 01 This is our Statement of Strategic Intent. 6 7 Yarra Valley Water Annual Report 2003-04 Chairman’s Report a water smart gardening accreditation emissions, water consumption and sewerage Improving water quality Figure 1: Return on Average Assets % program for nurseries. This gardening system impacts and waste to landfill. Our The number of water quality complaints was 12 program has been adopted as part of the revised environmental policy highlights the 10.7 higher than anticipated this year, with the 9.9 9.6 8.7 8.1 Our Water Our Future behavioural change new direction we are taking in this regard. business receiving 390 more complaints than 9 program being led by the State 7.9 Although we still have a long way to go, Yarra last year. 6 Government and industry, and is being Valley Water’s Green Office strategy, launched introduced later this year. We have a number of projects that hope to 3 in 2003-04, contributes to the achievement address water quality issues, including: 0 As well as these joint initiatives to reduce the of greenhouse gas and waste to landfill 99-00 00-01 01-02 02-03 03-04 Investigating ways to clean mains without public’s water consumption, Yarra Valley reduction targets for the head office. The first Previous Actual Target Water undertook active leak detection month after the launch our waste had wasting water. programs and commenced works to reduce reduced by 45% - an excellent start towards The development of a device to insert into water pressure in our supply system. These the 2007 target of 90% reduction in waste. mains to prevent sediment build up in Figure 2: Net Profit After Tax $M Alan Cornell, Chairman programs will reduce the number of burst problem areas, and 120 The Aurora project, an innovative housing 99.9 water mains and water lost through leaks. 100 development in Epping North, moved ahead A research program to develop a It has been an exciting year for the 80 We repaired 74% of leaks within 24 hours, computer model to predict where 68.9 64.4 Melbourne water industry. The community’s with the signing of the sustainability covenant 58.9 52.5 missing our 83% target, but are confident sediment accumulates. 60 by the major partners involved in the project. 51.1 increased awareness of water issues brought we will do better next year. 40 about by ongoing drought conditions and Work on the site commenced with the lilac- Focus on customers 20 Yarra Valley Water’s savewater!™ initiative coloured recycled water pipes being laid in 0 stage one and two water restrictions has Providing a sustainable environment for 99-00 00-01 01-02 02-03 03-04 flourished this year gaining commitment from early 2004. brought water issues to the fore. the future is part of our commitment to other water utilities that allowed the Previous Actual Target To further improve our sustainability customers but it is also important to provide Long-term water savings savewater!™ alliance to become a separate approach, we need to look at our sewage a high standard of service. This includes With the average person using 36 litres less entity, effective from 1 July 2004. This Figure 3: Dividends Paid, Payable or management. We had one disappointment responding to enquiries promptly, billing water per day in 2003-04 compared to last initiative has gone from strength to strength Estimated $M at our Brushy Creek sewage treatment plant, customers accurately and providing safe, year, our water use reduction target of 20% and now has a proven awards program, where one test did not fully comply with reliable water.