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Seq Water Grid Manager Annual Report 2009–10

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Seq Water Grid Manager Annual Report 2009–10 SEQ WATER GRID MANAGER ANNUAL REPORT 2009–10 Secure and efficient water through partnership and innovation 6 September 2010 Hon Andrew Fraser MP Treasurer of Queensland, Minister for Employment and Economic Development GPO Box 611 Brisbane Q 4001 Hon Stephen Robertson MP Minister for Natural Resources, Mines and Energy, and Minister for Trade PO Box 15216 Brisbane Q 4001 Dear Sirs I am pleased to present the Annual Report 2009–2010 for the SEQ Water Grid Manager. I certify that this Annual Report complies with: the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and the detailed requirements set out in the Annual Reporting Guidelines for Queensland Government Agencies. A checklist outlining the annual reporting requirements is available at www.seqwgm.qld.gov.au. Yours faithfully Gary Humphrys Chair SEQ Water Grid Manager Our vision Our values To be recognised as being at the Our organisational values are: forefront of delivering innovative innovation water services to ensure the security of supply for South East Queensland. delivering value motivation adaptability Our mission professionalism. Safe, secure and efficient bulk water services for South East Queensland through partnership and innovation. © SEQ Water Grid Manager SEQ Water Grid Manager Annual Report 2009–10 ISSN: 18374816. ANNUAL REPORT 2009–10 1 Contents 2 3 4 6 About this report Operational Our business Chair and highlights Chief Executive 2009–10 Officer’s overview 8 12 15 25 The SEQ Operational Priority area 1 Priority area 2 Water Grid performance Provision of water Operational security efficiency 31 37 42 47 Priority area 3 Priority area 4 Corporate Our people Customer and Innovative and governance stakeholder capable culture satisfaction and systems 51 54 88 Glossary Financial Appendix statements 2009 –10 MANAGER Delivering safe, secure and efficient water services with new levels of transparency and SEQ WATER GRIDSEQ WATER customer confidence. 2 About this report This Annual Report is an Contact us Translating and integral part of the SEQ Water Grid Manager’s Corporate For information about us, or for interpreting assistance Governance Framework. This copies of this Report, please contact: The Queensland Government is Report records our commitment SEQ Water Grid Manager committed to providing accessible to accountability and transparency Level 15, 53 Albert Street services to Queenslanders from and is the primary way in which Brisbane QLD 4000 culturally and linguistically diverse we report our achievements to the backgrounds. If you need an Government and the community. PO Box 16205 interpreter, please call the Translating City East QLD 4002 and Interpreting Service (TIS This Annual Report is prepared National) on 131 450 and have in line with the Financial Phone: +61 7 3247 3012 them contact our organisation Accountability Act 2009, the www.seqwgm.com.au on +61 7 3247 3012 between Financial and Performance 8am and 5pm, Monday to Friday Management Standard 2009 (except public holidays). and the South East Queensland Water (Restructuring) Act 2007. Access to safe and secure drinking water is critical to community health and wellbeing and a fundamental expectation of our community. We actively manage this expectation by not only monitoring water quality and supply levels, but also through directing the strategic operation of bulk water across the region. Our role ensures the efficient and effective operations of the SEQ Water Grid, for now and the future. This Report is one element in how we communicate to customers about their bulk water supply and how it is being managed. Fast fact Our organisation operates under two core modes: Cost effective operational mode – when permanent water conservation restriction levels apply (during average rainfall periods). Our focus is to manage the supply of water from the available sources to meet demand, while focusing on minimising SEQ Water Grid operational costs. Water security mode – when medium, high or extreme water restriction levels apply (during drought conditions). Our focus is to maximise water security to local council areas and power ANNUAL REPORT 2009–10 stations, using alternative water supplies (non-dam supplies) to increase the amount of water storage in the dams. 3 Operational highlights 2009–10 The past 12 months have seen Shifted our operations from Completed an Electricity South East Queensland come out a focus on maximising Optimisation Study, identifying of drought for the first time in nine water security to also taking potential opportunities for years. Hence, 2009–10 allowed into account cost, flexibility future cost savings. the SEQ Water Grid Manager to and system reliability. Completed a study into change the strategic focus of its Connected the Toowoomba laboratory capacity operations from maximising security region as a customer of the and capability in South of supply to also further take into SEQ Water Grid with the supply East Queensland. account efficient and cost effective of raw water from Wivenhoe operations of the SEQ Water Grid. Released the draft SEQ Dam to Cressbrook Dam. This mode of operation, cost Water Grid Technology effective operational mode, began Introduced the monthly Strategy (Technology on 1 December 2009 with the Customer Confidence Report Strategy) for consultation introduction of permanent water (Bulk Water), providing bulk with the Grid Participants. conservation measures. It also water quality testing results for Completed the first SEQ coincided with the release of the 80 per cent of the water supplied Water Grid Operating Strategy Queensland Water Commission’s through the SEQ Water Grid, (Operating Strategy), providing new South East Queensland System providing residents and industry a framework for the operation Operating Plan (System Operating with added confidence in their of the SEQ Water Grid for Plan). This Plan provides the water supply. In June 2010, the next 12 months. overarching rules within which we 12 months of data showed a operate the SEQ Water Grid. 100 per cent compliance record A significant achievement in 2009–10 against the Australian Drinking has been the reduction of the SEQ Through these decisions, we Water Guidelines 2004. Water Grid’s variable operating costs have been able to identify and by approximately $2.5 million per harness operational savings, while Undertook a major 48 hour month (water security mode versus delivering improved water security emergency response exercise cost effective operational mode) since and water quality. involving all State-owned December 2009 through optimising SEQ Water Grid entities and Some of our operational highlights SEQ Water Grid operations. a number of major council for 2009–10 were: distributor–retailers to assess and refine the SEQ Water Grid Emergency Response Plan. MANAGER SEQ WATER GRIDSEQ WATER 4 Our business Who we are greater transparency in product During our second year, 2009–10, specifications and monitoring of our focus shifted to actively optimising The SEQ Water Grid Manager is product performance, resulting in the operation of the SEQ Water a statutory body established under higher levels of customer service Grid, delivering innovation and the South East Queensland and confidence. It also means increased operational benefit across Water (Restructuring) Act 2007. service delivery risks are allocated the entire urban water supply chain. We commenced operation on across the SEQ Water Grid to where We worked collaboratively with our 1 July 2008, when the SEQ Water they can best be managed and SEQ Water Grid partners to find and Market changed substantially with allows the specialist entities to take implement improvements across the the establishment of the SEQ Water accountability in operating each part SEQ Water Grid. We also established Grid. We operate the SEQ Water of the SEQ Water Grid supply chain. and implemented a number of Grid to maintain regional water whole-of-Grid plans and strategies We sell water to our customers—the security; ensuring adequate water to support the efficient and effective three new SEQ Distributor-Retailers supplies are provided efficiently, cost operation of the SEQ Water Grid. effectively, safely and sustainably (from 1 July 2010), power stations throughout South East Queensland. and other rural and industrial entities. Development of our organisation also continued, with a new We report to the Queensland To do this, we work in partnership with organisational structure and new Parliament through two responsible Grid Participants and Queensland services being offered such as Minsters: the Treasurer and Minister Government stakeholders to the Customer Confidence Report for Employment and Economic develop innovative ways to (Bulk Water) and the whole-of- Development and the Minister operate the SEQ Water Grid. Grid communications function. for Natural Resources, Mines and We are a not-for-profit entity and do Energy and Minister for Trade. not own infrastructure assets but hold the urban water entitlements for South What we do East Queensland. We make strategic Our first two years Our key responsibility is to manage and operational decisions that are the operation of the SEQ Water During our first year of operation, based on ensuring water is produced Grid in the most efficient and 2008–09, our focus was on and moved to where it is needed effective manner, consistent with the establishing our organisation from the most, at the least possible cost, System
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