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ERGON ENERGY Customer Advocate PO Box 264 Fortitude Valley QLD 4406 [email protected] Annual Stakeholder

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ERGON ENERGY Customer Advocate PO Box 264 Fortitude Valley QLD 4406 Customer.Advocate@Ergon.Com.Au Annual Stakeholder ANNUAL STAKEHOLDER REPORT 2012/13 Customer Service 13 10 46 7.00am – 6.30pm, Monday to Friday Faults Only 13 22 96 24 hours a day, 7 days a week Life-Threatening Emergencies Only Triple zero (000) or 13 16 70 24 hours a day, 7 days a week ERGON ENERGY Customer Advocate PO Box 264 Fortitude Valley QLD 4406 [email protected] Annual Stakeholder Ergon Energy Corporation Limited ABN 50 087 646 062 Ergon Energy Queensland Pty Ltd ABN 11 121 177 802 Report 2012/13 ergon.com.au ABBREVIATIONS A&TSI Aboriginal and Torres Strait ISO International Organisation for Islander Standards AER Australian Energy Regulator KPI Key Performance Indicator ASX Australian Stock Exchange LEP Long-Term Energy Procurement CONTENTS CMC Crime and Misconduct Commission MSS Minimum Service Standards CPI Cost Performance Index NIRC Network Investment Review CPI Consumer Price Index Committee ABOUT OUR REPORT 2 CSI Comprehensive Safety Indicator NPAT Net Profi t After Tax CSO Community Service Obligation QCA Queensland Competition Authority ERGON ENERGY IN PROFILE 3 DEEs Dangerous Electrical Events RAP Reconciliation Action Plan EBIT Earnings Before Interest and Tax RECs Renewable Energy Certifi cates THE YEAR IN SUMMARY 6 ENA Energy Networks Association ROAMES Remote Observation Advanced EV Electric Vehicle Modelling Economic Simulation CHAIRMAN’S MESSAGE 8 FTE Full Time Equivalent SCADA Supervisory Control and Data GECs Gas Electricity Certifi cates Acquisition system CHIEF EXECUTIVE’S REPORT 9 GFC Global Financial Crisis SCI Statement of Corporate Intent GPS Global Positioning System SHADO Sexual Harassment and Anti-Discrimination Offi cer REVIEW OF OPERATIONS 11 GRI Global Reporting Initiative SPI Scheduled Performance Index GSLs Guaranteed Service Levels STPIS Service Target Performance GUSS Grid Utility Support Systems Incentive Scheme 12 ICT Information and Communications CUSTOMER DRIVEN SWER Single Wire Earth Return Technology Details what we’re doing to address electricity IRC Investment Review Committee affordability and meet service expectations, and the many ways we are engaging with the community. ASSET MANAGEMENT EXCELLENCE 20 Showcases how our strengthening asset management capability is enabling us to better utilise the network and deliver more reliable, effi cient and sustainable energy supply solutions. HIGH-PERFORMANCE ORGANISATION 25 Outlines how we’re responding to our changing operating environment and supporting our people, as well as our focus on safety and environment. KEY SERVICE CENTRES Cairns 109 Lake Street CAIRNS QLD 4870 OUR ECONOMIC AND FINANCIAL PERFORMANCE 36 Townsville (Registered Offi ce) 22 Walker Street TOWNSVILLE QLD 4810 OUR CORPORATE GOVERNANCE STATEMENT 40 Mackay 23 Cemetery Road LOOKING FOR MORE INFORMATION? WEST MACKAY QLD 4740 This Annual Stakeholder Report and the Annual Financial Statements for Rockhampton Ergon Energy Corporation Limited and its Controlled Entities (including Cnr Fitzroy and Alma Streets the Directors’ Report and our Financial Statements), as well as previous ROCKHAMPTON QLD 4700 years’ reports, are available online at www.ergon.com.au/annualreport Maryborough 97-99 Adelaide Street Additional statistics, industry measures and abbreviations are provided MARYBOROUGH QLD 4650 from page 51. Toowoomba Cnr South and Hampton Streets TOOWOOMBA QLD 4350 Brisbane 825 Anne Street FORTITUDE VALLEY QLD 4006 Ergon Energy recognises that the rising price of electricity is a concern for our customers. Addressing this issue remains at the core of our strategic plan, as well as the achievements and challenges highlighted in this report. We are committed to doing everything in our power to positively affect the price our customers pay for electricity – whether this is by reducing our operating costs through greater efficiency and effectiveness or by improving the management of electricity demand to avoid costly investment in the network. At the same time, we know that we have to continue to meet our customers’ expectations for a safe and reliable electricity supply. It’s about finding the right balance – and working together to find smarter, more sustainable ways to create a bright future for regional Queensland. ABOUT OUR REPORT Our Annual Stakeholder Report 2012/13 presents a holistic insight into the organisation’s overall performance for the financial year and demonstrates the contribution that Ergon Energy is making towards the broader sustainability challenges facing regional Queensland. It covers Ergon Energy Corporation Limited and its subsidiary Ergon Energy Queensland Pty Ltd, in addition to providing commentary on our other subsidiaries and joint venture. p4 Publishing performance Enhances understanding of against set goals builds the sustainability challenges confidence in the we can contribute to, and organisation’s governance. WHY WE the role we play. REPORT WHAT Reporting transparently builds Ensures we meet stakeholder understanding and trust, and WE DO expectations of our corporate supports greater stakeholder reporting standards and our participation. legislative requirements. SHARED SUSTAINABILITY Many of the challenges facing regional The full details of GRI indicators covered CHALLENGES Queensland are inextricably linked to the in this report are indexed online at Ergon Energy is active in assessing future of our business. Our most www.ergon.com.au/annualreport significant sustainability contribution is stakeholder needs and expectations The content of this report has also been around our response to the affordability and maintaining an understanding of guided by the Australasian Reporting of electricity. We’re focused on regional Queensland’s broader Awards criteria for best-practice contributing meaningfully to a sustainability challenges and feeding reporting, as well as the Energy Supply sustainable energy future and to this into our decision-making, both Association of Australia’s Sustainable adopting responsible and sustainable at a strategic and an operational level; Practices Framework. To assist us to business practices. these insights have been used to continually improve our reporting, we assess the materiality of our reporting. This report also addresses the other invite your feedback through our online Our stakeholders are our customers, the sustainability concerns listed below. feedback form, or you can contact our communities we work in and serve, our This summary reflects the aspects of the Community Engagement and Advocacy government shareholders and industry Global Reporting Initiative’s (GRI) G4 team on 13 10 46. regulators, our employees (including Principles of Sustainability Reporting their representative unions), and our seen as material to our stakeholders. suppliers and industry associates. STAKEHOLDER SUSTAINABILITY CONCERN Customers Electricity affordability p 5, 6, 8, 9-10, 13-14, 18, 24, 26, 36, 45 Reliability and security of supply p 10, 15-16, 20-24 Infrastructure costs / timeliness p 16-17 Energy conservation / control over energy use p 8, 9, 14, 18, 22-23, 23-24 Communities Infrastructure for economic development p 16-17, 21-22, 23-24, 36 Capability for a strong disaster response p 8, 9-10, 15, 17, 23 Community impact and participation p 2, 3, 18-19, 36, 38 Community electrical safety p 19 Response to climate change p 24, 32-34 Environmental protection p 34-35 Energy / resource conservation p 22-23, 23-24, 27, 32-34 Government shareholders Electricity affordability* p 5, 6, 8, 9-10, 13-14, 18, 24, 26, 36, 45 and industry regulators State debt and the budget deficit p 37-38 Employees and Employment opportunities p 26, 38, 29, 31-32 representative unions Workplace health and safety p 28-30 Workplace diversity and social inclusion p 31-32 Industry associates and suppliers Sustainable industry outcomes p 6, 8, 9-10, 13-14, 16-17, 21-24, 26-27, 32-35, 36, 45, 50 Local procurement opportunities p 16, 23, 38 * While addressing electricity affordability is the primary objective of the industry reform agenda, service standards and the broader customer and community concerns listed are also shared by our government shareholders and regulators. 2 ABOUT OUR REPORT ERGON ENERGY ANNUAL STAKEHOLDER REPORT 2012/13 ERGON ENERGY IN PROFILE Ergon Energy supplies electricity across a service area of more than one million square kilometres – 97% of the state of Queensland. Boigu Is. Saibai Is. Dauan Is. Stephens Is. Yorke Is. Darnley Is. Mabuiag Is. TORRES STRAIT Yam Is. Murray Is. Badu Is. Coconut Is. Bamaga Warraber Is. Kubin, Moa Is. Hammond Is. Mapoon Thursday Wasaga, Horn Is. Lockhart Is. Napranum River TORRES STRAIT Aurukun Coen Pormpuraaw Kowanyama Cooktown Key Administration Centre Gununa, Mornington Is. Mossman Distribution Network Cairns Mareeba Depot/Workshop Burketown Atherton Normanton Innisfail Barcaldine Power Station Doomadgee Ravenshoe Tully Georgetown Isolated Supply Ingham Palm Island Townsville Home Hill Camooweal Julia Creek Charters Towers Bowen Mt Isa Cloncurry Richmond Hughenden Proserpine Pinnacle Mackay NORTHERN Sarina Winton Moranbah St Lawrence Clermont CENTRAL Boulia Middlemount Yeppoon Rockhampton Emerald Longreach Barcaldine Blackwater Gladstone Springsure Bedourie Biloela Miriam Vale Jundah Blackall Monto Moura Gin Gin Bundaberg Theodore Childers Windorah Biggenden Hervey Bay Mundubbera Birdsville Gayndah Maryborough Charleville Proston Kilkivan Quilpie Wandoan Murgon Roma Kingaroy Chinchilla Yarraman SOUTHERN Tara Toowoomba Dalby Cunnamulla St George Millmerran Brisbane Warwick Stanthorpe ERGON ENERGY IN PROFILE ERGON ENERGY ANNUAL STAKEHOLDER
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