2019 – 20 ANNUAL REPORTto the ACT Government 2 September 2020 Mr Andrew Barr MLA Chief Minister ACT Legislative Assembly London Circuit CANBERRA ACT 2600 Dear Chief Minister We are pleased to present Icon Water Limited’s(Icon Water) 2019–20 Annual Report. This report has been prepared in accordance with section 7 of the Annual Reports (Government Agencies) Act 2004, Section 22 of the Territory-owned Corporations Act 1990 and in accordance with the requirements under the Annual Report Directions. It has been prepared in conformity with other legislation applicable to the preparation of the Annual Report by Icon Water Limited. I certify that information in the attached annual report, and information provided for whole of government reporting, is an honest and accurate account and that all material information on the operations of Icon Water Limited has been included for the period 1 July 2019 to 30 June 2020. I hereby certify that fraud prevention has been managed in accordance with the Public Sector Management Standards 2006 (repealed), Part 2.3 (see section 113, Public Sector Management Standards 2016). Section 13 of the Annual Reports (Government Agencies) Act 2004 requires that you present the report to the Legislative Assembly within 15 weeks after the end of the reporting year. However, under section 14, the Chief Minister has granted an extension of the time when the report must be presented by you to the Legislative Assembly. The Chief Minister has granted the extension to 18 December 2020. The annual report must be provided to the Speaker on 18 December 2020 for distribution to each Member of the Legislative Assembly. The annual report must then be tabled in the Legislative Assembly on the next sitting day. Yours sincerely WENDY CAIRD RAY HEZKIAL Chair Managing Director Icon Water Icon Water 1 Align title to the top of the line Align content after page heading here. 2 2019–20 Annual Report CONTENTS Transmittal letter 1 4. Performance 71 Message from the Chair and Managing Director 4 Key performance outcomes 72 Ecologically sustainable development 75 1. Organisation 5 Sustainable development performance reporting 79 About us 6 Our network 8 5. Accountability 82 Our assets 9 Internal audit 83 Energy investment 10 Risk management 84 Territory records management 84 Business strategy 12 Bushfire risk management 85 The Board 14 Emergency and continuity management 87 The Executive leadership team 20 Fraud prevention 87 Board and executive remuneration 23 Freedom of information 88 Organisational structure 25 Human Rights Act 89 Our people 26 Public interest disclosure 90 Staffing profile 27 Legal services direction 90 Work health and safety 31 Legislative Assembly Committee inquiries and reports 91 Auditor-General and Ombudsman reports 92 2. Partnering with the community 36 Community support program 37 6. Financial reports 93 Community engagement 42 Financial management analysis 94 Infrastructure and network engagement 42 Icon Water Limited and controlled entities 99 Customer experience 46 Icon Distribution Investments Limited 171 Research, development and innovation 48 Icon Retail Investments Limited 201 Aboriginal and Torres Strait Islander 52 ActewAGL Joint Venture 229 community engagement 7. Appendices 239 3. Year in review 54 Compliance statement 240 Sewerage operations 55 Omissions report 241 Water quality 56 Glossary of acronyms 242 Water operations 57 Alphabetical index 243 Water security 58 Economic regulation 62 Sourcing strategy 62 Asset management 63 Information and communications technology 64 Capital works 65 3 MESSAGE FROM THE CHAIR AND MANAGING DIRECTOR Align title to the top of the line We are pleased to present Icon Water our permanent water conservation given to their roles on the Icon Water Limited’s Annual Report 2019−20 measures increased in the community Board and wish them well in their to the ACT Government and the and, combined with the welcome future endeavours. Align content after page heading here. Canberra and region community. rain and decreased temperatures, consumption figures for autumn were On 2 May 2020, following an At Icon Water we’re committed the lowest we have seen for the last extensive recruitment process, to being a valued partner in our three years. Helen Locher and Peter Dennis community – and this has been were appointed as non-executive more important than ever this year We are pleased to share our key Directors. Both Dr Locher and Mr as we’ve faced bushfires, smoke, achievements over this reporting Dennis bring a breadth of experience heatwaves, hailstorms and the period. These include our ‘Live Well’ to the Board and we are certain that COVID-19 pandemic. safety initiatives, which continue to their skills and strengths, particularly support healthy minds and bodies in engineering and environmental With this in mind, we’d like to take across the workplace. Innovation science in the water industry, will this opportunity to acknowledge our has also been a key focus with make significant contributions to people on the frontline, in the field the development of an innovative the Board. We are also pleased and in our plants. These professionals engineering solution to reduce to confirm that in April 2020, the have worked night and day – the musculoskeletal load on field Voting Shareholders reappointed literally – to provide vital water and workers when lifting maintenance Mr Brett Tucker as a non-executive sewerage services to the community. access covers. The solution known as Director for a second three-year term, The impressive commitment of ‘Cracker Jack’ is an industry first and commencing 10 July 2020. these teams has meant our services a credit to the collective effort of our have not been disrupted due to engineering and safety teams. As we look back on the many COVID-19. achievements outlined in this report, In 2019–20 we achieved strong as well as the challenges, the Board Many of our customers have financial results for the year with and Executive would like to thank been impacted financially by the net profit of $80.3m, $6.9m above the people who make up the Icon pandemic, both at home and in budget. Dividends paid to our Water team. Your collective effort their businesses. This has been shareholders totalled $58.5m as well and commitment to serving the front of mind for us, which is why as income tax equivalent payments community during both the bushfire we made the decision to freeze the totalling $45.4m. Our energy season, and the ongoing COVID-19 combined water and sewerage price investment has made a significant pandemic, is a credit to you all. for 12 months from 1 July 2020. contribution to our overall result, Although we continue to review contributing $57.8m. As a business we have continued to our expenditure to ensure that it is provide support to our region with efficient, this decision does place a Over the reporting year we were essential services, no matter what degree of financial pressure on our also able to deliver $110m of capital we have been faced with. It really business. However, supporting the expenditure. This investment in our is a testament to our people, and Canberra community is an important infrastructure directly supports us to a testament to our values – safety, part of who we are and we’re pleased deliver high quality drinking water excellence and openness. to be able to provide some practical and environmentally sustainable help to those in need, in what is an and affordable water and sewerage extraordinary and challenging time. services to the growing population of Canberra. We take our role in managing the ACT and Queanbeyan’s water On 1 May 2020, Rachel Peck’s term WENDY CAIRD security seriously and a key priority is on the Board concluded. Ms Peck has Chair to safeguard the community’s water been a non-executive Director since Icon Water supply. The ACT and region has seen May 2011 and made a considerable good rainfall since February 2020 contribution over her tenure on the with a number of months receiving Board. We also farewelled Abigail above average rainfall. Prior to this, Goldberg who resigned from her however we experienced some of role in January 2020 having played the driest years on record and as a a key role since her appointment in result it will take time to see our dam July 2017. The Executive and Board RAY HEZKIAL levels increase. Thanks to our Care recognise and appreciate the effort Managing Director for Water Campaign, awareness of Ms Peck and Ms Goldberg have Icon Water 4 2019–20 Annual Report ORGANISATION 5 Align title to the top of the line Align content after page heading here. ABOUT US At Icon Water Limited (Icon Water), valued at around $1.0 billion, in the performance targets in the we’ve been part of the Canberra the ActewAGL Joint Venture, which Business Strategy (Statement of and region community for more than operates in the energy sector. Corporate Intent) 100 years. Every day, we’re proud to show a sense of social to support our region by sourcing, Our long-term water security allows responsibility by having regard to treating and supplying water to us to support growth in Canberra and the interests of the community in the Canberra and Queanbeyan Queanbeyan. We’re committed to which we operate, and by trying communities, and managing providing these essential services that to accommodate and encourage Canberra’s sewerage services. contribute to public health and the future prosperity and liveability of our those interests We are an unlisted public company region. where our activities affect the owned by the ACT Government. As a environment, to effectively Importantly, we respect our role to Territory-owned corporation, we are integrate environmental and protect the environment. We have separated from the direct functions economic considerations in Australia’s largest inland sewage of government and governed by an decision-making processes.