ENERGY CHARTER DISCLOSURE REPORT 2019-20 Contents Referencing guide EQL Energy Queensland Limited Chairman and CEO message 1 The term Energy Queensland is Our customers and communities 2 used throughout the report and acronym EQL is used to refer to Our scorecard 3 work across the Group) Our performance 4 EEN-EX Ergon Energy Network and Energex COVID-19 – Our response 4 EER Ergon Energy Retail Principle 1 – We will put customers at the centre of our business and YKA Yurika the energy system 4 The points relevant to the Independent Principle 2 – We will improve energy affordability for customers 6 Accountability Panel Recommendations Principle 3 – We will provide energy safely, sustainably and reliably 7 2019 are referenced with a R#. A copy of those recommendations is available on the Principle 4 – We will improve the customer experience 8 Energy Charter website. Principle 5 – We will support customers facing vulnerable circumstances 10 About this report This report covers the Energy Queensland Group’s (the Group’s) Energy Charter disclosure from July 2019 to June 2020. It reports the contribution of Energex Limited, Ergon Energy Corporation Limited, Ergon Energy Queensland Pty Ltd, and Yurika Pty Ltd. This Energy Charter Disclosure Report is on our website at www.energyq.com.au/publications. We welcome feedback to help us improve our reporting. Comments can be directed to [email protected] Chairman and CEO message In this disclosure report, we share how we’re working on delivering better outcomes for the many different customer segments and communities we serve. In addition to direct customer feedback, much of into better price outcomes and we laid the The collation of this Energy Charter Disclosure this journey has been guided by insights from our foundation for new tariff choices Report is central to remaining relevant, and Customer Council, customer advocates and our • we had to balance the impact of safety- delivering valued products and services to all our fellow Energy Charter signatories. We thank them driven investment on reliability performance customers and communities into the future, and for working with us and truly challenging us to while formalising our commitment to enable to ensuring no one is left behind. do better. the transition of the Queensland electricity We look forward to delivering ‘better together’, Focus areas from the year include: industry to a low carbon future in line with our through the Energy Charter, in the coming year. customers’ expectations • we rose quickly to the challenges brought by Yours sincerely the COVID-19 pandemic, with both a customer • we advanced both our Retail and Network and operational response online customer portals, making it easier for our customers to engage with us. • we focused on our business culture, with new tools and measures, improved our internal For the first time we’ve assessed ourselves from customer advocacy and developed a shared- a maturity perspective against each of the Energy Phil Garling language around our customers’ diverse needs Charter’s five principles.This was a valuable process, Chairman • affordability remained core to our revised driving healthy debate on where we needed to focus Regulatory Proposals and Tariff Structure strategically to meet future customer expectations, Statements, which have now translated and helping us understand more deeply what ‘good’ Rod Duke looks like from a customer perspective. Chief Executive Officer 1 2019-20 Energy Charter Disclosure Report Customer Council message Customer Council Members Dale Holliss Bundaberg Regional Wendy Miller Queensland Council of As the Customer Council for Energy We believe that Energy Queensland Irrigators Group Social Service Queensland, we acknowledge now better understands their Gabriel O’Keeffe Chamber of Commerce Luke Reade Energetic Communities and Industry Queensland and appreciate the effort that customers’ diverse expectations Pamela City of Gold Coast Georgina Davis Queensland Farmers has been made to engage with and bring this focus to improving Bessette-Guard Council Federation Council members in developing their service delivery. We commit Robyn Robinson Council on the Ageing Elly Queenslanders with this disclosure statement, and for to continuing to work with Energy Queensland Desmarchelier Disability Network (new member) incorporating our views on both the Queensland on realising these Michael Local Government Colin Coverdale Small Business Association progress made against the principles improvements and the promises Fullelove Association Queensland of Australia of the Energy Charter over the past of the Energy Charter for the Anthony King Master Electricians Judene Andrews UnitingCare Queensland year, and Energy Queensland’s communities and customers that we Andrew Barger Queensland Resources Martin Zaltron Urban Development inaugural maturity assessment. represent. Council Institute of Australia Our customers and communities Energy Queensland is Queensland’s 100% owned group of Our stakeholders electricity distribution, retail and energy services businesses. This report focuses on our end-user customers range of products and services delivered through and the communities we serve from the Tweed our Yurika and other market brands, both in River to Torres Strait and from Brisbane across Queensland and nationally. to Birdsville. This includes circa. 2.3 million Government Industry To help us understand our end-user customers, connected customers, 738,000 regional retail Regulators we have a needs-based segmentation framework customers, 25 large-scale solar farms and that maps our residential and business customers 550,000 small-scale solar energy systems. to three macro-needs – connection, control and We deliver electricity across Queensland through progression (see Case Study 2). End-user Community our ‘poles and wires’ businesses Energex and Customer s Industry To meet the needs of our end-user customers (the Stakeholders Partners Ergon Energy Network, with 33 stand-alone focus of this report), we work closely with the power stations for our isolated communities. Our Queensland Government and industry regulators retailer, Ergon Energy Retail, sells electricity to and invest in building positive relationships with customers throughout regional Queensland. These Our People community stakeholders, industry partners and essential service activities are also supported by a our people (employees). GENERATION TRANSMISSION DISTRIBUTION RETAILERS END USE CUSTOMERS A range of energy The transmission network The ‘poles and wires’ The electricity is sold by Queensland has resources – coal, gas, transports high voltage then supply the electricity the retailers, who provide 2.3 million homes and hydro, solar, wind and electricity from the at a lower voltage to a range of other services. businesses state-wide. biomass – is used to major generators over Queensland’s homes and They buy the electricity 30% of houses now have generate the state’s long distances to the businesses. from the generators. rooftop solar – that is now electricity. Queensland distribution network being exported across the is also connected to and high-use industrial distribution network. interstate supplies. customers. ~1~ Business solar and utility Ill Tenergex scale renewables are also Part of Energy Queensland PattofEnergyQueensland distributed across the .. state, and growing rapidly. PattofEnergyQueensland INDUSTRIAL SERVICE PROVIDERS CUSTOMERS Infrastructure and alternative or Some industrial sites are distributed energy providers, supplied directly from the metering services, electrical yuq1<a transmission lines. contractors, energy on-sellers and l'iln 'X EnergyQueenilond Palto!EnergyQueensland others in the energy ecosystem. 2019-20 Energy Charter Disclosure Report 2 Our scorecard Our scorecard links our high-level customer and community metrics to the Energy Charter Maturity Assessment Framework. The targets shown form part of our annual performance agreement with our shareholding Ministers as a Government Owned Corporation. Key Performance Measures Energy Charter Maturity Assessment Metric and Target Result Elementary Emerging Evolved Empowered Exemplary We will put customers at We measure the customer Energy Queensland Customer 6.9 the centre of our business mindset in our organisational Enablement Index1: and the energy system culture, by how enabled employees feel to deliver for our Target ≥5.6 customers We will improve energy We track price and affordability Household concern about ability affordability for customers perceptions (this year’s to pay the bill – improvement prior to the (a) % moderate-high concern (a) 57% economic impact of COVID-19) (b) % low bill concern (b) 42% We outline tariff trends in our Retail price changes July 2020: 5.3% Annual Report Residential 5.0% Small Business We will provide energy Safety: We have a suite of Community safety incidents 323 N/A N/A safely, sustainably and community and workplace safety involving contact with our 24% reliably measures detailed in our Annual networks Report Sustainability: We’re New solar connections to our 67,594 playing an important role in networks 28% Queensland’s transition to a low- carbon energy future for more Energy Queensland controllable 131,420 see our Annual Report direct emissions tCO2-e 3% Reliability: Our networks’ Household satisfaction with 76% performance across the state network reliability3 for our outage frequency and duration standards are detailed 12 power outage standards: