Our Connected Future ANNUAL PERFORMANCE REPORT 2015/16 1---1 ..,. ..■ .. ~ ~ ~ -- ~~ -- ~ energex positive energy FOR MORE THAN 100 yEARS ENERGEx AND ITS PREDECESSORS r ~ Network hit hard with five severe storms in seven consecutive days during January and HAVE PROVIDED A SAFE AND another in March. Projects ‘January’ and ‘369’ are implemented to achieve fast recovery of the brand and network. Somerville Inquiry established following the severe network disruption. RELIABLE ELECTRICITy SuPPLy ~ SPARQ Solutions formed to provide ~ TO SOuTH EAST QuEENSLAND. information technology services to Energex and Ergon Energy. Preliminary work begins in July for the CityGrid Project the largest single capital ~ r works project to date. In partnership with SEQEB changes its trading name Energex is the first company to recommit to Federal Government’s Powerlink Queensland, the project is a to ‘Energex.’ Industry reforms split Greenhouse Challenge 2000-2005. combination of new and upgrade work on network and retail businesses. The first Australian company to develop a specific program to enact Energex’s substations and high voltage Energex’s vision is to be Asia the regulations stemming from the Federal Government’s Renewal electricity network, supplying the CBD. Pacific’s first choice in energy. Energy (Electricity) Act 2000 with Solar Certificates Program. Works are complete by late 2006. ~ ~ ~ 1997 2000 2004 1998 1999 2001 2002 2003 2005 2006 r r Allgas Energy Ltd is Energex modernises Energex introduces the More than ( acquired by Energex. the network ( tagline ‘Positive Energy.’ 150 staff, operations and data along with J capture system J 52 trucks with enhancements and 16 to Distribution large mobile r Management Service Essentials Pty Ltd is established, generators, System (DMS). a joint venture between Energex and are sent to Energex’s operations include Victoria, Ergon Energy, delivering cost effective assist with New Zealand, Hong Kong and significant transaction services for retail operations. power progress in China, Indonesia and Malaysia. restoration Energex launches a new ‘internet’ site ( J following which offers comprehensive safety, energy Cyclone efficiency, environmental and employment Energex’s network assets are now available on a geographic Larry. opportunities information. ( information system, ‘EnerGISe,’ and is available to all staff. J OuR VISION OuR PuRPOSE BE THE PREFERRED DELIVER CHOICE AND AFFORDABILITy SuPPLIER OF CONNECTED TO MEET OuR CuSTOMERS’ ELECTRICITy SERVICES. EVOLVING ENERGy NEEDS. OuR VALuES PuT SAFETy FIRST DELIVER BALANCED RESuLTS Think safe, work safe, home safe. We are committed We are passionate and disciplined about achieving our 0 to achieving an injury free workplace. performance targets. We deliver sustainable performance. DELIVER ON OuR CuSTOMER PROMISE RESPECT AND SuPPORT EACH OTHER We are clear in what we promise customers and we We value each other’s views. Together, we create success. deliver on our promise. BE A TEAM PLAyER SET A GREAT ExAMPLE We operate as a team and leverage and learn We live our corporate values every day, encourage people from each other. to grow and make changes for the better. Our values are the foundation for our everyday success THE MERGER BETWEEN ENERGEx State Government sells Energex’s electricity and gas retail businesses AND ERGON ENERGy IS THE NExT ( and the natural gas distribution network to Origin Energy, AGL and APA. ) STAGE OF AN ExCITING NEW FuTuRE r FOR QuEENSLAND’S ELECTRICITy State Government announces Solar Bonus Scheme which pays households for generating and contributing solar power to the grid. A record number of new connections NETWORK AND CuSTOMERS. is made in February with over 300 connections in one day and more than 74,000 additions for the year. Joint Workings Program established with Ergon Energy, creating efficiencies and reduce Official opening of Energex’s head office at Newstead. I investment duplication. Energex and Ergon Energy trial Reward Based Tariffs Bushfires sweep across November storms affect more than 230,000 involving approximately 3,500 participants across North Stradbroke Island, customers. Ninety per cent of customers have Queensland, seeking to identify customer understanding causing significant supply restored within 24 hours. and behaviour towards tariffs and pricing structures. damage to power supplies. 2007 2008 2010 2014 2009 2011 2012 2013 2015 2016 Energex’s Flash flooding in May Major floods Ex-tropical Cyclone Oswald impacts 40 per cent Battery Energy Cool Change leaves 75,000 homes in South East of the network. Energex and Ergon Energy crews Storage Project begins and businesses without Queensland. work shoulder to shoulder restoring power. System trial and is one of power. Crews work Brisbane city begins at a number of through the night to power supply .----[-~-=====~) , Energex coordinated restore power. A week shut down until Esitrain, State Government releases Independent Review initiatives later more than 32 waters recede. Rocklea. developed Energex crews help Panel (IRP) Report into electricity network costs. The Community in a bid to New South Wales and Sustainability reduce peak electricity network \.._l::========--------"") Fund is launched, electricity owner, Country Energy, generated from recycled materials. More than 250 300,000th Solar PV system connected to the demand with storm damage groups benefit and $600,000 of funds distributed. Energex network. across repairs in Northern South East New South Wales. Energex provides assistance to Ergon Energy Energex, Ergon Energy and Powerlink Queensland Queensland. in the aftermath of tropical Cyclone yasi. partner to support the State Emergency Service. ELECTRICTy NETWORK IN ENERGEx NETWORK SOuTH EAST QuEENSLAND Generation Transmission Distribution Retail / Billing Connected ‘us’ customer ‘you’ Our core role is to provide the necessary infrastructure to safely deliver a reliable electricity supply to almost 1.4 million homes and businesses. We provide a service for more than 310,000 solar photovoltaic (PV) connections which allows customers to sell electricity to the market. We also deliver electricity to a population base of around 3.4 million people via more than 53,000km of overhead and underground power supplies with assets worth more than $12 billion. Our network spans approximately 25,000 square kilometres across South East Queensland CONTENTS 2015/16 HIGHLIGHTS 1 Five year summary Our financial performance over the past five years 2 Statement of Corporate Intent (SCI) report Our performance results measured against our targets 3 Chairman’s review Our Chairman’s comments on last year’s milestones 4 Board profiles An overview of our Board members 8 CORPORATE GOVERNANCE 10 Framework and organisational structure A diagram and description of our new structure 10 Corporate Governance Principles An explanation of how we comply with the Corporate Governance Guidelines for Government Owned Corporations (GOCs) 11 Acting Chief Executive Officer’s report Our Acting CEO reflects on our successes in achieving business priorities 15 FuTuRE OPPORTuNITIES AND CHALLENGES 17 PERFORMANCE 19 Safety Reporting on the safety performance of our staff, contractors and in the community 19 Financial Performance Our strategies and results to review and rationalise our expenditure 22 Operational Excellence Key Performance Indicators and other efficiency initiatives 24 Network Performance Reports on our management of the network and operational activities completed throughout 2015/16 28 People Developing our people, our plans and resourcing 33 Customers Our work to understand our customers and our service performance 37 Community Our community support and channels of communication 43 Environment Delivering better environmental outcomes through business as usual activities and partnerships 45 ADDITIONAL CORPORATE REPORTING 47 GLOSSARy AND ABBREVIATIONS 49 2015/16 HIGHLIGHTS Launched• a battery trial at Developed a new our Esitrain Facility to better Welcomed 59 new Customer Strategy based understand the connection of apprentices into our on customer principles battery storage to our network apprenticeship program that recognises the and provide our customers to complete technical customer driven nature with choice in their energy training at our Esitrain of our business consumption decisions Facility at Rocklea I Established our Joint Market Achieved a We planted Transaction Centre bringing Community Regard more than 35,300 together Energex and Ergon’s Index of 67.3 and trees as part of market data, metering and Service Performance our Environmental billing services Index of 85.4 Offset Strategy The expansion of Energex’s During 2015/16 the 300,000th We launched our first state underground network solar PV system was connected wide community support continued with 17,867km of to our network – the highest of partnership of the State cable now in place, meaning any supplier in Australia. Emergency Service (SES) more than a third of our A total of 20,071 systems in conjunction with Ergon network is underground connected during 2015/16 Energy and Powerlink EN E RG E X ANNU A L P E RFOR The 2020 Safety Joined other Australian 34,489 new customers Strategy was launched, electricity businesses in were connected to the M A while approximately supporting the Fiji Electricity South East Queensland NC E 1,500 staff attended Authority with vital electricity grid – one of Rep the Leading equipment following the highest increases ORT 20 Safety Program Tropical Cyclone Winston on record