Endeavour Energy Annual Performance Report - Parliament of New ...

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10 Appendices Notifications to the Independent Commission Against Corruption In 2010–11 there were 11 notifications to the Independent Commission Against Corruption (ICAC) in accordance with the provisions of the Independent Commission Against Corruption Act 1988 (NSW). Endeavour Energy received one notification from the ICAC concerning allegations of corrupt conduct. Summary of Legislative Changes and Judicial Decisions Endeavour Energy’s operations are subject to numerous state and federal laws, and Judge made law. A number of these laws were amended and new laws affecting Endeavour Energy commenced in the financial year ending 30 June 2011. Material changes to NSW legislation Amendments to the Energy Services Corporations Act 1995 (NSW) Effective from 2 March 2011 the Energy Services Corporations Act was amended by the Energy Services Corporations (Change of Name) Regulation 2011. As a result, the names of Energy Services Corporations Act entities were changed, including that of Integral Energy Australia which became Endeavour Energy. Amendments to the Electricity Supply Act 1995 (NSW) From 1 July 2010, Endeavour Energy is required, as a condition of its distribution network service provider’s licence, to be a member of Dial Before You Dig organisation and to comply with obligations imposed by its membership of that organisation. In addition Endeavour Energy is now required to ensure that a person who notifies it of prescribed excavation work to be undertaken in the vicinity of its underground electricity power lines is informed of the existence of a guideline published by WorkCover concerning work carried out near underground assets. Introduction of the Government Information (Public Access) Act 2009 (NSW) The Government Information (Public Access) (Consequential Amendments and Repeal) Act 2009 repealed and replaced the Freedom of Information Act from 1 July 2010 (FOI Act) and replaced it with the Government Information (Public Access) 2009 (GIPA Act). The GIPA Act promotes greater proactive disclosure of information by Government and confers a legal right for any member of the public to apply for access to information held by the NSW Government. There is now a presumption in favour of disclosure of information to applicants. Endeavour Energy is required to release information requested by an applicant unless there is an overriding public interest against disclosure. Amendments to the Occupational Health and Safety Act 2000 (NSW) The NSW Government has accelerated its adoption of some key elements of the OH&S ‘harmonisation’ (the remainder of which will commence on 1 January 2012). Under the changes implemented, the general duties of employers (including the duty to ensure the health safety and welfare at work of all employees) are now to be qualified by the words ‘so far as is reasonably practical’; previously there was no such qualification. In addition, the duties of employees will also be amended so that the current duty to co-operate as necessary with health, safety and welfare requirements at work will now be amended to co-operate so far as is ’reasonably necessary’. As a result of the amendments to the employer’s general duties, a prosecutor in order to prove an offence under the OH&S Act will now need to prove what was ‘reasonably practicable’ in the circumstances. This is a significant change as the current OH&S Act requires a defendant to prove it was not ‘reasonably practicable’ to comply with the duty imposed under the current act. The current provisions in the OH&S Act which deem directors and managers of corporations liable for contraventions of their company have been removed. The OH&S Act will now provide a positive duty for officers to exercise all due diligence to ensure the corporation complies with health, safety and welfare duties. Finally, the power of unions to prosecute offences under the OH&S Act is extinguished, leaving only WorkCover Inspectors with this right. Introduction of the Public Interest Disclosures Act 1994 (NSW) The Protected Disclosures Act 1994 (NSW) was amended by Protected Disclosures Amendment (Public Interest Disclosures) Act 2010 (NSW) and has been renamed the Public Interest Disclosures Act 1994 (NSW). The amendments broaden the circumstances in which a protected disclosure may be made, and include an extension of the protections afforded to whistleblowers to individuals who are independent contractors to a public authority. The whistleblowers’ protections will now include conduct which constitutes a failure by an agency to exercise its functions under the GIPA Act. In addition, a lower threshold test has been introduced as the basis for making a protected disclosure. Holding an honest belief, on reasonable grounds that information shows or tends to show maladministration, corrupt conduct or serious and substantial waste is a sufficient basis for a public official to make a protected disclosure. The Ombudsman has been given responsibility for overseeing the Act. A final set of amendments will commence on 1 January 2012 under which Endeavour Energy, as a public authority, will be required to provide the Ombudsman with an annual report on its compliance with the Act. Significant judicial decisions Endeavour Energy is unaware of any significant judicial decisions during the financial year ending 30 June 2011 that have affected or may affect it in its capacity as an energy services corporation or affect the users of its services in their capacity as customers of an energy services corporation. Material changes to Commonwealth legislation Introduction of the Competition and Consumer Act 2010 (Cth) The Trade Practices Act 1974 (Cth) has been renamed the Competition and Consumer Act 2010 (Cth) and amended to include the concept of an Australian Consumer Law. 102
GLossARY The Australian Consumer Law introduced a national unfair contract terms regime which prohibits unfair terms in standard form contracts between business and consumers. The Australian Consumer Law also introduces new consumer guarantees in relation to goods and services supplied to consumers, a new national product safety law and enforcement system and new penalties, enforcement powers and consumer remedies. Amendments to the Renewable Energy (Electricity) Act 2000 (Cth) The Renewable Energy (Electricity) Regulations 2001 (Cth) were amended by a series of amendment regulations in October 2010. The first of these amendments related to compliance and safety standards for small generation units and assistance for emissions intensive trade exposed activities under the Renewable Energy Target (RET) scheme. The later amendments included a further 14 activities for the provision of partial exemption certificates for activities defined as eligible under the emissions intensive, trade exposed assistance program. Upon the amendment to the Renewable Energy (Electricity) Act 2000 (Cth) the existing RET scheme was separated into two schemes – the Large-scale Renewable Energy Target Scheme (LRET) and the Small-scale Renewable Energy Scheme (SRES). The amendment (effective from 1 January 2011) is intended to increase investment in largescale renewable energy projects. Material changes to the National Electricity Rules The National Electricity Rules (Rules) govern the operation of the National Electricity Market. The Rules have the force of law and are made under the National Electricity Law. During the current financial year the following amendments to the Rules materially impacted on Endeavour Energy: Amendments to the National Electricity Act 1997 (NSW) The Provision of Metering Data Services and Clarification of Existing Metrology Requirements Rule commenced on 16 December 2010. This rule now confirms that Metering Data Providers have become a new category of service provider regulated under the Rules. A$ Australian dollars AASB Australian Accounting Standards Board AEMO Australian Energy Market Operator AER Australian Energy Regulator ARSBA Annual Reports (Statutory Bodies) Act 1984 ARSBR Annual Reports (Statutory Bodies) Regulation 1995 AS Australian Standard CAPEX capital expenditure CEO Chief Executive Officer CIC customer interaction centres CO 2 e (carbon dioxide equivalent) units used to describe global warming potential of all greenhouse gases, e.g. carbon dioxide, nitrous oxide, methane, carbon monoxide CSO Community Service Obligations Cth Commonwealth DM demand management DSO day sales outstanding E10 fuel fuel containing 10% ethanol EAPA Energy Accounts Payment Assistance EBIT earnings before interest and tax EBITDA earnings before interest, tax, depreciation and amortisation EEO equal employment opportunity EISS Energy Industries Superannuation Scheme ESI electricity supply industry ESS Energy Savings Scheme FBT fringe benefit tax FRA fraud risk assessment FSC field service centre GFC global financial crisis GGAS Greenhouse Gas Reduction Scheme GIPA Act Government Information (Public Access) Act 2009 GIS Geographic Information System (database of all physical assets) GPS global positioning system GRI Global Reporting Initiative GWh gigawatt hour GST goods and services tax HFC hydrofluorocarbon, ICAC Independent Commission Against Corruption I care! Endeavour Energy’s workplace giving program INpower an Integral Energy program to assist customers facing financial hardship to pay for their electricity consumption IPART Independent Pricing and Regulatory Tribunal ISO International Organization for Standardization IT Information technology kV kilovolt kVA kilovolt ampere kWh kilowatt hour LPG liquefied petroleum gas LRET Large-scale Renewable Energy Target LTI lost-time injury MWh megawatt hour NEM National Electricity Market NGAC NSW Greenhouse Abatement Certificates NPAT net profit after tax including capital contributions NSW New South Wales ODRC optimised depreciated replacement cost OHS/OH&S occupational health and safety OMS Outage Management System OPEX operating expenditure PAFA Act Public Authorities (Financial Arrangements) Act PESAP Public Electrical Awareness Safety Plan PF&AA Public Finance and Audit Act 1983 PPA power purchase agreement PUC projected unit credit RAP Remediation Action Plan RFP request for proposals RTO registered training organisation SAIDI system average interruption duration index SRES Small-scale Renewable Energy Scheme SAMP Strategic Asset Management Plan SCI Statement of Corporate Intent SCADA Supervisory Control and Data Acquisition SENI serious electrical network incident SF 6 sulphur hexafluoride SNMP Strategic Network Maintenance Plan SS switching station SOC State Owned Corporation TAFE Technical and Further Education TSA Transition Services Agreement TRI total recordable injuries TS transmission substation VETAB Vocational Education and Training Accreditation Board ZS zone substation Endeavour Energy Annual Performance Report 2010–11 103
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ANNUAL PERFORMANCE REPORT 2010-11 I
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Contents LETTER TO SHAREHOLDING MIN
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YeAR at a Glance Items 2009-10 2010
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To that end, we pursued our second
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Endeavour Energy’s six strategic
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Performance indicator: lost time in
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Performance indicator: Capital expe
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Efficiency reviews to reduce costs
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Each year we investigate bushfire r
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STRATEGIC OBJECTIVE 6 - DELIVER PER
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Network Strategy Network business o
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Major works in progress 2010-11 con
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Major works in progress 2010-11 con
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The NSW Code of Practice - Demand M
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Network-related calls increased fro
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New apprentices vital to our workfo
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Equal employment opportunity As par
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Multicultural policies and services
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06 8 % reduction in greenhouse emis
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Environmental management system Our
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ENDEAvoUR ENERGY’S GoveRNANCE AND
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EXECUTIve LEADERshIP TEAM Vince Gra
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08 $ 245 m operating profit after t
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Debt Balance sheet debt increased b
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Directors’ Report For the yEAR en
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Statement of Comprehensive Income F
Page 53 and 54: Statement of Changes in Equity For
Page 55 and 56: Statement of Cash Flows For the yEA
Page 57 and 58: 2 Statement of Significant Accounti
Page 65 and 66: 4 Expenses 2011 $’000 2010 $’00
Page 67 and 68: 5 Gain/(loss) on sale of Retail bus
Page 69 and 70: 7 Deferred Tax (Assets)/Liabilities
Page 71 and 72: 8 Cash Flow Information continued (
Page 73 and 74: 9 Trade and Other Receivables conti
Page 75 and 76: 12 property Plant and Equipment con
Page 77 and 78: 13 Intangible Assets Software $’0
Page 79 and 80: 14 Employee Benefits - Superannuati
Page 81 and 82: 16 Other Current Liabilities 2011 $
Page 83 and 84: 21 Financial Instruments continued
Page 91 and 92: 23 Expenditure Commitments continue
Page 93 and 94: 27 prudential Requirements An unsec
Page 95 and 96: Appendices Contents Five-year stati
Page 97 and 98: Australian Financial Services Licen
Page 99 and 100: Executive Remuneration General prin
Page 101 and 102: Table A: Number of applications by
Page 103: Implementation of Price Determinati
Page 107: Ausgrid LOCATIONS and contacts Kand
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