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

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Our
Performance
StRAtegic Objectives
STRATEGIC OBJECTIVE 2 – DELIVER OUR NETWORK PLAN
2010–11 Objective 2010–11 Target 2010–11 Result
• To deliver the approved
plan safely, on time
and within budget to
provide our customers
with a safe, reliable and
sustainable network.
• Delivering the $517.7 million capital
investment program for 2010–11.
• We delivered a significant investment
program of $496.4 million,
representing 96% of target, and laid
a strong foundation to deliver the
2011–12 plan.
Endeavour Energy’s network is
publicly owned. To ensure customers
get a fair deal and a safe and
reliable network, capital investment
and maintenance programs are
independently regulated by the
Australian Energy Regulator (AER)
every five years. The AER reviews
our plans for capital investment
and maintenance, and determines
the prices that may be charged to
network customers.
One of our strategic objectives is to
deliver the AER-approved network
program safely, efficiently, on time
and within budget. Of special
importance for our network strategy
and associated Strategic Asset
Management Plan (SAMP), are our
electricity supply reliability targets
for our customers.
Our regulator has approved a fiveyear
capital investment of $2.7 billion
on our network and $1.5 billion for
operating expenses for the five
years commencing July 2009. We’ve
now entered the third year of that
five-year plan, with a record capital
program of $674.4 million to deliver
in 2011–12.
The capital investment is being used
to service the growth in customer
demand, and renew ageing network
assets so we can deliver a reliable
and secure supply of electricity to
both new and existing customers.
It is also helping us to meet the
licence conditions set by the
New South Wales Government.
Implicit in our network strategy is
the need to ensure expenditure
programs provide value for money
for our customers.
How we performed
In the first two years of our five-year
network capital program we have
invested $788.9 million compared
with a target of $881.2 million. Over
the next three years we will deliver
the remaining $1,780 million of
our committed program.
In 2010–11, we delivered
$496.4 million of the total forecast
capital budget of $517.7 million.
Of this, $419.9 million was network
system capital investment, compared
with a budget of $441.9 million.
This represents a record investment
in our asset base.
We have increased delivery of our
capital program by refocusing our
project management framework and
using skilled external resources.
2010 FAtheRS’ DAY WINDstoRM
Fathers’ Day 2010 was marked by a violent windstorm
in which gale force winds of up to 120 km/h caused
widespread damage to Endeavour Energy’s south
coast network and interrupted electricity supply to
over 100,000 customers.
Damage stretched from Wollongong in the north to
UIladulla in the south. Hardest hit was the Shoalhaven
area, later declared a natural disaster area by the
NSW Government.
With additional Endeavour Energy crews and help
from Ausgrid, power was restored to all customers
within four days. This was a solid achievement given
the scale of the damage to the network, the number
of customers impacted and the difficult working
conditions under which employees undertook repairs.
Repairs to the network cost approximately $2 million.
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