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

More documents

Recommendations

Info

02 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. 10
Performance indicator: Capital expenditure (2004–14) $m 800 700 600 500 400 300 200 100 0 54.0 202.8 2004 –05 87.1 249.4 2005 –06 65.0 316.6 2006 –07 77.3 296.2 2007 –08 Total system actual Total non system actual 62.2 2008 –09 48.4 380.7 369.0 2009 –10 76.5 419.9 2010 –11 73.7 600.7 2011 –12 Forecast system Forecast non system 59.5 640.5 2012 –13 53.8 526.1 2013 –14 Expenditure on our network this year represents a record investment in our asset base. These have enabled us to efficiently and effectively deliver peak workloads without increasing employee numbers to a level that would be unsustainable in the long term. We undertook a number of other initiatives to accelerate our investment program, including establishing a taskforce to help recruit the people we need now to deliver our record program. This taskforce resulted in over 114 additional positions being filled in a very competitive market. We’ve also largely put in place the systems and processes we need to engage peak resources, such as relating to project governance and commercial management. In meeting customer electricity demand growth, we are faced with the challenge of delivering a record total of $674.4 million in capital projects in 2011–12. Giving Parramatta the power to grow – our $24 million East Parramatta Switching Station, designed to blend with the streetscape. THE YEAR AHEAD 2011–12 Objective 2011–12 Target 2011–12 Reason • To continue to deliver the approved plan safely, on time and within budget. • To continue to optimise delivery of the SAMP by utilising internal and external resources to deliver $674.4 million in capital projects. • So we can continue to provide a safe and reliable network. Endeavour Energy Annual Performance Report 2010–11 11
Page 1 and 2: ANNUAL PERFORMANCE REPORT 2010-11 I
Page 3 and 4: Contents LETTER TO SHAREHOLDING MIN
Page 5 and 6: YeAR at a Glance Items 2009-10 2010
Page 7 and 8: To that end, we pursued our second
Page 9 and 10: Endeavour Energy’s six strategic
Page 11: Performance indicator: lost time in
Page 15 and 16: Efficiency reviews to reduce costs
Page 17 and 18: Each year we investigate bushfire r
Page 19 and 20: STRATEGIC OBJECTIVE 6 - DELIVER PER
Page 21 and 22: Network Strategy Network business o
Page 23 and 24: Major works in progress 2010-11 con
Page 25 and 26: Major works in progress 2010-11 con
Page 27 and 28: The NSW Code of Practice - Demand M
Page 29 and 30: Network-related calls increased fro
Page 31 and 32: New apprentices vital to our workfo
Page 33 and 34: Equal employment opportunity As par
Page 35 and 36: Multicultural policies and services
Page 37 and 38: 06 8 % reduction in greenhouse emis
Page 39 and 40: Environmental management system Our
Page 41 and 42: ENDEAvoUR ENERGY’S GoveRNANCE AND
Page 43 and 44: EXECUTIve LEADERshIP TEAM Vince Gra
Page 45 and 46: 08 $ 245 m operating profit after t
Page 47 and 48: Debt Balance sheet debt increased b
Page 49 and 50: Directors’ Report For the yEAR en
Page 51 and 52: 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 63 and 64:
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 85 and 86:
Page 87 and 88:
Page 89 and 90:
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 and 104:
Implementation of Price Determinati
Page 105 and 106:
GLossARY The Australian Consumer La
Page 107:
Ausgrid LOCATIONS and contacts Kand
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?