Endeavour Energy Annual Performance Report - Parliament of New ...
Endeavour Energy Annual Performance Report - Parliament of New ...
Endeavour Energy Annual Performance Report - Parliament of New ...
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Efficiency reviews to<br />
reduce costs and improve<br />
productivity<br />
<strong>Energy</strong> pricing and affordability<br />
is a major issue in the community.<br />
Electricity prices increased by 15%<br />
for <strong>Endeavour</strong> <strong>Energy</strong> customers<br />
on 1 July 2011, bringing the total<br />
increase over four years to 62%.<br />
Prices are likely to be impacted<br />
further by the Federal Government’s<br />
plan to introduce a carbon tax from<br />
1 July 2012.<br />
<strong>Endeavour</strong> <strong>Energy</strong> recognises that<br />
productivity improvements are<br />
necessary to keep electricity prices<br />
as low as possible. In line with our<br />
objective to improve customer<br />
value, we:<br />
• Continued our focus on improved<br />
productivity and efficiency<br />
throughout the business, which<br />
delivered one-<strong>of</strong>f savings <strong>of</strong><br />
$10.1 million and ongoing<br />
productivity savings <strong>of</strong> $6.6 million<br />
since it began in 2009–10.<br />
• Made a voluntary commitment as<br />
part <strong>of</strong> the AER determination to<br />
reduce costs by 2% per year in the<br />
2009–2014 period, to help control<br />
upward pressure on electricity<br />
prices for customers.<br />
• Continued our focus on strategic<br />
procurement, which has already<br />
delivered $7 million in savings over<br />
the last two financial years.<br />
<strong>Endeavour</strong> <strong>Energy</strong>’s customers enjoy the benefits <strong>of</strong> one <strong>of</strong> the most reliable electricity networks<br />
in Australia.<br />
In addition to these initiatives, two<br />
further cost reduction programs will<br />
commence during the year, with the<br />
following objectives:<br />
• Reducing and/or eliminating<br />
$22 million in corporate and<br />
network support overhead costs<br />
following the retail sale.<br />
• Delivering reductions in network<br />
costs <strong>of</strong> $26 million per year<br />
through improvements in fieldforce<br />
productivity and through<br />
the use <strong>of</strong> market testing <strong>of</strong> key<br />
functions such as maintenance<br />
and selected capital projects.<br />
Our efficiency program<br />
throughout the business<br />
has delivered one-<strong>of</strong>f<br />
savings <strong>of</strong> $10.1 million<br />
and ongoing<br />
productivity savings<br />
<strong>of</strong> $6.6 million since it<br />
began in 2009–10.<br />
THE YEAR AHEAD<br />
2011–12 Objective 2011–12 Target 2011–12 Reason<br />
• Set a course for a<br />
sub-70-minute SAIDI.<br />
• Develop strategy to<br />
control future network<br />
tariff increases.<br />
• By June 2012.<br />
• By June 2012.<br />
• Improve customer value through cost<br />
effective reliability.<br />
• Improve customer value through<br />
effective management <strong>of</strong><br />
operating costs.<br />
<strong>Endeavour</strong> <strong>Energy</strong> <strong>Annual</strong> <strong>Performance</strong> <strong>Report</strong> 2010–11<br />
13