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

More documents

Recommendations

Info

03 $ 496 m Record capital investment in our network OUR OPERATIONS Above: Endeavour Energy’s new $22 million Claremont Meadows Zone Substation is due to become operational in late 2012. A safe, reliable and efficient network Endeavour Energy is committed to managing network assets in a manner that meets customers’ expectations, fulfils our business needs and satisfies our obligations to stakeholders, the regulator and the community. Our objective is to deliver a 45% increase in network investment during the current regulatory period (2009–14) – for a total expenditure on the network of $2.7 billion approved by the Australian Energy Regulator (AER). We are now in the third year of the five-year plan, with a record capital program of $674.4 million to deliver in 2011–12. Why do we need this investment? Because our business faces three significant challenges: 1) Servicing growth in Endeavour Energy’s network area. To support the continued development of Sydney’s northwest and southwest residential growth centres, new network infrastructure must be built. At the same time existing customer take up of appliances such as air conditioners, swimming pool pump systems and televisions is increasing peak electricity load well above natural growth. 2) Renewing ageing network assets. Many assets in our franchise area are reaching the end of their economic and operating life and must be replaced to maintain network reliability. 3) Meeting the New South Wales Government’s initiatives to improve the security and reliability of electricity supply across the state. We need to deliver this network capital program as efficiently as possible to minimise price impacts on customers. In developing our network strategy, we took a range of regional, climatic, asset, customer and licence requirement issues into account. Some of these considerations are: • Our network contains some of Australia’s fastest growing communities. Maximum electricity demand has increased 16% over the past five years, well outstripping population growth. 18
Network Strategy Network business objective Provide long term customer service by developing and operating a sustainable and reliable network Network business target outcomes and strategies Optimise network capacity through effective demand management and investment for security and growth Meet customers’ reliability needs through better management of planned and unplanned outages Provide customers with value for money over the long term by improving the effectiveness and efficiency for capital and operating programs • As land use continues to shift from rural and semi-rural to urban and light commercial, customers expect improved reliability performance. • Peak temperatures across the network are typically higher and stay high for longer than those of central Sydney and other coastal areas. • Eighty-one percent of households in Greater Western Sydney now have air conditioning units, compared with 51% in the Illawarra and 50% in the Blue Mountains. This has resulted in a ‘peakier’ load pattern in hot weather requiring more assets to service demand that only exists for a short time each year. • The uptake of other appliances such as televisions, in-home computers and entertainment systems. This trend is also changing consumption patterns, resulting in heightened customer expectations and awareness about reliability and security of supply. • Many network assets were built in the infrastructure boom of the 1960s and 1970s and are approaching the end of their useful lives. Major projects approved by the Board during 2010–11 In response to growing demand and the need to renew ageing assets, 12 major projects for a total of $206.9 million were approved by the Board this year. Construction will commence in coming years. Description Estimated budget ($M) Chipping Norton Zone Substation establishment 23.1 Abbotsbury Zone Substation establishment 35.1 Huntingwood Zone Substation establishment 27.5 Augmentation of 33kV electricity lines 443 (from Cattai Zone Substation to Windsor Zone Substation) and 458/1 (from Hawkesbury Transmission Substation to Cattai Zone Substation) 20.7 Establishment of a new 66kV electricity line from Nepean Transmission Substation to Narellan Zone Substation 9.7 Bulli Zone Substation redevelopment 18.5 Port Kembla Zone Substation redevelopment 20.0 West Liverpool Transmission Substation transformer renewal 5.4 Northmead Zone Substation redevelopment 22.1 Ringwood Zone Substation redevelopment 6.0 33kV Circuit Breakers renewal program 8.0 Ringwood 33kV electricity line 7906 renewal 10.8 Total 206.9 Endeavour Energy Annual Performance Report 2010–11 19
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 and 12: Performance indicator: lost time in
Page 13 and 14: Performance indicator: Capital expe
Page 15 and 16: Efficiency reviews to reduce costs
Page 17 and 18: Each year we investigate bushfire r
Page 19: STRATEGIC OBJECTIVE 6 - DELIVER PER
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 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 ...

Create successful ePaper yourself

Delete template?

Save as template?