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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03<br />
$<br />
496<br />
m Record<br />
capital<br />
investment in<br />
our network<br />
OUR OPERATIONS<br />
Above: <strong>Endeavour</strong> <strong>Energy</strong>’s new $22 million<br />
Claremont Meadows Zone Substation is due<br />
to become operational in late 2012.<br />
A safe, reliable and<br />
efficient network<br />
<strong>Endeavour</strong> <strong>Energy</strong><br />
is committed to<br />
managing network<br />
assets in a manner<br />
that meets customers’<br />
expectations, fulfils our<br />
business needs and<br />
satisfies our obligations<br />
to stakeholders,<br />
the regulator and<br />
the community.<br />
Our objective is to deliver a 45%<br />
increase in network investment<br />
during the current regulatory period<br />
(2009–14) – for a total expenditure on<br />
the network <strong>of</strong> $2.7 billion approved<br />
by the Australian <strong>Energy</strong> Regulator<br />
(AER). We are now in the third year<br />
<strong>of</strong> the five-year plan, with a record<br />
capital program <strong>of</strong> $674.4 million to<br />
deliver in 2011–12.<br />
Why do we need this investment?<br />
Because our business faces three<br />
significant challenges:<br />
1) Servicing growth in <strong>Endeavour</strong><br />
<strong>Energy</strong>’s network area.<br />
To support the continued<br />
development <strong>of</strong> Sydney’s<br />
northwest and southwest<br />
residential growth centres, new<br />
network infrastructure must be<br />
built. At the same time existing<br />
customer take up <strong>of</strong> appliances<br />
such as air conditioners,<br />
swimming pool pump systems<br />
and televisions is increasing<br />
peak electricity load well above<br />
natural growth.<br />
2) Renewing ageing network assets.<br />
Many assets in our franchise area<br />
are reaching the end <strong>of</strong> their<br />
economic and operating life and<br />
must be replaced to maintain<br />
network reliability.<br />
3) Meeting the <strong>New</strong> South Wales<br />
Government’s initiatives<br />
to improve the security and<br />
reliability <strong>of</strong> electricity supply<br />
across the state.<br />
We need to deliver this network<br />
capital program as efficiently as<br />
possible to minimise price impacts<br />
on customers.<br />
In developing our network strategy,<br />
we took a range <strong>of</strong> regional,<br />
climatic, asset, customer and licence<br />
requirement issues into account.<br />
Some <strong>of</strong> these considerations are:<br />
• Our network contains some<br />
<strong>of</strong> Australia’s fastest growing<br />
communities. Maximum electricity<br />
demand has increased 16%<br />
over the past five years, well<br />
outstripping population growth.<br />
18