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 />
OUR<br />
OPERATIONS<br />
RETAIL – TRAnsITIonING TO A NETWORK-onlY BUSIness<br />
Retail<br />
Integral <strong>Energy</strong>, as our organisation<br />
was previously known, managed<br />
an integrated retail and network<br />
business for 53 years. During this<br />
time, Integral <strong>Energy</strong>’s retail division<br />
managed sales and marketing for<br />
over 850,000 homes and businesses<br />
across rural and metropolitan<br />
<strong>New</strong> South Wales and South East<br />
Queensland. Our customer base<br />
also included some large corporate<br />
clients in Victoria and the Australian<br />
Capital Territory.<br />
On 14 December 2010, the NSW<br />
Government announced it had<br />
entered into a contract for the<br />
sale <strong>of</strong> the retail business assets <strong>of</strong><br />
Integral <strong>Energy</strong> to Origin <strong>Energy</strong>.<br />
This sale included the ownership <strong>of</strong><br />
the Integral <strong>Energy</strong> customers, brand<br />
and wholesale agreements.<br />
The completion <strong>of</strong> the sale on<br />
1 March 2011 represented the start<br />
<strong>of</strong> a transition to a state-owned<br />
electricity network business under<br />
the new brand <strong>of</strong> <strong>Endeavour</strong><br />
<strong>Energy</strong>, and the implementation <strong>of</strong><br />
a Transition Services Agreement<br />
with Origin <strong>Energy</strong>.<br />
Transition services<br />
agreement<br />
As part <strong>of</strong> the sale process,<br />
<strong>Endeavour</strong> <strong>Energy</strong> entered into a<br />
Transition Services Agreement (TSA)<br />
to provide retail services to Origin<br />
<strong>Energy</strong>. The agreement covered<br />
both short-term services (such as<br />
sales and marketing and forecasting)<br />
and longer-term functions (such<br />
as billing and call centre). Each<br />
function is defined in a service<br />
schedule, which includes agreed key<br />
performance indicator targets.<br />
While the sale <strong>of</strong> the Integral <strong>Energy</strong><br />
retail business assets and brand<br />
is a catalyst for shaping future<br />
network-only business structures<br />
within the NSW distribution sector,<br />
there remain a number <strong>of</strong> important<br />
transition arrangements related<br />
to the sale that <strong>Endeavour</strong> <strong>Energy</strong><br />
must manage well over the current<br />
planning cycle.<br />
These include people issues,<br />
effective management <strong>of</strong> the TSA<br />
with Origin <strong>Energy</strong>, the IT transition<br />
and rebranding efforts. The effective<br />
management <strong>of</strong> these issues, in<br />
parallel with the proposed integration<br />
<strong>of</strong> the state’s distribution businesses,<br />
is critical to the successful transfer<br />
<strong>of</strong> the retail operation – and to<br />
the establishment <strong>of</strong> a sustainable<br />
network-only business model.<br />
For these reasons, managing risk in<br />
transitioning the retail business to<br />
Origin <strong>Energy</strong> has been identified<br />
as a breakthrough priority action in<br />
2011–12. (See business risk section<br />
on page 16.)<br />
Essential customer service<br />
<strong>Endeavour</strong> <strong>Energy</strong> operates two<br />
customer interaction centres (CIC) at<br />
Huntingwood and Coniston. These<br />
centres manage retail and network<br />
related customer calls.<br />
In September 2010, retail service<br />
hours were changed to align<br />
with customer demand, with<br />
operating hours from 8.00am to<br />
8.00pm weekdays and Saturday<br />
mornings. From 1 March 2011, the<br />
CIC continued to manage retail<br />
customer calls on behalf <strong>of</strong> Origin<br />
<strong>Energy</strong> as part <strong>of</strong> our Transition<br />
Services Agreement.<br />
This year our call centres received<br />
a total <strong>of</strong> 1,333,027 calls, <strong>of</strong> which<br />
413,225 retail calls were received on<br />
behalf <strong>of</strong> Origin <strong>Energy</strong>.<br />
The number <strong>of</strong> retail complaints we<br />
received increased this year from<br />
8,568 in 2009–10 to 9,964 for 2010–11.<br />
The top issues for customers related<br />
to concerns about high bills and<br />
doorknocking activities in <strong>New</strong><br />
South Wales and Queensland.<br />
In response to customers’ concerns<br />
about consumption, our Customer<br />
Care group conducted 1,324 homeenergy<br />
audits and 138 phone-energy<br />
audits to help them reduce their<br />
energy use.<br />
OUR NEW BRAND<br />
The <strong>Endeavour</strong> <strong>Energy</strong> brand, launched on 1 March 2011 as the new<br />
name for the poles and wires business <strong>of</strong> the former Integral <strong>Energy</strong>,<br />
reflects the serious and sincere effort we make every day to deliver<br />
power to some <strong>of</strong> Australia’s largest regional economies.<br />
At the same time, ownership <strong>of</strong> Integral <strong>Energy</strong>’s brand transferred<br />
to Origin as part <strong>of</strong> the sale.<br />
Since the launch <strong>of</strong> the new network brand we have focused on the<br />
staged rebranding <strong>of</strong> signage, fleet vehicles, stationery, uniforms,<br />
and publications across all parts <strong>of</strong> the organisation. The bulk <strong>of</strong> the<br />
rebranding process is due to be completed by the end <strong>of</strong> December 2011.<br />
Ty Christopher, General Manager<br />
Network Development unveils our new<br />
brand in Wollongong.<br />
26