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12 Australia has one of the world’s most competitive retail energy markets – nearly one million customers have switched gas or electricity supplier since contestability was introduced. Customer acquisition is a critical area of our business and plays a vital role in maximising financial results. Winning spirit Country <strong>Energy</strong> is now one of Australia’s largest energy retailers, with 780,000 customers in New South Wales, Queensland, Victoria, South Australia and the Australian Capital Territory. Our customer growth was particluly strong in Victoria. Sales activity was mainly driven by direct sales, enabling us to achieve significant penetration into markets outside our traditional retail base. Our retail expertise extends across all industrial and commercial sectors – from mines, hospitals and paper mills to property, agriculture and education. In the face of strong competition, our blue chip contestable customer base continued to expand. Major customers now include – • World renowned Sydney Opera House • Melbourne’s Rialto Towers (the southern hemisphere’s tallest office tower) • CSIRO • Dairy Farmers • SunRice • Arnott’s Biscuits • Department of Defence (Australian Government) • Cadbury Schweppes • Mirvac Group of Companies. Our sales team was successful in retaining and acquiring more than 1,500 commercial and industrial customers, which resulted in an annual load growth for 2004-2005 of 30 per cent and growth in gross margins of more than 18 per cent. Top marks for satisfaction In a competitive market, our success is determined by our customer satisfaction and ability to integrate the needs of our various stakeholders. We took a fresh approach to customer research this year, by surveying customers who had contact with the business three to 10 days prior. This enabled a separation of customers’ perception of service versus how they perceived the actual service received. Eighty five per cent of customers believe we meet or exceed what they would expect from an “excellent energy provider”. Independent survey results have been maintained at this level for the past three quarters, with particularly high scores regarding customer service and our response to supply interruptions. Throughout the year, there was a steady increase in the proportion of customers who stated that the service received in their recent transaction with us exceeded their expectations – as high as one in four in the last quarter (March to June 2005). To understand our customers’ needs, we also conduct specific product research, monitor service levels across all regions and exchange information with customer consultative committees. As customer service was one of the four core priorities for 2004-2005, customer satisfaction was a major organisational initiative throughout the year, with all areas of the business involved in internal customer satisfaction focus groups and defining our customer service culture. 2004-2005 target – 85 per cent customer satisfaction rating Outcome – 85 per cent customer satisfaction rating Future goals – Maintain 85 per cent customer satisfaction rating in 2005-2006. Strategies include improving customer service processes and support systems and developing the skills and knowledge of our people. Focus groups In June 2004, we intoduced an initiative to understand where there might be blockages to the delivery of excellent customer service. It involved three months of investigation, where we researched customers’ perceptions, and hosted 33 focus groups with internal business units across all regions and areas of the business. The focus groups identified areas for improvement and have driven the development of a new three-year customer service strategy. Future goals – implement new strategy, including streamlining processes, improving support systems and ongoing development of our people. COUNTRY ENERGY ANNUAL REPORT 2004–2005
Looking inside We recognise that our internal customer satisfaction must at least equal our external customer satisfaction levels if we are to further improve customer service. Our bi-annual internal customer satisfaction survey gives each business unit constructive feedback they can use to improve the service they provide. Overall internal customer service ratings increased from 77 per cent in December 2004 to 79 per cent in June 2005. All measures are aligned with our external customer satisfaction survey and include factors such as responsiveness, delivering on promises and being friendly and courteous. In the future, a team will be formed to represent all divisions. It will assess issues identified by the executive and recommend where improvements can be made. Individual business unit results have already been distributed to general managers to discuss with their teams. Business unit work groups will be established to review individual reports and make recommendations. Ongoing communication is planned throughout the year to keep all employees up to date on outcomes and initiatives that result from the survey. Future goals – achieve an internal customer satisfaction rating of 85 per cent by June 2006. Each business unit will set individual strategies for reaching this goal over the next 12 months. Expansion into South Australia Building on our solid reputation with commercial and industrial customers, we entered the South Australian domestic market on 14 March, with packages for residents and small businesses which saves average premises – using 6,000 kilowatt hours a year – around $110 in the first year. The package also includes three months free dial-up internet for customers who sign up with CEinternet. Call centre developments Country <strong>Energy</strong>’s aim is to make it easy for customers to deal with us. In September 2004, we introduced new technology that will link all call centres to create a virtual environment. When completed in January 2006, we will be able to automatically distribute calls based on location and the nature of a call, which will standardise customer service and improve consistency and quality in call centre operations. This will assist with handling peak call volumes to better meet customers’ needs. We will also introduce a multi-dimensional range of key performance indicators to improve customer service including call quality, handling time and reports on the number of customers who wait longer than four minutes. 2004-2005 target – answer 80 per cent of calls within 20 seconds Outcome – answered 75 per cent of calls within 20 seconds Future goals – establish a range of metrics that will help achieve excellent customer service and deliver a balance between business performance and customer satisfaction. New bill design A new bill was developed in conjunction with the Communication Research Institute of Australia (CRIA), using the latest standards in document design. The design was extensively tested with customers to ensure it can be easily understood and the transition ran smoothly. 2004-2005 target – 81 per cent of customers should be able to find 90 per cent of the information they look for and understand, and use 90 per cent of what they find Outcome – the new bill was implemented smoothly in June 2005, with no negative impact on service levels. A customer survey has not yet been undertaken. The KPIs established in 2004-2005 will be measured during 2005-2006 Future goals – reduce customer complaints regarding the bill format, reduce high bill enquiries and migrate customers to preferred payment channels. 13 COUNTRY ENERGY ANNUAL REPORT 2004–2005
Page 1 and 2: Becoming Australia’s leading util
Page 3 and 4: Priorities in 2004-2005 Country Ene
Page 5 and 6: A leader in safety 5 COUNTRY ENERGY
Page 7 and 8: Detailed audit schedules have been
Page 9 and 10: Workers compensation In addition to
Page 11: A successful national retailer 11 C
Page 15 and 16: This resulted in the campuses reduc
Page 17 and 18: The best network manager 17 COUNTRY
Page 19 and 20: The table below highlights some exa
Page 21 and 22: • Large snowfalls in the Snowy Mo
Page 23 and 24: Vegetation management The managemen
Page 25 and 26: Information services In addition to
Page 27 and 28: A responsible environmental manager
Page 29 and 30: One of the most rewarding aspects o
Page 31 and 32: Our increasing involvement in proje
Page 33 and 34: Waste management A code of practice
Page 35 and 36: A valued part of the community 35 C
Page 37 and 38: Increased presence Our program of r
Page 39 and 40: Nu 1000 0 2002-2003 2003-2004 2004-
Page 41 and 42: Sponsorship spend $82,424 $125,000
Page 43 and 44: An employer of choice 43 COUNTRY EN
Page 45 and 46: Apprentices by region / operational
Page 47 and 48: Employees also initiated a fundrais
Page 49 and 50: Employee assistance program Country
Page 51 and 52: Our Executive Craig Murray - Managi
Page 53 and 54: Director Current appointment Board
Page 55 and 56: Risk management Country Energy appr
Page 57 and 58: Executive remuneration At the end o
Page 59 and 60: Consultants A total of $1.3 million
Page 61 and 62: • Electricity Industry Act 2000 N
Page 63 and 64:
Financial statements contents Indep
Page 65 and 66:
Statement by Members of the Board 6
Page 67 and 68:
Statement of Financial Position as
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Notes to the Financial Statements f
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Customer information The following
Page 99 and 100:
Index A Achievements inside cover A
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