ETSA UTILITIES - SA Power Networks

Transcription

WE DO EVERYTHING IN OUR POWER TO DELIVER YOURS
ETSA UTILITIES
2011 ANNUAL REPORT
THE
REPORT
THE
REPORT
A
B
THE VIEW
THE ACTION
06
16
BUSINESS OVERVIEW:
WHO ARE WE?
STRATEGIC REVIEW:
GENERATING FINANCIAL RETURNS
AND GROWTH FOR OUR OWNERS
07
CHAIRMAN’S REVIEW
08
CEO’S REPORT
10
STRATEGIC OVERVIEW
18
STRATEGIC REVIEW:
DELIVERING VALUE TO CUSTOMERS
AND BENEFITS TO THE COMMUNITY
26
STRATEGIC REVIEW:
ENSURING AN ENGAGED, SKILLED
AND SAFE WORKFORCE
27
ETSA UTILITIES:
IN THE COMMUNITY
C
D
THE FOUNDATION
THE PROJECTS
30
43
CORPORATE GOVERNANCE
LONSDALE
31
51
BOARD PROFILES
COROMANDEL PLACE
34
57
EXECUTIVE MANAGEMENT GROUP
WHITMORE SQUARE
36
65
HISTORICAL OPERATING
STATISTICS
CITY WEST, KESWICK
38
DIRECTORY OF SERVICES
THE
VIEW
ETSA UTILITIES 2011 ANNUAL REPORT
A
BUSINESS OVERVIEW
WHO ARE WE?
ETSA Utilities is one of the
State’s largest organisations,
employing more than 1,900 people
throughout metropolitan and
regional South Australia.
We are responsible for a major
and essential part of the State’s
infrastructure, with the electricity
distribution network delivering
electricity to more than 829,000
South Australian customers
via a network that covers about
178,200 square kilometres (km).
The route length of the network
is 87,536 km and includes about
400 zone substations, 72,600
transformers and 723,000
stobie poles.
Our responsibilities include:
• maintaining the safety and
reliability of the network;
• connecting new customers;
• extending and upgrading the
network to meet changing
needs;
• maintaining street lighting for
councils and government; and
• meter data collection for
retailers.
As a monopoly electricity
distributor, ETSA Utilities is
required to provide a specified
level of service in return for a
reasonable commercial return.
This outcome is overseen through
economic and service regulation,
administered by the Australian
Energy Regulator (AER) and the
Essential Services Commission
of South Australia (ESCoSA).
Our technical compliance with
the requirements of the Electricity
Act, technical standards and
codes is monitored by the Office
of the Technical Regulator (OTR).
We also successfully
compete for construction and
maintenance contracts involving
electrical infrastructure projects
for government and the private
sector.
ETSA Utilities is 51% owned
by Cheung Kong Infrastructure
Holdings Limited and Power
Assets Holdings Ltd, which form
part of the Cheung Kong Group
of companies. The remaining
49% is owned by ASX-listed
Spark Infrastructure.
PAGES ~ 06/07
A
CHAIRMAN’S REVIEW
PETER TULLOCH
As the sole provider of electricity
distribution services for South
Australia, ETSA Utilities plays
a central role in building and
maintaining key infrastructure
supporting the State’s growth
and prosperity.
It is a responsibility that the
Board, management team and
employees take very seriously.
It requires both a high level of
attention on day-to-day management and maintenance of a safe
and reliable network, and having
the vision to shape the network
so it is in a position to meet the
needs of South Australians well
into the future.
The Board is encouraged by
the progress that was made in
2011 in delivering the capital
works program.
The Board values the continuing
strong relationship ETSA Utilities
has with the people of South
Australia. We are proud of the
way management and employees
continually show their commitment
to delivering a cost-efficient and
reliable service to customers, and
to working with the community
through sponsorship, fundraising
and volunteering.
The Board is particularly proud of
ETSA Utilities’ industry leadership
in safety. The Board thanks all
employees for their continuing
efforts and commitment to making
a difference for South Australians.
A
CEO’S REPORT
ROB STOBBE
The 2011 calendar year was a
challenging one for ETSA Utilities
and for the energy sector, which
face an unprecedented period
of uncertainty, complexity and
change.
While some of the issues are
unique to South Australia, most
are confronting distribution
network businesses across
Australia. The issues facing
network businesses include:
• meeting the long-term task
of renewing ageing network
infrastructure—in South
Australia much of the existing
network was built in the
1950s and 1960s;
• meeting increasing peak
demand for energy, mainly
driven by increased air
conditioning capacity;
• the impacts of the response
to climate change, including
customer responses such as
installation of solar panels—
in South Australia the uptake
of solar panels has far exceeded
original expectations with one
in seven residential households
having solar panels installed;
• how to efficiently cater for
economic development arising
from increasing population
and economic growth, coupled
with infill development of
urban residential areas;
• the ongoing transition to
national regulatory frameworks and the need to ensure
the specific circumstances
of South Australia are catered
for; and
• ensuring the regulatory rules
have an appropriate balance
that meets the needs of all
stakeholders.
In recent months there has
been media and community
focus on the cost of utility
services for gas, water and
electricity.
All the evidence shows that ETSA
Utilities has been a cost-efficient
distributor and that we have kept
a lid on our charges, which today
represent about one-third of a
residential customer’s electricity
bill.
The continued increase in peak
demand, the replacement of
ageing assets and the need
to build capacity to meet the
demands of business and
residential customers for
reliable and secure supply,
will drive further essential
investment in the network.
We will need to grow revenue
to fund this investment, but
we expect that our charges
will remain of a similar order
in terms of our share of the
overall electricity bill and of
average disposable income.
In financial terms, we had
a successful year—growing
revenue and profit for our owners,
who include the many Australians
who have invested directly or
through superannuation funds
in Spark Infrastructure, an ASXlisted company.
Our growing revenue reflects
the regulator’s approval of a
significant step-up in capital
investment in the network in
the 2010–2015 regulatory period.
PAGES ~ 08/09
A
In 2011, we undertook a number
of major projects benefitting the
State and electricity consumers.
Most significantly, in December,
we completed (in partnership
with ElectraNet, the State’s high
voltage transmission services
provider) a new transmission and
distribution connection point for
the Adelaide Central Business
District (CBD).
We also took the opportunity
to link this new transmission
connection point into the ETSA
Utilities network that services
Adelaide’s expanding southern
suburbs and the southern
Fleurieu Peninsula.
This $250 million project is
the largest electricity network
project undertaken in South
Australia for many years and
significantly improves security
of supply for the CBD as well
as the south.
One of my key areas of focus
is improvement of our customer
service. In 2011, this included
significant investment of money,
time and resources to develop
new channels of communication
that ensure we can provide real
time updates for customers
direct from the field on our
progress in dealing with outages.
It was also encouraging that
we won the Large Business
category State award from
the Customer Service Institute
of Australia and that individual
employees received awards for
their customer service excellence.
We also have a focus on
innovation and improvement
and, in 2011, our employees
identified many opportunities
for simplifying and streamlining the way we work.
ETSA Utilities continues to be a
national industry leader in safety.
We were disappointed that we
had one Lost Time Injury (LTI)
in 2011 and have continued to
work hard to ensure everyone
in the business sees any
injury as unacceptable.
We also continued to train
and develop a new generation
of field workers, technicians,
managers and engineers, and
were acknowledged for our
training and development focus,
once again winning the major
award at the SA Training Awards.
I want to thank all employees for
their efforts and their willingness
to continue to put forward their
ideas and work hard to deliver
the service we proudly provide
for South Australians in managing
what is a major and essential part
of this State’s infrastructure.
A
STRATEGIC OVERVIEW
2011
The major part of the ETSA
Utilities business involves management of the South Australian
electricity distribution network
in compliance with the National
Electricity Rules (NER).
In managing the distribution
network, ETSA Utilities has to go
through a rigorous and detailed
regulatory process to establish
its cost-efficient plans for each
five-year period.
Economic regulation of the
business is the responsibility of
the Australian Energy Regulator
(AER). The Essential Services
Commission of South Australia
(ESCoSA) retains a role in
establishing and monitoring
our performance targets.
The Regulator’s determination
is based on a complex range of
factors, but focuses on ensuring
we have the funds and resources
to cost-efficiently deliver on our
reliability and customer service
targets.
The key aspects of performance
of the distribution network are
measured in terms of reliability
(average minutes without supply
and frequency of interruptions)
and quality of supply as well as
a number of customer service
targets, including telephone
response and service quality.
Given the long-term nature
of investments in the energy
sector, fundamentally shifting
the framework for the regulation
of distributors has the potential
to undermine regulatory
certainty and predictability.
In December 2011, the Federal
Government released its ‘Draft
Energy White Paper: Strengthening
the Foundations for Australia’s
Energy Future’. The Paper quotes
estimates that $240 billion of
investment is required in domestic
In late 2011, the Australian Energy electricity and gas sectors by
Market Commission (AEMC)
2030 to secure long-term supply,
announced a consultation process transform to a clean energy
in response to proposed amendeconomy and ease rising energy
ments to the NER. A number of
prices, with about $120 billion
changes have been proposed that stemming from distribution
we believe would significantly
networks.
change the regulatory regime.
PAGES ~ 10/11
A
SA ELECTRICITY DEMAND
(LOAD DURATION)
20%
REQUIRED FOR
OF THE NETWORK CAPACITY IS EFFECTIVELY
23hrs
3,500
OF PEAK DEMAND
3,000
3,500
3,000
2,500
0.01%
0.05%
0.09%
0.13%
0.17%
0.21%
0.25%
LOAD (MW)
2,500
2,000
1,500
1,000
500
0.01%
10%
20%
30%
40%
50%
60%
DURATION – % OF TIME
SOURCE: ETSA UTILITIES FROM AEMO DEMAND DATA FOR SA, 2011.
70%
80%
90%
100%
A
STRATEGIC OVERVIEW
2011
We note that the Draft Paper
emphasises that it is critical to
maintain attractive and stable
investment and policy frameworks
with the potential for commercial
returns, particularly in the wake
of higher capital costs following
the Global Financial Crisis.
Clearly, there has been public
and media concern regarding
electricity prices and attention
drawn to increases in distribution
charges across Australia
associated with the step up in
network investment approved
by the AER in recent years.
In its pricing determination for
ETSA Utilities, the AER made
it clear that the 2010–2015
outcome ‘achieves an appropriate
trade-off in terms of price, on
the one hand, and quality, safety,
reliability and security of supply
of electricity, on the other’.
The AER has acknowledged
there are many reasons for rising
distribution investment, including
higher reliability standards, the
need to replace ageing assets,
rising peak demand and declining
sales growth, renewable energy
incentives and the increasing
cost of funds.
The key driver of electricity
infrastructure investment is peak
demand growth. The chart on
the previous page shows that, in
2011, 20% of distribution network
capacity was required to service
just 23 hours of demand.
The reality is that Australia needs
to invest in its distribution infrastructure. That investment is
central to ensuring the electricity
system is able to meet consumer
expectations and demand.
For its part, ETSA Utilities
continues to constructively
engage with regulatory change
processes to help achieve the
balance of investment and
prices that will meet the short
and long-term needs of South
Australian electricity consumers.
Determining how this muchneeded investment can be
The chart opposite shows that
adequately and appropriately
even with recent increases, our
funded—without compromising
distribution charges have had a
reliability and while minimising
minor role in rising retail electricity the impact on low income
prices in South Australia since
earners—is a challenge for
2000–2001.
policy makers.
PAGES ~ 12/13
A
SOUTH AUSTRALIAN ELECTRICITY COSTS
2 0 0 0 – 0 1 T O 2 0 1 1 – 1 2 ( $ P A 5 M W h R E S I D E N T I A L C U S T O M E R E X C G S T— 1 1 / 1 2 $ s )
2000–01 TO 2011–12
52% 8.7% 108% 88%
INCREASE IN FINAL RETAIL PRICE
INCREASE IN DISTRIBUTION COSTS
INCREASE IN TRANSMISSION COSTS
INCREASE IN RETAIL COSTS
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
$1004
$1004
$1004
$1221
$1192
$1129
$1126
$1151
$1154
$1180
$1343
$1526
1,000
800
600
400
200
TRANSMISSION
DISTRIBUTION
RETAIL (ENERGY)
THE
ACTION
B
STRATEGIC REVIEW
GENERATING FINANCIAL RETURNS
AND GROWTH FOR OUR OWNERS
ETSA Utilities continued to meet its key
financial targets in 2011.
Regulated revenue increased due to
higher network tariffs as a result of the
2010–15 regulatory reset.
As reported previously, in its pricing
decision for 2010–2015, the AER approved
$1.64 billion in network capital investment,
reflecting the need to support our growing
economy, support major infrastructure
works, ensure sufficient network capacity
to meet projected demands, renew ageing
assets and provide adequate security
of supply.
At 11,093 GWh in 2011, sales volume
declined by about 2.0% relative to the
11,320 GWh sold in 2010.
This was largely due to milder weather,
particularly in March and August 2011,
and, to a lesser extent, lower volumes
in response to tariff increases, energy
efficiency initiatives and the higher than
expected penetration of photovoltaic
(rooftop solar) installations.
Total distribution revenue for 2011
(net of transmission charges) was $696
million, an increase of 17.0% from 2010.
A seperate financial report is published
annually and available on our website.
Regulated revenue is received through
tariff charges paid by residential and
business customers. Each year, ETSA
Utilities is required to submit a (tariff)
Pricing Proposal to the AER consistent
with national electricity law and rules
and the AER’s pricing determination.
The major objectives of network pricing are:
• Ensuring revenue sufficiency—prices
are formulated to recover only revenue
allowed by the Regulator.
• Manage revenue volatility—to the extent
possible, tariffs are structured to minimise
monthly and annual variations in revenue.
• Ensuing pricing efficiency—through their
variable components, prices will signal
the cost of providing network services.
Residual costs will be recovered in a
manner that least distorts customers’
consumption decisions.
• Ensuring customer equity—customers
should pay a reasonable allocated share
of costs but moves toward cost reflectivity
need to be tempered to limit their impact
on some customers.
• Ensuring pricing stability—to the extent
possible, we seek to avoid undue variation
in pricing.
• Providing pricing simplicity—price
structures should be understandable,
simple and transparent.
Overall, the pricing principles aim to ensure
tariffs are charged on a cost-reflective
basis—that is, reflective of the network
capacity requirements of customers.
How we invest the revenue we collect
in maintaining and building the network
to meet our customers’ needs is discussed
more in the next section of this report
Delivering value to customers and benefits
to the community”.
PAGES ~ 16/17
B
THE COMPETITIVE MARKET
ETSA Utilities is a multi-faceted business.
The significant portion of our business
involves the management of the SA
distribution network, which is regulated
and which is the main subject of this report.
However, through our Construction and
Maintenance Services division (CaMS),
we also have a significant involvement in
the national competitive (non-regulated)
electricity infrastructure market, where
we have been able to successfully compete
for project work from the private sector
and government.
CaMS focuses on design, construction,
commissioning and ongoing maintenance
solutions for substation, distribution
and transmission line infrastructure, and
telecommunications projects and networks.
These services are backed up by
a national supply chain management
and material sales business.
CaMS’ client list includes major Australian
industrial and mining companies, including
BHP Billiton, OneSteel, Suzlon, Illuka, Walker
Corporation and Oz Minerals; electricity and
telecommunications network businesses
such as ElectraNet, Powercor, NextGen,
Telstra, NBN Co and Power and Water;
and government.
ETSA Utilities has a serious and longterm commitment to building its
business in the competitive market.
In 2012, we will be aiming to grow our
existing customer base in other states
and territories, especially in the mining
and utilities markets.
A key area of work stems from our
long-standing and ongoing contractual
relationship with ElectraNet—helping
them to deliver their capital program and
providing round-the-clock transmission
asset maintenance services.
Amongst work undertaken in 2011 for
ElectraNet, the CaMS division completed
the construction of the new 275/66kV
City West Substation with our consortium
partner Alstom Grid.
This large transmission substation
is a key part of the Adelaide Central
Reinforcement program, securing major
transmission supply for the Adelaide CBD.
The project was completed on time and
on budget thanks to ETSA Utilities’ relevant
practical experience and project and
construction management know-how
in all aspects of substation construction.
It also confirmed our industry leading
safety culture and record—at times we
had 120 people on site, and we undertook
1,100 site inductions and managed 150,000
man hours without ETSA Utilities incurring
a single lost time injury.
Our services to mining in 2011 included
design and construction of electrical
infrastructure at OneSteel’s Eyre Peninsula
mine sites, expanding our maintenance
contracts with BHP Billiton and Oz Minerals
from our Olympic Dam depot, and building
a new substation to feed Hillgrove’s
Kanmantoo Copper Mine.
CaMS also competes in the residential
development market. All new developments
in South Australia have underground power
supply. Significant stages of large projects
delivered in 2011 included Cheltenham
and Northgate.
ETSA Utilities also provides electricity
network construction and maintenance
services in the APY Lands in the far north
west of the state, under contract to the
State Government.
B
STRATEGIC REVIEW
D E L I V E R I N G VA LU E TO C U S TO M E R S
AND BENEFITS TO THE COMMUNITY
The need to ensure reliable and secure
electricity supply has grown significantly
as the community (business and residential)
has become more and more reliant on
electricity for its well-being and success.
That has important implications for ETSA
Utilities in managing and balancing various
expectations regarding the performance
of the South Australian electricity network.
On the one hand the community expects
high levels of reliability, and, on the other,
expects electricity distribution costs to
be minimised.
While we believe we (and the regulatory
system) have struck a good balance
between reliability and cost efficiency
(we are a national leader in both regards),
this is not easy to achieve.
Reliability is challenged by the very
nature of our network and the community
we service.
We have a huge number of assets in an
extensive network, much of it located in
rough, difficult to access or remote terrain.
Most of the network is above ground, which
poses special challenges because it means
it is exposed to the weather, which is a
major cause of outages. Providing a reliable
supply therefore is driven by two elements:
• how we cost-effectively manage, maintain
and build our extensive network and its
assets to cope with the demands put
on it; and
• how we cost-effectively manage our
resources to respond to events when
things go wrong.
This means we have a focused approach
to managing network assets to minimise
whole-of-life costs and manage risk—
recognising we can’t eliminate risk,
but we can minimise it.
There are a myriad of risks associated
with managing an electricity network.
Solutions must be prudent and cost
effective and need to be aligned with the
regulatory targets established for reliability.
The long lead times associated with
planning, designing and building electricity
networks means decisions made today
need to take into account future directions.
The electricity industry is embarking on
a period of rapid change, with many factors
that have the potential to re-shape how
our electricity network looks and operates
in the next 15 years and beyond.
These include:
• the emergence of a range of more
intelligent devices for monitoring,
managing and controlling the network;
• the growth in distributed electricity
generation;
• a new wave of communications
technologies; and
• changes in patterns of customer
electricity demand due to their adoption
of new products and services, including
electric vehicles.
The shape and impact of some aspects
of these changes will take some time
to become clear, but we are already
anticipating major change that impacts
the network.
Network management and communications technology is evolving rapidly.
Installation of more intelligent network
equipment such as transformer monitors,
remote-controlled reclosers and switching
devices and new generation meters, will
help us manage the network more efficiently
and deliver better outcomes for customers.
This will require investment, but the
long-term benefits potentially include:
• improved reliability—faults can be
identified and located more quickly,
and supply restoration can be undertaken
either automatically or via remote rather
than manual switching;
• greater productivity—far more data
will be accessible remotely without
requiring field visits and both protection
and network configuration can be
undertaken remotely;
• reduced capital expenditure—by
providing incentives for customers to
reduce their demand during peak periods,
and potentially supply energy back into
the network, thereby reducing capacityrelated expenditure; and
PAGES ~ 18/19
B
• greater customer value—customers will
no longer have to report power outages;
ETSA Utilities will have the ability to
detect even single customer outages
and quality of supply issues. Innovation
in tariff design and better network
utilisation improve overall efficiency
and will ultimately improve value for
money for customers.
In 2011, we commenced a project in North
Adelaide that incorporates installation of
intelligent network and communications
devices and recruitment of householders
in a fresh demand management trial. This
will allow us to determine what additional
benefits can be gained in linking network
management devices to intelligent meters
and household load management devices.
In the longer term, implementation of
demand management strategies utilising
a new generation of intelligent devices and
on-site energy storage will help manage
peak demand better, but these are only
likely to be widely available, competitively
priced and making an impact in the second
half of the next decade.
Additionally, in 2012, ETSA Utilities
will commence the implementation of an
advanced Distribution Management System.
These systems allow remote monitoring,
operation and control of the electricity
network, and the upgraded system will
form the foundation for our future Smart
Network capabilities.
INVESTING IN THE NETWORK
In the 2010–2015 regulatory period, the
AER approved a doubling of investment
in our network.
Some 65% of the allowed capital
expenditure is growth related. That is, the
expenditure on our infrastructure is driven
by the need to augment and expand the
network to adequately meet the capacity
requirements of peak demand and provide
for the connection of new customers.
With peak demand forecast to grow by
2.5% to 3% per annum, we need to invest
to increase the capacity of the network
to carry peak loads. That means higher
capacity wires, transformers and
substations.
A key driver of peak demand in
South Australia is the demand from air
conditioning on heatwave days. Research
commissioned for ETSA Utilities has
concluded that South Australians are
installing more and greater capacity air
conditioners and they are also seeking
to cool more rooms in their homes than
was previously the case.
The issue is further exacerbated because
new housing tends to be more demanding
than older housing stock in terms of cooling
on hot summer days.
In existing areas, the gap between demand
and network capacity has been closing as
we see urban infill increasing and as people
invest in extending and upgrading their
homes and adding new air conditioning
and other appliances.
The need to enhance the capacity of
the existing network has contributed to
the growing requirement for investment.
Many of the resulting capital projects are
extensive, but somewhat unrecognised
in our community.
In undertaking these projects, ETSA
Utilities makes an effort to use local
suppliers wherever possible. Employees
also appreciate accommodation and other
services provided by local business and
the welcoming nature of the communities
in which they work.
Among a number of projects undertaken
in 2011, here are a few examples.
Adelaide CBD
This was one of the largest projects undertaken by ETSA Utilities for many years.
The project was required by ESCoSA
to meet Adelaide’s projected electricity
demand, increase supply security and
ensure continued reliability into the future.
B
It involved construction by ElectraNet
of a new 275kV transmission line running
from Torrens Island Power Station to a
new transmission substation (City West)
at Keswick. From there, ETSA Utilities has
constructed a new underground 66KV
supply into the CBD feeding into the
Whitmore Square substation, which
has been substantially upgraded.
ETSA Utilities also has taken the
opportunity to boost supply for the
southern suburbs to Aldinga and beyond,
connecting to City West through its
Keswick distribution substation. All up,
ETSA Utilities has invested more than
$70 million to date for this project.
Freeling North
Growth in residential developments at
Freeling, in Adelaide’s Barossa Valley, was
the catalyst behind a $2 million project
designed to meet increased electricity
demand as well as cope with future
load requirements in the area.
A new modular substation has been
constructed at Freeling North. It consists
of a 3.8MVA 33/11kV transformer, one
33kV recloser, two 11kV reclosers, station
transformer and protection and control
equipment. Site works also included the
installation of a new overhead powerline,
underground cables and high-security
fencing.
Findon
More than 41,000 customers in Findon,
Woodville East and Woodville West will
benefit from the $10 million upgrade of
the local network to improve security and
reliability of supply, as well as strengthen
the network’s ability to cope with future
load growth in the area.
Works included an upgrade of the existing
1.3 kilometre Woodville to Findon 66kV
powerline; the construction of a new
control building at Flinders Park
substation; and the installation of new
fibre-optic communications, protection
and telecommunications equipment
at Woodville, Fulham Gardens and
Flinders Park substations.
Happy Valley
In 2011, ETSA Utilities upgraded its 66kV
circuit breakers and protection equipment
at the Happy Valley Connection Point,
a key supply facility servicing Adelaide’s
south and the southern Fleurieu.
The $11 million project supports further
customer growth in Adelaide’s south and
beyond, as well as maintaining a safe
and reliable power supply.
The upgrade at our Happy Valley
66/11kV distribution substation included
the installation of two new 11kV switchboards and two new transformers.
Mount Barker
The Mount Barker and Eastern Hills region
of Adelaide is one of the fastest growing
residential areas in Australia, with an
average electricity load growth rate of
6% per annum.
By the end of 2011, we completed
extensive works to securely connect
ElectraNet’s new connection point to
our Eastern Hills distribution network,
including the connection of two existing
transmission lines and the construction
of one new transmission line.
This work also included an upgrade
of the existing Mount Barker distribution
substation to manage increased fault levels
and thermal capacity, as well as support
improved security of supply to local
transformers connected to the ElectaNet
radial transmission line from Mount Barker.
The $28 million upgrade will meet the
region’s increased power needs as well
as maintain a safe, secure and reliable
power supply into the future.
North Adelaide
In 2011, ETSA Utilities commenced a
significant $15 million upgrade of its
North Adelaide network to boost reliability
and security of supply to about 5,000
residential and commercial customers
in the area, including the Women’s and
Children’s Hospital.
PAGES ~ 20/21
B
Before works commenced, the North
Adelaide substation was heading towards
its capacity limit.
At the North Adelaide substation site,
two new 32MVA transformers were installed
and the construction of a new, state-of-theart control building was completed. Works
also included the installation of three new
66kV circuit breakers, two new 11kV feeders
and the upgrade of the protection between
the North Adelaide, Hindley Street and
East Terrace substations.
The new North Adelaide feeders will
also provide support to nearby substations
at Harrow and Prospect.
Para and Elizabeth South
The Para and Elizabeth South substations
were upgraded to meet the growing
power needs of Adelaide’s expanding
north-eastern suburbs
The $5 million project included the
installation of new circuit breakers at both
substations to boost reliability and provide
a more robust protection system in an area
experiencing substantial residential growth.
We also installed a state-of-the-art
control room at Elizabeth South substation,
fitted with the latest telecommunications
equipment and fibre-optic cabling, which
will also allow for future expansion.
Wudinna
ETSA Utilities invested $7 million to
boost load capacity at the Wudinna
Connection Point, which feeds more
than 4,700 customers in the townships
of Wudinna, Tarlton, Ceduna, Streaky
Bay and Moorkitabie along a 200km,
66kV radial distribution line.
The upgrade will help maintain a safe
and reliable supply of power to customers
in the Central Eyre Peninsula throughout
the peak summer months.
We upgraded the connection between
the distribution substation and transmission
substation; and upgraded protection
and control equipment and installed
new 66kV line exits at our Wudinna site.
RELIABILITY
Outages occur for many reasons, including
the vagaries of the weather (storm, heat
and bushfire), the impact of vegetation
(particularly trees and tree limbs falling
on our infrastructure), incidents involving
third parties (vehicle accidents and animal
interaction) and equipment failure.
In terms of reliability, the annual minutes
without supply per customer for 2011, as
measured by System Average Interruption
Duration Index (SAIDI), was 133 minutes,
compared with the annual target of 150
minutes (excluding major event days).
An average is just that—an average across
a wide group of people and circumstances—
and we recognise, as do the regulatory
targets, that in some areas customers will
not experience such a high level of reliability.
This is often reflective of more remote
locations that are served by a long, radial
and above-ground network that is also
subject to the extremes of the weather.
Guaranteed Service Level (GSL)
payments are in place to provide some
payment to customers in recognition
of the inconvenience caused by long
or multiple repeat interruptions.
We paid some $3.2 million in GSL
payments in 2011, compared with $7.5
million in 2010, which was a particularly
difficult year in terms of storm activity.
For the purpose of evaluating underlying
distribution network reliability performance,
the accepted national practice is to
“normalise” results to remove the variable
impact of weather events. Excluding the
severe weather events experienced in
2010–2011, reliability performance was
consistent with performance in the
previous five years.
In its annual July–June performance
reporting, ESCoSA concluded that ETSA
Utilities had used its best endeavours
in its supply restoration efforts. ESCoSA
also acknowledged ETSA Utilities has
an appropriate remediation program
in place for worst-performing feeders.
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RESPONDING TO OUTAGE EVENTS
Managing the network and reliability
performance is also about the speed
with which we respond to emergencies
and the successful co-ordination of the
efforts of our field and substation crews
and network managers to restore power.
In responding to outages, and particularly
when we have major events where we
have multiple and extended outages,
our priorities are:
• ensuring the safety of the public and
the network, which means urgently
addressing issues such as reports
of wires down;
• prioritising restoration for key services
including emergency services, hospitals
and telecommunications; and
• tackling outages that have the largest
number of customers affected before
working through outages affecting
smaller numbers of customers or
single customers.
In major events, the challenges include
the sheer volume of outages and sorting
information from customers and our
network monitoring systems so we can
pin-point feeders affected and the likely
source of a fault.
Our crews can also be hampered in
responding. Flooding on more than one
occasion has impacted our ability to
access parts of our network to patrol
lines, restore power or make repairs.
In other cases, police or other emergency
service activity can also mean a delay in a
start to restoration work—for example when
there is a fatality associated with a vehicle
damaging our infrastructure.
A characteristic of our regional network
is that it is radial in nature—with low levels
of meshing. This means, that unlike in
the metropolitan area, there is a lack of
alternative supply in most regional areas.
So, when we have an outage affecting
customers in vulnerable and remote areas,
they can be more extended because we
cannot switch customers to other supply
lines and it can be difficult and time
consuming to patrol lines to identify
the cause of problems.
This means we have to work hard to
maximise the reliability from our long
radial feeder system, so we closely monitor
network performance to identify poorlyperforming regional feeder areas requiring
specific reliability improvements.
As an example, lightning strikes have
been a problem in several areas and, over
recent years, in lightning-prone areas we
have been replacing porcelain insulators
with a new epoxy resin insulator that is
more resistant to lightning strikes.
ENSURING SAFETY FROM BUSHFIRES
Many South Australians may not have
witnessed or easily recall the Ash
Wednesday bushfires of 1983, but they
certainly would be aware of the horrific
Black Saturday bushfires in Victoria in
early 2009, which were a stark reminder
of the tragic consequences of bushfires.
Both these major events showed that
electrical infrastructure can be involved
in fire starts.
Following the Ash Wednesday fires,
a great deal of thought went into ways
in which South Australia could seek
to minimise the risk of bushfires and
to manage bushfires when they occur.
As the State’s electricity distributor,
ETSA Utilities has a role to play.
Prior to bushfire season, we undertake
detailed preparations to minimise the
risk of our infrastructure being involved
in fire starts. We can not eliminate it,
but we can reduce the risk.
Among many things, vegetation trimming
around power lines is an important risk
mitigation strategy. We are required to
ensure clearance distances for bushfire
and non-bushfire areas that are specified
in the Electricity Act regulations. Clearances
will vary depending on a number of factors
including the voltage of lines, length of the
span between poles, and the proximity of
trees to poles.
PAGES ~ 22/23
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Tree trimming is a vexed issue for ETSA
Utilities and one where we have great
difficulty in balancing our legislated
requirements with community aesthetics.
On one hand, we understand the community
interest and concern regarding the
appearance of a neighbourhood. But on
the other, we have to meet very specific
legislative requirements aimed at ensuring
the safety of the community and the
electricity network as well as ensuring
we meet our obligations to deliver a
reliable, high quality supply of electricity.
Due to the more rapid tree growth since
the breaking of the drought and continuing
good rains, additional trimming was
necessary in 2011 to ensure we maintained
the required clearance distances.
The Ash Wednesday fires also prompted
the introduction of legislation in SA that
enables ETSA Utilities to turn off power in
extreme bushfire risk situations to protect
lives and property.
Cutting power to high-risk areas
reduces the chances of a bushfire starting,
particularly if a tree branch, vegetation
or flying debris comes into contact with
a powerline as a result of strong winds.
Right through summer we monitor the
weather and fire conditions closely. While
it is solely ETSA Utilities’ responsibility,
any decision to turn off power is made
in consultation with the Country Fire
Service (CFS).
Such decisions are most likely to occur
in response to fast-changing localised
conditions, which makes it difficult to give
customers specific prior warning, although
we endeavour to provide general advice
and communicate through the media as
a fire situation emerges.
However, over many years we have been
advising residental and business customers
who live, work or operate a business in or
near a bushfire risk area, to be prepared
for the potential loss of electricity supply
for an extended period on high fire risk days.
This could occur due to a fault, damage
from fire or falling trees and tree limbs, or
because ETSA Utilities has turned off power
to minimise the risk to the community.
CUSTOMER SERVICE
ETSA Utilities has an ongoing commitment
to improve its customer service
performance.
In 2011, ETSA Utilities has been focused
on developing a new suite of customer
self-service applications. This has required
extensive back-office work to align internal
outage management systems with mobilephone and web-based platforms for
communicating with customers.
Customers traditionally have been kept
abreast of outages via telephone calls to
our Faults and Emergencies line on 13 13 66
or our website at www.etsautilities.com.au
Where appropriate, we also use the media to
advise customers of outages and restoration
progress, particularly where there are larger
numbers of people involved; when it is
difficult to contact customers directly;
or when there is a fast-moving situation,
such as in a major storm event or bushfire
situation.
Following major testing and a
comprehensive customer trial, in 2011
we launched Power@MyPlace™ (P@MP),
which is a free service for registered
customers. To register, customers need
to provide their mobile phone number
(or an email address) and their National
Meter Identification (NMI) number,
which is printed on their electricity bills.
The P@MP service advises registered
customers (via SMS or email) of
interruptions to their electricity supply
as well as estimated restoration times.
The service will also provide updated
information on power outages as it
becomes available, including notification
of when the power has been restored.
The service means we can advise
customers of estimated power restoration
times and update them if the situation
changes. Our aim is to keep our customers
informed—allowing them to plan their
activities around the rare occasions
when power outages affect them.
B
In 2012, in addition to telephone reporting
and in response to customer feedback,
we will be offering Smartphone-friendly
online fault reporting.
This service will enable customers to
report faults quickly and easily either from
a computer or Smartphone. With growing
Smartphone use in South Australia, this
will be a great way for ETSA Utilities to
receive information from our customers
more quickly—enabling a speedier
response for power restoration.
The online outage reporting will be
complemented by event-based messaging
enabling customers to keep updated via
text message should they report a fault
by calling us on 13 13 66.
Online reporting of street light faults also
has been introduced following considerable
development work in 2011, allowing efficient
reporting of street light faults.
The reporting tool utilises Google maps
overlaid with street light locations so people
making a report can specifically identify the
faulty light either via the map or via street
view. The user-friendly system will ensure
ETSA Utilities’ crews have a specific location
for the light when they attend to undertake
repairs.
HANDLING CUSTOMER ENQUIRIES
In 2011, ETSA Utilities handled a significant
number of customer enquiries.
ETSA Utilities received more than 725,000
calls to its five main phone lines during
2011, about 44,000 less than in 2010.
We achieved a Grade of Service of 86.3% of
telephone calls answered within 30 seconds.
There was a huge surge in more complex
enquiries regarding installation of household solar photovoltaic (PV) generators
within the South Australian community.
In 2011, we installed in excess of 57,000
specialist meters for new PV systems, about
43,000 more than in 2010. The installation
of meters for PV systems accounted for 73%
of all connection work undertaken in 2011.
The workload this generated was about
325% higher than workloads experienced
in the decade to 2008. This has had a
significant impact on our ability to meet
connection timeframes and lead times
for customers extended beyond what we
would normally consider as acceptable.
By introducing new systems and
processes and by increasing our field,
back office and call centre resources
considerably, we were able to complete
99.3% of connections on the date agreed
with our customers, we attended 100%
of booked appointments on time, and
maintained an acceptable Grade of Service
(GOS) rating for the regulated phone service.
In 2011, about 5.2 million meter readings
were conducted. About 125,000 customers
were transferred to new retailers,
representing 15% of the current customer
base in South Australia. About 265,000
service orders were undertaken at retailer
request on behalf of customers over the
course of the year.
Given our ongoing efforts to improve
customer service, it was pleasing that
ETSA Utilities was awarded South Australian
Large Business of the Year and four of our
employees received individual awards for
customer service excellence at the 2011
Customer Service Institute Awards.
The awards recognise achievement
and high standards of management,
training and commitment to excellence
in customer service.
This external recognition of ETSA Utilities
as a high performing service organisation
and the specific acknowledgement of
some of our ‘star performers’ is an important
validation of our efforts to improve the
interaction between ETSA Utilities and our
customers.
PAGES ~ 24/25
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STRATEGIC REVIEW
ENSURING AN ENGAGED, SKILLED
AND SAFE WORKFORCE
While we have been a cost-efficiency leader
amongst Australian distribution businesses,
like many other organisations, ETSA Utilities
has an ongoing program to strive for
operational improvement.
This focus is especially relevant as the
electricity industry moves into a significant
period of change brought about by:
• rising customer expectations;
• growing network investment;
• the emergence of new and smarter
technology that will significantly change
network configuration in the next 15 to
20 years; and
• the continuing need to be cost efficient.
In 2011, we undertook a major review of our
work processes with a view to developing
improvements to the way that work flows
through the organisation, from inception
to completion.
Working with employees across the
business, we have identified a host of ideas
that will help improve end-to-end work
processes and further standardise aspects
of network design and procurement.
We continue to invest in developing the
organisation’s leaders, to ensure they are
well prepared to lead and support their
workgroups to embrace and move through
change and to encourage innovation.
In 2011, this included supporting leaders
with cultural alignment workshops and
comprehensive training in performance
management conversations.
A survey of employees undertaken at the
end of 2011 shows that this investment in
leadership development is having an impact.
The survey found very positive results on
a range of satisfaction, engagement and
commitment indicators. In fact, employee
engagement increased from 68% in 2010
to 79% in 2011.
Further evidence of the positive mood
of the workforce was the successful
negotiation of the Enterprise Bargaining
Agreement. This was achieved with strong
endorsement from employees.
From a safety point of view, the
organisation recorded one lost time injury.
After a disappointing start to the year,
a strong focus on avoiding Medical Treatment
Injuries (MTIs) in the second half of the year
saw a decline in their number.
ETSA Utilities is a major training organisation
in SA. At year end, we had 163 apprentices
in training and 25 graduates, from a range
of disciplines, undertaking our graduate
program.
For the second year in a row, ETSA
Utilities won the ‘Employer of the Year’
Award at the State Training Awards and we
were again a Finalist at the National Awards.
ETSA Utilities has a highly skilled and
committed workforce, and employees
clearly believe the organisation genuinely
cares about its people.
Be it through improving an individual’s
skills, ensuring safety, improving working
conditions or the working environment—
they all go towards the employee’s
experience of ETSA Utilities.
These factors contribute to the goodwill
that exists within the organisation, which
in turn provides a solid foundation for
the future.
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ENVIRONMENT AND SUSTAINABILITY
ETSA Utilities believes it has a responsibility
to play a leadership role in managing
environmental risks and opportunities.
We manage the environmental risks
associated with our business activities
prudently and in accordance with
sustainability principles, good corporate
citizenship, and regulatory and statutory
requirements.
Each year an Environmental Management
Plan is developed identifying clear and
appropriate objectives, strategies,
managerial controls and continuous
improvement mechanisms for dealing
with environmental issues associated
with our business operations.
Topics covered in the annual plan include
climate change regulation, energy, waste
and water management, oil-filled assets
management; hazardous substances
management; site (land) contamination;
environmental impact assessment of new
business, fleet efficiency, and Electric and
Magnetic Fields (EMFs) and health issues.
Overseeing the implementation of
the Environmental Management Plan
is the Environmental Management
Committee, which is made up of senior
and operational staff.
Key actions in the Environmental
Action Plan undertaken and completed
in 2011 were:
• continued monitoring and reporting
of data for key resource consumption,
including energy, greenhouse gas
emissions, waste, water and fuel, and
the development and implementation
of improvement programs for these
resources;
• signing of a Memorandum of
Understanding with Zero Waste SA
to allow the two organisations to work
together on initiatives beyond the scope
of the Zero Waste SA Industry Program;
• development and implementation of
Construction Environment Management Plans for all major regulated and
non-regulated construction projects;
• continued attainment of ISO 14001
accreditation for Construction and
Maintenance Services’ Environment
Management System;
• implementation of a number of
resource recovery initiatives across
the organisation including used
battery and toner cartridge recycling;
• commenced membership in the EPA’s
Sustainability Licence Program with a
view to attaining a Sustainability Licence;
• continued performance improvement
against the organisation’s fleet vehicle
CO² target of 215gms/km CO²;
• assessment and remediation of historical
contamination of depot and substation
sites in line with our site decontamination
program. We completed the depot
underground fuel tank removal program
and the identification and management
of associated site contamination; and
• recycling some 2,400 tonnes of scrap
metal as well as reclaiming and/or
recycling about 370,600 litres of oil.
ETSA Utilities also follows a policy (where
possible) of refurbishing transformers
instead of purchasing new ones. In 2011,
180 transformers were refurbished.
Naturally, we are carefully monitoring
the potential impact on our business
of efforts to mitigate climate change
including the impact of government policy.
Every year, ETSA Utilities submits a
report under the National Greenhouse
Energy Reporting System (NGERS) Act.
Our greenhouse gas (CO²) emissions for
the 2010/11 financial year were 567,560
tonnes, 87% of which were associated
with distribution losses.
PAGES ~ 26/27
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ETSA UTILITIES
IN THE COMMUNITY
We are very proud of our role in the
community. We have many long and fruitful
partnerships with a range of community
organisations, enabling hundreds of
thousands of South Australians to benefit
from, or participate in, activities supported
by ETSA Utilities.
Our support reaches all parts of South
Australia and ranges from the arts, to sport,
to student exchange and conservation.
One of the things we like to do is help
worthwhile programs get off the ground.
In 2011, we became a foundation sponsor
for Balls4Life. This organisation raises
funds for prostate cancer research through
an innovative program in which it uses
the proceeds from auctioning match
balls from major sporting events.
In 2010, we got behind the Adelaide ETSA
Bite, South Australia’s team in the re-formed
Australian Baseball League. In 2011, the
ETSA Bite again reached the play-offs.
Other organisations and initiatives we
have supported over many years include:
Adelaide Symphony Orchestra: we support
the Orchestra’s education program for
children.
Country Arts SA: our sponsorship has
helped more than 100,000 people attend
quality arts events at regional locations
across the State.
Endeavour Australia Cheung Kong Awards:
a joint program with the Australian
Government that funds educational
exchange for tertiary students in
Australia and the Asia Pacific region.
ETSA Contax Netball: we have supported
the highly successful ETSA Contax for
more than 15 years.
Helpmann Academy: playing an important
role in developing the next generation of
South Australian artists.
Lights of Lobethal: the Lights of Lobethal
are a special must-see event on our
festive season calendar.
Mary Potter Hospice ‘Loving Tree’ Lights:
the Mary Potter Loving Tree provides a very
special and supportive event for people
who have lost loved ones due to cancer.
Trees for Life: we support the wonderful
efforts of volunteers who work with
Trees for Life across South Australia.
Zoos SA: our partnership helped bring
Wang Wang and Funi to Adelaide Zoo and
supported education programs in 2011.
EMPLOYEE FOUNDATION
Our employees make a huge contribution
to life in our community through our
Employee Foundation.
Some staff support the foundation’s
nominated charities directly through salary
sacrifice, others make contributions linked
to specific fundraising activities and others
provide in-kind support through volunteering.
In 2011, more than $156,000 was donated
to various causes due to the efforts of
employees through the Employee Foundation,
including $75,000 for refurbishment of
Flinders Lodge, a facility of the Cancer
Council of South Australia that provides
supportive accommodation for regionally
based cancer patients attending Adelaide
for treatment.
Employees planted trees and pulled
weeds at the Para Woodland, volunteered
at Hutt Street Centre and contributed to the
work of Mary Potter and Uniting Care Wesley.
The foundation’s major fundraising event
was the Relay for Life, which raised $30,000
for Flinders Lodge, while regional staff
organised their own special fundraising
events, including the Moonta Golf Day,
a Dance Festival, a Riesling Trail walk/ride
and Night Owls Bowls.
ETSA Utilities provides matching
funding for donations.
THE
FOUNDATION
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CORPORATE GOVERNANCE
ETSA Utilities is committed
to demonstrating the highest
standards of corporate governance.
It is the method by which we
are directed, administered and
controlled, and its ultimate aim is
to achieve, as closely as possible,
the best balance of outcomes for
owners, customers, individuals
and the community.
Board of Directors
The Board is responsible for the
overall corporate governance of
ETSA Utilities, including approval
of the strategic direction and
values, monitoring financial and
operational performance, ensuring
adequate systems for the identification and management of risk,
and evaluating the performance
and remuneration of senior
management. The Board has
established three committees
to assist in the discharge of its
responsibilities:
Audit Committee
The Audit Committee assists the
Board with its responsibilities for
financial reporting, maintaining
an efficient and effective system
of internal control and promoting
an ethical culture.
Risk Management and
Compliance Committee
The Risk Management and
Compliance Committee is
responsible for reviewing the
risk profile of the business and
oversight of risk management
processes, and for ensuring
the business has appropriate
procedures to ensure it complies
with its legal and regulatory
obligations.
Remuneration Committee
The Remuneration Committee
reviews and makes recommendations to the Board on remuneration arrangements for managers
and staff.
Risk Management
The business has a formal
Risk Management Policy that is
consistent with the Australian/
New Zealand Standard (AS/NZS
ISO 3100: 2009). An integrated
risk management framework is
in place that includes a regular
review of our risk exposures and
reporting to the Risk Management
and Compliance Committee
detailing the risk position and the
controls and strategies implemented
to minimise the risk.
Asset Management
ETSA Utilities’ Asset Management
Policy is to:
• manage the network assets
to satisfy customer service
needs, meet licence obligations,
Internal Audit
provide a safe environment for
ETSA Utilities has an internal audit
employees, contractors and
function reporting directly to the
the community, and to deliver
Audit Committee. The function
optimal returns to shareholders;
operates under a co-source
arrangement with KPMG. Internal • employ good industry asset
management practice to manage
Audit undertakes independent
the life cycle of assets, and to
appraisals and provides assurance
ensure long-term sustainable
on the adequacy and effectiveness
performance and condition of
of business controls. All internal
the assets; and
audit work is undertaken in
accordance with the International • prepare an asset management
plan that is reviewed on an
Professional Practice Framework
annual basis.
provided by the Institute of
Internal Auditors.
PAGES ~ 30/31
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BOARD PROFILES
2011
Peter Tulloch
Mr Tulloch has been Chairman
of ETSA Utilities and CHEDHA
Holdings Pty Ltd, as well as its
subsidiaries, CitiPower Pty Ltd
and Powercor Australia Limited
since 2005. He is also a Nonexecutive Director of CK Life
Sciences Int’l (Holdings) Inc.
Previously, Mr Tulloch was
Managing Director, Asia of CIBC
World Markets; Chairman and
Director of the major operating
companies of the CEF Group, a
joint venture between CIBC and
Cheung Kong (Holdings) Limited;
as well as Non-executive Director
of CIBC Australia Holdings
Limited. Mr Tulloch worked for
more than 30 years in banking
in Asia prior to moving to Australia
in late 2002. He was educated in
Scotland and is a Fellow of the
Institute of Canadian Bankers.
HL Kam
Mr Kam is a Director of CHEDHA
Holdings Pty Ltd and its major
subsidiary companies. Mr Kam
is the Group Managing Director
of Cheung Kong Infrastructure
Holdings Ltd, Deputy Managing
Director of Cheung Kong (Holdings)
Ltd, President and Chief Executive
Officer of CK Life Sciences Int’l
(Holdings) Inc and an Executive
Director of Hutchison Whampoa
Ltd and Power Assets Holdings
Ltd. He holds a Bachelor of
Science degree in Engineering
and a Master’s degree in
Business Administration.
KS Tso
Mr Tso was appointed to the
Board of ETSA Utilities in 2000.
He is also a Director of CHEDHA
Holdings Pty Ltd and its major
subsidiary companies. Mr Tso
is the Group Managing Director
of Power Assets Holdings Ltd.
He has more than 40 years of
business experience, including
senior management and
engineering roles with the Power
Assets Group and ten years as
Group Managing Director of
Hutchison Whampoa Properties.
He is also an Executive Director
of Cheung Kong Infrastructure
Holdings Ltd. Mr Tso holds a
Bachelor of Science degree
in Civil Engineering.
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BOARD PROFILES
2011
Andrew Hunter
Mr Hunter is a Director of
CHEDHA Pty Ltd and its
subsidiary companies. He is the
Chief Financial Officer of Cheung
Kong (Holdings) Ltd, Deputy
Managing Director of Cheung
Kong Infrastructure Holdings
Ltd, and an Executive Director
of Power Assets Holdings Ltd.
He is a member of the Institute
of Chartered Accountants in
Scotland and holds a Master of
Arts degree and Master’s degree
in Business Administration.
CT Wan
Mr Wan is a Director of CHEDHA
Holdings and its subsidiary
companies. He has worked for
the Power Assets Group since
1978. From September 2000 to
June 2003 he was Chief Executive
Officer of Powercor Australia
and CitiPower. He is Director
of Engineering (Planning &
Development) of Power Assets
Holdings Ltd. Mr Wan is a
professional engineer and
Honorary Fellow of the Energy
Institute in the United Kingdom.
Cheryl Bart AO
Ms Bart is a lawyer and company
director. She is Chairman of ANZ
Trustees Ltd, the South Australian
Film Corporation, FARE (formerly
the AER Foundation), and the
Environment Protection Authority
(EPA). Her other current directorship positions include Spark
Infrastructure Ltd, the Australian
Broadcasting Corporation and
Audio Pixel Holdings Ltd. Ms Bart
is the Chairman of ETSA Utilities’
Audit Committee and a member
of the Risk Management and
Compliance Committee. Ms Bart
is also a Director on various
private and charitable organisations. Ms Bart has Bachelor
degrees in Law and Commerce
and is a Fellow of the Australian
Institute of Company Directors.
PAGES ~ 32/33
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Laura Reed
Ms Reed is the CEO of Spark
Infrastructure and a nonExecutive Director of CHEDHA
Holdings and its subsidiary
companies. She has over 20 years
experience working in various
financial and commercial roles
in the gas industry. Prior to joining
Spark Infrastructure she held a
number of senior financial roles
including CFO at Envestra Limited.
Ms Reed has extensive experience
in the utilities sector related
to strategic planning, financial
forecasting, treasury management
and taxation. She has a Master’s
degree of Business Administration,
Bachelor of Arts degree in
business and is a Fellow of
CPA Australia.
Dr. Keith Turner
Dr Turner has extensive
experience in the energy sector
in New Zealand, most recently as
Chief Executive Officer of Meridian
Energy Limited from 1999 to
2008. Prior to that, he worked
in a number of senior roles in the
public and private sectors and as
a private energy expert advising
a range of large corporate clients
and Government. He is currently
Chair of Fisher and Paykel
Appliances Ltd, Deputy Chair
of Auckland International Airport
Ltd, and a Director of Spark
Infrastructure, Chorus Ltd and
Solar City Ltd, as well as being
a Director of several small start
up companies. He has a PhD in
engineering and is a Distinguished
Fellow of IPENZ.
Andrew Fay
Mr Fay was appointed as a
Director of ETSA Utilities on 22
June 2011 and also is a member
of the Remuneration Committee.
He is a Director of Spark Infrastructure, CHEDHA Holdings Pty
Limited, CitiPower and Powercor,
and BT Investment Management
Limited and Chairman of Deutsche
Managed Investments Limited.
He has extensive experience in the
financial services/capital market
sectors, most recently serving in
a number of senior positions with
Deutsche Asset Management
(Australia) Ltd, and continues to
consult to private business. Apart
from his financial qualifications
(Finsia) Mr Fay has an Honours
Degree in Agricultural Economics.
Mr John D Dorrian
Resigned as Director 29 May 2011.
C
EXECUTIVE MANAGEMENT GROUP
2011
Rob Stobbe
Chief Executive Officer
Mr Stobbe has more than 30
years’ experience in the utilities
infrastructure arena, having held
senior management positions
in the electricity, water, gas and
telecommunications sectors
both in Australia and overseas.
Most recently he was CEO of
TransAdelaide and prior to that,
CEO of Spark Infrastructure Ltd.
He has also held senior executive
positions at Northern Gas (UK),
Powercor, CitiPower and ETSA
Utilities.
Sue Filby
General Manager Customer
Relations
Ms Filby has extensive operational
and change management
experience in public transport,
local and state government
and workers’ compensation.
She is responsible for customer
relations, service improvements,
connection services, and revenue
management.
Mark Brownley
General Manager Field Services
Mr Brownley has more than
20 years’ experience in complex
asset management and systems
development and has held
executive-level operational and
technical positions with ASX50
group companies, including
in infrastructure services
and aviation. He is currently
responsible for infrastructure
services to the distribution
network including operations,
the delivery of capital projects
and network upgrades as well
as maintenance and supply
restoration.
Dr Eric Lindner
Company Secretary
Dr Lindner has more than
40 years’ experience in the
electricity industry covering
planning, research, design,
environmental management,
regulation and a range of
corporate responsibilities.
Sean Kelly
General Manager Corporate
Services
Mr Kelly has 25 years’ experience
in the energy industry—in the
former ETSA Corporation, AGL
Energy and the South Australian
Government. He has held senior
management roles covering
national and state energy policy
and regulation, energy pricing,
and organisation development as
well as a wide range of corporate
functions including governance,
IT, people and audit. He is
responsible for regulatory, legal
services, real estate, business
improvement and innovation
across ETSA Utilities.
PAGES ~ 34/35
C
Rob Snowdon
General Manager Construction
and Maintenance Services
Mr Snowdon has more than
30 years’ senior management
experience in the electricity,
construction, executive
development, finance and
sporting industries. He is
responsible for managing and
growing electrical infrastructure,
construction and maintenance
services for external customers
in the competitive market.
Rob Stevens
Chief Financial Officer
Mr Stevens has 20 years’
experience in the electricity
industry, including senior roles
in accounting, internal audit
and financial IT systems.
He is responsible for financial
management, materials and
services contracts, treasury
and tax functions and
Information Technology.
David Syme
General Manager People
and Culture
Mr Syme has more than 24 years’
industry in a wide range of
senior roles responsible for the
provision of support services to
the business. He is responsible
for human resources, organisation
development, training, environmental management, property
and health and safety.
Doug Schmidt
General Manager Network
Management
Mr Schmidt has extensive
industry and local government.
In previous electricity industry
positions, Mr Schmidt has been
responsible for planning and
strategy; engineering and design;
project management and delivery;
and management of field depots
and operations. He is responsible
for network engineering, network
control and asset management,
as well as Demand Management
and Smart Networks functions
within ETSA Utilities.
C
HISTORICAL OPERATING STATISTICS
FOR YEAR ENDING 31 DECEMBER 2011
Financial outcomes ($m)
Total revenue and other income
Earnings before interest, tax, depreciation and
amortisation (EBITDA—including interest income)
Earnings before interest and tax (EBIT)
Cash generation from operations before
borrowing costs and capital expenditure
Total capital expenditure (including gifted assets)
Network capital expenditure (including gifted assets)
Total assets
Customer numbers
Residential (including hot water)
Small business
Large business
Total customers
Energy delivered (GWh)
Residential
Hot water
Small business
Large business
Unmetered
Total energy delivered
Distribution System Peak Demand (MW)¹
Reliability (average minutes without supply pa)²
Statewide excluding significant weather events
Statewide due to significant weather events³
Kilometres of line
Overhead
Underground
Total kilometres of line
Percentage of Line Underground
Number of Employees (FTE)4
Number of Lost Time Injuries
2007
2008
2009
2010
2011
914
972
1,053
1,127
1,274
507
379
541
403
632
482
669
516
719
564
482
210
186
4,513
524
255
222
4,542
605
313
270
5,116
602
395
342
4,880
603
440
391
5,218
713,228 720,602
99,282 99,765
19
20
812,529 820,387
729,745
99,909
20
829,674
694,041 704,096
98,731
99,135
20
20
792,792 803,251
3,552
697
5,476
1,466
109
11,300
2,581
3,679
704
5,485
1,400
111
11,379
2,861
3,818
666
5,533
1,317
113
11,447
3,086
3,813
616
5,496
1,290
105
11,320
2,976
3,535
682
5,472
1,285
119
11,093
3,031
153.4
16.2
119.0
13.6
167.4
38.2
152.0
150.0
133.0
45.0
70,960
14,568
85,528
17.0
1,676
0
71,066
15,210
86,276
17.6
1,769
3
71,217
15,714
86,931
18.1
1,840
3
71,291
16,071
87,362
18.4
1,833
0
70,904
16,632
87,536
19.0
1,914
1
1 Revised to include the contribution of embedded generation (exceeding 1MW). 2 From 1 July 2010 our targets and reporting to the Regulator are based on Outage Management System (OMS) data. All years shown have been
revised to reflect this change and to allow for like-for-like comparison. 3 Major Event Day i.e. where the daily State SAIDI > 4.583 mins (2010/11) and > 5.270 mins (2011/12). 4 Includes Term Contract employees (< 18 months)
PAGES ~ 36/37
C
NETWORK CAPITAL EXPENDITURE ($M)
(INCLUDING GIFTED ASSETS)
342
2720009
200
8
222
2010
2007
186
3920111
DISTRIBUTION SYSTEM PEAK DEMAND (MW)
2,581
2,861 2,976 3,086
2007
2008
2010
2009
2011
3,031
RELIABILITY
( A V E R A G E M I N U T E S W I T H O U T S U P P LY )
153.4
2007
167.4
119.0
2008
2009
152.0
2010
150.0
2010
133.0
2011
16.2
2007
STATEWIDE EXCLUDING
SIGNIFICANT WEATHER EVENTS
13.6
38.2
2009
45.0
2011
2008
STATEWIDE DUE TO
SIGNIFICANT WEATHER EVENTS1
1 Revised to include the contribution of embedded generation (exceeding 1MW)
C
DIRECTORY
ETSA UTILITIES
Faults and emergencies
13 13 66
This service is available
24 hours a day, 7 days a week:
• To report electricity supply
emergencies
• To report power interruptions
• To access information about
power interruptions in your area
• To report infrastructure faults.
Life threatening situations
please call 000
Customer Service
13 12 61
Customer Feedback Line
1800 088 667
Interpreting Service
13 14 50
Street Light Faults
1800 676 043
Electrical Contractors
Connections Service
Phone: 1300 650 014
Fax: 1300 650 016
Underground Cable Locations
1100 (Dial Before You Dig)
Electricity Fraud and Theft Hotline
1800 061 090
Corporate Switchboard
8404 5667
Website
www.etsautilities.com.au
Street address
1 Anzac Highway, Keswick SA 5035
Postal address
GPO Box 77, Adelaide SA 5001
PAGES ~ 38/39
C
NOTES
ETSA UTILITIES ABN 13 332 330 749 A PARTNERSHIP OF: SPARK INFRASTRUCTURE SA (NO. 1) PTY LTD ABN 54 091 142 380. SPARK INFRASTRUCTURE SA (NO. 2) PTY LTD ABN 19 091 143 038. SPARK INFRASTRUCTURE
SA (NO. 3) PTY LTD ABN 50 091 142 362. EACH INC. IN AUSTRALIA. CKI UTILITIES DEVELOPMENT LTD ABN 65 090 718 880. PAI UTILITIES DEVELOPMENT LTD ABN 82 090 718 951. EACH INC. IN THE BAHAMAS
PAGES ~ 41/42
THE
PROJECTS
D
LONSDALE
INFRASTRUCTURE PROJECT
32
MEGAVOLT-AMPERES
The Lonsdale substation was constructed
to supply Adelaide’s desalination plant.
Six 32MVA transformers and six 11,000 volt
(11kV) connection points were required
to ensure reliable supply. They were
installed on a greenfields site overlooking
the desalination plant and Spencer Gulf.
80
MEGAWATTS
With a demand of up to 80MW, the
desalination plant will be the largest
distribution-connected customer in SA.
The substation’s six transformers have
been arranged to ensure full supply
redundancy (back-up) if needed.
PAGES ~ 43/44
PAGES ~ 45/46
PAGES ~ 47/48
PAGES ~ 49/50
D
COROMANDEL PLACE
6
MONTHS
Coromandel Place substation was
commissioned in 1991 and is a major
component of the distribution network
supplying the commercial hub of Adelaide’s
CBD. In 2011, a major project involving six
months of construction was undertaken
to install new below-ground feeders
to meet future demand, including
for the Adelaide Oval and the Harris
Scarfe redevelopment.
132,000
TONNES
Complex underground works were required
and involved the removal of more than
132,000 tonnes of soil from under the
substation site and Grenfell Street to
allow placement of the massive manholes
required for cable pulling and jointing.
The largest of the ‘in situ’ concrete
manholes, located in a newly-created
basement at the substation site,
measures 5.5m D x 4.4m L x 3.7m W.
PAGES ~ 51/52
PAGES ~ 53/54
PAGES ~ 55/56
D
WHITMORE SQUARE
2,000
MILLIMETRES
The major challenge in upgrading the
Whitmore Square substation was to design
and safely construct new cable entries and
a new switching station on a confined city
site that had to remain in operation to
supply the Adelaide city centre. At times,
just 2000mm separated work teams from
live equipment, but the job was done
safely and on schedule.
26,134
KILOGRAMS PER KILOMETRE
The distribution cables joining the City West
Transmission Substation to ETSA Utilities’
Whitmore Square distribution substation
are the largest copper 66,000 volt cables
installed in the SA distribution network.
Six underground cables, each weighing
26,134kg per kilometre, have been
installed along a route length of 2km.
PAGES ~ 57/58
PAGES ~ 59/60
PAGES ~ 61/62
PAGES ~ 63/64
D
C I T Y W E S T, K E S W I C K
120
PEOPLE
Construction of the City West 275/66kV
transmission substation represented the
biggest project undertaken by ETSA Utilities’
CaMS division on behalf of ElectraNet. With
our consortium partner Alstom, we had as
many as 120 people on site to ensure the
state-of-the-art substation was ready for
commissioning in December 2011.
150,000
HOURS WORKED
The project wasn’t just built on time and
budget, it was delivered to high safety
standards. More than 700 site inductions
were undertaken and, in more than
150,000 hours worked, we ensured that
we did not record a single lost-time injury.
PAGES ~ 65/66
PAGES ~ 67/68
PAGES ~ 69/70
PAGES ~ 71/72
THE
END
Report Designers
Voice
Photography
Randy Larcombe
Printed Carbon Neutral
The ETSA Utilities 2011 annual report
is printed by a Carbon Neutral process
with recycled and sustainable forest fibre
using world’s best practice ISO 14001
Environmental Management Systems.
WE DO EVERYTHING IN OUR POWER TO DELIVER YOURS
W W W. E T S A U T I L I T I E S . C O M . A U

ETSA UTILITIES - SA Power Networks

Transcription

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