Annual Report

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10 Performance (cont.) Ausgrid met average reliability standards in each feeder category in 2014/15. During this period, 61 distribution feeders exceeded their feeder category thresholds and required investigation. All actions required as a result of these investigations were met in the relevant timeframes. A number of targeted projects were completed during the year to improve reliability for identified customers. These projects had a total value of $2.3 million and included the installation of seven reclosers and 13 remote controlled switches. The reclosers and control switches reduce the number of customers experiencing sustained outages and shorten the time taken to locate network faults. Ausgrid also replaced bare overhead conductors with covered conductors in some heavily vegetated areas to reduce the number of interruptions caused by trees and other vegetation. Improving customer service In 2014/15, we focussed on enhancing our customers’ experience. These efforts were supported by a new Customer Commitment Statement introduced in April 2015, outlining what customers could expect from the organisation. Ausgrid's Customer Satisfaction Index result for 2014/15 was 78.7 percent, lower than the target of 80 percent but an improvement of 1.3 percent on the 2013/14 result. Other opportunities to enhance Ausgrid’s customer service were identified, including partnering with retailers to provide better outcomes for customers. A range of self‐service reporting forms were also implemented on Ausgrid’s website and mobile website. Throughout the year, Ausgrid had seven immediately reportable breaches of the National Energy Customer Framework (NECF), where we failed to provide the required advance notice to registered life support customers about planned power outages. The importance of notifying registered life support customers is recognised and letters were sent to about 20,000 of these vulnerable households in mid‐2015, providing information and contact details. Deliver the network plan Network investment Ausgrid is committed to delivering a safe, reliable and affordable electricity supply. Under reforms commenced by the NSW Government in 2012, we are working to make the network more efficient and reduce expenditure to help put downward pressure on consumer prices. In 2014/15 Ausgrid invested $579 million in our electricity network – almost 45 percent less than the approved capital expenditure of $1,008 million. This reduction was the result of significant changes to investment governance. This investment included a focus on lower cost delivery models, and a review of approval conditions which led to a number of projects being cancelled and/or deferred. The expected continuing decline in electricity consumption has allowed risk factors for current asset conditions to be reassessed. Capital investment during 2014/15 included $211 million for major substation and feeder projects, including new substations brought into service at Rose Bay and Waverley. Major refurbishments were completed at St Peters and Bunnerong North, along with sub‐transmission feeder projects at North Sydney, Belmore Park and Engadine. More than 543 kilometres of high and low voltage cables were commissioned during 2014/15 and work continued on 67 major projects, including new sub‐transmission feeders from Mason Park to Rozelle, Lindfield to Willoughby, and Lindfield to Castle Cove, and zone substations at Olympic Park, Engadine, Metford and Tighes Hill. Detailed design and development commenced on seven major projects and construction was approved for seven substation upgrades and sub‐transmission feeder projects, including new sub‐transmission substations at Munmorah and Alexandria. In addition to this capital expenditure, 390,809 planned maintenance tasks and checks were completed across the network, involving operational expenditure of more than $295 million. This includes underground and overhead line inspections, pole inspections and treatments, bushfire patrols and substation inspections. System average interruption frequency index (SAIFI) 10/11 10/11 11/12 13/14 1.09 11/12 13/14 14/15 98* 14/15 12/13 0.82 0.91* 12/13 77 82* 0.69 0.73 *Historical figures differ from prior annual reports due to data improvements across all years. Average customer minutes without supply 71 68 *Historical figures differ from prior annual reports due to data improvements across all years.
Ausgrid – <strong>Annual</strong> <strong>Report</strong> 2014/15 11 Managing business risk Business risk activities Throughout 2014/15, we reviewed major business risks to achieve our strategic objectives and developed and implemented action plans to help mitigate those risks. Awareness of the importance of risk management was increased across the organisation through the roll out of a risk e‐learning module. Ausgrid has business continuity plans in place for its critical business processes to make sure they can continue in the event of a serious unplanned disruption. A testing program was conducted, which included a successful test of continuity during a simulated loss of Ausgrid’s Sydney CBD assets. The test included activating four alternative sites and involved 49 employees activating 18 critical process plans. Lessons learnt were reported and managed to ensure continuous improvement. Bushfire risk management Ausgrid works with stakeholders, including the NSW Rural Fire Service, local councils, community groups and property owners to help protect the network and the community against damage from bushfires. This involved patrolling almost 163,000 poles (including 39,800 privately owned poles) and almost 4,000km of overhead wires in bushfire‐prone areas prior to the bushfire season. Any high‐risk defects identified on the network during the patrols were corrected on a prioritised basis. Where high‐risk defects were identified on privately owned overhead wires or poles during the patrols, the owner was notified that they needed to carry out repairs. A follow‐up process then checks that the repairs have been done. Hazard reduction programs, including vegetation clearing, were also carried out to help protect the community and essential infrastructure, such as transmission lines, from bushfire risks. Risk management framework Ausgrid, along with Endeavour Energy and Essential Energy, delivered all initiatives in the Networks NSW Risk Management Strategic Plan for 2014/15. The Ausgrid 2014/15 Corporate Risk Management Plan was developed around nine business risk categories and the related events that could prevent us from achieving our corporate objectives. Regular reports are provided on each business risk category to the Executive Audit Risk and Compliance Committee and to the Board Audit and Risk Committee on the results of ongoing monitoring and review of risks, and the status of actions plans to manage them. Business risk categories and description Risk Category Safety Network Finance Compliance Reputation Environment People Strategy ICT Generic risk Description Fatality/serious injury of employee or member of public Significant customer impact related to the Network Significant unbudgeted financial loss Liability associated with a dispute or material breach of legislation or licence Sustained public criticism of Ausgrid Significant environmental incident Failure to deliver performance through people Strategic objectives are not delivered and business opportunities are lost Significant ICT and Operational Technology service failure
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