Performance report 2023

Comment

We have high expectations on our delivery of water and wastewater services, as do our customers. We rated our performance for our ‘Do your job well’ outcome in 2022-23 as amber, having missed three of our seven targets.

We met our core operational targets for rectification of sewer blockages and sewer spill containment. We have continued to provide safe drinking water to our customers throughout the year, with 100% of our customers being provided with water that meets E.Coli standards.

We missed our target for unplanned water supply interruptions being restored within five hours. Eight work orders were complex in nature and we faced challenges such as difficultly accessing assets due to underground or adjacent obstructions, large and complicated asset repairs, closure of roadways and intersections and works on critical assets.

Our target for planned interruptions going over advised timeframes was missed, with six planned interruptions (2.92% of the total number of 205 planned interruptions) not completed within the advised timeframes. This was due to human error mistaking the correct isolation period, scope of works increasing during the shut duration, delays in materials, delays in developer works, conflicting unplanned work priorities and resourcing shortages on the day. In line with our guaranteed service commitments, affected customers received a $50 credit on their bill. On a positive note, the implementation of the SMS functionality helped us communicate with our customers more efficiently and effectively.

The Safe Drinking Water Act (SDWA) audit was undertaken during March 2023. The audit identified two minor non-compliances in the implementation of the sampling program:

1. Missed Samples regulation – r.8(1)(d)(iv)

2. Consecutive sampling from the same sample point regulation – r.8(1)(d)(v)

Importantly, at no stage was there any risk to public health and the drinking water supplied to customers was safe throughout the year.

Comment

We have a strong commitment to our ‘Be easy to deal with’ outcome. On the back of a consistently positive performance across all five years of this reporting period, we rated our performance in 2022-23 as green, having achieved three of four targets.

We consistently provide a positive customer experience by responding to customer correspondence quickly, and by resolving the majority of our customer enquiries at the first point of contact.

Very few of our customer complaints escalate to an investigation by the Energy and Water Ombudsman. This year we had two complaints investigated, one due to a wet weather event and one due to a water drainage issue. This equates to 0.03 complaints per 1000 customers, and is within our target parameters.

We narrowly missed one of our targets in this outcome. For three of our planned interruptions we failed to provide a five day notification period, impacting 58 customers. In line with our guaranteed service commitments, impacted customers received a $50 credit on their bill. We have reviewed why this happened and have implemented improvements for future planned interruptions.

Comment

We rated our performance against our ‘Be affordable and fair’ outcome in 2022-23 as green.

Bill affordability is a top priority for our customers, particularly in challenging economic times. A higher than anticipated CPI increase (5.09%) was advised for the year commencing 1 July 2022. To lessen the impact on vulnerable customers, we identified savings that will keep customer prices stable or reduced, both in the 2022-2023 period and into our next pricing period. This enabled us to partially absorb the currently high inflation rate and only pass on 3.14% and 4.4% through our fixed and variable tariffs respectively. For 2023-24 we will deliver an average bill that is 3.3% lower than the inflation rate of 7.02%.

The number of customers on instalment plans has increased from 10.35% to 10.42%. This is a higher proportion than other Victorian Water Corporations, and equates to more than one in 10 customers. The increased uptake is likely in response to promotion of Flexible Payment plans throughout the year.

This increase has not been reflected in our hardship customers or customers with debt over 120 days paying through instalments. Here, we have seen a decrease. We attribute this to the continued cost of living pressures being felt by vulnerable members of the community, and customers wanting funds readily available in their accounts rather than committing to payment plans.

During the year, we have seen a 30% increase in customers registered within the customer support program.

Our Customer Care team has new processes in place to engage with customers who may have recently missed a payment plan instalment so they can explore a tailored plan specific to the customer’s needs. This may include other options such as the application of a Utility Relief Grant if the customer cannot currently commit to an ongoing payment plan.

Importantly, we have not restricted the water supply of any hardship customers for non-payment.

Comment

We rated our performance against our ‘Prepare and protect’ outcome in 2022-23 as green having achieved all of our targets this year.

Our pledge is to reduce our carbon footprint by 24% by 2025 as part of a pathway to become carbon neutral by 2030. Due to the timing of projects our actual results will ebb and flow over the measurement period.

This year our net emissions decreased marginally by 2.26 ktCO₂-e from the previous financial year to total 33,014 tCO₂-e. This result is -21.43% from our 2018 baseline number of 42,021.4 tCO2-e, and we remain ahead of the targets we set for 2023 of 36,700 tCO₂-e.

Earlier this year, we commissioned a photovoltaic solar array at the Gippsland Water Factory – our largest energy consumer. The Gippsland Water Factory makes up approximately thirty-five percent of our total electricity consumption and is now almost self-sufficient due to the new 1,280 kWp solar system. This year alone, the new system saved approximately 1,200 tCO₂-e from entering the atmosphere.

Over the last five years we have delivered on all of the actions in our 2017 Urban Water Strategy that were in our control.

In a significant outcome for our customers, the rapidly growing Warragul and Drouin water supply system has been secured in the short-medium term by a transfer of 3.33 GL/y of water entitlement in the Greater Yarra System – Thomson River pool, which includes the Tarago Reservoir. This outcome is a direct result of our Urban Water Strategy action to assess options for the Warragul-Drouin water system, and is supported by the Central and Gippsland Region Sustainable Water Strategy (SWS), and our 2022 Urban Water Strategy (approved by the Minister in June). We have also completed the upgrade of the Drouin Wastewater Treatment Plant.

We met our performance target of at least 95% water supply reliability and no water restrictions imposed during 2022-23. The majority of our water supply systems are meeting our target supply reliability of 95% and for those that have potential shortfalls, we have contingency arrangements in place and/or actions underway to ensure they do. In developing our 2022 Urban Water Strategy we have set out commitments to ensure we continue to provide a supply reliability that meets our target. Our water system yields have been re-estimated through this process, embedding contemporary climate change guidance from government research as well as ongoing streamflow records, changes to system infrastructure and other factors.

Comment

We rated our performance as green against our ‘Be involved’ outcome having successfully achieved both of our target measures.

We track our operating (including our 300+ employee labour cost) and capital expenditure across our service area. This year 60% of our expenditure contributed to the local economy, with Sale Sewer Pump Station upgrade project contributing 4% of our total expenditure.

We spent $56,696 on community benefit projects this year, exceeding our target of $30,000. Our focus was on installing water fountains to increase access to tap water in Gippsland. We donated eight drinking water fountains to local councils to install throughout our service area.

We continued to support other community-focused initiatives including opening up environmentally important sites for recreational access, delivering community and school education programs and providing in-kind support to community groups and events.

We gave water bottles to a range of community groups including the Rotary Club of Moe, Goodstart Early Learning Morwell, Race the Rubeena, Italian Australian Club and Wellingon District Club Scouts.

We provided financial sponsorship to Morwell Neighbourhood House, Traralgon Tennis Club, Traralgon Railway Reserve, Traralgon Rotary Club, Moe Rotary Club, Baw Baw LLEN, Festival of Big Ideas, and the Gippsland New Energy Conference.