MINISTRY OF ENERGY AND UTILITIES ANNUAL REPORT …

M I N I S T RY O F E N E R G Y A N D U T I L I T I E S

A N N UA L R E P O RT

S U S TA I N A B L E P E R F O R M A N C E

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ACCC Australian Competition and Consumer CommissionAGLGN AGL Gas Networks ANCOLD Australian National Committee on Large DamsATEDAC Australian Transport Energy Data and Analysis CentreBOD Biological Oxygen DemandCAIRO Computer Aided Improvements to River OperationsCEO Chief Executive OfficerCOAG Council of Australian GovernmentsCSC Customer Service CommitteeCTWS&S Country Towns Water Supply and Sewerage ProgramCUPDR Committee on Uniformity of Plumbing and Drainage Regulations in NSWDIPNR Department of Infrastructure, Planning and Natural ResourcesDOCS Department of Community Services DSC Dams Safety CommitteeDSEP Dam Safety Emergency PlanEANSW Electricity Association of NSWEAPA Energy Accounts Payments Assistance EAPS Ethnic Affairs Policy StatementEDGAR Energy Data Gathering and ReportingEEGWG Energy Efficiency and Greenhouse Working GroupEEO Equal Employment OpportunityEPA Environment Protection AuthorityEWON Energy and Water Ombudsman EXPLAN Expenditure Planning ToolFINMOD NSW Financial Planning ModelFRC Full retail competitionGEMP Government Energy Management PolicyIC&T Information, Communication and TechnologyIPART Independent Pricing and Regulatory TribunalIVR Interactive Voice ResponseIWCM Integrated Water Cycle ManagementLGA&SA Local Government Association and Shires AssociationLPG Liquefied Petroleum GasLWU Local Water UtilityMCE Ministerial Council on EnergyMEERA Modern Engineering Equivalent Replacement AssetMEPS Minimum Energy Performance StandardsMHF Major Hazard FacilityMinistry Ministry of Energy and UtilitiesNAEEEC National Appliance and Equipment Energy Efficiency CommitteeNEM National Electricity MarketNEMMCO National Electricity Market Management CompanyNEMMF National Electricity Market Ministers ForumNGAC NSW Greenhouse Abatement CertificateNGPAC Natural Gas Pipelines Advisory CommitteeNGS National Greenhouse StrategyNSW New South WalesOH&S Occupational Health and SafetyPAS Payment Assistance Scheme (Water)PIAC Public Interest Advocacy CentrePRA Portfolio Risk AssessmentS&NM Safety and Network ManagementSBP Strategic Business PlanSCADA System Control and Data AcquisitionSCO Standing Committee of OfficialsSEDA Sustainable Energy Development AuthoritySENI Significant Electricity Network IncidentSERDF Sustainable Energy Research and Development FundSNI South Australia/New South Wales Interconnection SOP Safety and Operating Plan Utility Consumers Advocacy Program SS Suspended SolidsTBL Triple Bottom LineTRB Typical Residential BillUCAP Utility Consumers Advocacy ProgramUCSG Utility Concessions Steering Group VPP Voluntary Pricing PrinciplesWMA Water Management Act 2000WOU Water Ordering and UsageWRAPP Waste Reduction and Purchasing Policy

M I N I S T RY O F E N E R G Y A N D U T I L I T I E S A N N UA L R E P O RT 2 0 0 2 – 2 0 0 3

31 O C TO B E R 2 0 0 3

G L O S S A RY

ISSN 1328 4223

LETTER TO THE MINISTER 3

CORPORATE PLAN 2002–03 4OUR VISION 4

Our Role 4Our Values 4Our Priorities 4

OBJECTIVES AND INDICATORS / STRATEGIES 4

ACTS ADMINISTERED 6BY THE MINISTRYORGANISATIONAL CHART 7DIRECTOR-GENERAL’S OVERVIEW 8EXPANDING OUR ROLE 8

THE YEAR IN SUMMARY 8Greenhouse Gas Benchmarks Scheme 8Managing Network Performance 9Supporting the Ministerial Council on Energy 9and the NEM Ministers ForumEnhancing Consumer Protection 9

THE FUTURE 10

ENERGY AND UTILITIES POLICY 11BRANCH DESCRIPTION 11

2002–03 ACHIEVEMENTS 12

DEVELOPMENT OF COMPETITIVE RETAIL MARKETS 12

ENHANCING CUSTOMER PROTECTION 12

DEVELOPMENT OF EFFECTIVE CUSTOMER 13TRANSFER PROCESSES

REVIEW OF THE GAS PRICING PROCESS 13

ADMINISTERING THE GAS ACCESS CODE 13

REVIEW OF LPG DISTRIBUTION 13

UNDERGROUNDING POWERLINES 13

SUPPORTING URBAN WATER REGULATION 14AND POLICY

Continuing Stormwater Review 14A Sustainable Water Management Balance 14for Urban AreasOther Matters 15

SUPPORTING ENERGY AND WATER 15SOCIAL PROGRAMS

Chairing the Utility Concessions 15Steering Group and Other CommitteesManaging Utility Consumers Advocacy Program 15

INDUSTRY PERFORMANCE 17BRANCH DESCRIPTION 18


UPDATING GAS NETWORK SAFETY REGULATIONS 18

REVIEWING GAS NETWORK SAFETY AND 18OPERATING PLANS

Identifying Opportunities for Improvement 19

REPORTING GAS NETWORK INCIDENTS 19Natural Gas Supply Disruptions 19Gas Network Incidents 19

MANAGING PIPELINES 20Reviewing the Pipelines Act 1967 20Granting Pipeline Approvals 20

Dubbo to Tamworth / Gunnedah 20Natural Gas Pipeline

Granting Pipeline Licence Variations 20Horsley Park to Plumpton Natural Gas Pipeline 20Marsden to Dubbo Natural Gas Pipeline 20Illabo to Tumut Natural Gas Pipeline 20Hoskinstown to ACT Natural Gas Pipeline 21

Renewing Licences 21Reporting Pipeline Incidents 21

ACHIEVING ELECTRICITY NETWORK 21SAFETY AND RELIABILITY

Regulatory Framework 21Performance Reporting 21Safeguarding the Public 21Protecting Network Workers 22Reducing Accidents 22Improving Network Reliability 22Monitoring Transmission Reliability 22Monitoring Distribution Reliability and Quality 23Managing Supply Emergencies 23

ACCREDITING CONTESTABLE 23ELECTRICITY WORKS

Achieving Recognition as Accrediting Agency 23Activities During the Year 23Setting Future Direction 24

PERFORMANCE REPORTING 24Gas Networks and Pipelines 24Electricity Networks 24

ENERGY STRATEGY 25BRANCH DESCRIPTION 26


ADVISING ON SUSTAINABLE ENERGY POLICY 26Improving the Greenhouse Gas Performance 26of Electricity Retailers

MANAGING THE SUSTAINABLE ENERGY 27RESEARCH AND DEVELOPMENT FUND

IMPROVING PRODUCT ENERGY EFFICIENCY 27

IMPROVING THE ENERGY EFFICIENCY 29OF BUILDINGS

IMPROVING AUSTRALIA’S NATIONAL 29ELECTRICITY MARKET (NEM)

Supporting the NEM Ministers’ Forum 29Restoring NEM Ministers’ Policy Role 29Reducing Regulatory Overlaps 30The Role of Transmission 30Responding to Key Market Design Issues 30Other Significant NEM Related Activities 31

MINISTERIAL COUNCIL ON ENERGY 31Chairing the Energy Market Development 31Working Group Representing NSW on the Strategic Energy 32Supply and Security Working GroupRepresenting NSW on the Energy Efficiency 32and Greenhouse Working Group Representing NSW on the Downstream 32Petroleum Working Group

SUPPORTING GOVERNMENT ENERGY 32MANAGEMENT POLICY

Joining Australian Transport Energy Data 33Analysis Centre

SUPPORTING THE DEVELOPMENT OF 33ENERGY POLICY

NSW STATEMENT OF SYSTEM OPPORTUNITIES 34A catalyst for investment 34

M I N I S T RY O F E N E R G Y A N D U T I L I T I E S A N N UA L R E P O RT 2 0 0 2 – 2 0 0 3 1

C O N T E N T S

TOWN WATER TREATMENT 35AND RECYCLINGBRANCH DESCRIPTION 36


INTEGRATED WATER CYCLE MANAGEMENT 36

INFRASTRUCTURE AND FUNDING 36Achievements of the Country Towns Water 37Supply and Sewerage ProgramEfficient and effective implementation of 37the Small Towns Sewerage Program

WATER INDUSTRY REFORM AND PLANNING 38Drought Management 38Volumetric Entitlements for Town Water 38Supply SchemesLiaison 39Review of Technical Reports 39Trade Waste 39Legislation 39

Local Government Act Amendments 39Water Management Act Amendments 40Water Management (Water Supply Authorities) 40Regulation 2002Wastewater Management – On-Site Sewage 40Management Review

Industry Standards 40

ANNUAL PERFORMANCE REPORTING 40Performance Monitoring 402-Page Performance Report 41Interstate Comparisons 41Pricing 41Developer Charges 41Strategic Business Planning and Financial Planning 41Reference Rates 42Dam Safety 42Water Supply and Sewage Treatment 42

STATE WATER 43BRANCH DESCRIPTION 44


CUSTOMER SERVICE 44Good Communication and Consultation 44with CustomersAccess for all Customers to Information and 44Resource Availability / Sharing DecisionsCost Effective Delivery of Services 44

WATER DELIVERY 45Continuous Improvement in Water Delivery 45Increased Water Delivery Operations Efficiency 45

ASSET MANAGEMENT 45Development and Implementation of 45Total Asset Management PlanBusiness and Portfolio Risk Management 45Compliance with Dams Safety 46Committee Requirements

BUSINESS DEVELOPMENT 46Responsive Business Planning and Development 46Performance Management Using the Balanced 46Scorecard MethodologyCompliance with COAG and NCC Requirements 46

OUR PEOPLE 46Recruitment and Training 46Good Communication and Consultation with Staff 47Compliance with OH&S Requirements 47

NSW WATER DELIVERY ANNUAL REPORT 2002–03 47Murray Valley 47Lower Darling Valley 47Murrumbidgee Valley 48Lachlan Valley 48Macquarie Valley 48Namoi Valley 48Gwydir Valley 48Border Rivers 49Hunter Valley 49Bega River 49Toonumbar Dam 49

ORGANISATIONAL DEVELOPMENT 51BRANCH DESCRIPTION 52


BUSINESS PERFORMANCE MANAGEMENT 52

CUSTOMER SERVICE 52

EXECUTIVE AND MINISTERIAL SUPPORT 53

INFORMATION, COMMUNICATION AND 53TECHNOLOGY

RECORDS MANAGEMENT 53

FINANCIAL MANAGEMENT 54

SHARED CORPORATE SERVICES 54

CORPORATE PLANNING 54

LAUNCHING OF NEW CORPORATE PLAN 54

TRAINING AND DEVELOPMENT 54

TRAINING COURSES 55

DEVELOPMENT PROGRAMMES 55

STUDY ASSISTANCE PROGRAMME 55

CORPORATE POLICIES AND PROCEDURES 55

STAFF SUPPORT SERVICES 56

FINANCIAL STATEMENTS 57APPENDICES 93INDEX 118TABLES AND FIGURESTable Gas Network Incidents, 2002–03 19Table Consumer Service / Gas Meter Incidents, 19

2002–03Table Consumer Gas Installation Incidents, 20

2002–03Table Performance of the Country Town Water 37

Supply and Sewerage ProgramTable Performance of the Small Towns 38

Sewerage ProgramTable Minister’s assistance to NSW water utilities 38Figure 1 Refrigerator Star Ratings, 1993–2001 28Figure 2 Average Energy Consumption of 29

New Refrigerators and FreezersMap Droughtwatch 2002–2003, 38

Failed Town Water Supplies

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O U R RO L E

Our role is to assist the Government in choosing andimplementing the best strategies for promoting theefficient, safe, reliable and ecologically sustainable supplyand use of energy and urban water services.

We also develop and implement appropriate frameworksto improve the performance of the energy industries andurban water utilities.

Our approach is to collaborate with other governmentagencies, the energy industry and the urban waterutilities, consumer interest groups and other stakeholdersto ensure our decisions and judgements arecomprehensive, timely, sound and appropriate.

O U R VA L U E S

All our dealings with clients, colleagues and each otherare undertaken professionally with:

• Flexibility

• Integrity

• Recognition of achievements

• Co-operation

• Openness

• Tolerance and respect

O U R P R I O R I T I E S

• Deliver the goods to stakeholders

• Develop our teams and our business capacity

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O B J E C T I V E S A N D I N D I C ATO R S

D E L I V E R T H E G O O D S TO S TA K E H O L D E R S

1. Improved energy market operation

• Statement of System Opportunities report published

• Post Full Retail Competition review implemented

• Energy markets independent review – NSW positiondeveloped and communicated

• New Pipelines Act developed

• Pipeline operators licensing and environmental guide developed

• Meter agreement with NEMMCO finalized

S T R AT E G I E S

• Accelerate development of national energy market

• Implement / monitor NSW competitive energy market

• Promote conducive environment for efficientinvestment in energy infrastructure

O U R V I S I O N

Leadership in energy and urban water strategy and policy to benefit the people of NSW.

3. Protection of customers in the competitiveenergy markets

• Gas pricing order process reviewed

• Energy concessions program efficiently administered• Ensure customers are informed of rights / obligations

• Enable customers’ voice to be heard in policydevelopment

• Implement/monitor enhancedcustomerprotection regime

• Monitor / review developments in competitive market framework

2. Convergence of the gas and electricity regimes

• Electricity Safety Plans Regulation reviewed

• Gas Safety and Operating Plans and GeneralRegulations reviewed

• Gas networks reporting regime developed

• Promote consistent licensing, reporting and regulatoryframeworks in energy sector through consultation with stakeholders


4. Developed knowledge of energy supply anddemand trends and strategic impacts

• Major studies on NSW energy supply and demandpublished

• Data collected, modelling undertaken and analysispublished

• Build capacity to conduct modelling, forecasting and analysis

• Undertake strategic studies for informed policydevelopment

• Communicate study outcomes to stakeholders

9. Robust business systems that are supportive ofstakeholders and us

• Quality procedures for key functions adopted

• Records management system implemented• Promote Ministry’s capability and achievements

• Document procedures for key functions

• Implement corporate reporting framework

• Review processes to ensure they are streamlined yet effective

8. Skilled and motivated staff in effective teamsengaged with stakeholders

• Individual performance management systemimplemented

• Ministry’s achievements recognised by stakeholders

• Improve performance management

• Embrace staff development to enhance business skillsand career development

• Promote a culture of project management

7. Ecologically sustainable supply and use ofenergy and urban water

• Electricity retailer greenhouse benchmark penaltiesscheme implemented

• Government Energy Management Policy enhanced andAnnual Report published

• Strengthen regulatory regime for greenhouseperformance of NSW electricity supply industry

• Manage / develop programs for energy management and greenhouse reduction

• Promote energy / urban water demand management

D E V E L O P O U R T E A M S A N D O U R B U S I N E S S C A PAC I T Y

6. Quality advice and program management forGovernment on energy and utilities issues

• Undergrounding electricity cables review completed

• Electricity Network Management Report published

• Vegetation management policy reviewed

• AGLGN transmission pipelines regulation reviewed

• Sydney Water stormwater policy and funding review completed

• Provide responsive service to Minister and Government

• Actively identify emerging policy issues

• Develop policy on a whole-of-government basis inconsultation with stakeholders

• Manage programs efficiently and effectively

5. Better performing energy and utilitiesinfrastructure in safety and service standards

• Sydney Water asset management framework reviewed

• Gas and pipeline safety and operating plans reviewed

• Electricity networks safety improvement planimplemented

• Review regulatory frameworks for electricity and gas networks

• Develop an enhanced reporting / monitoring regime for safety, reliability and quality

• Promote industry network improvement through planning

• Aberdare County Council (Dissolution) Act 1982 No 74

• AGL Corporate Conversion Act 2002 No 16

• Eastern Gas Pipeline (Special Provisions) Act 1996 No 126

• Electricity Safety Act 1945 (1946 No 13) (except part

jointly with Minister for Commerce, and Minister for Fair Trading)

• Electricity Supply Act 1995 No 94

• Energy Administration Act 1987 No 103

• Eraring Power Station Act 1981 No 107

• Gas Industry Restructuring Act 1986 No 213

• Gas Pipelines Access (New South Wales) Act 1998 No 41

• Gas Supply Act 1996 No 38 (except parts, jointly Minister

for Commerce, and Minister for Fair Trading)

• Gosford–Wyong Electricity Supply (Special Provisions)Act 1985 No 182

• Hunter Water Act 1991 No 53 (except parts, Minister for

Natural Resources)

• National Electricity (New South Wales) Act 1997 No 20

• Northern Rivers County Council (UndertakingAcquisition) Act 1981 No 95

• Pipelines Act 1967 No 90

• Public Works Act 1912 No 45, sections 34(3) and 34(4)(remainder, Minister for Commerce)

• Sydney Water Act 1994 No 88

• Water Management Act 2000 No 92, Part 1 of Chapter 5(remainder, Minister for Natural Resources)

6 AC T S A D M I N I S T E R E D B Y T H E M I N I S T RY


Minister

Director-General

Industry Performance

Organisational Development

Energy & Utilities Policy

Strategy Corporate Counsel

State Water

Town Water

O R G A N I S AT I O N A L C H A RT

As Director-General of the Ministry of Energy and Utilities,I have encouraged the development of a results-drivenand customer-focussed approach from the Executive andstaff. The Ministry has been able to deliver its functionsand services according to the key drivers of:

• improved energy market operation;

• convergence of the gas and electricity regimes;

• protection of customers in the competitive energymarkets;

• knowledge of energy supply and demand trends andstrategic impacts;

• better performing energy and utilities infrastructure insafety and service standards;

• quality advice and program management forGovernment; and

• ecologically sustainable supply and use of energy andurban water.

Associated with these objectives, the focus for 2002–03has also been on developing:

• skilled and motivated staff who are engaged with ourstakeholders; and

• robust business systems.

E X PA N D I N G O U R R O L E

Following the March 2003 election, the Ministryincorporated the State Water business unit and the TownWater Treatment and Recycling Branch of the formerDepartment of Land and Water Conservation. This meansthat the Ministry, in addition to its existing urban waterpolicy function, is now responsible for:

• 18 major dams and over 200 weirs and regulatorsacross the State providing water for irrigation, townsupplies and environmental flows; and

• the Country Towns Water Supply and Sewerage Program,a major funding program providing assistance to localwater utilities across the State to upgrade water supplyand sewerage schemes, implement integrated watercycle management planning, and ensure best practicemanagement of these important assets.

The incorporation of these new functions has promptedme to initiate a comprehensive structural and functionalreview of the Ministry. This process began towards theend of June 2003, and an interim structure will applyfrom 1 July until October 2003. During this period I will work with the Executive and all staff on planning a new organisational structure that identifies synergies

across the organisation in order to keep focussing on ourfunctions and services.

T H E Y E A R I N S U M M A RY

Apart from integrating new functions into the Ministry,major achievements for 2002–03 have included:

• implementation of the Greenhouse Gas BenchmarkScheme;

• managing gas and electricity network performance;

• supporting the Ministerial Council on Energy and theNational Electricity Market Ministers Forum; and

• further developing energy and urban water policy witha particular focus on consumer protection.

G R E E N H O U S E G A S B E N C H M A R K S S C H E M E

On 11 December 2002 the Electricity Supply Amendment(Greenhouse Gas Emission Reduction) Bill 2002 passedthrough Parliament, which meant that from 1 January2003 electricity retailers and certain other participantsare required to meet mandatory targets for abating theemission of greenhouse gases from electricity productionand use.

The overall target is to reduce greenhouse gas emissionsto 5% below 1989–90 levels by 2007. Retailers andparticipants who do not meet their individual targets willincur a penalty.

The NSW greenhouse policy targets abatement acrossseveral sources including low intensity greenhousegeneration, energy efficiency, fuel switching and carbonsequestration. The scheme recognises the potential tocost-effectively reduce existing emissions by:

8 D I R E C TO R - G E N E R A L ’ S OV E RV I E W

Mr Brian SteffenDirector-General

• generating above historical output;

• co-firing with less greenhouse intensive fuels;

• improving the efficiency of generation; and

• implementing demand side abatement measures.

We expect a significant market in greenhouse gas abatementcertificates to develop, and there have already beenencouraging signs of interest in a robust certificate market.

M A N AG I N G N E T WO R K P E R F O R M A N C E

Throughout 2002–03, the Ministry consolidated thereporting requirements for electricity and gas networks,and worked towards greater consistency between the sectors.

From 1 September 2002 the Gas Supply (NetworksSafety Management) Regulation 2002 became the singlenetwork safety regulation, requiring all networkoperators to develop, implement and independentlyaudit safety and operating plans. All 9 network operatorsin NSW complied with the requirements of theRegulation, and the audit process will allow continualreview and improvement to occur.

Safety is one of the primary objectives of the Ministry,and for the fourth consecutive year there were no fatalelectricity accidents involving network workers during2002–03. The Ministry will continue to focus on safetyinitiatives in both the electricity and gas industries inorder to protect workers and the public.

The Ministry has prepared draft gas and electricitynetwork reports providing detailed safety and reliabilityperformance reports for all operators. These reports arebeing finalised in consultation with industry, and areconsistent with national reporting frameworks.

S U P P O RT I N G T H E M I N I S T E R I A L C O U N C I LON ENERGY AND THE NEM MINISTERS FORUM

2002–03 saw significant developments at the nationallevel in the electricity and gas fields, and NSW throughthe Ministry played a leadership role in a range of forums.

With the NSW Minister for Energy becoming Chair of theNational Electricity Market Ministers Forum (NEMMF)in July 2002, the Ministry fulfilled the Secretariatfunction. In this role, the Ministry has played a centralpart in:

• moves to formalise the policy guidance role ofMinisters for development of the National ElectricityMarket (NEM);

• reviewing the role of transmission and the way it is

regulated; and

• contributing to market design issues to ensure effective

and efficient development of the NEM.

The Ministry is also represented on four working groups

established by the Ministerial Council on Energy (MCE),

and as Chair of the Energy Market Development

Working Group the Ministry has provided the

Secretariat function. In these roles, the Ministry played a

leading role in examining and reporting to the

Ministerial Council on:

• existing and potential gas and electricity market

structures and institutional mechanisms;

• regulatory harmonisation;

• increased interconnection and system security; and

• measures to increase the penetration of natural gas.

The Ministry also co-ordinated the NSW Government’s

submission to the Energy Market Review.

E N H A N C I N G C O N S U M E R P ROT E C T I O N

Following the successful introduction of full retail

competition for electricity and gas customers from

1 January 2002, the Ministry has continued to monitor not

only the number of customers exercising choice, but also

the effectiveness of the overall regulatory framework.

After working closely with other agencies and

organisations, the Ministry published a consultation

paper in September 2002 proposing further

enhancements to the customer protection framework.

These will be progressed during 2003–04.

One of the important social programs coordinated by the

Ministry is the Pensioner Energy Rebate. During

2002–03 the Ministry oversaw the extension of the

rebate to include war widows and widowers and other

veteran pensioners, and also developed revised

arrangements to improve the confirmation process for

eligible pensioners.

The Ministry has also been heavily involved in preparing

for the transfer of the Energy Accounts Payment

Assistance (EAPA) Scheme from the Department of

Community Services from 1 July 2003. Moving the

EAPA Scheme to the Ministry will ensure the

Government’s consumer assistance and social programs

for energy are centrally coordinated and managed.


T H E F U T U R E

The broadening of the Ministry’s focus presents anumber of opportunities and challenges for 2003–04,which include ensuring:

• an appropriate organisational structure for the policy,regulatory and program delivery responsibilities of the Ministry;

• State Water continues to operate under a viable andsustainable business structure;

• the Country Towns Water Supply and SewerageProgram continues to deliver effective funding to localwater utilities;

• the Ministry continues as the primary energy policyagency in NSW;

• continual improvement in electricity and gas safety,reliability and performance; and

• effective consumer protection and support in thedeveloping competitive energy environment.

The new outlook of the Ministry and our expandedresponsibilities will allow us to build on pastachievements, and meet the future challenges withconfidence and enthusiasm.

Finally, I would like to thank all staff of the Ministry fortheir dedicated work throughout the past 12 months,and I look forward to continuing our successes in 2003–04.

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E N E R G Y & U T I L I T I E S P O L I C Y


B R A N C H D E S C R I P T I O N

The Energy and Utilities Policy Branch reviews energyand urban water policies to foster economiccompetitiveness, enhance customer protection and meetenvironmental goals. The key functions of the Branchduring 2002–03 were:

• further progressing retail energy competition in NSW;

• enhancing customer protection in the supply of energy services;

• advising Government on energy market reform policiesand urban water strategy;

• reviewing and reforming energy legislation; and

• administering the energy concessions program andpolicy oversight of the social policy program in energyand urban water supply.

There were two sections in the Policy Branch during2002–03 – the Energy Policy Section and the UtilitiesPolicy and Programs Section.

2 0 0 2 – 0 3 AC H I E V E M E N T S

• Ongoing monitoring of the effectiveness of full retail competition.

• Development of proposals to enhance customer protection.

• Assisted industry in improving the IT systems andprocesses for customer transfers.

• Reviewed the gas pricing process.

• Worked with Sydney Water and the EnvironmentalProtection Authority on the Stormwater Trust’s reviewof stormwater management and funding.

• Representation on the Water IndustryInterdepartmental Committee.

• Representation on the Demand Management WorkingGroup, and chair of a subcommittee developing apolicy framework for the use of rainwater tanks.

• Provided support to the Expert Water Panel, and chairof the Panel’s Project Control Group.

• Managed and oversaw the Pensioner Energy RebateScheme and Life Support Rebate Scheme.

• Extended the eligibility criteria for the PensionerEnergy Rebate to include War Widows.

• Prepared for assuming responsibility of the EnergyAccounts Payment Assistance Scheme from theDepartment of Community Services from 1 July 2003

• Chair of the Utility Concessions Steering Group.

• Establishment of an Electricity Industry ConcessionsWorking Group.

D E V E L O P M E N T O F C O M P E T I T I V ER E TA I L M A R K E T S

The Ministry has closely monitored the development ofthe electricity and gas retail markets following theintroduction of full retail competition in January 2002.The Ministry’s strategy is to ensure a smooth transitionto a competitive market by closely monitoring theeffectiveness of the regulatory framework and industrycoordination processes that were implemented tosupport full retail competition.

The introduction of full retail contestability gavehouseholders and small businesses the ability to choosebetween the service offerings of different energy retailers.

These small customers now have three options:

1. they can stay with their existing retailer on aregulated standard contract;

2. they can choose a different service offering (a ‘negotiated contract’) with their existing retailer; or

3. they can choose a negotiated contract with a different retailer.

As at the end of June 2003, 381,400, or 10%, of smallelectricity and gas customers had taken advantage of this choice by entering into negotiated contracts witheither their existing (or standard) retailer or with adifferent retailer.

E N H A N C I N G C U S TO M E RP R OT E C T I O N

A comprehensive regulatory framework wasimplemented in 2002 to ensure that small retailcustomers were protected from unscrupulous behaviourand gave customers the confidence to participate in thenew competitive retail market. The Ministry has workedwith other agencies such as the Energy and WaterOmbudsman of NSW, the Public Interest AdvocacyCentre and the Independent Pricing and RegulatoryTribunal (IPART) to monitor the effectiveness of theregulatory framework.

As a result of early experience in the market theMinistry issued a Consultation Paper in September 2002to seek views on proposed enhancements to thecustomer protection framework. Constructive feedbackfrom stakeholders to that consultation will result inimproved protection for customers and a smootherregulatory burden for retailers.

12 E N E R G Y & U T I L I T I E S P O L I C Y

D E V E L O P M E N T O F E F F E C T I V EC U S TO M E R T R A N S F E R P R O C E S S E S

Through the NSW Business to Business SteeringCommittee the Ministry has facilitated the work ofindustry in improving the effectiveness of the IT systemsand business processes supporting the transfer ofcustomers from one retailer to another. The effectivenessof these processes is critical to the ability of a retailer tomanage new customer acquisitions by arrangingconnections and issuing accurate and timely bills.

The work of the Steering Committee has resulted in thestandardisation of a number of critical processes forNSW retailers and network operators, such as electronicnetwork billing. The Steering Committee also promotedthe development of nationally consistent processesthrough national working groups and with its counterpartin Victoria.

R E V I E W O F T H E G A S P R I C I N GP R O C E S S

The Gas Supply Act 1996 provides for a form of priceregulation, a gas pricing order, which can be issued at anytime by IPART or upon notice from the Minister forEnergy. IPART and the incumbent gas retailers haveadopted an alternative pricing arrangement based onvoluntary pricing principles (VPPs). In the event of aretailer breaching the voluntary agreement, a legislatedgas pricing order can replace a VPP.

In 2002 the Ministry undertook a review of the gaspricing order process through a consultation paper andan inter-departmental committee, which considered thefollowing issues:

• the investigation procedures to be followed by IPART;

• procedures for reviewing or appealing an IPARTdecision on a gas pricing order;

• membership of the review panel; and

• the need for an interim gas pricing order.

The support of retailers and the pricing regulator for thecontinuation of the VPP arrangements, and the retentionof the gas pricing order as a reserve power to be used ifthere is no agreement on new VPPs.

A D M I N I S T E R I N G T H E G A S AC C E S SC O D E

NSW is a signatory to the inter-jurisdictional agreementto the national Third Party Access Code. The Ministryserves on the Natural Gas Pipelines Advisory Committee(NGPAC) which administers the National Access Code.During the year the Minister agreed to a number ofamendments to the National Access Code.

NSW supported the major review of the National AccessCode. During the year the Ministry contributed to thedevelopment and finalisation of the terms of reference fora review of the Code by the Productivity Commission,which is expected to be finalised by June 2004.

R E V I E W O F L P G D I S T R I B U T I O N

A small number of LPG distribution systems are licensedby the Minister. Distribution to approximately 3,000small customers in these distribution systems is regulatedby the Gas Supply (Customer Protection LPG and otherGases) Regulation 1997. The reticulated LPG sector hasexperienced significant changes in recent years, whichare expected to continue in the short term. Also, theregulation of safety management in those distributionsystems was substantially amended in 2002. It isimportant that the regulatory framework be reviewed totake account of these changes.

In June 2003, the Ministry released a Consultation Paper“Review of Regulatory Framework for ReticulatedLiquefied Petroleum”. The purpose of the review is todetermine the effectiveness of the current regulatoryframework in meeting the Government’s policy objectives.

U N D E R G R O U N D I N G P OW E R L I N E S

In September 2002, after an extensive publicconsultation process by both the IPART and theMinistry, the NSW Government announced it would notmandate the undergrounding of electricity cablesfinanced by additional levies or increased electricityprices. The costs of undergrounding were considered tobe too high relative to the quantifiable benefits. Thecommunity would have to make up the difference ifundergrounding of all urban networks were to proceed.


A joint committee of the Ministry, the Local GovernmentAssociation and PlanningNSW was established toexamine a number of new initiatives including:

• undergrounding in new developments;

• undergrounding in redevelopments in existing urbanareas in conjunction with local councils;

• developing new deferred payment options forundergrounding where communities are willing to pay;

• investigating the coordination of undergroundingelectricity cables with other essential infrastructureincluding telecommunications; and

• review and implement new guidelines for tree trimming.

The Committee is expected to report its findings duringthe second half of 2003.

The Ministry has worked with the Local GovernmentAssociation and the electricity distributors during the yearto investigate and evaluate options for the funding ofundergrounding where communities are willing to pay.

S U P P O RT I N G U R B A N WAT E RR E G U L AT I O N A N D P O L I C Y

In 2002–03 the Ministry was responsible for providingadvice to the Minister on policy and operational issuesrelating to the two metropolitan water corporations,Sydney Water Corporation and Hunter WaterCorporation, including regulatory matters arising from:

• IPART’s supervision of the Corporations’ compliancewith the conditions of their operating licences; and

• other IPART reviews of the Corporations’ operations.

Following the March 2003 election, the Ministry wasalso given responsibility for country town and city watersupply and sewerage matters previously dealt with byelements of the former Department of Land and WaterConservation. This meant that the Ministry couldcoordinate its work on urban water matters across theState and begin to apply a consistent policy, operationaland regulatory approach to all urban water utilities in NSW.

C O N T I N U I N G S TO R M WAT E R R E V I E W

Following the completion of our report to the Ministeron the review of the funding and policy framework forSydney Water’s stormwater management program, inJune 2002, we continued to work with Sydney Water

and the Environment Protection Authority (EPA) on theStormwater Trust’s review of stormwater managementand funding arrangements.

In the last part of the year, we also provided advice tothe Government’s Expert Water Panel (through thePanel’s Project Control Group) on the EPA’s proposalsfor improving stormwater management and funding,particularly in metropolitan areas.

A S U S TA I N A B L E WAT E R M A N AG E M E N TB A L A N C E F O R U R B A N A R E A S

The Ministry has continued being closely involved in arange of urban water policy matters. For example, in2002–03 the Ministry was represented on the WaterIndustry Interdepartmental Committee and the WaterCEOs (Chief Executive Officers) Task Force, providingstrategic policy advice on water matters to the Government.

Chaired by the EPA, the Task Force comprises the CEOsof all major water related bodies and the centralagencies. Its crucial work includes developing asustainable water management balance for Sydneyfollowing the Government’s decision not to proceedwith the Welcome Reef Dam on the Shoalhaven River.

The Ministry is also represented on the DemandManagement Working Group, which supports the WaterCEOs Task Force in developing and implementing anintegrated water management framework for Sydney.In 2002–03 the Ministry chaired a subcommittee of thatWorking Group responsible for developing a policyframework for the use of rainwater tanks to conserve andreuse rainwater in urban areas.

In the last quarter of the year, the Ministry becameinvolved in providing support to the Government’s newExpert Water Panel. The Panel’s main initial role is toadvise the Government on providing a sustainable watersupply for Sydney and a means for the private sector towork in partnership with the Government to assist withthe provision of new water supply technologies and infra-structure. The Ministry is the chair of the Project ControlGroup, which directly supports the Panel in its work.

This work directly complements the activities of theMinistry previously carried out by the formerDepartment of Land and Water Conservation onintegrated water management in rural and regional areas.

14 E N E R G Y & U T I L I T I E S P O L I C Y

OT H E R M AT T E R S

The Ministry also provided advice to the Minister andwas engaged in a number of projects concerning otherurban water issues. This process has involved workingwith stakeholders such as the water corporations, IPART,the Minister’s Office and the central agencies on:

• a new Hunter Water customer contract;

• operational audits of Sydney Water and Hunter Water;

• Healthy Rivers Commission Reports and relatedGovernment decisions; and

• the Priority Sewerage Program.

S U P P O RT I N G E N E R G Y A N D WAT E RS O C I A L P R O G R A M S

The NSW Government provides several importantenergy and water social programs:

• the Pensioner Energy Rebate and the Water andSewerage Rebate, which supplements pensioners’incomes by facilitating access to the basic services ofelectricity, gas, water and sewerage;

• the Life Support Rebate, paid to people who requirelong term life support devices, to alleviate the costs ofthe electricity and water supplies needed to operatethe machines; and

• the Energy Accounts Payments Assistance (EAPA)Scheme and the (Water) Payment Assistance Scheme(PAS), safety net programs targeting people in a shortterm crisis who have difficulty paying electricity andwater bills, thus avoiding their disconnection.

The Ministry is responsible for managing and overseeingadministration and policy issues associated with thePensioner Energy Rebate Scheme and the Life SupportRebate Scheme. During 2002–03, the Ministrysuccessfully managed these Schemes and dealt withpolicy issues that arose such as:

• an extension of the eligibility criteria for the PensionerEnergy Rebate to include war widows / widowers andother veteran pensioners;

• inclusion of additional sleep apnoea devices in theapproved life support rebate list; and

• improved arrangements to the process for confirmingeligible pensioner energy rebate recipients.

C H A I R I N G T H E U T I L I T Y C O N C E S S I O N SS T E E R I N G G RO U P A N D OT H E RC O M M I T T E E S

The Ministry chairs the Utility Concessions SteeringGroup (UCSG), which comprises representatives of theDepartment of Community Services (DoCS), theDepartment of Health, The Cabinet Office, the NSWEnergy and Water Ombudsman (EWON) and NSWTreasury. This group is responsible for overseeingprogram implementation and policy review of energyand urban water concession programs.

The Ministry has also established an Energy IndustryConcessions Working Group to enable close consultationwith industry on the operation of the Pensioner EnergyRebate and Life Support Rebates Schemes.

Finally, the transfer of EAPA from DoCS was scheduledfor 1 July 2003, allowing the Ministry to takeresponsibility for chairing the EAPA Working Groupwhich includes representatives of the communityorganisations that deliver the program on behalf of theGovernment, energy retailers and other stakeholders.

M A N AG I N G U T I L I T Y C O N S U M E R SA DVO C AC Y P RO G R A M

In October 2001 the Ministry gained administrative andfunding responsibility for the Utility ConsumersAdvocacy Program (UCAP) from the Department of FairTrading. This role continued during 2002–03.

Established by the Public Interest Advocacy Centre(PIAC) in 1998, this program represents the interests ofresidential consumers of electricity, natural gas and waterservices in the context of the planned introduction ofcontestability for all electricity and natural gasconsumers. UCAP has received further funding from theNSW Government for 2003–04 and beyond and theMinistry will continue to work closely with PIAC toensure the success of this important project.


16

I N D U S T RY P E R F O R M A N C E



During 2002–03 the Industry Performance Branchcontributed to the role of the Ministry by assisting theGovernment in choosing and implementing the beststrategies for promoting the efficient, safe and reliablesupply and use of energy services.

The Branch developed and implemented appropriateframeworks to improve the performance of the energyindustries, in particular in relation to safety and reliability.

The Branch focussed on the following four areas:

• Gas Networks and Pipelines

• Electricity Networks

• Contestable Works

• Energy Networks Analysis

The Branch collaborated with Government agencies,industry participants, consumer interest groups and otherstakeholders to ensure decisions and judgements arecomprehensive, timely, sound and appropriate.

All sections contribute to the regulatory, policy andadministrative work of the branch.

2 0 0 2 – 0 3 AC H I E V E M E N T S

• Updated Gas Network Safety Regulations.

• Reviewed Gas Network Safety and Operating Plans.

• Granted Pipeline Licence Variations.

• Introduced the Electricity Supply (Safety and NetworkManagement) Regulation 2002.

• Implemented Bush Fire Management Plans by network operators.

• Increased the number of network inspections bySenior Compliance Officers.

• Monitored transmission and distribution reliability.

• Managed the contestable electricity worksaccreditation scheme.

• Commenced a review of the contestable worksaccreditation scheme.

• Oversaw performance reports by electricity and gasnetwork operators.

U P DAT I N G G A S N E T WO R KS A F E T Y R E G U L AT I O N S

On 1 September 2002, the Gas Supply (Network SafetyManagement) Regulation 2002 was introduced. ThisRegulation is part of the Ministry’s focus on an improvedperformance-based regulatory regime for gas distributionnetworks in NSW, and is a key driver of the Branch’sfunctions and responsibilities. The primary objectives ofthe regulation are:

• consolidation of regulatory requirements for gasnetwork operators into a single ‘network safety’regulation thereby simplifying compliance obligations;

• ensuring consistency with the requirements of theElectricity Supply (Safety and Network Management)Regulation 2002, and the Pipelines Regulation 2000 inline with the ongoing convergence of the energy sectorin NSW; and

• incorporation, where appropriate, of aspects of safetyplan requirements that are in place in otherjurisdictions of Australia.

R E V I E W I N G G A S N E T WO R KS A F E T Y & O P E R AT I N G P L A N S

The Gas Supply (Network Safety Management) Regulation2002 (the Regulation) requires all gas network operatorsto develop and implement independently audited safetyand operating plans (SOP’s) for their networks. TheSOPs are audited annually and copies of the auditors’reports are lodged with the Ministry together with anyamendments to the network SOPs.

During 2002–03 the Ministry reviewed SOP auditreports for:

• AGL Gas Networks • Allgas Energy

• Country Energy • Elgas Ltd

• ActewAGL • Origin Energy LPG

• Albury Gas • Wesfarmers Kleenheat Gas

The Ministry’s review process found that all the SOPscontained sufficient detail to comply with therequirements specified by the regulations with only oneminor exception, which did not impact on the adequacyof the SOP. Given the varying sizes and complexities ofeach gas network, the relevant SOP’s were consideredappropriate to meet the requirements of the Regulation.Network operators are continually reviewing theirrespective SOPs and are implementing improvementsidentified by the audit process.

18 I N D U S T RY P E R F O R M A N C E

I D E N T I F Y I N G O P P O RT U N I T I E S F O RI M P ROV E M E N T

All audit reports identified opportunities forimprovement. The Ministry continues to engage inindividual consultations with gas network operators toaddress specific issues associated with their SOPs.

During 2002–03, the Ministry developed a set of draftguidelines for the contents of gas network SOPs, thescope and depth of SOP audits, audit reporting methods,the management of non-conformances and the correctiveactions needed to address them. During 2003–04 theMinistry proposes to consult with all network operatorsin relation to the draft guidelines with the view toissuing them by mid 2004.

R E P O RT I N G G A S N E T WO R KI N C I D E N T S

N AT U R A L G A S S U P P LY D I S RU P T I O N S

During 2002–03 no significant natural gas supplydisruptions occurred as a result of incidents on the NSWnatural gas system. However, two incidents at theSANTOS Natural Gas Plant at Moomba, South Australiaimpacted on the supply of natural gas to NSW.

In January 2003 and June 2003 gas leaks at the Moombaplant resulted in the supply of natural gas to NSW beingdecreased for two days and one day respectively. In bothcases significant impact on NSW gas consumers wasprevented by the volume of natural gas already withinthe Moomba to Sydney natural gas pipeline andincreased supply from Longford, Victoria. There was noneed to loadshed any NSW gas consumers.

G A S N E T WO R K I N C I D E N T S

The Ministry has worked constructively with all networkoperators to improve the consistency of gas networkincident reporting. This has resulted in an increase in thenumber of reports over the previous year but given thechanges implemented, the Ministry does not considerthis indicates deterioration in network safety.

This position is supported by the fact that as with2001–02 none of the reported gas network incidentsinvolving gas escapes from the network resulted in fire,fatalities or injuries.

In addition to gas network incidents, gas networkoperators are now reporting incidents that are reportedto them on the Customer’s Service / Gas Meter andwithin the Constomer’s Gas Installation. The Customer’sService is defined as the section of pipe that connectsthe customer’s gas meter to the network pipes.

The following tables detail incidents reported to the Ministry:

TABLE Gas Network Incidents, 2002–03

Incident Type Number Ignition/Reported Injuries/

PropertyDamage

Damage to gas network 50 0pipes resulting in gas leak

Out of specification 4 0natural gas

Smell of gas reported but 7 0found not to be gas network related

Other 1 0

Total Incidents Reported 62 0

TABLE Consumer Service / Gas Meter Incidents,2002–03


PropertyDamage

Third party damage to 7 0customer service resulting in gas leak

Licensed plumbers damage 5 4to customer service resultingin gas leak / ignition

Gas meter leaks 5 1(Car

Accident)

Other 2 0



TABLE Consumer Gas Installation Incidents,2002–03


PropertyDamage

Gas leaks 2 0

Gas ignitions 2 2

Other 1 1(Bushfire)


Of the eight incidents resulting in gas ignition, injury orproperty damage, five involved licensed plumbers / gasfitters. The Ministry intends to raise this matter with theOffice of Building Services – Department of Commercewhich is the licensing authority for plumbers / gas fittersin NSW.

Of the other three incidents, one resulted from a caraccident, another from a bushfire and one involvedinjury to a consumer. The network operator advised thatthe consumer was treated on site by ambulance officersand did not require hospital treatment.

M A N AG I N G P I P E L I N E S

R E V I E W I N G T H E P I P E L I N E S AC T 1 9 6 7

The Ministry has developed proposals for a newPipelines Act. These proposals are designed to enhancethe process of developing the pipeline infrastructure.They will assist the extension of energy supplies,principally natural gas, to regional centres in NSW.

During 2002–03 the Ministry also consulted with theDepartment of Infrastructure, Planning and NaturalResources and WorkCover NSW regarding the review ofregulatory regimes for Major Hazard Facilities (MHF’s)in NSW and the Dangerous Goods Act 1975.

As both these agencies have significant legislation thatmay impact on the Pipelines Act, the Ministry has heldthe release of its proposals for a new Pipelines Act untilthe regimes for MHF’s and Dangerous Goods areestablished. This will ensure a consistent regulatory regimeis established for all sectors of the pipeline industry.

G R A N T I N G P I P E L I N E A P P ROVA L S

During 2002–03 no new applications for pipelinepermits or licences were received by the Ministry.

Dubbo to Tamworth / Gunnedah Natural GasPipeline

On 15 January 2003, the Governor granted PipelineLicence No 27 to APT Pipelines (NSW) Pty Ltd for theconstruction and operation of the Dubbo to Tamworth /Gunnedah Natural Gas Pipeline. This project is alsoknown as the Central Ranges Pipeline Project and is nowincorporated into a commercial tender process for thesupply of natural gas to the Central Ranges region of NSW.

This commercial process is being overseen by IPART andthe Australian Competition and Consumer Commission(ACCC).

G R A N T I N G P I P E L I N E L I C E N C E VA R I AT I O N S

Horsley Park to Plumpton Natural Gas Pipeline

During 2002–03 the Ministry received and processed anapplication from AGL Gas Networks Pty Ltd (AGLGN)to vary the licence area of Pipeline Licence No 3 –Horsley to Plumpton Natural Gas Pipeline. This pipelineforms part of AGLGN’s high pressure trunk main systemin the Sydney Metropolitan Area.

The variation has allowed AGLGN to upgrade thesupply of natural gas to western Sydney and the BlueMountains via the completion of the Penrith PrimaryMain Extension. This will ensure the projected increaseddemand for natural gas in these areas will be supplied.

Marsden to Dubbo Natural Gas Pipeline

In January 2003 the Ministry received the finalinformation necessary to proceed with the licence areavariations for the final pipeline route and pipelinecorrosion protection easements for Pipeline Licence No 25– Dubbo to Tamworth Natural Gas Pipeline. Followingcompletion of the required notifications and review ofcomment the Ministry has processed the applicationsand expects to finalise these variations in early 2003–04.

Illabo to Tumut Natural Gas Pipeline

The Ministry is awaiting confirmation of the registration ofeasement survey plans before proceeding to finalise thisvariation of Pipeline Licence No 28, which is to correct twominor alignment errors that occurred during construction.


Hoskinstown to ACT Natural Gas Pipeline

This variation to Pipeline Licence No 29 is to reduce theeasements established for the construction to thoserequired for operation. The application is awaitingcorrection of typographical errors made on the originaldocumentation submitted to the Ministry.

R E N E W I N G L I C E N C E S

The renewals for Licence Nos 9, 10 and 11 haveproceeded with final licence documents being submittedto the licensees, Newcastle Pipeline Company andHunter Pipeline Company for signature. Once returned,the Ministry will proceed to complete the renewal ofthese licences.

R E P O RT I N G P I P E L I N E I N C I D E N T S

No pipeline escape or ignition incidents were reported tothe Ministry during 2002–03.

ACHIEVING ELECTRICITY NETWORKS A F E T Y A N D R E L I A B I L I T Y

The Ministry’s Corporate Plan 2002–03 included anobjective of “better performing energy and utilitiesinfrastructure in safety and service standards”.

R E G U L ATO RY F R A M E WO R K

The new Electricity Supply (Safety and NetworkManagement) Regulation 2002 (S&NM Regulation)commenced in September 2002. The overarchingobjective of the S&NM Regulation is to ensure thatoperators of electricity transmission and distributionnetworks are publicly accountable for the provision of anadequate, reliable and safe supply of electricity ofappropriate quality.

This builds on the safety elements of the previousElectricity Supply (Safety Plans) Regulation 1997, whilstusing the same outcomes-oriented approach. Safety istherefore reinforced as the number one priority. TheS&NM Regulation requires network operators toimplement the following plans when required to do soby the Director-General:

• a network management plan to ensure that theelectricity network to which it relates provides anadequate, reliable and safe supply of electricity ofappropriate quality;

• a public electrical safety awareness plan to warn thepublic of the hazards associated with electricity networks;

• a bush fire risk management plan to minimise thepossibility of fire ignition by electricity lines amongother things; and

• a customer installation safety plan to ensure theprovision of safe electrical installations for connectionto electricity networks, and the safe connection of suchinstallations to the networks.

P E R F O R M A N C E R E P O RT I N G

The S&NM Regulation requires network operators tomeasure and report publicly on network performanceand to provide performance reports to the Director-General. During the year, the Ministry upgraded itsreporting requirements as follows:

• A new significant electricity network incident (SENI)reporting scheme was introduced on 1 July 2002. Thenew system expanded immediate reporting requirementsfrom just serious electrical accidents to also includenon-electrical network accidents and a range ofsignificant network incidents. The level of reportinghas improved significantly this year, and a full analysiswill be included in the Ministry’s 2002–2003Electricity Network Performance Report.

• A new annual performance reporting template wasissued in May 2003. As well as upgrading the incidentand accident reporting sections to be consistent withthe SENI system for immediate reporting, a newframework for reliability reporting is being introducedbased on a nationally agreed framework developed bypricing and technical regulators. Annual reports underthe new system will commence for the 2002–2003year in August 2003.

The improved immediate and annual reports areexpected to lead to the development of more effectiveidentification and resolution of safety and reliabilityissues, improved safety and asset management strategiesand better targeting of public awareness campaigns.

S A F E G UA R D I N G T H E P U B L I C

The electricity supply networks are in the publicdomain. This means they may pose a risk to members ofthe public and to property at any time. All of the plansrequired under the S&NM Regulation contribute toimproving public safety in relation to electricity networks.


Network operators are now carrying out public electricalsafety awareness campaigns on an individual basis,following the cessation of state-wide activities previouslyorganised by the former Electricity Association of NSW.It is clear from the declining accident statistics reportedby the Ministry in its annual Electricity NetworkPerformance Reports that the work of promoting networksafety has been successful. The local responsibility forthis safety awareness issue allows programs to be bettertargeted for the risk factors most relevant to each area.

Following commencement of the S&NM Regulation, inSeptember 2002, interim bush fire risk managementplans were implemented for the 2002–03 bush fireseason. It is planned to update these with final plans forthe 2003–04 season, using experience gained in the firstyear of implementation.

P ROT E C T I N G N E T WO R K WO R K E R S

Network inspections by Ministry staff were upgradedand reviewed during the year, with additional SeniorCompliance Officers appointed, and more inspectionsbeing conducted in a more effective manner. Theseinspections play an important role in proactivelyidentifying any network operator management practicesand work practices which are likely to increase the riskof serious accidents associated with electricity networks.Our inspections do not limit, in any way, theresponsibility of distributors to ensure safe workplaces.

New Network Management Plans under the S&NMRegulation are required to be implemented by August2003, and will contribute to further improving the safetyof workers and networks. A new requirement for theseplans is the inclusion of safety management strategiesemployed for the purpose of ensuring the safe operationof the network.

R E D U C I N G AC C I D E N T S

For the fourth consecutive year there were no fatalelectrical accidents involving network workers in NSW.This compares with the period 1991–95 when fourteennetwork workers died while working on electricitysupply networks in NSW.

During 2002–03, the Ministry reported on accidentsinvolving members of the public for 2001–02. Publicelectrical safety awareness plans were first prepared in1997–98, and following this initiative, the number ofserious electrical accidents to the public has steadilydeclined from twenty-three in 1997–98 to nine in

2001–02, a reduction of 61% over the four year period.Public fatalities have also steadily declined from five in1993–94 to one in 2001–02. These improvements aredue in large part to the improved promotion of networksafety awareness to the public by network operators.

There are several new safety initiatives that have eitherbeen introduced or are planned to be introduced, aimedat continuing the necessary improvement in accidentrates for all network workers. These initiatives includeimproved incident reporting introduced in July 2002,upgrading of network operator plans in response to theS&NM Regulation, and upgraded network inspections.

I M P ROV I N G N E T WO R K R E L I A B I L I T Y

The reliability of electricity transmission and distributionsystems is generally considered of fundamentalimportance to the well-being of the community. As wellas the obvious economic costs of supply interruptions,the lifestyle and other impacts on consumers can besubstantial. This is verified by the number of people inNSW who complain to their electricity networkoperators about poor reliability.

During 2002–03, the Ministry reported networkreliability for 2001–02. Overall for NSW, there were atotal of 950 complaints concerning distribution reliabilityduring 2001–2002, representing 3.2 complaints per10,000 customers. This compares with 1,593 complaintsreported in the previous year.

The Ministry continues to pursue initiatives to ensuretransparency and accountability for networkmanagement strategies, plans and performance, whichwill drive improvements in reliability reporting, networkmanagement and reliability performance.

M O N I TO R I N G T R A N S M I S S I O N R E L I A B I L I T Y

During 2002–03, the Ministry reported transmissionreliability for 2001–02. TransGrid’s transmissionreliability performance for 2001–02 was:

• Network Reliability (Energy not Supplied) was 0.44system minutes, bettering the lower limit ofTransGrid’s objective of 0.5 minutes;

• Circuit Availability was 99.7%, bettering the upperlimit of TransGrid’s objective of 99.2% availability; and

• Connection Point Performance (as represented byAnnual Unplanned Average Interruption Frequency)continues the steady improvement of the previous threeyears, showing a 66% improvement over that period.


M O N I TO R I N G D I S T R I B U T I O N R E L I A B I L I T YA N D Q UA L I T Y

Trends in distribution reliability are not yet apparent.The lack of clarity is due to fluctuations caused byclimatic factors and bushfires which are beyond thecontrol of distributors and improvements in reliabilityreporting systems and capability. The new reliabilityreporting framework will assist in clarifying truereliability trends and underlying network performance.

Of the ninety-eight distribution feeders reported asunsatisfactory in 2000–01, eighty-one were improvedduring 2001–02. Network operators identified a total of101 feeders as unsatisfactory in 2001–02, including theseventeen feeders that required more work during2001–02. Distributors have identified causes andproposed remedial actions to improve the performanceof these feeders in 2002–03.

M A N AG I N G S U P P LY E M E R G E N C I E S

The commencement of the National Electricity Market(NEM) has resulted in an agreed jurisdictional approachto the management of electricity-based emergenciesaffecting the NEM. Major electricity emergencies arebeing coordinated primarily through a national bodywhich liaises with the jurisdictions affected.

The Ministry previously revised its Electricity EmergencyResponse Plan & Procedures in September 2000, and isagain updating this plan to ensure its currency andeffectiveness in the event of an emergency. The plandefines the roles and management procedures to beadopted by the Ministry during an industry emergency. Itshould be read in conjunction with the overarchingemergency documents of the National Electricity MarketManagement Company (NEMMCO).

Organisations in the electricity supply industryexperience varying degrees of emergency on a regularbasis. During the year the Ministry also maintainedemergency plans for ensuring continuity of natural gasand petroleum supply.

AC C R E D I T I N G C O N T E S TA B L EE L E C T R I C I T Y WO R K S

The Electricity Supply Act 1995 establishes a policyframework for “contestable works” that enables formermonopoly areas of distribution and transmissionconstruction, service work and reticulation design tobecome contestable.

The contestability of works relates to customers’ directfunding of network extensions, augmentations andservices that enable the connection of their premises ordevelopment site to the electricity network. Thecontestability framework allows customers to choose aservice provider to undertake works. Service providersmust be accredited to undertake contestable work.

AC H I E V I N G R E C O G N I T I O N A SAC C R E D I T I N G AG E N C Y

From April 1998 to December 2001 the accreditingagency for service providers in NSW was the ElectricityAssociation of NSW (EANSW). The closure of EANSW prompted the industry to seek an alternateaccrediting agency.

On 17 December 2001 the Ministry of Energy andUtilities was formally recognised as the accreditingagency within the provisions of the Electricity Supply(General) Regulation 2001. The Ministry aims toadminister a safe, consistent and credible accreditationscheme for contestable works. At 20 June 2003, therewere 1,143 accredited services providers:

• 52 Level 1 service providers accredited to performconstruction work;

• 1,044 Level 2 service providers accredited to performconnection services; and

• 47 Level 3 service providers / designers accredited toperform contestable work.

The Ministry is progressing a review of the accreditationscheme with a view to further improving thecompetitive environment in terms of safety andcompliance standards.

AC T I V I T I E S D U R I N G T H E Y E A R

The Ministry received an average of 517 telephone callsper month in relation to contestable works. The majorityof calls are calls from customers requesting lists ofservice providers accredited to perform contestablework. These calls account for approximately 80% of allenquiries. Other enquiries include enquiries regardingnew applications, accreditation renewals and generalcontestable works enquiries.

The Ministry processed an average of eighty-nineaccreditation renewals per month, together withapproximately eight new applications per month.Accreditation cancellations generally due to failure bythe service provider to renew have averaged ten per


month. Earlier trends of scheme numbers continuing toincrease appear to have ceased and scheme numbershave stabilised.

S E T T I N G F U T U R E D I R E C T I O N

We are undertaking a broad review of the accreditationscheme and regulatory framework. Items included in thereview are:

• occupational health and safety management plans;

• network operator authorisation;

• regulatory framework;

• technical compliance; and

• third party auditing.

The review will consider current industry issues andoffer improvements to the scheme for customers, serviceproviders and electricity distributors.

P E R F O R M A N C E R E P O RT I N G

G A S N E T WO R K S A N D P I P E L I N E S

In consultation with the industry, the Ministry developedmeaningful and uniform performance reportingrequirements from the gas networks and pipelineowners. All network and pipeline operators submittedtheir annual reports in response to the new reportingrequirements.

The Ministry reviewed these reports and obtainedfurther information from the operators, as required. TheMinistry’s draft Gas Networks report has been preparedwhich is being reviewed in consultation with theindustry, as required. A similar report relating to licensedpipelines is also being prepared and will be finalised inconsultation with industry to ensure the Ministry’sreport is accurate.

Outlines for the next year’s reports have been forwardedto the networks and pipeline operators. During the year,the Ministry worked closely with IPART to achieve anappropriate clear interface between IPART and Ministryreporting requirements.

E L E C T R I C I T Y N E T WO R K S

The Ministry’s Electricity Network Performance Report2001–02 has been prepared and will be submitted to theMinister. The report includes a detailed analysis ofnetworks safety and reliability performance for thereporting period.

A revised report outline for the 2002–03 reports hasbeen finalised in consultation with the industry andforwarded to the electricity distributors. The new outlineis consistent with the national reliability reportingframework. Guidelines for independent appraisal ofindividual distributor reports have also been reviewed toimprove the effectiveness of the appraisal. As with the gasindustry, reports for 2002–03 from electricity distributorsare to be delivered by 31 August 2003.



E N E R G Y S T R AT E G Y


The role of the Strategy Branch during 2002–03 was tocoordinate energy projects and issues, both within theMinistry and on a whole-of-Government basis, andsupport the development of Government energy policy.

During 2002–03, the Strategy Branch was responsible forsupporting and facilitating the NSW Government’s positionon inter-governmental or national energy market reforms.The Branch also addressed the Commonwealth-coordinatedMinisterial Council on Energy and was Secretariat to theNational Electricity Market Minister’s Forum.

The Branch took a particular interest in greenhouse andsustainable development issues, particularly thosebroader than NSW’s boundaries where the relationshipof policy development on greenhouse gases and energymarkets needs to be coordinated.

To assist the analytical and predictive resources ofStrategy Branch and the wider Ministry, the Branchcoordinated the collection and analysis of energy marketand industry data. Such abilities are critical in order todetermine NSW’s energy requirements into the future andsuitable policy positions to support these requirements.

During 2002–03, the Strategy Branch consisted of foursections:

• Energy Strategy

• Market Strategy

• Greenhouse and Sustainable Development

• Energy Analysis

2 0 0 2 – 0 3 AC H I E V E M E N T S

• Supported the Government Energy Management Policy.

• Contributed to the NSW Cleaner Vehicles Action Plan.

• Joined the Australian Transport Energy Data Analysis Centre.

• Further developed the NSW Statement of SystemOpportunities.

• Supported the NEM Ministers’ Forum.

• Contributed to the development and ongoingoperation of the National Electricity Market.

• Supported the Ministerial Council on Energy.

• Chaired the Energy Market Development Working Group.

• Served on the Strategic Energy Supply and SecurityWorking Group, the Energy Efficiency and

Greenhouse Working Group and the DownstreamPetroleum Working Group.

• Improved the greenhouse gas performance ofelectricity retailers.

• Assisted the administrator to implement thegreenhouse benchmarks scheme.

• Managed the Sustainable Energy Research andDevelopment Fund.

• Responsibility for the energy appliance efficiencylabelling scheme (Star Ratings).

• Contributed to improving the energy efficiency of buildings.

A DV I S I N G O N S U S TA I N A B L EE N E R G Y P O L I C Y

The Ministry advises on issues relating to the sustainableand environmentally sound supply and use of energy inNSW. The implementation of a mandatory greenhousebenchmark regime for NSW electricity retailers andother liable parties is one such issue.

I M P ROV I N G T H E G R E E N H O U S E G A SP E R F O R M A N C E O F E L E C T R I C I T Y R E TA I L E R S

NSW leads the way as the only Australian jurisdiction tohave applied mandatory greenhouse requirements to itselectricity sector.

From 1 January 2003 NSW electricity retailers andcertain other parties [Benchmark Participants] arerequired to meet mandatory targets for abating theemission of greenhouse gases from electricity productionand use.

These Benchmark Participants will have to reduce theiremissions of greenhouse gases to the pre-set benchmarklevels, or pay a penalty of $10.50 per tonne of emissionsabove their targets. Benchmark Participants can off-settheir excess emissions by surrendering abatementcertificates bought from low-emission electricitygenerators. This new regime is being implementedthrough amendments to the Electricity Supply Act 1995and the Electricity Supply (General) Regulation 2001.

The NSW Government has set a state-wide benchmarkof reducing greenhouse gas emissions to 7.27 tonnes ofcarbon dioxide equivalent (tCO2-e) per capita by 2007,which is 5 per cent below the baseline year of 1990.To ensure continual progress towards this end target,progressively tighter targets have also been set year-on-

26 E N E R G Y S T R AT E G Y

year leading to the final 2007 level. The 7.27 tCO2-ebenchmark level will then be maintained until 2012.

The Government's Greenhouse Benchmarks Schemeestablishes a State electricity sector benchmark andindividual participant benchmarks for the reduction ofgreenhouse gas emissions. These reductions are to be met by:

• electricity retail suppliers;

• electricity customers taking supply directly from theNational Electricity Market; and

• generators with contracts to supply electricity directlyto customers;

The Benchmark Participants will have to reduce theaverage emissions of greenhouse gases from electricitythey supply or use. To do this, they will purchase andsurrender to the Scheme Administrator abatementcertificates. The activities which allow the issuing ofabatement certificates are detailed in five GreenhouseGas Benchmark Rules and include:

• reduction in the greenhouse intensity of electricity generation;

• activities that result in reduced consumption of electricity;

• the capture of carbon from the atmosphere in forests,referred to as carbon sequestration; and

• activities carried out by elective participants thatreduce on-site emissions not directly related toelectricity consumption.

The Scheme allows for the creation of abatementcertificates by those parties undertaking eligibleabatement activities. Purchasing and surrendering NSWGreenhouse Abatement Certificates (NGACs) to theScheme Administrator is the main way greenhousebenchmark participants will reduce their averageemissions to the benchmark level.

IPART is administering the new scheme and will beresponsible for:

• monitoring retailers’ and other BenchmarkParticipants’ compliance with their benchmarks;

• imposing penalties if required; and

• performing the functions of the Scheme Administrator,such as accrediting abatement certificate creators,verifying abatement activity, and maintaining a registry ofcertificates and accredited abatement certificate providers.

This Scheme is one of the first of its kind in the world inproviding a market signal that greenhouse gas abatement

has a value. The Scheme is also being implemented insuch a way as to minimise compliance costs through anumber of means including by establishing a tradableabatement commodity [NGAC] and by allowing theaggregation of smaller abatement projects to be broughtto account in creating NGACs.

During early 2003, the Ministry assisted the SchemeAdministrator in the implementation of the Scheme. Inaddition, the Ministry has consulted widely on a numberof detailed proposed changes to the Greenhouse GasBenchmark Rules. These proposed changes will providegreater clarity in the implementation of the Scheme.

M A N AG I N G T H E S U S TA I N A B L EE N E R G Y R E S E A R C H A N DD E V E L O P M E N T F U N D

The Ministry manages the Sustainable Energy Researchand Development Fund (SERDF). The Fund supportsresearch and development projects that aim to encouragethe timely development of new and improvedsustainable energy technologies and services. Inparticular, SERDF supports projects which have thepotential to reduce the level of greenhouse gas emissionsin NSW and to provide economic, social and otherenvironmental benefits to NSW.

Projects completed in 2002–2003 and those continuingin 2003–2004 are listed in Appendix 16. SERDFexpenditure on energy research and developmentprojects in 2002–2003 totalled over $117,000. Theremaining two projects are expected to be completed in2003–2004.

A new public call for project proposals targeted at solarthermal technologies is to be undertaken in 2003–2004.

I M P R OV I N G P R O D U C T E N E R G YE F F I C I E N C Y

The National Greenhouse Strategy (NGS) emphasisesthe role of energy efficiency activities in reducinggreenhouse gas emissions. One important NGS activityfocuses on improving product energy efficiency throughmandatory energy labelling of major householdappliances and through the application of mandatoryMinimum Energy Performance Standards (MEPS) to arange of appliances and equipment types.

These activities are regulated at the State and Territorylevel while being coordinated at the national level by theNational Appliance and Equipment Energy Efficiency


Committee (NAEEEC), which reports to the EnergyEfficiency and Greenhouse Working Group (EEGWG)of the Ministerial Council on Energy.

In NSW, the Ministry is responsible for the energylabelling program currently applying to refrigerators,freezers, air conditioners, dishwashers, washing machinesand clothes dryers. MEPS apply to refrigerators, freezers,electric water storage heaters, three phase airconditioners (up to 65 kW cooling output) and threephase cage induction electric motors (between 0.73 kWand 185 kW). An important element of the Ministry’srole involves advising industry participants on all aspectsof the scheme and monitoring compliance with therequirements of the program.

Amongst the labelled products, the greatest energy usersare refrigerators and freezers. Analysis of refrigerator andfreezer sales information for 1993–2002 reveals a significantimprovement in the energy efficiency of refrigerators.

This improvement is due to the energy labelling programand to the introduction of MEPS in 1999.

The energy efficiencies of freezers declined in1996–1998, following the phasing out of CFCrefrigerants. Following the introduction of MEPS in1999, energy efficiencies for freezers increasedsubstantially in 1999–2002.

Figure 1 illustrates the results of national monitoring of newrefrigerators between 1993 and 2002. Star ratings havebeen adjusted to be consistent with the new rating scale.

Figure 2 illustrates the average energy consumption ofnew refrigerators for the period 1993-2002, projectsaverage energy consumption to 2005, and shows howthese products are expected to improve ahead of theintroduction of more stringent MEPS in 2005. Figuresfor 2002 are interim.



I M P R OV I N G T H E E N E R G YE F F I C I E N C Y O F B U I L D I N G S

Improving the energy efficiency of buildings is an importantNGS measure. The Ministry is represented on theindustry / government Energy Efficiency subcommitteeof the Building Regulations Advisory Council of theDepartment of Infrastructure, Planning and NaturalResources (DIPNR) which is advising DIPNR on issuesrelating to the proposed inclusion in May 2004 withinthe Building Code of Australia of mandatory energyefficiency requirements for NSW dwellings.

I M P R OV I N G A U S T R A L I A ’ SN AT I O N A L E L E C T R I C I T Y M A R K E T( N E M )

The NEM is one of the major economic reformachievements of the last decade. Within the NSWGovernment, the Ministry plays an important role inadministering and implementing the State’s roles andresponsibilities as one of the participating jurisdictions inthe creation of the NEM. This role has involved theMinistry in a wide range of policy development andrelated policy implementation activities concerned withfurther developing and improving the NEM.

S U P P O RT I N G T H E N E M M I N I S T E R S ’ F O RU M

A significant deficiency of the initial governancearrangements for the NEM was that no provision wasmade to formalise the role of the participatinggovernments at the time the market commenced inDecember 1998. Action to address this problemcommenced with the creation of the NEM Ministers’Forum in June 2001.

The NEM Ministers’ Forum brought together all theMinisters with responsibility for the market and providesa basis for efficiently resolving matters of policy. At theForum’s fifth meeting in July 2002, the role of chairingthe Forum rotated to NSW and involved the Ministryplaying an important coordination and “secretariat” rolefor all of the Forum’s various initiatives and activitiesthroughout the ensuing twelve months.

R E S TO R I N G N E M M I N I S T E R S ’ P O L I C Y RO L E

In order to formalise the role of Ministers in providingpolicy guidance for the development of the NEM, theForum agreed in July 2002 to create a power forMinisters to issue directions to the National ElectricityCode Administrator and to commission inquiries from it.

The Ministry played a central role in implementing thisdecision by:

• managing the inter-jurisdictional working group taskedwith framing these powers;

• coordinating the development of associated legislativeamendments to the National Electricity Law;

• preparing draft industry consultation and informationpapers for consideration by Ministers at subsequentForum meetings; and

• supporting development of a formal agreement andconstitution for the NEM Ministers’ Forum.

R E D U C I N G R E G U L ATO RY OV E R L A P S

The Ministry contributed significantly to thedevelopment of proposals for a new and improvedregulatory reform model for the NEM by:

• participating in the inter-jurisdictional working groupinvestigating the merits of a ‘Single NEM Regulator’;

• developing briefing papers and policy advice on therecommendations arising from the COAG EnergyMarket Review on NEM governance;

• providing detailed alternative proposals forendorsement as the preferred NSW government policyposition; and

• important elements of the Ministry’s work on thisissue are reflected in the proposed energy reformmodel adopted by the Ministerial Council on Energyin June 2003.

T H E RO L E O F T R A N S M I S S I O N

For some time, the NSW Government has been pointingto a lack of clarity over the role of transmission in theNEM and the negative impacts this is having on thetimely development of worthwhile new interconnectsbetween different NEM regions. A significant number ofprojects undertaken by the Ministry during the year werefundamentally linked to this concern and theGovernment’s overarching aim of ensuring that theregulatory framework for the provision of transmissionservices in the NEM is appropriate, efficient andeffective. Some of the key projects were:

• a submission to the ACCC as part of its review of theRegulatory Test for New Interconnectors and NetworkAugmentations;

• preparation of responses from the NSW EnergyMinister to proposed Victorian transmissionderogations from the National Electricity Code;

• a submission to the Inter-regional Planning Committeeon proposed Reliability Augmentation Guidelines;

• submissions to the ACCC on proposed accessundertakings for the unregulated ‘Murraylink’interconnector;

• submissions and witness statements to the NationalElectricity Tribunal in connection with its review ofNEMMCO’s determination supporting theconstruction of the proposed NSW to South Australiaregulated interconnect (SNI); and

• a submission to the ACCC on the application toconvert the status of the ‘Murraylink’ interconnectorfrom ‘unregulated’ to ‘regulated’.

A review commissioned by the NEM Ministers’ Forumin 2001 suggested that the efficiency of the NEM hassuffered from some new generation projects proceedingahead of good interconnector options. To identify and acton the causes of this outcome, the Forum commencedwork in July 2002 towards re-examining fundamentalpolicy issues associated with the role of transmission andthe way it is regulated in the NEM. The Ministry playeda critical role progressing this initiative by:

• chairing the inter-jurisdictional working group taskedwith progressing this review of the role oftransmission;

• commissioning expert advice on the merits anddemerits of enhancing locational pricing arrangementsin the NEM and options for improving transmissionplanning coordination;

• organising two major consultation forums for NEMregulatory institutions and market participants; and

• detailing transmission reform options for the NSWEnergy Minister and NSW central agencies.

RESPONDING TO KEY MARKET DESIGN ISSUES

During the year, the Ministry responded to three criticalmarket design issues with potential to profoundly affectthe future development and evolution of the NEM as aneffective and efficient competitive wholesale electricitymarket. The main Ministry projects in relation to theseissues were:

• a submission to the National Electricity CodeAdministrator on options to introduce mechanisms toensure the timely provision of new generating capacityin the NEM;

• a submission to the ACCC on proposals to introducerestrictions on the ability of generators to bid andrebid their capacity to the market operator; and


• a submission to the National Electricity CodeAdministrator on proposals to refine arrangements for theprovision of so-called ‘ancillary services’ to ‘regionalise’the incidence of charges for certain types of those services.

OT H E R S I G N I F I C A N T N E M R E L AT E DAC T I V I T I E S

The Ministry contributed to other important NEMrelated issues in the following ways:

• advised the Minister on the development ofStatements of Corporate Intent by the NationalElectricity Code Administrator and the NationalElectricity Market Management Company; and

• developed and communicated NSW positions onissues related to the liability regime for market andsystem operators in the NEM and on the setting ofpenalties for breaches of provisions of the NationalElectricity Code.

Throughout the year the Ministry continued to provideits weekly NEM monitoring service for the Minister andNSW Government agencies. Significant changes weremade to the format and presentation of this service toensure that it remains a relevant and readable analysis ofkey price and demand trends in the market.

The Ministry provided representation on the SettlementResidue Auction Committee which is convened by themarket operator, NEMMCO, to manage the process ofauctioning settlement residues that periodically accumulateon interconnectors between different regions of the NEM.

The Ministry also contributed significantly to the level ofNEM-related detail provided in the State InfrastructureStrategic Plan. This plan is published by the NSWGovernment as part of its commitment to promotepublic-private partnerships in the development of criticalinfrastructure supporting the NSW economy.

MINISTERIAL COUNCIL ON ENERGY

The Council of Australian Governments (COAG)established the Ministerial Council on Energy (MCE) inJune 2001. The MCE’s purpose is to provide leadershipand to coordinate energy policy developments in Australiaon issues requiring a national approach. The NSWrepresentative on the MCE is the Minister for Energy.

The MCE is supported by a Standing Committee ofOfficials (SCO) involving all jurisdictions. NSW isrepresented on the SCO by the Director-General of theMinistry. The Ministry’s Energy Strategy Section

coordinates the briefing materials used by the Minister atmeetings of the MCE and those used by the Director-General at SCO meetings.

The MCE has established four working groups involvingall jurisdictions:

• Energy Market Development Working Group

• Strategic Energy Supply and Security Working Group

• Energy Efficiency and Greenhouse Working Group

• Downstream Petroleum Working Group

Strategy Branch has been deeply involved in the workprograms of these working groups. The MCE has alsoestablished the National Oil Security EmergencyCommittee in which Industry Performance branchrepresents NSW.

C H A I R I N G T H E E N E R G Y M A R K E TD E V E L O P M E N T WO R K I N G G RO U P

Chaired by the Director-General, this working groupexamined ways of improving the efficiency of Australia’selectricity and gas markets. Particular areas of concernare: existing and potential gas and electricity marketstructures and institutional mechanisms, regulatoryharmonisation, increased interconnection and systemsecurity, improved customer choice, improved demand sideparticipation, and the wider penetration of natural gas.

The Energy Strategy Section assisted the Director-General by providing the Secretariat to the workinggroup. This involves arranging meetings, preparing andcirculating agendas, meeting papers and meeting records,and negotiating with other jurisdictions regarding thecontent of meeting papers.

The Executive Director of the Strategy Branch was theNSW representative on the Working Group. EnergyStrategy Section assisted the Executive Director in theformulation of NSW positions on issues under discussionin the working group.

In 2002–03, the working group reported to SCO on theenergy market reviews recently completed or underwayin Australia. It also examined a number of gas marketissues including the level of competition in the upstreamgas sector, the implementation of a national gas qualitystandard, and the development of a coordinated responseto natural gas supply emergencies.

COAG commissioned an independent review of energymarket directions and the review report was consideredby the MCE during the first half of 2003.


R E P R E S E N T I N G N S W O N T H E S T R AT E G I CE N E R G Y S U P P LY A N D S E C U R I T Y WO R K I N G G RO U P

Our Energy Analysis Section represents NSW on thisWorking Group, which is developing future energysupply and demand scenarios and reporting on energyintensity trends. Our Energy Analysis and EnergyStrategy Sections work together to formulate NSW inputto the working group.

R E P R E S E N T I N G N S W O N T H E E N E R G YE F F I C I E N C Y A N D G R E E N H O U S E WO R K I N G G RO U P

The Greenhouse and Sustainable Energy Section, inconjunction with the Sustainable Energy DevelopmentAuthority, represented NSW in this Working Group,which provides a forum for information aboutgreenhouse abatement programs and policies.Importantly, this working group is responsible forimplementing nationally coordinated energy efficiencyprograms targeting appliances and buildings.

REPRESENTING NSW ON THE DOWNSTREAMP E T RO L E U M WO R K I N G G RO U P

The Energy Strategy Section represents NSW on thisWorking Group, which analyses the structure of therefining and petroleum retailing industries and theirimplications for the supply of transport fuels.

S U P P O RT I N G G OV E R N M E N TE N E R G Y M A N AG E M E N T P O L I C Y

The Government Energy Management Policy (GEMP)was introduced in November 1998. It is the NSWresponse to the requirement in the NGS for StateGovernments to reduce greenhouse gas emissions fromtheir own operations. To this end, the NSW Governmenthas set the following goals:

• for all Government buildings throughout the State toreduce their total energy consumption, where cost-effective, by 15 per cent of the 1995–96 level by2001–02 and by 25 per cent of the 1995–96 level by2005–06; and

• for all Schedule 1 agencies to purchase electricity witha minimum component of 6 per cent accredited greenpower (this requirement applies to contestable siteswith appropriate metering – all sites becamecontestable on 1 January 2002).

Prime responsibility for the success of the policy lieswith individual agencies. However, the Ministry isresponsible for overseeing the implementation and policydevelopment of GEMP. This involves advising theDepartment of Commerce (formerly the Department ofPublic Works and Services) on electricity purchases, andpublicly reporting on the Government’s aggregateperformance against targets.

Encouraged by GEMP, many Government agencies havemade significant improvements in performance andprogress towards meeting their targets. For example:

• building energy use from Government buildings isestimated to have fallen by 2.3 per cent between1995–96 and 2001–02. Despite increased demands onservices, some agencies, notably Health, Education andCorrective Services have improved the quality of theirservice delivery;

• building energy costs fell by 5.3 per cent between1995–96 and 2001–02, yielding savings of over $7.4 million;

• 28 NSW Government agencies reduced their buildingenergy consumption each by more than 15 per centcompared with the base year, 1995–96 providing atotal savings of $3.7 million; and

• 63 NSW Government agencies purchased 78,762MWh of green power during 2001–02, displacingapproximately 75,300 tonnes of greenhouse gases.

A Senior Officers Steering Committee has been formedby the CEOs of the Ministry, the Sustainable EnergyDevelopment Authority (SEDA), and the Department ofPublic Works and Services (now part of the Departmentof Commerce), plus a representative of The CabinetOffice to review the GEMP. The Steering Committeehas taken into consideration of the StandingCommittee’s recommendations and produced a draftGEMP Action Plan with appropriate actions tostrengthen the GEMP framework.

The Strategy Branch supported the implementation ofGEMP by:

• maintaining and updating the database of contactdetails of CEOs, energy managers and energycoordinators in 142 Government agencies and theirreported energy consumption data;

• developing and providing the agencies with a user-friendly web-based data reporting tool – Energy DataGathering and Reporting (EDGAR), with instructionsfor its use;


• providing energy managers and energy coordinatorsfrom various government agencies training in the useof EDGAR;

• enhancing the features of EDGAR based on thefeedback from the agencies;

• providing GEMP policy and other related documentson our website;

• providing technical advice to agencies in response totheir queries about the EDGAR and data related issues;

• following up and obtaining data from all the reporting agencies;

• checking, correcting and updating the EGDAR database;

• analysing data and preparing tables and charts;

• preparing the GEMP annual report; and

• presenting data reporting issues and report findings tothe NSW Energy Forum of Government agency energy managers and coordinators as well as toindividual agencies.

J O I N I N G AU S T R A L I A N T R A N S P O RT E N E R G YDATA A N A LYS I S C E N T R E

The Australian Transport Energy Data and AnalysisCentre (ATEDAC) is the first centre of excellenceestablished in Australia to analyse energy end use datafor the transport sector. ATEDAC was established in thefirst quarter of 2002, with support from Commonwealthand State Government and private agencies in variousStates and Territories. The Ministry and the NSW Roadsand Traffic Authority have both joined ATEDAC.

ATEDAC’s purpose is to significantly improvestakeholder knowledge of transport energy use, supplypatterns, and emissions. Information will be obtainedfrom comprehensive data collection and regular analysesof transport by mode (road, rail, air, sea, pipelines,conveyors, non-motorised transport) on regional, state,national, and international bases.

Data permitting, ATEDAC will:

• analyse historical and forecast information on trends inthe Australian transport sector at regional, state andnational level in respect of: energy consumption,energy efficiency and emissions;

• investigate all conventional modes of transport (road,rail, sea and air) as well as the increasingly importantarea of pipelines and similar transport modes;

• analyse end use and fuel use patterns to identifyimprovements in energy efficiency and the potential toreduce emissions in transport energy use, studyinggreenhouse emissions and air quality as well as waste;

• develop a comprehensive range of products andservices tailored to the specific requirements of itsstakeholders and the general transport market;

• identify and assist in overcoming existing transporttask, energy and environmental data deficiencies;

• supplement the data collection programs of otheragencies, whenever feasible;

• enhance the quality and effectiveness of Australiantransport, energy consumption and emission data byformalising a data quality assurance system; and

• support stakeholders’ use of and accessibility to theproducts and services it develops.

Two reports: Australian Transport Facts 2001 and NSWTransport Facts 2001 have been prepared by theATEDAC during 2002–2003. The reports providedetailed information on transport (passenger and freight)tasks, energy consumed and emissions by transport modeand fuel type since 1984–85 and projections to 2012.

S U P P O RT I N G T H E D E V E L O P M E N TO F E N E R G Y P O L I C Y

By providing statistics and research, we supported andgenerally assisted the development of Governmentpolicies in relation to energy by:

• ensuring the timely provision of quality data andinformation on energy related matters to internal andexternal clients;

• regularly collecting, analysing and updating variousenergy related databases;

• obtaining energy, economic and other data for NSWresidential, commercial, industrial and transport sectorsfrom the Australian Bureau of Statistics, AustralianBureau of Agriculture and Resource Economics,Electricity Supply Association of Australia, AustralianGas Association and other public and private agencies;

• analysing data from NEMMCO, TransGrid, SnowyHydro, electricity generators and retailers;

• preparing the New South Wales Energy Flows2001–2002;

• preparing the Energy at a Glance and Energy in NSW leaflets;


• contributing to the energy chapters of the NSW YearBook 2003 and the Australian Year Book 2003published by the Australian Bureau of Statistics;

• contributing to the work of the Strategic EnergySupply and Security Working Group (under theMinisterial Council on Energy) in developing theenergy supply and demand scenarios study and energyintensities study;

• contributing to the National Government EnergyManagement Group, particularly by developing a web-based national reporting system for energy use (thisreporting system has been adopted by the NSWGovernment since 2001–2002); and

• procuring and installation & running of variouscomputer models mainly for the development of theNSW Statement of System Opportunities.

N S W S TAT E M E N T O F S YS T E MO P P O RT U N I T I E S

Demand for electricity in NSW continues to grow. Toenable existing and prospective participants to considerinvestment options in NSW, the Minister for Energyreleased the NSW Statement of System Opportunities(the Statement) during June 2002. This was a first forthe Ministry and the NSW electricity industry.

A C ATA LYS T F O R I N V E S T M E N T

Since its release, the Statement has been referenced by anumber of proponents in their project proposals toestablish new generating capacity in NSW. A number ofpotential new options for ensuring the supply-demandbalance have begun to emerge whilst several newrenewable projects have come on line. The emerginggeneration options range in terms of their fuel sources,locations and sizes.

During 2002–03 the Ministry worked on a preparing thefirst update of the Statement, which is expected to bereleased during 2003–04.



TOW N WAT E R T R E AT M E N TA N D R E C Y C L I N G


During 2002–03, the Branch provided the Governmentand local water utilities with advice, regulatory functionsand financial assistance for the forward planning andperformance of over 120 water and sewerage businessesin rural NSW.

The Branch administered the Country Towns WaterSupply and Sewerage Program, which provides technical,management and financial support to local governmentin the provision of water supply and sewerage services tocountry towns in NSW.

The Branch was transferred from the Department ofInfrastructure, Planning and Natural Resources to theMinistry on 2 April 2003.

2 0 0 2 – 0 3 AC H I E V E M E N T S

• Improved water supply and sewerage services incountry towns in NSW.

• The provision of water supply and sewerage, built andnon built solutions, to cost effectively meetcommunity needs in urban areas whilst protectingenvironmental values and making best use of regionalresources.

• Improved public health and environmental outcomesfor NSW country towns.

• Improved sewerage services for small unsewered townsin country NSW with high or urgent health risks.

• Drought management, including technical andfinancial assistance, to local water utilities.

• Oversight the approval of liquid trade wastedischarges.

• Amendments to the Local Government Act and theWater Management Act.

• Implementation of Integrated Water CycleManagement.

• Performance monitoring of local water utilities.

• Dam safety, water treatment and sewage treatment audits.

I N T E G R AT E D WAT E R C Y C L EM A N AG E M E N T

The aim of Integrated Water Cycle Management(IWCM) is the sustainable use and development ofresources within the catchment while meeting key waterservice requirements. This approach acknowledges thatwater utilities and councils have responsibility, withothers, for resource management in regional NSW. As aconsequence their businesses are expected to achievesound resource management for the future welfare ofthe communities they service.

IWCM is a high level approach that drives the businessand financial planning and the asset management of thewater, sewage and stormwater businesses. The approachdelivers key social, economic and environmentaloutcomes and identifies the processes that are needed toachieve them. A key outcome is the priority for theconservation of water by all users.

The NSW State Government, through the Ministry ofEnergy and Utilities, is currently implementing IWCM inpartnership with NSW water utilities. The IWCMprocess has two stages – the development of a conceptreport identifying the issues in the catchment whichimpact on the delivery of urban water services. This isfollowed by a strategy study to evaluate options for thewater services. A total of twelve projects in differentparts of the State are currently utilising the IWCMprocess and 9 concept reports have been competed todate. A strategy study has been completed forEurobodalla Shire and a number of local water utilitiesare currently managing the strategy studies for theirwater supply, sewerage and stormwater services. Theoutcome from the Eurobodalla IWCM resulted insignificant costs saving (in the order of $75M over the 30year planning period) and improved natural resource andenvironmental outcomes.

A draft Integrated Water Cycle Management Manual hasbeen prepared to assist local water utilities in thepreparation of IWCM plans. The manual will be finalisedbased on the experienced gained through the twelvecurrent projects.

36 TOW N WAT E R T R E AT M E N T A N D R E C Y C L I N G

I N F R A S T RU C T U R E A N D F U N D I N G

The Country Towns Water Supply and Sewerage(CTWS&S) Program is a partnership between theMinistry of Energy and Utilities and local water utilitiesin non metropolitan NSW. The Program providestechnical, management and financial support to localgovernment in the provision of water supply andsewerage services to country towns in NSW.

The Program provides financial assistance to local waterutilities towards the capital cost of works to address thebacklog works in water supply and sewerageinfrastructure. Backlog relates to infrastructure necessaryto meet the demand, loads, service standards andregulator requirements that existed at 1996 when thecurrent Program was launched by the State Government.Local water utilities are responsible for the operationsand maintenance costs and capital costs to meet growth,asset replacement and changes in standards orrequirements post 1996.

The support provided by the Program is delivered at alocal level by Client Representatives employed by the

Ministry working out of eight regional offices located inAlbury, Alstonville, Coffs Harbour, Dubbo, Leeton,Newcastle, Tamworth and Wollongong.

The Client Representatives are responsible for ensuringthat all projects are undertaken in an efficient andeffective manner. Acting in this role they are accountableto both the Ministry and local water utilities for theachievement of the project objectives.

AC H I E V E M E N T S O F T H E C O U N T RY TOW N SWAT E R S U P P LY A N D S E W E R AG E P RO G R A M

• improved water supply and sewerage services incountry towns in NSW;

• provision of water supply and sewerage, built and nonbuilt solutions, to cost effectively meet communityneeds in urban areas whilst protecting environmentalvalues and making best use of regional resources;

• improved public health and environmental outcomesfor NSW country towns; and

• improved sewerage services for small unsewered townsin country NSW with high or urgent health risks.


Performance of the Country Town Water Supply and Sewerage Program

Quantitative indicator(s) Actual performance Target1999–00 2000–01 2001–02 2002–03 2002–03

No. of new construction projects started 20 2 16 37 24

No. of Small Towns sewerage projects completed. 4 4 8 5 6

No. of Water Supply & Sewerage Projects completed. 20 19 18 15 24

No. of Grants issued 72 24 76 101 80

No. of people benefiting from improved water supply works 77,000 50,000 155,000 81,000 N/A

No. of people benefiting from improved sewerage works 30,000 20,000 68,000 94,000 N/A

In 1997 the Government launched the Small TownsSewerage Program as a subset of the CTWS&S Programto provide additional financial assistance in the provisionof sewerage services to small unsewered communities.This sub program was an acknowledgment that the costsof sewering smaller communities were dearer on a percapita basis than larger schemes. The additional financialassistance is conditional on acceptance of appropriatetechnical standards commensurate with the size of theproject and the smaller risk it thus poses to the environment.

This sub program enables local water utilities to providesewerage services to small communities that otherwisewould have relied on failing septic systems.

During the year 5 more small town sewerage projectswere completed bringing the total to 26. This hasenabled 12,500 residents to have access to modernsewerage services. It has resulted in the elimination of5,800 failing septic systems with consequentimprovements to environmental and public health.

Construction commenced on a further 13 small townsewerage projects during 2002–03.

E F F I C I E N T A N D E F F E C T I V E I M P L E M E N TAT I O N O F T H E S M A L L TOW N S S E W E R AG E P RO G R A M

WAT E R I N D U S T RY R E F O R M A N D P L A N N I N G

D RO U G H T M A N AG E M E N T

The Ministry is providing assistance to local water utilities(LWUs) on managing water supplies in times of drought.

Technical and financial assistance is provided to assist inpreparation of drought management plans, managedepleted supplies, to implement emergency capital worksor to cart water.

Many LWUs in NSW are developing drought managementplans based on advice provided by the Ministry.

Reports on the status of all water supply schemesoperated by LWUs are being provided to the Ministerevery two weeks.

By the end of June 2003, the Minister had provided thefollowing assistance to NSW water utilities:

Type of Assistance Number of StateSchemes that Government

have been FundsOffered CommittedFinancial to Schemes

Assistance OfferedAssistance

Drought Management 7 $35,000Plans

Emergency Capital Works 33 $5.3 M

Water Cartage 23 Approx $100,000

At the worst period of the drought during 2002– 3,21 small towns were without water, and reliant oncartage to maintain essential water supplies. The townsare shown on the following map.

Droughtwatch 2002–2003, Failed Town Water Supplies

VO L U M E T R I C E N T I T L E M E N T S F O R TOW NWAT E R S U P P LY S C H E M E S

The Water Management Act 2000 (WMA) provideslegislative framework necessary to secure a sustainablebasis for water management into the future. Under theWMA, the Minister must grant an access licence to anyLWU that held entitlement in relation to a water supplywork. The amount of water, volumetric entitlement, for alltowns that draw water from sources are to be expressedas a volume per year and may be determined on thebasis of one of three methods specified in the WMA.


Performance of the Small Towns Sewerage Program

Quantitative Indicators Target Achieved2002–2003 2002–2003

Number of sewerage projects to be completed. 6 5

Number of innovative solutions adopted. 3 3

Number of new small town sewerage construction projects to be started 9 13

Number of small town sewerage grants issued 9 9

Value of small town sewerage grants to be issued. $13M $15.5M

Qualitative Indicators

Local communities acceptance of small town solutionsLocal Water Utilities acceptance of increased funding for socially disadvantaged communities


The Town Water Treatment and Recycling Unit underthe former Department of Land and Water Conservationworked with LWUs to identify appropriate volumetricentitlements for town water supplies in accordance withthe WMA. This function was nearing completion inMarch 2003, but was transferred to the Department ofInfrastructure Planning and Natural Resources in April2003, following the abolition of the Department of Landand Water Conservation.

L I A I S O N

The Water Policy and Reform Division of the Ministryconducts meetings with the Local GovernmentAssociation and Shires Association (LGA & SA), theCommittee on Uniformity of Plumbing and DrainageRegulations in NSW (CUPDR) and the NSW LocalGovernment Water Industry Directorate to ensure thatstakeholder input is provided into the water industryreform process. This encourages industry input andenhances a high level of stakeholder awareness, knowledgeand satisfaction with the water industry reforms.

R E V I E W O F T E C H N I C A L R E P O RT S

The NSW Government provides technical, managementand financial support to LWUs through the CTWS&SProgram administered by the Ministry.

The Ministry reviews concept reports and providesspecialist advice related to water supply and sewerageprojects delivered under the CTWS&S Program.The Ministry also grants approval to the construction or augmentation of certain water supply and sewerageworks under s.60 of the Local Government Act 1993.During 2002–3, Ministry staff carried out the following:

Task 2002–3

Technical evaluation of the concept 31reports for sewerage projects delivered under the Program

s.60 approvals for sewage to be discharged, 25treated or supplied by local water utility to any person

s.60 approvals for the construction or 9extension of local water utility water treatment works

s.60 approvals for the construction or 3extension of local water utility dams

T R A D E WA S T E

Local water utilities in NSW are responsible forapproving the discharge of liquid trade waste into theirsewerage systems. The approval process includes obtainingconcurrence from the Director-General of the Ministry.

In order to streamline the approval process, the Ministryhas prepared a Concurrence Guideline for Liquid TradeWaste Discharges to Sewerage Systems that will assistlocal water utilities to approve certain trade waste toLWU sewers under Section 90 of the Local GovernmentAct. This has reduced the number of applications beingsubmitted for concurrence, but under the Act allconcurrence matters have to be undertaken within the40 day period prescribed by legislation.

Indicator Performance Target

00–01 01–02 02–03 03–04

All local water utility 100% 99% 100% 100%trade waste approvalsprocessed withinstatutory time frames

L E G I S L AT I O N

Legislation concerning the provision of water supply andsewerage services in NSW is complex and extensive.The principal legislative instruments are the LocalGovernment Act 1993 and the Water Management Act2000, but there are many other instruments and policies.

It is a role of the Ministry to ensure that legislationcovering water services provided by local water utilitiesis appropriate, meets best management practices and iswell documented. Ministry staff work with the otherregulatory authorities to develop regulations and toidentify amendments to the current regulations and Actsthat will ensure the implementation of best managementpractices. During the last 12 months Ministry staff havebeen involved in the following areas:

Local Government Act Amendments

Water Policy and Reform officers in conjunction withstaff from the Department of Infrastructure, Planningand Natural Resources, worked with the NSW LocalGovernment Water Industry Directorate to identifyminor amendments to the Local Government Act.Amendments were made during the amended during the

Spring 2002 session of Parliament. The amendments arecontained in Local Government Amendment (Miscellaneous)Act 2002 No 40.

Water Policy and Reform officers worked in conjunctionwith staff from the Department of Local Government todevelop amendments to the Local Government Act tosatisfy the National Competition Policy. The amendmentsare contained in the Local Government Amendment(National Competition Policy Review) Act 2003 No 8.

Water Management Act Amendments

Water Policy and Reform officers in the Ministry togetherwith staff from the Department of Infrastructure,Planning and Natural Resources identified a number ofpolicy and statutory law amendments to the WaterManagement Act 2000 relating to local water utilities.Policy papers and instructions for Parliamentary Counselwere prepared and amended during the Autumn 2002session of Parliament. The amendments are contained inthe Water Management Amendment Act 2002 No 138.

Water Management (Water Supply Authorities)Regulation 2002

Water Policy and Reform officers in the Ministry, inconjunction with staff from the Department ofInfrastructure, Planning and Natural Resources developeda new regulation to consolidate six existing WaterManagement Act regulations into a single regulation forthe five water supply authorities listed under the Act.The Regulation is due for consultation andcommencement in late 2003. The object is to reduce thenumber of existing regulations and to update and renewthe regulatory provisions.

The Regulatory Impact Statement for the newRegulation was delayed to accommodate improvedDepartment of Infrastructure Planning and NaturalResources standards, in accordance with theParliamentary Review Committee’s requirements.

Wastewater Management – On-Site SewageManagement Review

Officers of the Ministry, in conjunction with staff from theDepartment of Local Government (coordinator), NSWEnvironment Protection Authority and NSW Health,have been involved in the development of a revisedguideline for on-site sewage management. This reviewhas not been completed and will continue in 2003–4.

I N D U S T RY S TA N DA R D S

The Ministry contributes input into water industry standardsand codes. It also provides advice to local water utilitieson materials and products used in the provision of watersupply and sewerage services. The Ministry has contributedto many inter-agency committees and code workinggroups during 2002–3. The contributions have included:

• input into the implementation of OH&S legislationand regulations for the CTWS&S Program;

• representation on Standards Australia Committees forwater industry strategic products and input into thedevelopment of these Standards; and

• advice to local water utilities on standards,specifications and OH&S issues.

A N N UA L P E R F O R M A N C ER E P O RT I N G

P E R F O R M A N C E M O N I TO R I N G

The NSW Government provides comparativeinformation to all 126 NSW LWUs to facilitateperformance monitoring and improvement by enablingeach LWU to benchmark its performance against similarLWUs. This information is in the form of an annualPerformance Monitoring Report, which is acomprehensive report for everyone with an interest inthe performance of NSW utilities (management,customers, regulators and other utilities).

Data for the report is collected by the Ministry from theannual water supply and sewerage performance reportingforms. This data is analysed and a report is prepared. Thekey performance indicators reported have been alignedwith national and international performance reporting tofacilitate wider comparisons. The performance reportingsystem has been progressively enhanced to provide abalanced view of the long-term sustainability of NSW waterutilities with a triple bottom line (TBL) accounting focus.

The Minister for Energy and Utilities has released the2001–02 NSW Water Supply and Sewerage PerformanceMonitoring Report and an Overview Brochure to all NSWwater utilities. All 126 NSW LWUs have reported theirperformance in 2001–02. The report and brochure hasalso been provided to relevant government agencies aswell as the National Competition Council (NCC) andthe Independent Pricing and Regulatory Tribunal(IPART). The report has also been published on theMinistry’s web site (energy.nsw.gov.au).


To provide a balanced view of the long-term sustainabilityof the NSW water utilities, a TBL reporting frameworkhas been developed for the Performance Monitoring reporton the basis of Social, Environmental and Economicperformance indicators.

2 - PAG E P E R F O R M A N C E R E P O RT

2-page TBL performance reports have been prepared foreach LWU and will shortly be released to each LWU andalso to IPART.

I N T E R S TAT E C O M PA R I S O N S

To provide an overall assessment of the performance ofNSW non-metropolitan water utilities in providing watersupply and sewerage over the last 12 years, comparisonsare made with interstate utilities. The NSW PerformanceMonitoring Report indicates:

• annual operating cost for water supply was $215 perconnected property, which was similar to Sydney andsignificantly lower than country utilities in the otherstates. It is noted that properties served per km ofwater or sewer main was similar to country Victoriaand significantly lower than capital city utilities;

• the operating cost for sewerage was $245 perconnected property, which was similar to the otherAustralian utilities. It is noted that although all sewagetreatment works in non-metropolitan NSW providedat least secondary treatment, Sydney providedsecondary treatment for only 20% of its sewage;

• compliance with microbiological water qualityguidelines was similar to the other Australian utilitiesand was better than country Victoria;

• Biological Oxygen Demand (BOD) and SuspendedSolids (SS) compliance was similar to country Victoriaand slightly lower than the capital city utilities;

• water main breaks, sewer main chokes and sewer overflowsto the environment were lower than most other utilities;

• water quality complaints and sewage odour complaintswere similar to the other Australian utilities;

• annual residential consumption per property wassimilar to Hunter and Melbourne, and was lower thanthe other Australian utilities;

• the number of employees was 2.7 per 1,000properties, lower than the last reported values forSydney Water and Hunter Water; and

• economic real rate of return was lower than the capitalcity utilities, but significantly higher than the countryutilities in the other states.

P R I C I N G

Best-practice pricing of water supply, sewerage and liquidtrade waste services provides appropriate pricing signalsto enable customers to balance the benefits and costs oftheir use of water services.

Such pricing ensures efficient use of water resources andis required for effective management of water supply andsewerage businesses and minimisation of customer bills.The introduction of such best-practice pricing is a keyaspect of the COAG Strategic Framework for WaterReform and National Competition Policy.

Comprehensive best-practice Water Supply, Sewerage andTrade Waste Pricing Guidelines were prepared by theMinistry and distributed to all LWUs in February 2003.In addition, software for water supply, sewerage andtrade waste pricing has been prepared and provided toLWUs for their use in the review of tariff optionstogether with a help desk to assist LWUs to quicklymove to best-practice pricing.

A series of 7 regional workshops were conducted toassist LWUs in developing and introducing best-practicetariffs for water supply, sewerage and trade waste.

D E V E L O P E R C H A R G E S

In January 2003, the then Minister released the DeveloperCharges Guidelines for Water Supply, Sewerage andStormwater. The guidelines define the elements of best-practice developer charges and provide guidance on thedevelopment, analysis and implementation of appropriatedeveloper charges. The guidelines have been issued to allLWUs in NSW.

The Ministry also prepared case studies and calculatorspreadsheets that allow LWUs to quickly calculateappropriate developer charges.

S T R AT E G I C B U S I N E S S P L A N N I N G A N DF I N A N C I A L P L A N N I N G

In order to deliver efficient and high-quality watersupply and sewerage services in non-metropolitan NSW,it is important that LWUs prepare and implement soundStrategic Business Plans (SBPs).

SBPs detail the levels of customer service to be providedand the management of assets and resources required toachieve those levels of service. As a part of the SBPprocess, it is important that robust financial planning andasset management planning be undertaken and included


in the SBP. The financial plan must disclose the requiredlevel of typical residential bills (TRBs) required to meetthe target levels of service.

The Ministry will continue to assist LWUs prepare andimplement appropriate asset management plans (operationplan, maintenance plan, capital works plan) to efficientlydeliver their water supply and sewerage services.

The increasing number of LWUs undertaking andsubmitting strategic business plans and financial plansindicate that LWUs are moving towards best-practiceplanning practices.

Over 110 LWUs are now using FINMOD, the NSWFinancial Planning Model for financial planning, and 10workshops were run by the Ministry during 2002–03.

R E F E R E N C E R AT E S

The NSW Reference Rates Manual has been prepared andwill be released shortly to all LWUs. The manualprovides up to date information on the capital cost ofwater supply, sewerage and stormwater infrastructure toassist LWUs in the valuation of their existing assets andin calculating cost-reflective developer charges.

DA M S A F E T Y

This project addresses the Minister’s statutoryresponsibilities under section 61 of the Local GovernmentAct 1993 for ensuring the safety of 180 LWU damsmanaged by over 80 LWUs (local government councils)in non-metropolitan NSW. The program facilitates cost-effective, safe and appropriate surveillance andmanagement of the dams and upgrading of any deficientdams, thus protecting the public, the environment andthe assets by proactively avoiding dam failures andconsequent loss of life and infrastructure.

The Ministry undertakes the following:

• audit inspections of LWU dams to a frequencydetermined by the Australian National Committee onLarge Dams (ANCOLD) Guidelines and as endorsedby an independent review of the section’s dam safetyprocedures (1993) to facilitate achievement of best-practice in surveillance operation and maintenance ofdams. A written audit report setting out any correctiveactions required is provided to the LWU after each audit;

• 5 yearly regulatory safety assessment reviews at LWUdams to meet the requirements of the NSW DamsSafety Committee (DSC);

• manage and monitor timely implementation of theprogram of requisite upgrading of deficient dams;

• provide expert technical advice to LWUs on damsafety issues including review of dam monitoring data;

• manage and facilitate technology transfer and best-practice through audit reporting and conducting damsafety surveillance seminars for LWU engineers andoperators;

• manage the development of policy and guidelinesapplicable to LWU dams for inclusion in AustralianDam Safety Procedures Guidelines as well as providinginput to the Dams Safety Committee; and

• provide specialist advice on the development of Dam Safety Emergency Plans and during dam safetyemergencies.

Portfolio Risk Assessment (PRA) – The PRA on 21Local Water Utility Dams with identified deficencies wascompleted and this has developed an appropriate cost-effective program for upgrading these dams to thestandards required by the Dams Safety Committee (DSC).A $25M program of remedial works 10 priority dams isbeing implemented with LWUs over the next 5 years.

Operation and Maintenance – As a result of theMinistry’s audits of LWU dams and dam safetysurveillance seminars, a marked improvement has beennoted in the standards of surveillance, operation andmaintenance at LWU dams over the past two years. Thishas been recognised by the DSC in its annual report.

WAT E R S U P P LY A N D S E WAG E T R E AT M E N T

The Ministry facilitates best-practice in the operationand maintenance of water and sewage treatment worksby undertaking regular audit inspections of the 400 LWUwater and sewage treatment works. It also conductsseminars and accredited courses for operators on watertreatment and sewage treatment.

In 2001–02 non-metropolitan NSW utilities compliedwith all water quality targets (microbiological, faecalcoliforms, physical and chemical), water qualitycomplaints, water treatment process failures andchlorination system failures.

In 2001–02 non-metropolitan NSW utilities compliedwith all sewage treatment licence targets (BOD, SS),sewage odour complaints, sewage treatment processfailures and sewage treatment works failures.



S TAT E WAT E R


State Water is a commercial business of the Ministry ofEnergy and Utilities, incorporating all the state’s bulk waterdelivery functions into a single business. State Water isresponsible for the operation and maintenance of 18 majorand 12 minor rural dams and some 200 weirs across NSW.

About 6,200 licensed bulk water users are supplied fromrivers regulated by State Water dams and storages. Thebusiness also monitors unregulated streams and ground-water usage to provide access to a further 15,000 customers.

State Water was transferred from the Department ofInfrastructure, Planning and Natural Resources to theMinistry on 2 April 2003.

2 0 0 2 – 0 3 AC H I E V E M E N T S

• Good communication and consultation with customers.

• Timely access for all customers to information andresource availability / sharing decisions.

• Cost effective delivery of services.

• Continuous improvement in water delivery.

• Increased water delivery operations efficiency.

• Further development and implementation of TotalAsset Management Plan and its maintenance.

• Business and Portfolio Risk Management.

• Compliance with Dams Safety Committee requirements.

• Responsive business planning and development.

• Performance management using the BalancedScorecard methodology.

• Compliance with COAG and NCC requirements.

• Competency / motivation based recruitment andtraining.

• Good communication and consultation with staff.

• Compliance with OH&S requirements at all work sites.

C U S TO M E R S E RV I C E

G O O D C O M M U N I C AT I O N A N DC O N S U LTAT I O N W I T H C U S TO M E R S

Regular Customer Service Committee (CSC) meetingswere held in all river valleys with senior managersattending in addition to the Customer Service Managersand Area staff. Customer Service Officers in particular havemaintained frequent and regular contact with customersand water users, providing timely and useful information.

A meeting of the eight Customer Service CommitteeChairs was held in Sydney on October 2002 withaddresses from the Director-General and Deputy Director-General of Department of Land and Water Conservation.This meeting resulted in reinforcement of the positiverelationship between State Water and its customers.

The Customer Service Committee Terms of Referencewere reviewed in anticipation of Customer ServiceCommittee membership elections in late 2002–03. Due tothe change of State Water’s reporting from theDepartment of Infrastructure, Planning and NaturalResources (DIPNR) to the Ministry of Energy andUtilities, the elections were postponed. The terms of allsitting members were extended until 30 June 2004.

AC C E S S F O R A L L C U S TO M E R S TOI N F O R M AT I O N A N D R E S O U R C EAVA I L A B I L I T Y / S H A R I N G D E C I S I O N S

Customer newsletters were circulated from State Waterto regulated river customers in two of the four State Waterareas on a regular basis.

Off allocation notifications were sent to relevantcustomers as soon as a decision was made by theResource Manager during all events in 2002–03.

State Water storage levels, water allocations, off allocationannouncements and media releases are posted on theInternet for customers, community and media to access.

The CSC meetings were scheduled to synchronise withcritical periods for information dissemination. RegionalResource Managers were invited to attend and deliverinformation to customers.

Key stakeholders have been kept informed throughtimely visits or calls from State Water staff at all levels.

Daily storage levels and release information werebroadcast and telecast via regional radio and television.

C O S T E F F E C T I V E D E L I V E RY O F S E RV I C E S

Delivery of services is a key function for State Water, andduring 2002–03:

• Service Level Agreements were negotiated withinternal suppliers and customers to define the servicesexchanged and the costs;

• a Project Delivery System was developed andimplemented during this year to ensure pre projectplanning and appropriate risk management to providecost effective outcomes;

44 S TAT E WAT E R

• internal benchmarking and cost comparisons wereprovided to managers to enable effective control of costs;

• procurement procedures, guidelines and proformaswere developed and implemented to ensureprocurement is cost effective and compliant withrelevant procedures; and

• State Water developed a Memorandum ofUnderstanding with NSW Fisheries to expedite theassessment of State Water structures and works tomeet Fisheries’ requirements.

WAT E R D E L I V E RY

C O N T I N U O U S I M P ROV E M E N T I N WAT E RD E L I V E RY

The Water Ordering and Usage (WOU) business criticalsoftware system was upgraded to cater for therequirements of the Water Management Act 2000, whichwas due to be implemented on 1 July 2003. This datehas now been deferred, however the software is now inplace for when the Act does commence. Considerableadditional functionality has been developed and installedin this system.

The Computer Aided Improvements to River Operations(CAIRO) software was further developed and a newversion has been rolled out successfully and deployed tothe Area river operations.

Several State Water Customer Service Officers workedon a project to investigate improved metering efficiency.Comparative trials of a variety of meters were conductedto establish best practice.

State Water has assumed a key role in the developmentof metering protocols to standardise metering practicesstatewide, to increase metering efficiency and reliability andto meet the requirements of the Water Management Act.

A Water Delivery Forum was held in Moree to allow all staff involved in water delivery to be brought up todate on emerging issues, peer review operations and toseek solutions to any operational problems with systemsor software.

I N C R E A S E D WAT E R D E L I V E RY O P E R AT I O N SE F F I C I E N C Y

Throughout the drought period, customers have beenencouraged to place, update and amend water orders,with the result being considerable reductions inoperational losses.

The Interactive Voice Response (IVR) system wasextended in the Murrumbidgee and Lower Murray toallow customers to place water orders 24 hours a dayand to determine if this technology has state wideapplication to increase efficiency.

Automation of valve and gate operations has progressedon 3 major dams. State Water was unable to commencethe Resource Data Acquisition System based on theSystem Control and Data Acquisition (SCADA) systemduring 2002–03, but this remains a goal for 2003–04.

A S S E T M A N AG E M E N T

D E V E L O P M E N T A N D I M P L E M E N TAT I O N O FTOTA L A S S E T M A N AG E M E N T P L A N

All major individual assets now have a 30 year assetmanagement program. All planned expenditure has beenloaded on to EXPLAN, the Expenditure Planning Tool.

During 2002–03, current levels of service provided by allState Water structures were defined utilising cross-functional groups.

During the year, State Water was able to completeheritage assessments for all dams and river structures. Aspart of this process, heritage guidelines have been preparedto complement the broader Project Delivery System.

State Water staff have commenced environmentalassessments of assets, and prepared draft environmentalprotocols for the Project Delivery System.

Maintenance costs have been benchmarked over 3 financialyears up to 2001–02, with the results indicating averagecosts of 0.33% of Modern Engineering EquivalentReplacement Asset (MEERA) valuation for dams and1.0% for river structures.

Discussions were held with external experts to developan Optimal Renewal Decision Making methodology, andfollowing these discussions model development workwill commence during 2003–04.

A pilot project on the operation and maintenance ofspillway gates for procedure development was commenced.

B U S I N E S S A N D P O RT F O L I O R I S KM A N AG E M E N T

State Water completed a Portfolio Risk Assessment fordam failure, which identified three major dams and threeminor dams with intolerable risks, and four major damsand five minor dams with unacceptable risks.


Following the results of the Portfolio Risk Assessment,State Water developed short term risk mitigationstrategies for three major dams. Short term risk reductionmeasures at Keepit Dam have included the completionof fuseplug works, and significant progress has occurredon developing a shortlist of long-term options.

State Water eliminated risks from 2 minor dams with theremoval of Wellington Dam and the sale of QueenCharlotte Vale Dam. Wellington Dam decommissioningand disposal has been completed, with re-vegetation ofthe site currently underway.

A Community Reference Panel was formed to addressrisk reduction at Chaffey dam. Extensive communityconsultation on options has taken place.

Discussions are also occurring with local government tofinalise options for Bethungra Dam.

C O M P L I A N C E W I T H DA M S S A F E T YC O M M I T T E E R E Q U I R E M E N T S

Portfolio risk management actions were undertaken at 5 dams during 2002–03.

All programmed Dam Safety Surveillance Surveys werecompleted by 30 June 2003, with a total of 20 structuressurveyed.

Sixty-five surveillance audits were undertaken at 18major dams, 12 minor dams and 35 river structures. 18dam maintenance audits and 22 gated weir maintenanceaudits undertaken.

All ‘immediate’ actions highlighted in the audit reportshave been completed.

In addition, five-yearly surveillance inspections wereundertaken at five major dams in accordance with DamsSafety Committee requirements, including comprehensivesafety reviews.

Dam Safety Emergency Plans (DSEPs) have been updatedand a program to trial the DSEPs has been developed.DSEPs were trialled at 5 major dams during 2002–03.

B U S I N E S S D E V E L O P M E N T

R E S P O N S I V E B U S I N E S S P L A N N I N G A N DD E V E L O P M E N T

Seven key process improvement measures wereimplemented to standardise procedures statewide. Theseincluded firstly the OH&S Management system, which

defines the processes to be followed in order to met thelegislative requirements, and secondly the projectdelivery system, which ensures project planning and riskmanagement are executed to a consistently high standard.

P E R F O R M A N C E M A N AG E M E N T U S I N G T H EB A L A N C E D S C O R E C A R D M E T H O D O L O G Y

State Water planned to refine the Strategic Plan in thelast quarter of 2002–03 with subsequent BalancedScorecard implementation. The move to the Ministryand the new protocol for Business Planning meant theBalanced Scorecard development has been deferred until2003–04.

C O M P L I A N C E W I T H C OAG A N D N C CR E Q U I R E M E N T S

Ten processes were reviewed and standardised in2002–03. Full cost recovery and user pays principleswere applied in accordance with the relevant IPARTDetermination. State Water prices have been increasedto comply with the IPART Determination, but lowersales due to the drought have reduced revenue. Debtrecovery has continued to improve, despite 2002–03being a drought year.

O U R P E O P L E

R E C RU I T M E N T A N D T R A I N I N G

A Storages Staff Training and Accreditation Workbookwas developed with extensive staff and managementinteraction. Three Certificate 2 Workplace Assessmentcourses were run for State Water staff as part of theStorages Staff Training and Accreditation Systemimplementation.

A Consent Award for storages, operations and asset staffhas been developed and is to be submitted to the Director-General. The process has been transparent, consultativeand independently assessed as ‘fair and equitable’.

Work commenced on an organisation-wide trainingpolicy to be integrated with the planned Communicationand Personal Development program.

A Staff Survey was conducted with a 72% response rate.In 2003–04 a staff and management working party willdevelop strategies to address the issues raised in thesurvey, and a performance measurement and reportingsystem will be implemented to make sure actions addressthe concerns of our staff.

46 S TAT E WAT E R

G O O D C O M M U N I C AT I O N A N DC O N S U LTAT I O N W I T H S TA F F

A vote was held in late 2002 to determine whether staffwanted the Staff Consultative Steering Committee tocontinue. The staff voted strongly in favour ofcontinuation of the process of area Staff ConsultativeCommittees feeding issues to the central StaffConsultative Steering Committee.

Three meetings of the Staff Consultative SteeringCommittee were held in 2002–03.

State Water planned to refine the 2002–05 Strategic Planin a second quarter 2003 workshop involvingmanagement and staff but this process was put on holdwith the transition to the Ministry and the changedprocess for Business Planning.

All but 5% of staff, including wages employees, are nowon email. The State Water Intranet Site was developedand launched, using internal resources. The site hasdelivered not only an effective communication medium,but also core business functions of business criticalinformation to all staff equitably. The Project DeliverySystem, OHS Compliance Management system andbusiness administrative processes are all delivered andavailable to all staff on the intranet.

State Water has a basic presence on the Internet, and isdeveloping this presence to deliver services to customers,water users and the community.

C O M P L I A N C E W I T H O H & S R E Q U I R E M E N T S

State Water developed an Intranet based OH&SCompliance Management System, which has beendeployed and implemented across the whole organisation.The initial annual system audit and remedial actionstrengthened the safety culture in State Water.

Risk Management Plans, Site Safety Plans and Work MethodStatements have been developed for high risk activities.

N S W WAT E R D E L I V E RY A N N UA LR E P O RT 2 0 0 2 – 0 3

Water delivery in 2002–03 was dominated by theongoing drought. The total State Water storage level inJuly 2002 was 48% of capacity. This dropped to 17.6%by March 2003 and rose marginally to 20.7% by 30 June2003. This was significantly down from a high of 78% inSeptember of the previous year.

Allocations were restricted in all valleys, except theHunter, and the allocations in the Murrumbidgee andMurray were the lowest in the history of those irrigationvalleys. Total water deliveries of 4,100 gigalitres wereabout 60% of previous maximum deliveries.

Deliveries to high security customers were not restricted.This meant that all of State Water’s town, stock anddomestic, industrial and high security irrigation customersreceived their full allocation for the year and State Waterdelivered all ordered water to these customers.

General security customers received various levels ofrestricted allocations, depending on the water available inthe storage in their particular valley. State Water deliveredall water ordered for general security customers, exceptfor a minor shortfall in the Bega valley in January andFebruary 2003. The Namoi, Border, Macquarie andHunter valleys all benefited from water available fromdams that were built in the 1980s and 1990s.

Large releases were successfully made from upstreamstorages to lower storages. Most notably, Split Rock Damand Windamere Dam made substantial releases to Keepitand Burrendong Dams respectively. Split Rock Damwent from 95% in July to 11% in January, whileWindamere Dam dropped from 87% in July to 50% thefollowing March. These releases were managed toprovide as much environmental benefit whilstminimising inconvenience to customers. River MurrayWater made similar releases from Dartmouth to HumeDam and from Hume Dam to Lake Victoria.

M U R R AY VA L L E Y

The Murray Valley had the lowest availability in itsallocation history. The general security availability wasonly 22%, made up of 12% carryover from last year, plusa 10% allocation for this year.

Releases were made from the upper storages (Dartmouthand Hume Dams) to Lake Victoria to ensure supplies toSouth Australia were met. Hume Dam fell to its lowest-ever summer levels and inflows to the system were thelowest recorded over more than 100 years of records.

Less than 10% of the usual NSW Murray rice crop wasplanted. Irrigators negotiated an advance of Snowy Hydroreleases for the autumn of 2003. Reserves for 2003–04were held in Dartmouth Dam and the Snowy storages.


L OW E R DA R L I N G VA L L E Y

There was no restriction in this valley and the allocationwas 100%. Channel works at Lake Tandure and at LakeCawndilla maintained supplies in the Lower DarlingRiver, but there were periods when sections of the riverstopped flowing.

The 2003–04 supplies for Broken Hill were not secure untilautumn flows in the Darling tributaries made their wayto Menindee. Additional restrictions were placed onupstream irrigators to ensure these flows reached Menindee.

M U R RU M B I D G E E VA L L E Y

The allocation announcements in the Murrumbidgee for2002–03 were the lowest on record. The valley had anavailability of 47%, made up of 9% carryover and anallocation of 38%. However, a volume equivalent to only36% could be supplied by 28 February, with the remainderavailable from Snowy Hydro releases after 1 March.Some irrigators bought an additional advance of about9% from Snowy Hydro.

The estimate for the Murrumbidgee rice crop was about40% of last year’s crop. Both Burrinjuck and BloweringDams fell to less than 5% in early April and all suppliesrelied on releases from Snowy Hydro.

L AC H L A N VA L L E Y

The valley had an availability of 31%, which was thesecond lowest on record. This was made up of 28%carryover and an allocation of 3%. The total availability(high plus general security) provided enough water forabout 58% of the typical dry year’s use.

The Lachlan cotton crop was only about 30% ofprevious year’s crop and most of the valley’s availablewater was used on lucerne, other fodder crops andmaize. Wyangala Dam was at its lowest level since 1983,at 9%. This was insufficient for essential requirements inthe following year, so drought contingency plans wereput in place at the end of the year.

M AC Q UA R I E VA L L E Y

The valley had an availability of 59%, all from last year’scarryover. Between August and February, 104 gigalitres ofwater was transferred from Windamere Dam, nearMudgee, to augment supplies in Burrendong Dam andmeet the Macquarie Valley’s commitments. During thistime, debris blocked some pump filters and someMudgee irrigators experienced pumping problems.

Releases were made in August 2002 from BurrendongDam for the Macquarie Marshes. The Macquarie cottoncrop was estimated at about 45% of the previous year’scrop. Burrendong Dam fell to a new record low of 1.17%in February, before a storm and flooding around Mudgeeincreased the dam’s water level to 9%.

The storage reserves in Windamere and BurrendongDams, in combination with drought minimum inflows,will be sufficient for next year’s essential requirements inthe Macquarie Valley and for the Cudgegong Valley’sessential requirements and irrigation for the next seven years.

N A M O I VA L L E Y

The valley had an availability of 95%, all remaining fromcontinuous accounting balances from the previous year.There were no increments in 2002–03.

The release from Split Rock Dam to augment supplies inKeepit Dam began in August 2002 and ended on 29January 2003. A total of 315 gigalitres was transferredbetween the dams. The remaining storage levels willsecure essential requirements for 2003–04.

G W Y D I R VA L L E Y

The valley had an availability of 55%, all remaining fromcontinuous accounting balances from the previous year.This year’s cotton crop was estimated at about 50% oflast year’s crop. Copeton Dam had enough water at theend of the season to secure essential requirements for2003–04.

48 S TAT E WAT E R

B O R D E R R I V E R S

The NSW availability was 50%, all remaining fromcontinuous accounting balances from last year. There wasa partial increment of the A component of generalsecurity licences, but this was after the end of thesummer growing season. There is enough water inPindari and Glenlyon Dams to meet essentialrequirements in 2003–04.

H U N T E R VA L L E Y

There was no restriction in the valley and the allocationwas 100%, with an additional 10% overdraw from nextyear. Water use was very high, with most of this waterbeing used on lucerne and other fodder crops.

B E G A R I V E R

An allocation of 60% was announced. This was thelowest announcement on record. Irrigation wassuspended on 17 January when Brogo Dam fell to 11%.However, town water supplies continued. This restrictionwas lifted in late February when rains refilled Brogo Dam.

TO O N U M B A R DA M

Toonumbar Dam experienced record low dam levels allyear. An allocation of 45% was made. The dam made amodest recovery during the year and was at 45% ofcapacity by the end of June.


50


O R G A N I S AT I O N A L D E V E L O P M E N T


During 2002–03, the Organisational DevelopmentBranch underpinned the Ministry’s core businessmanagement programs through the provision of astrategic infrastructure, which augments businessperformance and planning, including human resources,financial management, information technologymanagement, records management, customer service andleading the organisation through change management.

2 0 0 2 – 0 3 AC H I E V E M E N T S

• Launched new Corporate Plan in January 2003.

• Increased focus on effective budget management and accountability.

• Our Information Technology network has been re-designed, upgraded and standardised toaccommodate current and future technology andaccess requirements.

• Developed and implemented Performance Appraisalsand a Personal Development Program for all employees.

• Developed and introduced Business Planning andPerformance Processes.

• Developed and introduced Risk ManagementPrinciples into the business.

• Proactive focus and delivery of frontline Customer Service.

• Designed, implemented and monitored tighter fiscalcost control systems.

• Improved liaison with stakeholders resulting in desired outcomes.

• Commenced the review of Corporate policies and procedures.

• Produced a Records Management business classificationscheme and revision of the functional thesaurus.

• Developed a framework for a Ministry wide corporatebusiness management system.

• Developed and Coordinated a Change ManagementProgram for the merging of the State Water and TownWater Recycling and Treatment businesses from theformer Department of Land and Water Conservationinto the Ministry.

• Establishment of an Indigenous Cadet Position,subsequently filled in May 2003.

B U S I N E S S P E R F O R M A N C EM A N AG E M E N T

The Business Performance Section was established inOctober 2002. The need for management systemdevelopment, corporate policy review and update andstrategic human resource management were the maindrivers for the creation of the section.

The Business Performance Section’s primary role hasbeen to provide advice, direction, and support in theprocesses of corporate and business planning,performance measurement, monitoring and reporting.Business Performance also managed the development,application, and integration of policies and proceduresfor change and quality management, human resourcemanagement, and risk management.

To support business and management development adedicated Human Resource Planning and Advisorycapacity has been included in Business Performance. Toenable the Ministry to develop a management systemstructure, map processes, and provide consistency todocumentation, a quality function has been included inBusiness Performance. The Human Resource Advisor andQuality Officer Positions were filled in November 2002.

As a result of the State Elections in March 2003, themain focus for the last quarter of the reporting year hasbeen the Change Management Program for merging theState Water and Town Water businesses from the formerDepartment of Land and Water Conservation into the Ministry.

C U S TO M E R S E RV I C E

The Customer Service Section was established as part ofthe Organisational Development Branch in May 2002.Maintaining the delivery of a high level of front lineinteraction with our customers is critical to the successof the Ministry. All customer services processes havebeen evaluated utilising the business management systemdocumentation to clearly define the process, detailingcritical time lines, determining customer requirements,identifying measures, nominate the method of datacollection, the method of presentation and theassignment of responsibility in all aspects of the process.

The Customer Services Section is responsible for dealingwith customer phone enquiries and performingadministrative duties associated with certain programs ofthe Ministry.

52 O R G A N I S AT I O N A L D E V E L O P M E N T

In particular, during the year, Customer Services Staffworked on enhancing the delivery of the following:

• Accredited Service Provider Scheme – CustomerServices administers the scheme in conjunction withthe Industry Performance Branch;

• conducted 752 conveyancing searches with regard toPipeline Easements for Licences and Permits grantedunder the Pipelines Act 1967;

• developed a data base and associated processes for theregistration of Cathodic Protection systems under theElectricity Safety (Corrosion Protection) Regulation 1998and administered the associated processes inconjunction with Industry Performance Branch; and

• provided advice and services requests on issuesincluding Full Retail Competition, the AccreditedService Provider Scheme, Pipeline Licence andConveyancing, and Cathodic Protection permits.

Over 12,000 phone calls were attended to during thelast financial year.

E X E C U T I V E A N D M I N I S T E R I A LS U P P O RT

The Customer Services Section continued to co-ordinatethe Ministry's support services to the Minister. As part ofour role in developing energy policies and decisions, weprovided portfolio responses to fulfil the Minister'srequirements for Parliament, Cabinet, Ministerialrepresentations and central agency matters.

During the year the Customer Services Section preparedover 1,800 written responses to Ministerial letters andsubmissions for the Minister. This volume of writtencorrespondence represented an increase of 23% on lastyear’s figures.

In consultation with relevant staff the OrganisationalDevelopment Branch carried out a review of theMinisterial process, which now ensures a morestreamlined approach.

I N F O R M AT I O N , C O M M U N I C AT I O NA N D T E C H N O L O G Y

Information, Communication and Technology (IC&T)provides technical support for computer services, adviceon strategic initiatives to realise business objectives andensures potential leverage from emerging technologiesare maximised. The IC&T section also provides recordsmanagement administration and support, compliance toregulative requirements and implements strategic models

to ensure all information is available in a relevant andcontextual manner when required.

Our Information Technology network, inclusive ofhardware, software and remote connectivity aspects hasbeen re-designed, upgraded and standardised toaccommodate current and future technology and accessrequirements. The upgrade has realised benefits ofreliability, scalability, security, cost effectiveness andassists with the capability to align with the NSW StateGovernments’ procedural requirements andtechnological strategic initiatives.

A new Ministry website is currently under developmentto meet requirements of the Ministry, our stakeholdersand the public. The enhanced website will assist in thefirst stages of our commitment to exchanging electronicinformation and service delivery. Implementation of acontent management system to both our internal andexternal websites ensures our site displays relevant andcurrent information that also affords timely responses toour stakeholders’ requirements.

R E C O R D S M A N AG E M E N T

Records management was previously managed by anexternal government agency. This partnership was nolonger viable due to a range of factors, and recordsmanagement was brought back within the Ministry.

The Ministry is committed to establishing best practicemethods of information management ensuringcompliance with the State Records Act 1998.Environmental controls needed for the storage andpreservation of electronic and paper records have beenimproved, and audits are now conducted to assist indocumentation workflows. A records awarenessprogramme was implemented with on-going training tofacilitate staff knowledge, and support the principlesrequired to create, manage and retain meaningful,accurate and reliable records.

A sentencing project has been the genesis for theimplementation of streamlined disposal procedures forthe destruction, transfer and archival of records. Thisproject has since evolved into the production of abusiness classification scheme and revision of thefunctional thesaurus, while development of a functionaldisposal authority is in progress. A record and electronicdocument management system has been purchased toensure a more complete means for the protection of thelegal, financial and historical interests of the Ministry.


F I N A N C I A L M A N AG E M E N T

The Ministry created an internal finance unit within theOrganisational Development Branch in July 2002 toensure better accountability, control and strategicdirection of the Ministry’s finance function includingmanagement of the Finance Service Level Agreementunder the Government’s share corporate services strategy.

Achievements during 2002–03 included:

• improved external reporting protocols established;

• monitoring and cost control systems implemented;

• financial policies and procedures developed;

• increased focus on effective budget management; and

• improved liaison with stakeholders resulting in desired outcomes

S H A R E D C O R P O R AT E S E RV I C E S

The Ministry’s financial and human resourcetransactional functions were undertaken by an externalservice provider during 2002–03. This arrangement wasboth beneficial to the Ministry and in accordance withthe Government’s shared corporate services strategy.

Changes to the Ministry emanating from the Public SectorEmployment and Management (General) Order 2003 on 2 April 2003 however necessitated a review of thosearrangements resulting in a change of service provider for 2003–04.

A further review will be undertaken during 2003–04 toascertain the best long term outcome for the Ministry’scorporate service activities.

C O R P O R AT E P L A N N I N G

The Ministry conducted the new corporate planningprocess with the participation of all levels of staff acrossthe Ministry, using the balanced scorecard methodology.This method provided a framework for strategic planningthat looked at performance indicators, which includedstakeholder consultation, policy formulation, financialeffectiveness, business performance and planning, customerfocus, regulating and operating excellence, learning anddevelopment of our people. All of which endeavour tomeasure the long term well being of our organisation.

L A U N C H I N G O F N E W C O R P O R AT EP L A N

In September 2002, the Organisational DevelopmentBranch commenced the facilitation of a new CorporatePlan, which was designed to build a greaterunderstanding and commitment to the strategic intentand core values of our organisation. The Corporate Planwill also build the Ministry’s capability to strengthenstakeholder relationships and develop skills and systemsto become a more competent organisation throughcontinuous evaluation and improvement.

The Ministry identified four new strategies for adoptionand implementation to ensure the organisation meetsand exceeds the imminent and future challenges in anever changing business environment:

• increase the value we add to our stakeholders throughthe products and services we deliver to them;

• identify opportunities to add value to the benefit ofour stakeholders;

• develop a more flexible and knowledgeable Ministryteam; and

• improve our business capacity.

The new Corporate Plan resulted in each Branch andSections within each Branch providing linkages, aims andkey accountabilities within their respective businessplans. This process culminated in individual personaldevelopment programs which were designed to:

• link the individual staff member’s contribution to theCorporate Plan;

• provide clear identification of expectations andresponsibilities;

• assist managers and employees forming a partnershipfor improved performance; and

• encouraging open and transparent discussion betweenemployees and supervisors/managers.

T R A I N I N G A N D D E V E L O P M E N T

During November 2002 the Business PerformanceSection designed a personal development program inconsultation with all staff. The aim of the personaldevelopment plan was to proactively identify the skills,knowledge and experience and plan for the enhancementand aspirations of the employee’s career through variousmodes of learning and development such as trainingprograms, on the job coaching, attending seminars,formal tertiary studies, job rotation and acting higher


duties. Whilst concurrently recognising the mosteffective level of training and development is within theMinistry’s budgetary constraints.

T R A I N I N G C O U R S E S

During 2002–03 all staff attended Ministerial writingcourses, all project and policy staff attended a number ofcourses which included facilitation proficiency,negotiation skills, presentation skills, managing teams,project management and contract management. Relevantstaff attended a Harassment and Bullying in theWorkplace programme.

Staff attended specialist training and development coursesto enhance the Ministry’s capabilities. The EnergyAnalysis Section of the Energy Strategy Branch attendedworkshops on using Monte Carlo modelling softwareused to develop energy strategy for New South Wales.

Staff in the Information, Communication, andTechnology (IC&T) Section of the OrganisationalDevelopment Branch attended modules of the MicrosoftCertified Systems Engineer course. This knowledge andskill set will assist the Ministry in developing andmaintaining a more reliable and efficient local areanetwork infrastructure for the Ministry.

New public service employees attended the InsideGovernment programme.

A number of in house courses were provided by theMinistry where all relevant staff attended. These trainingcourses included State Records Act 1998 compliance, teambuilding and general and specific software applications.

To enhance the communication of key processes of theMinistry and Government, ‘In house’ seminars were heldto cover:

• the NSW legislative process;

• human resources matters;

• performance appraisal and personal performancedevelopment;

• flex time management; and

• study assistance.

D E V E L O P M E N T P R O G R A M M E S

During 2003, two staff within the Ministry completedthe NSW Public Sector Executive DevelopmentProgramme. A further two staff members have enrolledin this years programme.

Three of the Executive team completed the VectorLeadership Development Program. Six managers havealso undertaken and completed the 360 degreesmanagement development programme.

These initiatives assist in developing the Ministry’speople for the future.

The Ministry’s commitment to the development of our staffis further evidenced by our study assistance programme.

S T U DY A S S I S TA N C E P R O G R A M M E

The Ministry revised its Policy on Study Assistance in2003. Provisions for study time and study fee assistancewere included in the new policy. A total of thirteenMinistry employees applied for study time / feeassistance during the year. Courses supported rangedfrom Certificate to Master’s level study. A number ofbriefing sessions were held to advise staff of the policyand process.

C O R P O R AT E P O L I C I E S A N DP R O C E D U R E S

During the reporting period a range of corporate policiesand procedures to promote the efficient operation of theMinistry were developed or revised. These included:

• a revised induction programme;

• study assistance programme;

• visitor access arrangements;

• petty cash management;

• code of conduct;

• mobile phone usage;

• ethics;

• mail registration;

• ministerial correspondence;

• incident reporting; and

• performance appraisal and personal development.

All corporate policies, guidelines and procedures weredeveloped in consultation with staff, and focussed on theclarification of efficient and accountable outcomes.

As part of the change management process, all policiesaffecting staff and operations will be subject to a planned review programme. The updated policies will bewidely consulted through management briefings andemployee groups.


S TA F F S U P P O RT S E RV I C E S

The Ministry views its staff as their most important assetand they are given the highest of priority in terms ofsupport and assistance with problems in and beyond theworkplace. The Employee Assistance Program is available24 hours a day, seven days a week, which provides specialisedcounselling to all staff and their immediate families.

The Ministry continues to support employer sponsoredchildcare through the Namboree Child Centre.


F I N A N C I A L S TAT E M E N T S


58 I N D E P E N D E N T A U D I T R E P O RT


60 F I N A N C I A L S TAT E M E N T S

AC T UA L B U D G E T AC T UA L2 0 0 3 2 0 0 3 2 0 0 2

Notes $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

Expenses

Operating expenses

Employee related 2(a) 15,275 5,235 6,491

Other operating expenses 2(b) 34,429 3,446 3,542

Maintenance 2,425 18 43

Depreciation and amortisation 2(c) 4,272 127 104

Grants and subsidies 2(d) 101,787 96,143 96,136

Other expenses 2(e) 167 490 3,189

Total Expenses 158,355 105,459 109,505

Less:

Retained Revenue

Sale of goods and services 3(a) 12,494 453 627

Investment income 3(b) 859 194 139

Grants and contributions – – 90

Other revenue 3(c) 30,197 167 81

Total Retained Revenue 43,550 814 937

Gain / (loss) on disposal of non-current assets 4 (224) – (13)

Net Cost of Services 23 115,029 104,645 108,581

Government Contributions

Recurrent appropriation 5 106,188 103,781 99,628

Capital appropriation 5 8,496 75 76

Acceptance by the Crown Entity of employee benefitsand other liabilities 6 1,645 – –

Total Government Contributions 116,329 103,856 99,704

SURPLUS / (DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES 19 1,300 (789) (8,877)

TOTAL REVENUES, EXPENSES AND VALUATION ADJUSTMENTS RECOGNISED DIRECTLY IN EQUITY – – –

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING IN TRANSACTIONS WITH OWNERS AS OWNERS. 1,300 (789) (8,877)

The accompanying notes form part of these statements.

S TAT E M E N T O F F I N A N C I A L P E R F O R M A N C E for the year ended 30 June 2003




Notes $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

ASSETS

Current Assets

Cash 8 55,235 2,115 2,876

Receivables 9 49,107 646 4,448

Other 10 330 1,362 916

Total Current Assets 104,672 4,123 8,240

Non-Current Assets

Receivables 11 1,967

Other financial assets 12 60 541 117

Property, Plant and Equipment

– Infrastructure Systems 13 1,915,824

– Land and Buildings 13 91,849

– Plant and Equipment 13 2,778 250 410

Total Property, Plant and Equipment 2,010,451 250 410

Total Non-Current Assets 2,012,478 791 527

Total Assets 2,117,150 4,914 8,767

LIABILITIES

Current Liabilities

Payables 15 84,242 835 8,889

Interest bearing liabilities 18 53 – –

Provisions 16 4,958 378 507

Other 17 3,208 17 2,745

Total Current Liabilities 92,461 1,230 12,141

Non-Current Liabilities

Interest bearing liabilities 18 2,037 – –

Provisions 16 2,040 1,189 1,304

Total Non-Current Liabilities 4,077 1,189 1,304

Total Liabilities 96,538 2,419 13,445

Net Assets 2,020,612 2,495 (4,678)

Equity

Accumulated Funds 19 2,020,612 2,495 (4,678)

Total Equity 2,020,612 2,495 (4,678)


S TAT E M E N T O F F I N A N C I A L P O S I T I O N as at 30 June 2003



Notes $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee related (11,389) (4,835) (5,643)

Grants and subsidies (102,328) (96,143) (98,074)

Other (30,948) (4,683) (6,852)

Total Payments (144,665) (105,661) (110,569)

Receipts

Sale of goods and services 4,681 619 474

Interest received 226 85 190

Other 36,533 428 6,750

Total Receipts 41,440 1,132 7,414

Cash Flows from Government

Recurrent appropriation 106,651 103,781 102,373

Capital appropriation 8,496 75 76

Cash reimbursements from the Crown Entity 162 – –

Net Cash Flows from Government 115,309 103,856 102,449

NET CASH FLOWS FROM OPERATING ACTIVITIES 23 12,084 (673) (706)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of Plant and Equipment and Infrastructure Systems 37 – 6

Purchases of Plant and Equipment andInfrastructure Systems (7,354) (75) (199)

NET CASH FLOWS FROM INVESTING ACTIVITIES (7,317) (75) (193)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of borrowings and advances (17) – –

NET CASH FLOW FROM FINANCING ACTIVITIES (17) – –

NET INCREASE / (DECREASE) IN CASH 4,750 (748) (899)

Opening cash and cash equivalents 50,485 2,863 3,775

CLOSING CASH AND CASH EQUIVALENTS 8 55,235 2,115 2,876


S TAT E M E N T O F C A S H F L OW for the year ended 30 June 2003


Program 1* Program 2* Not Attributable Transferred Program*** Total

2 0 0 3 2 0 0 2 2 0 0 3 2 0 0 2 2 0 0 3 2 0 0 2 2 0 0 3 2 0 0 2 2 0 0 3 2 0 0 2EXPENSES AND REVENUES $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

Expenses

Operating expenses

* Employee related 7,873 6,182 266 309 – – 7,136 – 15,275 6,491

* Other operating expenses 4,171 2,808 466 734 – – 29,793 – 34,430 3,542

Maintenance 50 43 – – – – 2,375 – 2,425 43

Depreciation and Amortisation 165 104 – – – – 4,107 – 4,272 104

Grants and subsidies 392 1,492 75,764 94,644 – – 25,631 – 101,787 96,136

Other expenses 167 3,189 – – – – – – 167 3,189

Total Expenses 12,818 13,818 76,496 95,687 – – 69,042 – 158,356 109,505

Retained Revenue

Sale of goods and services 563 627 – – – – 11,931 – 12,494 627

Investment income 410 139 – – – – 449 – 859 139

Grants and contributions – 90 – – – – – – – 90

Other revenue 1,934 81 – – – – 28,263 – 30,197 81

Total Retained Revenue 2,907 937 – – – – 40,643 – 43,550 937

Gain / (loss) on disposal non-current assets (40) (13) – – – – (184) – (224) (13)

Net Cost of Services 9,951 12,894 76,496 95,687 – – 28,583 – 115,030 108,581

Government Contributions** 85,295 99,704 31,034 – 116,329 99704

NETEXPENDITURE/(REVENUE) 9,951 12,894 76,496 95,687 (85,295) (99,704) (2,451) – (1,299) 8,877

Extraordinary items – – – – – – – – – –

NETEXPENDITURE/(REVENUE)FOR THE YEAR 9,951 12,894 76,496 95,687 (85,295) (99,704) (2,451) – (1,299) 8,877

Administered Expenses

Transfer payments

Other

Total Administered Expenses

Administered Revenues

Transfer receipts

Consolidated Fund.

* Taxes, fees and fines

* Other 550 361 550 361

Total Administered Revenues 550 361 550 361

Administered Revenues less

Expenses 550 361 550 361

* The name and purpose of each program is summarised in note 7

** Appropriations are made on an agency basis and not to individual programs.Consequently government contributions are included in the “Not Attributable” column.

*** The “Transferred Program” represents the organisational units from the former Department of Land and Water Conservation which were transferred to the Ministry on 2 April 2003.

P R O G R A M S TAT E M E N T – E X P E N S E S A N D R E V E N U E S for the year ended 30 June 2003

2 0 0 3 2 0 0 2RECURRENT EXPENDITURE/ CAPITAL EXPENDITURE/ RECURRENT EXPENDITURE CAPITAL EXPENDITURE

APP’N NET CLAIM ON APP’N NET CLAIM ON APP’N APP’N

CONSOLIDATED CONSOLIDATED

FUND FUND

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ORIGINAL BUDGETAPPROPRIATION/EXPENDITURE

* Appropriation Act 87,614 84,359 75 75 77,149 77,149 76 76

* Additional Appropriations

* s 21A PF&AA – specialappropriation

* s 24 PF&AA transfers offunctions between departments 23,852 20,968 9,295 8,421 690 690

* s 26 PF&AA – Commonwealthspecific purpose payments

111,466 105,327 9,370 8,496 77,839 77,839 76 76

OTHER APPROPRIATIONS/EXPENDITURE

* Treasure’s Advance 900 861 27,003 20,258

* Section 22 – expenditure forcertain works and services

* Transfer to / from another agency 1,531 1,531(sec25 of theAppropriationAct)

900 861 28,534 21,789

TotalAppropriations/Expenditure/Net Claim on Consolidated Fund(includes transfer payments). 112,366 106,188 9,370 8,496 106,373 99,628 76 76

Amounts drawn down againstAppropriation 109,396 8,496 102,372 76

Liability to Consolidated Fund (3,208) – (2,745) –

Notes:

1 The Summary of Compliance is based on the assumption that Consolidated Fund moneys are spent first (except where otherwise identified or prescribed).

2 The Liability to Consolidated Fund represents the difference between the “Amount Drawn down against Appropriation” and the “Total Expenditure / Net claim on Consolidated Fund”.

3 Variation between “Recurrent Appropriation” and “Expenditure/ Net Claim on Consolidated Fund” is due to the Department being created on 31 March 2003 and the associated difficulties in determining expenditure requirements to 30 June 2003.

4 Variation between total “Capital Appropriation” and “Capital Expenditure Claim on Consolidated Fund” relates to variations in expenditure on specific capital projects due to timing of project payments.


S U M M A RY O F C O M P L I A N C E W I T H F I N A N C I A L D I R E C T I V E S


1 S U M M A RY O F S I G N I F I C A N TAC C O U N T I N G P O L I C I E S

(a) R E P O RT I N G E N T I T Y

The Ministry of Energy and Utilities, as a reportingentity, incorporates the activities of the EnergyCorporation of NSW as well as the commercial businessactivities of State Water. The reporting entity is alsoconsolidated as part of the NSW Total State Sectorand as part of the NSW Public Accounts.

(b) B A S I S O F AC C O U N T I N G

The agency’s financial statements are a generalpurpose financial report which has been prepared onan accruals basis and in accordance with:

• applicable Australian Accounting Standards;

• other authoritative pronouncements of theAustralian Standards Board (AASB);

• Urgent Issues Group (UIG) Consensus Views;

• the requirements of the Public Finance and AuditAct and Regulation; and

• the Financial Reporting Directions published in theFinancial Reporting Code for Budget DependentGeneral Government Sector Agencies or issued bythe Treasurer under section 9(2)(n) of the Act.

Where there are inconsistencies between the aboverequirements, the legislative provisions have prevailed.

In the absence of a specific Accounting Standard,other authoritative pronouncement of the AASB orUIG Consensus View, the hierarchy of otherpronouncements as outlined in AAS 6 “AccountingPolicies” is considered.

Except for certain investments, land, buildings andinfrastructure systems, which are recorded at valuation,the financial statements are prepared in accordancewith the historical cost convention. All amounts arerounded to the nearest one thousand dollars and areexpressed in Australian currency. The accountingpolicies adopted are consistent with those of theprevious year.

(c) A D M I N I S T E R E D AC T I V I T I E S

The Ministry administers, but does not control,certain activities on behalf of the Crown Entity. It isaccountable for the transactions relating to thoseadministered activities but does not have thediscretion, for example, to deploy the resources forthe achievement of the agency’s own objectives.

Transactions and balances relating to the administeredactivities are not recognised as the department’s

revenues, expenses, assets and liabilities, but aredisclosed in Notes 25 to 26.

The accrual basis of accounting and all applicableaccounting standards have been adopted for thereporting of the administered activities.

(d) R E V E N U E R E C O G N I T I O N

Revenue is recognised when the Ministry has controlof the good or right to receive, it is probable that theeconomic benefits will flow to the Ministry and theamount of revenue can be measured reliably.Additional comments regarding the accounting policiesfor the recognition of revenue are discussed below.

(i) Parliamentary Appropriations andContributions from Other Bodies

Parliamentary appropriations and contributionsfrom other bodies (including grants anddonations) are generally recognised as revenueswhen the Ministry obtains control over the assetscomprising the appropriations /contributions.Control over appropriations and contributions isnormally obtained upon the receipt of cash.

An exception to the above is when appropriationsare unspent at year end. In this case, the authorityto spend the money lapses and generally theunspent amount must be repaid to theConsolidated Fund in the following financial year.As a result, unspent appropriations are accountedfor as liabilities rather than revenue.

The liability is disclosed in Note 17 as part of‘Current liabilities – Other’. The amount will berepaid and the liability will be extinguished nextfinancial year.

(ii) Sale of Goods and Services

Revenue from the sale of goods and servicescomprises revenue from the provision of productsor services ie user charges. User charges arerecognised as revenue when the Ministry obtainscontrol of the assets that result from them.

(iii) Investment Income

Interest revenue is recognised as it accrues. Rentrevenue is recognised in accordance with AAS 17“Accounting for Leases”. Royalty revenue isrecognised on an accrual basis in accordance withthe substance of the relevant agreement. Dividendrevenue is recognised when the department’sright to receive payment is established.

N OT E S TO T H E F I N A N C I A L S TAT E M E N T S


e) E M P L OY E E B E N E F I T S A N D OT H E RP ROV I S I O N S

(i) Salaries and Wages, Annual Leave, Sick Leaveand On-Costs

Liabilities for salaries and wages (including non-monetary benefits), annual leave and vesting sickleave are recognised and measured in respect ofemployees’ services up to the reporting date atnominal amounts based on the amounts expectedto be paid when the liabilities are settled.

Unused non-vesting sick leave does not give riseto a liability as it is not considered probable thatsick leave taken in the future will be greater thanthe benefits accrued in the future.

The outstanding amounts of payroll tax, workers’compensation insurance premiums and fringebenefits tax, which are consequential toemployment, are recognised as liabilities andexpenses where the employee benefits to whichthey relate have been recognised.

(ii) Accrued salaries and wages – reclassification

As a result of Accounting Standard AASB 1044“Provisions, Contingent Liabilities and ContingentAssets”, accrued salaries and wages and on-costshave been reclassified to “payables” instead of“provisions” in the Statement of Financial Positionand the related note disclosures, for the currentand comparative period. On the face of theStatement of Financial Position and in the notes,reference is now made to “provisions” in place of“employee entitlements and other provisions”.

(iii) Long Service Leave and Superannuation

The Ministry is responsible for the long serviceleave and all superannuation liabilities foremployees of the Ministry of Energy and Utilities(prior to 2 April 2003) and these are fullyrecognised in the accounts.

The Ministry’s liabilities for long service andsuperannuation for employees transferred fromthe former Department of Land and WaterConservation from 2 April 2003 are assumed bythe Crown Entity. The Ministry accounts for thisliability as having been extinguished resulting inthe amount assumed being shown as part of thenon-monetary revenue item described as

“Acceptance by the Crown Entity of EmployeeBenefits and other Liabilities”.

Treasury Circular 03/08 stipulated that agencieswho assume the liability for long service leavecould use either the short-hand method or thepresent value method for measuring their longservice leave liability, providing there are nomaterial differences between the two methods.The Ministry has applied the present value method.

Where the Ministry contributes to employeesuperannuation funds, the Ministry's contributionsare paid to Pillar Administration Corporation.These payments are applied towards the accruingliability in respect of employees and are chargedto expenses. Refer Note 10 for further details.

(f) I N S U R A N C E

The Ministry’s insurance activities are conductedthrough the NSW Treasury Managed Fund Scheme ofself-insurance for Government agencies. The expense(premium) is determined by the Fund Manager basedon past experience.

(g) AC C O U N T I N G F O R T H E G O O D S A N DS E RV I C E S TA X ( G S T )

Revenues, expenses and assets are recognised net ofthe amount of GST, except where:

• the amount of GST incurred by the Ministry as apurchaser that is not recoverable from theAustralian Taxation office is recognised as part ofthe cost of acquisition of an asset or as part of anitem of expense; and

• receivables and payables stated with the amount ofGST included.

(h) AC Q U I S I T I O N S O F A S S E T S

The cost method of accounting is used for the initialrecording of all acquisitions of assets controlled by theagency. Cost is determined as the fair value of theassets given as consideration plus the cost incidentalto the acquisition.

Assets acquired at no cost, or for nominalconsideration, are initially recognised as assets andrevenues at their fair value at the date of acquisition.

Fair value means the amount for which an asset couldbe exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’slength transaction.



1 S U M M A RY O F S I G N I F I C A N TAC C O U N T I N G P O L I C I E S (continued)

(h) AC Q U I S I T I O N S O F A S S E T S (continued)

Where settlement of any part of cash consideration isdeferred, the amounts payable in the future arediscounted to their present value at the acquisition date.The discount rate used is the incremental borrowingrate, being the rate at which a similar borrowing couldbe obtained.

(i) P L A N T A N D E Q U I P M E N T

Plant and equipment costing $5,000 and aboveindividually are capitalised. Individual items ofcomputer equipment are capitalised when those assetsform part of a previously capitalised network.

(j) R E VA L UAT I O N O F P H YS I C A L N O N - C U R R E N T A S S E T S

Physical non-current assets are valued in accordancewith the “Guidelines for the Valuation of Physical Non-Current Assets at Fair Value” (TPP 03-02). This policyadopts fair value in accordance with AASB 1041 fromthe financial years beginning on or after 1 July 2002.There is no substantive difference between the fair valuevaluation methodology and the previous valuationmethodology adopted in the NSW public sector.

Where available, fair value is determined havingregard to the highest and best use of the asset on thebasis of current market selling prices for the same orsimilar assets. Where market selling price is notavailable, the asset’s fair value is measured as itsmarket buying price ie the replacement cost of theasset’s remaining service potential.

Each class of physical non-current assets is revaluedevery five years and with sufficient regularity toensure that the carrying amount of each asset in theclass does not differ materially from its fair value atreporting date. Infrastructure systems and land andbuildings formerly held by the Department of Landand Water Conservation and transferred to the Ministryon 2 April 2003 were last revalued on 30 June 2001.

The revaluations were based on independentassessments with the exception of the buildingsassociated with dams, which were revalued by thedepartment’s architect.

Non-specialised assets with short useful lives aremeasured at different historical cost as a surrogate forfair value.

When revaluing non-current assets by reference tocurrent prices for assets newer than those beingrevalued (adjusted to reflect the present condition ofthe assets), the gross amount and the relatedaccumulated depreciation is separately restated.

Otherwise, any balances of an accumulated depreciationexisting at the revaluation date in respect of thoseassets are credited to the asset accounts to which theyrelate. The net asset accounts are then increased ordecreased by the revaluation increments or decrements.

Revaluation increments are credited directly to the assetrevaluation reserve, except that, to the extent that anincrement reverses a revaluation decrement in respectof that class of asset previously recognised as an expensein the surplus/deficit, the increment is recognisedimmediately as revenue in the surplus/deficit.

Revaluation decrements are recognised immediately asexpenses in the surplus/deficit, except that, to theextent that a credit balance exists in the assetrevaluation reserve in respect of the same class ofassets, they are debited directly to the assetrevaluation reserve.

Revaluation increments and decrements are offsetagainst one another within the same class of non-current assets, but not otherwise.

Where an asset that has previously been revalued isdisposed of, any balance remaining in the assetrevaluation reserve in respect of that asset istransferred to accumulated funds.

(k) D E P R E C I AT I O N O F N O N - C U R R E N TP H YS I C A L A S S E T S

Except for a limited number of heritage assets,depreciation is provided for on a straight-line basis forall depreciable assets so as to write off the depreciableamount of each asset as it is consumed over its usefullife to the department. The applicable depreciationrates of major asset categories are as follows:



Land is not a depreciable asset. Certain heritage assetshave an extremely long useful life, including originalartworks and collections and heritage buildings.Depreciation for these items cannot be reliablymeasured because the useful life and the net amountto be recovered at the end of the useful life cannot bereliably measured. In these cases, depreciation is notrecognised. The decision not to recognise depreciationfor these assets is reviewed annually.

(l) M A I N T E N A N C E A N D R E PA I R S

The costs of maintenance are charged as expenses asincurred, except where they relate to the replacementof a component of an asset, in which case the costsare capitalised and depreciated.

(m) L E A S E D A S S E T S

A distinction is made between finance leases whicheffectively transfer from the lessor to the lesseesubstantially all the risks and benefits incidental toownership of leased assets, and operating leases underwhich the lessor effectively retains all such risks and benefits.

Where a non-current asset is acquired by means of afinance lease, the asset is recognised as its fair value atthe inception of the lease. The corresponding liabilityis established at the same amount. Lease payments areallocated between the principal component and theinterest expense. The Department does not have anyfinance leases.

Operating lease payments are charged to theStatement of Financial Performance in the periods inwhich they are incurred.

(n) R E C E I VA B L E S

Receivables are recognised and carried at cost, basedon the original invoice amount less a provision for anyuncollectable debts. An estimate for doubtful debts ismade when collection of the full amount is no longerprobable. Bad debts are written off as incurred.

(o) PAYA B L E S

These amounts represent liabilities for goods andservices provided to the Ministry and other amounts,including interest. Interest is accrued over the periodit becomes due.


Asset Class Depreciation Rate

Dams – Structure /Concrete Works 0.5%

Dams – Other Civil Components 0.5 – 1.0%

Dams – Mechanical /Electrical Components 0.5 – 3.3%

Weirs and Regulators – Concrete Components & Fountain Pilings 1.0%

Weirs and Regulators – Steel Structural Components 1 – 2.0%

Channels and Structures 2.5%

Buildings – Cottages and Dwellings /Office Buildings /Accommodation 2 – 2.5%

Plant and Equipment 6.7%-20%

Computers 25%

Motor Vehicles 20%

Marine Craft 20%

Furniture and Major Fitouts 10%

Scientific Instruments 12.5 – 20%


2 E X P E N S E S AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

(a) E M P L OY E E R E L AT E D E X P E N S E S

Salaries and wages (including recreation leave) 10,672 4,901

Superannuation 2,246 1,032

Long service leave 1,514 202

Workers’ compensation insurance 63 23

Payroll tax and fringe benefits tax 780 333

15,275 6,491

In addition to the $15.275 million, $2.7 million was incurred in employee related expenses in respect of:Maintenance works on dams and other water infrastructue ($1.1 m) and grants provided for projects directlyundertaken and/or managed by the Ministry ($1.6m)

1 S U M M A RY O F S I G N I F I C A N TAC C O U N T I N G P O L I C I E S (continued)

(p) I N V E N TO R I E S

Inventories, if on hand, are stated at the lower of costand net realisable value. In the case of raw materialsand spare parts, cost is assigned on the basis of WeightedAverage method. Work-in-progress cost is determinedby specific identification method and includes directmaterials, direct labour and an appropriate proportionof overheads determined by reference to thepercentage completed on each contract.

(q) OT H E R F I N A N C I A L A S S E T S

“Other financial assets” are generally recognised at cost.

For non-current “other financial assets”, revaluationincrements and decrements are recognised in the samemanner as physical non-current assets (see Para J). Forcurrent “other financial assets”, revaluation incrementsor decrements are recognised in the Statement ofFinancial Performance.

(u) T RU S T F U N D S

The department does not receive any money in atrustee capacity.

(r) OT H E R A S S E T S

Other assets including prepayments are recognised ona cost basis.

(s) I N T E R E S T B E A R I N G D E P O S I T S

All loans are valued at current capital value; thefinance lease liability is determined in accordancewith AAS 17 “Leases”.

(t) R E C L A S S I F I C AT I O N O F F I N A N C I A LI N F O R M AT I O N

When the presentation or classification of items in thefinancial report is amended, the nature and amount ofand reason for the representation or reclassificationwill be disclosed.

(u) B U D G E T E D A M O U N T S

The budgeted amounts are drawn from the budgets asformulated at the beginning of the financial year andwith any adjustments for the effects of additionalappropriations, s21A, s24 and/or s26 of the PublicFinance and Audit Act 1983.

The budgeted amounts in the Statement of FinancialPerformance and the Statement of Cash Flows aregenerally based on the amounts disclosed in the NSWBudget Papers (as adjusted above). However, in theStatement of Financial Position, the amounts varyfrom the Budget Papers, as the opening balances ofthe budgeted amounts are based on carried forwardactual amounts ie per the audited financial statements(rather than carried forward estimates).


2 E X P E N S E S (continued) AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

(b) OT H E R O P E R AT I N G E X P E N S E S

Operating lease rental expense - minimum lease payments 781 515

Consultants and contractors 2,614 528

Contract payments 24,316 –

Auditors remuneration - audit or review of the financial report 103 44

Internal audit fees 16 62

Bad and doubtful debts 26 –

Insurance 846 13

Energy rebate scheme administration costs 467 667

Other administration 2,653 1,713

Resource Management Charge by Department of Sustainable Natural Resources 2,607 –

34,429 3,542

In addition to the $34.4 million, $1.6 million was incurred in other operating expenses expenses in respect of:Maintenance on dams and other water infrastructure ($1.2 m) and grants provided for projects directlyundertaken and/or managed by the Ministry ($0.4 m).

(c) D E P R E C I AT I O N A N D A M O RT I S AT I O N E X P E N S E

Depreciation

Land and buildings 10 –

Plant and equipment 253 104

Water infrustructure systems 4,009 –

4,272 104

(d) G R A N T S A N D S U B S I D I E S

Sustainable Energy Research and Development contribution 116 504

Life Support rebates 2,202 1,978

Pensioner energy rebates 73,353 92,512

Council of Australian Governments energy market – 672

Contribution to Utility Consumer Advocacy program 209 158

Contribution for consultancy on undergrounding cables – 149

Contribution for consultancy on IT systems for energy full retail contestability 256 –

Local councils 25,482 –

Other Grants 169 163

101,787 96,136




2 E X P E N S E S (continued) AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

(e) OT H E R E X P E N S E S

Loss on revaluation of investments 57 424

National Gas Pipeline Advisory Committee 107 45

Full Retail Contestability Customer Information 2,640

Gas Network Safety Reform 3 80

167 3,189

3 R E V E N U E S

(a) S A L E O F G O O D S A N D S E RV I C E S

Pipeline search fees 356 338

NSW Electrolysis Committee fees – 102

Income from water operations 8,567 –

Murray Darling Basin Commission works and services 2,704 –

Dams business account 174

Fees for services 381 –

Other 312 187

12,494 627

The Ministry collects water usage and or rental income from private hydro-electric power stations located at eight of its storage dams. Income of $163,883 from this source is reported within Dams business account above.No liability attaches to these power stations and there is no provision for them to be regarded as the Ministry’s assets.

(b) I N V E S T M E N T I N C O M E

Interest from bank deposits

Sustainable Energy ResearchDevelopment Fund (SERDF) 24 26

Energy administration account 386 113

Interest from other accounts 366 –

Rent 83 –

859 139


3 R E V E N U E S (continued) AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

(c) OT H E R R E V E N U E

Sustainable Energy Research Development Fund 79 39

Funding for transfer of function 1,619 –

Other revenue 28,499 42

30,197 81

Other revenue includes Council income for Country Towns Water Sewerage schemes of $28.2 million.

4 G A I N / L O S S O N D I S P O S A L O F N O N - C U R R E N T A S S E T S

Property, Plant and Equipment

Proceeds from disposal 37 7

Carrying value of assets disposed (261) (20)

Gain / (loss) on disposal of non-current assets (224) (13)

5 A P P R O P R I AT I O N S

Recurrent appropriations

Total recurrent drawdowns from Treasury (per summary of compliance) 109,396 102,373

Less: Liability to Consolidated Fund (per Summary of Compliance) (3,208) (2,745)

106,188 99,628

Comprising:

Recurrent appropriations (per Statement of Financial Performance) 106,188 99,628

Capital Appropriations

Total capital drawdowns from Treasury (per Summary of Compliance). 8,496 76

Less: Liability to Consolidated Fund (per Summary of Compliance) – –

8,496 76

Comprising:

Capital Appropriations (per Statement of Financial Performance) 8,496 76

6 AC C E P TA N C E B Y T H E C R OW N O F E M P L OY E E B E N E F I T S A N D OT H E R L I A B I L I T I E S

The following liabilities and expenses have been assumed by the Crown Entity

Superannuation 481 –

Long Service Leave 1,135 –

Payroll Tax on superannuation 29 –

1,645 –




7 P R O G R A M S / AC T I V I T I E S O F T H E M I N I S T RY

(a) P RO G R A M S – 2 0 0 2 - 0 3

Program 1: Energy and Urban Water Policy

Objective: To promote the efficient, safe, reliable and ecologically sustainable supply and use of energy andurban water.

Program 2: Energy Social Programs.

Objectives: To administer energy social problems funded by the New south Wales Government.

(b) D E PA RT M E N T O F L A N D A N D WAT E R C O N S E RVAT I O N

The Department of Land and Water Conservation (DLWC) was abolished under Public Sector Employment andManagement (General) Order 2003 on 2 April and its State Water business unit and Town Water Treatment andRecycling branch added to the Ministry. Expenses and revenues reported in the Ministry’s Statement of FinancialPerformance relating to the period 2 April 2003 to 30 June 2003 and expenses and revenues attributed to therespective units under the abolished DLWC for the period from 1 July 2002 to 1 April 2003 are as follows:

PERIOD PERIOD PERIOD PERIOD1.7.02 TO 2.4.03 TO 1.7.02 TO 1.7.01 TO

1.4.03 30.6.03 30.6.03 30.6.02$’000 $’000 $’000 $’000

Expenses

Operating Expenses

Empolyee Related 11,888 7,136 19,024 21,656

Other Operating Expenss 91,164 29,793 120,957 96,535

Maintenance 7,186 2,375 9,561 9,711

Depreciation and Amortisation 12,258 4,107 16,365 15,911

Grants and Subsidies 37,268 25,631 62,899 91,106

Total Expenses 159,764 69,042 228,806 234,919

Retained Revenue

Sale of Goods and Services 41,087 11,931 53,018 53,293

Investment income 183 449 632 –

Grants and contribution 1,025 – 1,025 –

Other 65,855 28,263 94,118 82,423

Total Retained Revenue 108,150 40,643 148,793 135,716

Gain / (Loss) on disposal of non-current assets 25 (184) (159) (11)

NET COST OF SERVICES 51,589 28,583 80,172 99,214



8 C U R R E N T A S S E T S – C A S H AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

Cash at bank and on hand 54,555 2,245

SERDF 680 631

55,235 2,876

For the purpose of the Statement of Cash Flows, cash includes cash on hand, cash at bank, bank overdraft andshort term deposits at call.

Cash assets recognised in the Statement of Financial Position are reconciled to cash at the end of financial year as shown in the Statement of Cash Flows as follows:

Cash (per Statement of Financial Position) 55,235 2,876

Closing Cash and Cash Equivalents (per Statements of Cash Flows) 55,235 2,876

9 C U R R E N T A S S E T S – R E C E I VA B L E S

Sales of goods and services 11,363 253

Provision for doubtful debts (375)

Interest receivable 259 74

Goods and Services Tax 2,793 4,101

Accrued income – sales of goods and services 34,607 –

Other 460 20

49,107 4,448

10 C U R R E N T A S S E T S – OT H E R

Prepayments – 146

Prepaid superannuation contributions 330 770

330 916

The Gross Superannuation Liability for certain employees within the defined benefits scheme administered by the SAS Trustee Corporation for the period end 30 June 2003 were actuarially determined by William Mercer Ltd,the Corporation’s actuary, based on the following assumptions:

2 0 0 3 - 0 4 2 0 0 4 - 0 5 2 0 0 5 - 0 6 &t h e re a f t e r

% % %

Rate of investment return 7 7 7

Rate of salary increase 4 4 4

Rate of increase in CPI 3 3 3



10 C U R R E N T A S S E T S – OT H E R (continued)

STATE SUPER STATE AUTHORITIES STATE AUTH NON- TOTAL

SCHEME SSS SUPER SCHEME CONTR S/SCHEME

SASS (BASIC BENEFIT)

$’000 $’000 $’000 $’000

Accrued Liability at 30 June 2003 5,825 1,661 605 8,091

Estimated Reserve Account Balance at 30 June 2003 4,661 1,933 663 7,257

(Deficiency) / Surplus at 30 June 2003 (1,164) 272 58 (834)

11 N O N - C U R R E N T A S S E T S – R E C E I VA B L E S AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

Backlog Sewerage Loans 1,967 –

12 N O N - C U R R E N T A S S E T S – OT H E R F I N A N C I A L A S S E T S

The Ministry received 902,103 shares in Pinnacle VRB Limited from Unisearch Limited as a royalty payment for an Energy Research and Development grant provided for the development of the Vanadium battery.The reconciliations for the carrying amount of shares at the beginning and end of the current and previousfinancial year are set out below:

Carrying amount at the start of the year 117 541

Reduction in share value (57) (424)

Carrying amount at the end of the year 60 117

The current market value of these shares at 30 June 2003 was $59,990

13 N O N - C U R R E N T A S S E T S – P R O P E RT Y, P L A N T A N D E Q U I P M E N T

Land and Buildings

At Fair Value 91,931 –

Less: Accumulated Depreciation (82) –

91,849 –Plant and Equipment

At Fair Value 8,070 708

Less: Accumulated Depreciation (5,292) (298)

2,778 410Water Infrastructure Systems

At Fair Value 2,361,488 –

Less: Accumulated Depreciation (445,664) –

1,915,824 –

Total Property, Plant and Equipment at Net Book Value 2,010,451 410



13 N O N - C U R R E N T A S S E T S – P R O P E RT Y, P L A N T A N D E Q U I P M E N T (continued)

Reconciliation of carrying amount of property, plant and equipment at the beginning and end of the currentreporting period are set out below.

WATER WORK-IN- LAND UNDER LAND AND PLANT AND TOTAL

INFRASTRUCTURE PROGRESS INFRASTRUCTURE BUILDINGS EQUIPMENT

SYSTEMS (INFRASTRUCTURE)

$’000 $’000 $’000 $’000 $’000 $’000

Carrying amount at the start of the period 1,880,283 32,619 90,420 1,454 2,856 2,007,632

Additions – 7,137 – 216 7,353

Disposals (206) (15) (185) (406)

Depreciation expense (4,009) (10) (253) (4,272)

Depreciation write back – – – 144 144

Carrying amount at end of year 1,876,068 39,756 90,420 1,429 2,778 2,010,451

14 R E S T R I C T E D A S S E T S AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

Legislation or Treasury Directions impose restrictions on the use of certain assets of the Ministry. As such, the following are considered to be restricted assets:

Current Assets – Receivables 91 –

Non-Current Assets – Receivables 1,967 –

2,058 –

Restricted asset receivables wholly comprise Backlog Sewerage Scheme loans.

15 C U R R E N T L I A B I L I T I E S – PAYA B L E S

Creditors 11,788 8,773

Sustainable Energyand Research Development 71 –

Accrued Salaries and Wages 561 116

Accruals other 16,593 –

Country Towns Water Supply and Sewerage Scheme 55,229 –

84,242 8,889



16 C U R R E N T / N O N - C U R R E N T L I A B I L I T I E S – AC T UA L AC T UA LP R OV I S I O N S 2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

Employee benefits and related on-costs

Recreation Leave 4,575 390

Long Service Leave 1,168 1,050

Superannuation Contributions 1,164 282

Provision for Payroll Tax 91 89

6,998 1,811

Other Provisions 0 0

Total Provisions 6,998 1,811

Aggregate employee benefits and related oncosts

Provisions – current 4,958 507

Provisions – non-current 2,040 1,304

Accrued salaries, wages and on-costs (Note 15) 561 116

Aggregate employee benefits and related oncost 7,559 1,927

17 C U R R E N T / N O N - C U R R E N T L I A B I L I T I E S – OT H E R

Liability to Consolidated Fund for lapsed appropriation 3,208 2,745

3,208 2,745

18 C U R R E N T / N O N - C U R R E N T L I A B I L I T I E S – I N T E R E S T B E A R I N G L I A B I L I T I E S

Current – Backlog Sewerage Loan 53 –

Non Current – Backlog Sewerage Loan 2,037 –

2,090 –

19 C H A N G E S I N E Q U I T Y

Balance at the beginning of the financial year (4,678) 4,199

Transactions with owners as owners

Increase in net assets from administrative restructure. (Note 20) 2,023,990 –

Surplus /(Deficit) for the year 1,300 (8,877)

Balance at the end of the financial year 2,020,612 (4,678)



20 I N C R E A S E / D E C R E A S E I N N E T A S S E T S F R O M E Q U I T Y T R A N S F E R S

Fair value of net assets transferred from the former Department of Land and Water Conservation

2 0 0 3$ ’ 0 0 0

Cash 47,609

Current Receivables 37,629

Non-Current Receivables 2,002

Plant and Equipment 2,446

Land and Buildings 91,874

Water Infrustructure Systems 1,912,902

TOTAL ASSETS 2,094,462

Accounts Payable 64,921

Provisions 3,444

Non-Current Liabilities 2,107

TOTAL LIABILITIES 70,472

NET ASSETS ACQUIRED 2,023,990

21 C O M M I T M E N T S F O R E X P E N D I T U R E AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

(a) OT H E R E X P E N D I T U R E C O M M I T M E N T S

Aggregate other expenditure for the acquisition of goods and services contracted for at balance date and not provided.

Not later than one year 267 92

Later than one year but not later than five years – –

Later than five years – –

Total (including GST) 267 92

(b) O P E R AT I N G L E A S E C O M M I T M E N T S

Future non-cancellable operating lease rentals not provided for and payable.

Not later than one year 2,315 565

Later than one year but not later than five years 2,451 895

Later than five years – –

Total (including GST) 4,766 1,460

The total commitments above include input tax credits of $458,000 that are expected to be recoverable from the Australian Taxation Office.



2 2 C O N T I N G E N T L I A B I L I T I E S A N D A S S E T S 2 0 0 3$ ’ 0 0 0

Contingent Liabilities 1,400

The Ministry may be liable for compensation payments arising from claims and other matters subject to litigation.The amounts involved cannot be accurately determined and in some instances are subject to arbitration.These claims are covered by the Treasury Managed Fund, and are not expected to exceed $1.4 million.

23 R E C O N C I L I AT I O N O F C A S H F L OW S AC T UA L AC T UA LF R O M O P E R AT I N G AC T I V I T I E S 2 0 0 3 2 0 0 2TO N E T C O S T O F S E RV I C E S $ ’ 0 0 0 $ ’ 0 0 0

Net Cash Flows from Operating Activities (12,084) 706

Cash Flows from Government Appropriations 115,309 102,449

Depreciation 4,272 104

Provision for recreation leave 227 105

Increase/(Decrease) in provision for Long Service Leave 632 –

Provision for Superannuation 1,322 (70)

Employee leave benefits oncost 2 796

Recognition of shares 57 6

Decrease/(Increase) in Receivables (6,994) 424

Decrease/(Increase) in prepayments 146 (3,811)

Increase/(Decrease) in payables 10,432 (99)

Net loss/(Gain) on sale of Non-Current Assets 224 7,958

Acceptance by the Crown Entity of employee benefits and other liabilities 1,484 13

Net Cost of Services 115,029 108,581

24 B U D G E T R E V I E W

There were significant variations between budgeted and actual amounts in relation to the Statements of FinancialPerformance, Financial Position and Cash Flows respectively. These variations were primarily due to the financialimpact of the transfer of the State Water business unit and the Town Water Treatment and Recycling branch fromthe former Department of Land and Water Conservation effective from 1 April 2003.

Budgets were not adjusted for the transfer with the exception of recurrent Government appropriations drawndown during that period which were reflected in the Statement of Financial performance only. Timing differencesin respect of revenues and expenses incurred during that period resulted in the net cost of services variation of$10.383 million.



25 A D M I N I S T E R E D AC T I V I T I E S

Administered Activities are defined as those activities that are carried out on behalf of the Crown Entity.

These monies are excluded from the Financial Statement, as the Ministry cannot use them to achieve its objectives.

AC T UA L AC T UA L2 0 0 3 2 0 0 2

$ ’ 0 0 0 $ ’ 0 0 0

Administered Revenue:

Authorisation Licences under the Gas Supply Act 550 361

Pipeline Licences – –

Electricity Retail and Distribution Licences 550 361

Administered Assets

Crown Debtors

Pipline Licences 432 167

26 A D M I N I S T E R E D R E V E N U E – S C H E D U L E O F U N C O L L E C T E D

0 - 3 0 DAYS TOTA L$ ’ 0 0 0 $ ’ 0 0 0

Pipline Licences 427 427

27 F I N A N C I A L I N S T RU M E N T S

Cash

Cash comprises cash on hand and bank balances within the Treasury Banking System. Interest is earned on dailybank balances at the monthly average NSW Treasury Corporation 11.00am unofficial cash rate adjusted for amanagement fee to Treasury. Interest is reported in the financial statements as it is earned. For the purposes of theStatement of Cash Flows, cash comprises cash on hand and at bank and short-term deposits at call.

Receivables

All trade and other debtors are recognised as amounts receivable at balance date. Collect ability of all debtors isreviewed on an ongoing basis. Debts, which are known to be uncollectible, are written off. A provision fordoubtful debts is raised when some doubt as to collection exists. The credit risk is the carrying amount (net ofany provision for doubtful debts). No interest is earned on trade debtors other than water debtors. The carryingamount approximates net fair value. Sales are generally made on 30 day terms.

Following issue of the Treasurer’s order under Section 24(1A) of the Public Authorities (Financial Arrangements)Act 1987, dated 5 April 2001, prohibiting authorities holding accounts in the Treasury Banking System fromholding investments other than accounts in the Treasury Banking System, the Department has liquidated itsTcorp investments and transferred the funds to its operating bank account.

Bank Overdraft

The Department does not have any bank overdraft facility.



27 F I N A N C I A L I N S T RU M E N T S (continued)

Trade Creditors and Accruals

The liabilities are recognised for amounts due to be paid in the future for goods or services received whether ornot invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set outin Treasurer’s Direction 219.01. If trade terms are not specified, payment is made not later than the end of themonth following the month in which an invoice or a statement is received.

Treasurer’s Direction 219.01 allows the Minister to award interest for late payment. No interest was paid duringthe year (30 June 2002 nil). The carrying amount approximates net fair value.

(a) Interest Rate Risk

FIXED INTEREST RATE MATURITIES

WEIGHTED FLOATING 1 YEAR 1 TO 5 MORE NON TOTALAVERAGE INTEREST OR LESS YEARS THAN INTEREST CARRYING

EFFECTIVE RATE $000 $000 5 YEARS BEARING AMOUNTINTEREST $000 $000 AS PER THERATE % STATEMENT

OF FINANCIALPOSITION

$000

30 June 2003 Financial Asset

Cash 3.75 55,235 55,235

Receivables 49,107 49,107

Total 55,235 49,107 104,342

Financial Liabilities

Payables 84,242 84,242

Interest Bearing 2,090 2,090

Other 3,208 3,208

Total 2,090 87,450 89,540

(b) Credit Risk

Credit risk is the risk of financial loss arising from another party to a contract/or financial position failing todischarge a financial obligation there under. The department’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the Statement of Financial Position.

27 A F T E R B A L A N C E DAT E E V E N T S

No events have occurred after reporting date that need to be recognised or disclosed in the financial report.

E N D O F A U D I T E D F I N A N C I A L S TAT E M E N T S



PAY M E N T S F O R WAT E R A N D S E W E R AG E A S S I S TA N C E







S TAT E M E N T O F F I N A N C I A L P E R F O R M A N C E for the year ended 30 June 2003

AC T UA L B U D G E T AC T UA L2 0 0 2 - 0 3 2 0 0 2 - 0 3 2 0 0 1 - 0 2

Notes $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

Expenses

Operating Expenses:

Grants and Subsidies 2 91,090 87,461 75,146

Total Expenses 91,090 87,461 75,146

Net Cost of Services 10 91,090 87,461 75,146

Government Contributions:

Recurrent Appropriation (net of transfer payments) 3 91,090 87,461 75,146

Total Government Contributions 91,090 87,461 75,146

Surplus / (Deficit) for the year – – –

Total Revenues, Expenses and Valuation Adjustments recognised Directly in Equity – – –

Total changes in Equity other than those resulting from transactions with owners as owners – – –

[The accompanying notes form part of these statements]

S TAT E M E N T O F F I N A N C I A L P O S I T I O N as at 30th June 2003


Notes $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

Assets

Current Assets

Cash Assets 5 – – –

Total Current Assets – – –

Total Assets – – –

Liabilities

Total Liabilities – – –

Net Assets – – –

Equity

Accumulated Funds – – –

Total Equity – – –



S TAT E M E N T O F C A S H F L OW S for the year ended 30 June 2003

AC T UA L B U D G E T AC T UA L2 0 0 2 - 0 3 2 0 0 2 - 0 3 2 0 0 1 - 0 2

Notes $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

Cash Flows from Operating Activities

Payments

Grants and Subsidies (91,090) (87,461) (75,146)

Total Payments (91,090) (87,461) (75,146)

Cash Flows from Government

Recurrent Appropriation 91,090 87,461 75,146

Net Cash Flows from Government 91,090 87,461 75,146

Net Cash Flows from Operating Activities 10 – – –

Net Increase in Cash – – –

Opening Cash and Cash Equivalents – – –

Closing Cash and Cash Equivalents 5 – – –





SUMMARY OF COMPLIANCE WITH FINANCIAL DIRECTIVES for the year ended 30 June 2003

2 0 0 3 2 0 0 2Recurrent Expenditure Capital Expenditure Recurrent Expenditure Capital Expenditure

Appropriation Appropriation Appropriation Appropriation

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Original Budget Appropriation/Expenditure

- Appropriation Act 87,461 91,090 – – 74,075 74,075 – –

- Additional Appropriations – – – – – – – –

- S21A PF&AA – special appropriation – – – – – – – –

- S24 PF&AA – transfers of functions between departments – – – – – –

87,461 91,090 – – 74,075 74,075 – –

Other Appropriations/Expenditure

- Treasurer’s Advance 3,629 – – – 1,640 – – –

- S22 PF & AA – – – – – – – –

- Transfers from another agency under section 25 of the Appropriation Act 1,081 1,071

3,629 – – – 2,721 1,071 – –

Total Appropriations/Expenditure/ Net Claim on Consolidated Fund 91,090 91,090 – – 76,796 75,146 – –

Amounts drawn down against Appropriation 91,090 75,146 –

Liability to Consolidated Fund – – –

Notes to the Summary of Compliance with Financial Directions

(a) The summary of Compliance is based on the assumption that Consolidated Fund moneys are spent first (except whereotherwise identified or prescribed).

(b) Comments on material variationsExpenditure exceeded the original recurrent appropriation by $3.629 million due to increased pensioner rebate payments.

P R O G R A M S TAT E M E N T – E X P E N S E S A N D R E V E N U E S for the year ended 30 June 2003

PROGRAM 1 NOT ATTRIBUTABLE TOTAL

2 0 0 2 - 0 3 2 0 0 1 - 0 2 2 0 0 2 - 0 3 2 0 0 1 - 0 2 2 0 0 2 - 0 3 2 0 0 1 - 0 2$ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0 $ ’ 0 0 0

Expenses

Operating Expenses: – – – – – –

Grants and Subsidies 91,090 75,146 91,090 75,146

Total Expenses 91,090 75,146 – – 91,090 75,146

Retained Revenue: – – – – – –

Total Retained Revenue – – – – – –

Net Cost of Services 91,090 75,146 – – 91,090 75,146

Government Contributions – – 91,090 75,146 91,090 75,146

Net Expenditure/(Revenue) 91,090 75,146 (91,090) (75,146) – –

The name and purpose of each program is summarised at Note: 4





N OT E S AC C O M PA N Y I N G A N D F O R M I N G PA RT O F T H E F I N A N C I A LS TAT E M E N T S for the year ended 30 June 2003

1 S U M M A RY O F S I G N I F I C A N TAC C O U N T I N G P O L I C I E S

(a) R E P O RT I N G E N T I T Y

The entity “Payments for Water and SewerageAssistance” (hereafter referred to as the entity) is aseparate reporting body. The entity function is thedistribution of Government funding to bodies underthe control of the Minister for Energy and Utilities.

These financial statements are prepared as aDepartment controlled by the Minister for Energyand Utilities pursuant to section 45A of the PublicFinance and Audit Act, 1983.

The reporting entity is consolidated as part of theNSW Total State Sector within the NSW State SectorAccounts.

(b) B A S I S O F AC C O U N T I N G

The entity’s financial statements are a general purposefinancial report which has been prepared on anaccruals basis and in accordance with:

- applicable Australian Accounting Standards,

- other authoritative pronouncements of theAustralian Accounting Standards Board (AASB)

- Urgent Issues Group (UIG) Consensus Views.

- the requirements of the Public Finance and AuditAct 1983 and Regulation; and

- the Financial Reporting Directions published in theFinancial Reporting Code for Budget DependentGeneral Government Sector Agencies or issued by theTreasurer under section 9(2)(n) of the Act.

Where there are inconsistencies between the aboverequirements, the legislative provisions have prevailed.

In the absence of a specific Accounting standard,other authoritative pronouncements of the AASB orUIG Consensus View, the hierarchy of otherpronouncements as outlined in AAS 6 “AccountingPolicies” is considered.

The financial statements are prepared in accordancewith the historical cost convention. All amounts arerounded to the nearest one thousand dollars and areexpressed in Australian currency.

The accounting policies adopted are consistent withthose of the previous year.

(c) A D M I N I S T E R E D AC T I V I T I E S

The entity does not administer any activities on behalfof the Crown Entity.

(d) PA R L I A M E N TA RY A P P RO P R I AT I O N S

Parliamentary appropriations are generally recognisedas revenues when the entity obtains control over theassets comprising the appropriations. Control overappropriations is normally obtained upon the receiptof cash.

An exception to the above is when appropriations areunspent at year-end. In this case, the authority tospend the money lapses and generally the unspentamount must be repaid to the Consolidated Fund inthe following financial year. Unspent appropriationsare accounted for as liabilities rather than revenue.The entity liability to the Consolidated Fund at 30 June 2003 was nil.

(e) S TAT E M E N T O F F I N A N C I A L P O S I T I O N

As the entity is involved in the payment ofcommunity service obligations, the entity does nothold assets or liabilities in the Statement of FinancialPosition.


2 E X P E N S E S

G R A N T S A N D S U B S I D I E S

2 0 0 2 - 0 3 2 0 0 1 - 0 2Grants and Subsidies comprise: $ ’ 0 0 0 $ ’ 0 0 0

Grants for Asset Acquisitions

Sewer Backlog Program 2,316 2,806

Grants for Recurrent Purposes

Water and Sewerage Rate Rebates for Pensioners 78,498 71,560

Properties Exempt from Water and Sewerage Rates 9,602 –

Blue Mountains Septic Pumpout Service 674 780

91,090 75,146

3 A P P R O P R I AT I O N S

TOTA L A P P RO P R I AT I O N S C O M P R I S E :

Recurrent

- Total recurrent drawdowns from Treasury (per Summary of Compliance) 91,090 75,146

- Less: Liability to Consolidated Fund – –

Recurrent appropriations (per Operating Statement) 91,090 75,146

4 P R O G R A M / AC T I V I T Y O F T H E E N T I T Y

P RO G R A M 1 – WAT E R A N D S E W E R AG E A S S I S TA N C E

Objective:

To provide concessions to pensioners and properties exempt from water and sewerage rates and protection of the environment by supporting sewerage services.

5 C A S H A S S E T S

C A S H A S S E T S C O M P R I S E :

Balances held in the NSW Treasury Banking System 0 0

0 0


N OT E S AC C O M PA N Y I N G A N D F O R M I N G PA RT O F T H E F I N A N C I A LS TAT E M E N T S for the year ended 30 June 2003



6 C O M M I T M E N T S

(a) C A P I TA L C O M M I T M E N T S

There were no capital commitments at balance date (nil at 30 June 2002).

(b) OT H E R E X P E N D I T U R E C O M M I T M E N T S

There were no other expenditure commitments at balance date (nil at 30 June 2002).

7 C O N T I N G E N T L I A B I L I T I E S A N D C O N T I N G E N T A S S E T S

The entity is not aware of any contingent liabilities and contingent assets associated with its operations (nil at 30 June 2002).

8 A M O U N T S W R I T T E N O F F

No amounts due to the entity were written off during the 2002-03 year (nil for 2001-02).

9 B U D G E T R E V I E W

N E T C O S T O F S E RV I C E S

Actual net cost of services was $3,629,000 higher than budget.This was due to higher than projected pensioner rebates.

A S S E T S A N D L I A B I L I T I E S

The entity held nil assets and liabilities at 30 June 2003 . All cash appropriations received during the period wereon-paid to the grant recipients prior to 30 June 2003.

C A S H F L OW S

The variation in cash flows were directly related to net cost of services variations as indicated above.

10 R E C O N C I L I AT I O N O F N E T C O S T O F S E RV I C E S TO N E T C A S H F L OW SU S E D O N O P E R AT I N G AC T I V I T I E S

2 0 0 2 - 0 3 2 0 0 1 - 0 2$ ’ 0 0 0 $ ’ 0 0 0

Net Cash flows from operating activities – –

- Recurrent and capital appropriations 91,090 75,146

Net Cost of Services 91,090 75,146

E N D O F A U D I T E D F I N A N C I A L S TAT E M E N T S


A P P E N D I C E S

94

L I S T O F A P P E N D I C E S

No Description Page

1 Premises and Hours of Business 95

2 Disclosure of Controlled Entities 95

3 Principal Officers 2002–03 95

4 Chief and Senior Executive Service Positions 95

5 Range of Services 96

6 Guarantee of Service 96

7 Customer Response 99

8 Code of Conduct 99

9 Privacy Management Plan 99

10 Human Resources Statistics 100

11 Action Plan for Women 102

12 Overseas Travel 102

13 Occupational Health & Safety 102

14 Committees 103

15 Consultancies 111

16 Research and Development Projects 112

17 Funds Granted to Non-Government 112Community Organisations

18 Publications Issued in 2002–03 112

19 Legal Changes and Significant Decisions 113

20 Major Works in Progress 114

21 Land Disposal 114

22 Major Assets 114

23 Payment of Accounts 116

24 Annual Report Information 116

25 Freedom of Information Summary and 116Statement of Affairs

26 Risk Management and Insurance Activities 116

27 Waste Reduction and Recycling Activities 117

28 Government Energy Management Policy 117Information for 2002–2003

A P P E N D I C E S


A P P E N D I X 1 P R E M I S E S A N D H O U R S O F B U S I N E S S

Head Office

Level 6, 29-57 Christie Street, St Leonards NSW 2065Tel 61 2 9901 8888 Fax 61 2 9901 8402

Hours of business: 8.30 am to 5.00 pm, Monday to Friday.The office space is leased and occupies 1,242 square metres.

Town Water

Level 3 10 Valentine Avenue, Parramatta NSW 2150Tel (02) 9895 5909 Fax (02) 9895 5918

State Water

209 Cobra Street, Dubbo NSW 2830Tel (02) 6814 7523 Fax (02) 6884 2603

A P P E N D I X 2 D I S C L O S U R E O FC O N T RO L L E D E N T I T I E S

No controlled entities are associated with the Ministry.

A P P E N D I X 3 P R I N C I PA L O F F I C E R S 2 0 0 2 – 0 3

Director-General Mr Brian Steffen

Executive Director Strategy Mr Peter Staveley

Executive Director Energy and Utilities Policy Ms Elsie Choy

Executive Director, Industry Performance Mr Maurice Overy

Executive Director, Organisational Development Mr Garry Hodson

Corporate Counsel Ms Ro Coroneos

General Manager, Town Water Treatment and RecyclingMr Charles Essery

General Manager, State WaterMr Abel Immaraj

A P P E N D I X 4 CHIEF AND SENIOR EXECUTIVES E RV I C E P O S I T I O N S

Number of executive positions 2001–02 2002–03

CES Level 5 1 1

SES Level 3 1 2

SES Level 2 2 3

Total 4 6

Female executive officers 2 1

Remuneration of CES/SES Officers, Level 5 andabove, 2002–03

The remuneration package of the Director-General,Brian Steffen, CES Level 5 is $209,241.

Statement of Performance of Director-General

2002–03 has been Mr Steffen’s first full year as Director-General, following his appointment to the position on 24 April 2002.

During 2002–03 Mr Steffen has continued to focus onfive areas of performance: leadership, organisationaldevelopment, management, priority policies and programs,and client service. The integration of the State Waterbusiness unit and the Town Water Treatment andRecycling Branch of the former Department of Land andWater Conservation became an additional area of focusfor Mr Steffen from April 2003.

Under his leadership the Ministry has become a results-driven, customer focused organisation meeting keyproject milestones on time and within budget.

The Director-General bears ultimate responsibility forthe Ministry’s many achievements in 2002–03.These achievements enhance the role of the Ministry asa leading agency in energy policy and demonstrate ourability to deliver on key outcomes expected bystakeholders. Significant achievements include:

• leading the organisational change of the Ministry to acustomer focused and results orientated culture.

• initiating a further structural realignment of the Ministryfollowing the integration of the elements of the formerDepartment of Land and Water Conservation.

• orchestrating a significant positive shift in theperception of the Ministry by agencies and industry.

• implementation of the Greenhouse Gas BenchmarksScheme from 1 January 2003.

96

• consolidation of the reporting requirements for gas andelectricity networks, while working towards greaterconsistency between the two sectors.

• supporting national energy policy development via theMinisterial Council on Energy and National ElectricityMarket Ministers Forum.

• enhancing consumer protection via the developmentof proposed amendments to the customer protectionframework under full retail contestability.

The positive performance of the Director-General andthe agency as a whole, is evidenced by the allocation ofadditional responsibilities to the Ministry:

New Responsibilities Previous Agency Responsible

State Water business unit – Department of bulk water delivery and asset Land and Water management of dams, weirs Conservationand regulators

Town Water Treatment and Department of Recycling Branch, including the Land and Water Country Towns Water Supply Conservationand Sewerage Program providing financial and technical assistance to local water utilities for water and sewerage services.

A P P E N D I X 5 R A N G E O F S E RV I C E S

The Ministry provided the following services in 200203:

• policy advice to the Minister and Government on energy

• policy advice to the Minister and Government on themetropolitan water utilities

• support and coordination services for the Minister’senergy portfolio

• provision of an energy information service

• inspection, advisory and regulatory activities relating toelectricity and gas network operators

• regulatory activities relating to electricity and gassupply safety

• pipeline licensing and pipeline conveyancing searches

• funding of energy related research, development and demonstration

• processing of energy efficiency labelling registrationsfor major appliances

• provision of information and publications on energyissues and statistics

• accreditation of Electricity Service Providers and advisingthe general public on accredited service providers

• coordination of energy social programs

• bulk water delivery to irrigators, town water supplyauthorities and the environment

• financial and technical assistance to local water utilitiesthrough the Country Towns Water Supply andsewerage Program

A P P E N D I X 6 G UA R A N T E E O F S E RV I C E

The principal role of the Ministry of Energy and Utilitiesis to coordinate and oversee the implementation ofpolicies by the Minister for Energy. The Minister istherefore the Ministry’s prime customer and our coreactivities relate to ministerial support. The Ministry has a secondary role as regulator of energy supply and safety.In this role, the Ministry provides services to a variety ofcustomers. As with all organisations, the Ministry’s staffserves the executive, managers and other officers ascustomers. However, the focus of this Guarantee ofService is external customers.

Some frontline customer services are provided by theDepartment of Mineral Resources under contract to theMinistry. Although the Ministry liaises with the Departmentconcerning quality of service, the Ministry is not directlyresponsible for the actions of Departmental staff.

Customers and Services

The Ministry’s customers and the services they receive are:

A P P E N D I C E S

A P P E N D I X 4 CHIEF AND SENIOR EXECUTIVE S E RV I C E P O S I T I O N S (continued)


Apart from its primary customers, the Ministry interactswith the following specific customer groups:

• consumer and retail associations;

• customers in the competitive gas and electricitymarkets, and in the bulk water market;

• educational institutions;

• electrical equipment manufacturers, importers &distributors;

• energy and water associations;

• energy consultants and traders;

• energy generators, refiners, carriers, transmissionauthorities, distributors and retailers;

• general public;

• government departments and agencies –Commonwealth, interstate and NSW;

• industry associations;

• national and interstate regulatory bodies;

• private industry;

• research organisations, including universities;

• state owned corporations;

• testing laboratories and organisations;

• trade unions;

• urban water corporations; and

• local water utilities.

Providing Quality Customer Service

The Ministry is committed to providing high qualitycustomer service and to improving services whereverpossible. To ensure that our services are customerfocused, staff participate in working groups or liaise withcustomers concerning:

• provision of information on the implementation ofcompetitive energy markets and bulk water delivery;

• mitigation of electrolysis corrosion;

• inspection, advisory and regulatory activities relating toelectricity and gas supply, and water and sewerage services;

• accreditation of Electricity Service Providers toundertake contestable works;

• audit activities relating to the licences of themetropolitan water bodies and the performance oflocal water utilities;

• processing of pipeline licences and pipelineconveyancing searches;

• safe use of gas and electricity; and

• processing of energy efficiency labelling registrationsfor major appliances and dealing with inquiries fromindustry participants.

In liaising with customers, the Ministry aims to:

• achieve a better understanding of customer needs;

• improve cooperation and the exchange of informationbetween Ministry staff and interested organisations andindividuals; and

• implement changes based on the feedback obtained, toimprove services wherever possible.

Achievements to date include:

• identifying customers’ information needs andproviding information to address those needs throughmedia, internet, publications, written correspondence,and contact in person and by telephone;

• improving the coordination of tasks between theMinistry and other Government and private sectoragencies to reduce gaps and overlaps in customerservice; and

Group Services Provided

Primary customers – the Minister, Advice, information and support services relating to the development Minister’s staff and central agencies and implementation of Government energy and urban water policy

Energy sector participants Through its regulatory functions approvals, authorisations and licences – processing applications in a timely fashion, providing advice on the approval processes, and providing information regarding the progress of applications

Water sector participants Technical advice, financial assistance and regulatory functions, as well as bulk water delivery

Contestable electricity and gas Information and advice on energy market reform activitiescustomers and their representatives

The general public (including Answers to queries on various energy related issues, statistical information,industry associations and answers to complaints and responses to correspondenceeducational institutions)

98

• reviewing service standards to identify opportunitiesfor improvement.

Providing Prompt Service

Pipeline services deal with approvals for cross countrypipelines under the Pipelines Act 1967:

Activity Code Response TimeFrom receipt of satisfactory applicationuntil recommendation to the Minister

Authority to survey s 5F 2 months

Permit s 8 10 months

Licence s 19 4 months

Licence renewal s 16 5 months

Variation s 19 4 months

Consent to s 25 2 monthsoperate pipeline

Transfer of permit s 42 2 monthsor licence

Pipeline search s 50A 4 working days when property is unaffected

7 working dayswhen property is unaffected.

The licensed pipelines network has been extended intorural areas not covered by the detailed mapping availablefor metropolitan areas. This means the times stated forproperty searches cannot be guaranteed. Nevertheless,they are being met, even for rural searches, whichconstitute about 20 per cent of total searches.

Cathodic Protection (Electrolysis) services assist theutilities to maintain the physical integrity of theirinfrastructure, including gas, electricity, petroleum andtelecommunications by mitigating the impact ofelectrolysis corrosion damage on pipelines and cables.We carry out field testing at the request of industry andcoordinate electrolysis programs and industry meetings.We promptly assist industry with advice on electrolysiscorrosion matters and testing services, and facilitate disputeresolution. Following testing and evaluation, we issueregistration certificates for cathodic protection systems.

Accreditation services grant approvals for suitablyqualified businesses to conduct contestable works inaccordance with the Electricity Supply Act (1995) and theElectricity Supply General Regulation (2000).

Activity Maximum TaskResponseTime

New Application 10 days Processing an initial

application by a level 2 ASP,from receipt of application to response

Renewal 15 days Processing a renewal form submitted by ASP, includingverification of insurance and payment

Upgrade 15 days Revising an ASP grade,including obtaining supporting information from distributors.

Funding of Energy Research and Development Projectssupports industry, universities, research organisations andother entities conducting research into sustainable energytechnologies. Project proposals are sought by calling forsubmissions from the public. When processing researchand development funding applications, recommendationsregarding the funding of projects are submitted by theMinistry’s Energy Research and Development AdvisoryCommittee within four months of the closing date.Contracts for approved projects are issued by theMinistry within two months of approval by the Minister.

Frontline Customer Service

General Responsiveness

In everyday dealings with our customers, staff aim to becourteous and responsive, answering telephones andcorrespondence promptly and politely.

Customers can expect the Ministry to:

• acknowledge general correspondence from customers(by mail, email or telephone) within 10 working days,liaising with customers on a regular basis until theirmatters are finalised;

• respond to any complaints within 10 working days;

• answer inquiries with prompt, courteous and helpfuladvice; and

• where possible, provide information in communitylanguages.

A P P E N D I C E S

A P P E N D I X 6 G UA R A N T E E O F S E RV I C E (continued)


Complaint Resolution

The Ministry tries to resolve any problems so that allcustomers receive the standard of service to which theyare entitled. Most problems can be resolved quickly.People and organisations requiring assistance shouldcontact the Ministry and explain the problem to therelevant Service Coordinator or Branch Manager (seecontact numbers under “Access”).

If at any time the Ministry does not measure up toexpectations, customers should contact the ComplaintsCoordinator on (02) 9901 8895. A response to theinvestigation will be provided within 10 working days. Ifa caller wishes to have a matter in dispute consideredfurther, the Complaints Coordinator will refer the matterto an outside investigative agency for legal remedy oralternative dispute resolution procedure.

Access

The head office of the Ministry of Energy and Utilities islocated at:

29-57 Christie Street, St LeonardsPO Box 536, St Leonards NSW 1590 Tel (02) 9901 8888 Fax (02) 9901 [email protected] www.energy.nsw.gov.au

Hours of business: 8.30 am to 5 pm, Monday to Friday.Inquiries (02) 9901 8816 or 1800 671 6502.The information and publication sales counter is open8.30 am – 4.30 pm.

Telephone numbers for service coordinators:

Accreditation inquiries 9901 8816

Electrical safety inquiries 9901 8650(network operators)

Electricity and gas retail 1800 671 650competition inquiries

Electrolysis inquiries 9901 8294

Energy statistics 9901 8813

Energy efficiency appliance labelling 9901 8837

Gas safety inquiries 9901 8855

Petroleum inquiries 9901 8865

Pipeline Licensing inquiries 9901 8865

Pipeline Search inquiries 9901 8651

Complaints Coordinator 9901 8611

A P P E N D I X 7 C U S TO M E R R E S P O N S E

A complaints coordinator is nominated annually toadminister the Ministry’s complaints handling policy.A register of complaints is maintained to provide thefeedback needed to measure customer satisfaction withservices the Ministry provides.

No formal complaints were received during 2002–03.

If customers had expressed dissatisfaction with specificguidelines, regulations or legislation administered by theMinistry during the course of general inquiries, theircomplaints would have been dealt with according to thecomplaints handling policy. This involves addressingdissatisfaction and resolving it where possible.

A P P E N D I X 8 C O D E O F C O N D U C T

The Code of Conduct is a set of principles guiding staffconduct, particularly in relation to ethical matters.To ensure that it is current and user friendly, the Code ofConduct has been reviewed.

As part of the change management process, the Code ofConduct has been distributed through the DG’s BulletinPublication to all Ministry employees. The Code will bereviewed and updated following the integration of StateWater and the Town Water Treatment and Recycling Branch.

The Code of Conduct is used to brief all new employeesin an updated induction process.

A P P E N D I X 9 P R I VAC Y M A N AG E M E N T P L A N

The Privacy Management Plan was completed in1999–00 in accordance with the Privacy and PersonalInformation Protection Act 1998. No reviews under Part 5of the Act were conducted.

100

A P P E N D I X 10 H U M A N R E S O U R C E S S TAT I S T I C S

Ministry excluding State Water and Town Water Treatment and Recycling

SALARY TOTAL Respondents Men Women 2A Aboriginal 2C People from People whose 2B People 2B PeopleLEVEL STAFF People and Racial, Ethnic or first Language with a with a Disability

Torres Strait Ethno-Religious spoken as a Disability RequiringIslanders minority child was other work-related

groups than English adjustments

<$28,710 0 0 1 0 1 0 0 0 0(100%) (100%)

$28,710 – $37,708 0 0 0 0 0 0 0 0 0

$37,709 – $42,156 0 0 0 0 0 0 0 0 0

$42,157 – $53,345 10 10 4 6 0 0 0 0 0(100%) (40%) (60%)

$53,346 – $68,985 16 16 13 3 0 0 0 1 1(100%) (81%) (19%) (6%) (6%

$68,986 – $86,231 24 24 17 7 0 0 2 0 0(100%) (71%) (29%) (8%)

>$86,231 (non SES) 14 14 11 3 0 0 1 0 0(100%) (79%) (21%) (7%)

>$86,231 (SES) 4 4 3 1 0 0 0 0 0(100%) (75%) (25%)

TOTAL 68 68 48 20 1 0 3 1 1(100%) (71%) (29%) (1%) (4%) (1%) (1%)

EMPLOYMENT TOTAL Respondents Men Women 2A Aboriginal 2C People from People whose 2B People 2B PeopleBASIS STAFF People and Racial, Ethnic or first Language with a with a Disability



Permanent Full-time 56 56 44 12 0 0 1 1 0(100%) (79%) (21%)

Permanent Part-time 3 3 0 3 0 0 0 0 0(100%) (100%)

Temporary Full-time 3 3 1 2 0 0 0 0 0(100%) (33%) (66%)

Temporary Part-time 2 2 0 2 0 0 0 0 0(100%) (100%)

Contract – SES 4 4 3 1 0 0 0 0 0(100%) (75%) (25%)

Cadet 1 1 1 0 1 0 0 0 0(100%) (100%)

TOTAL 69 69 49 20 1 0 3 1 1(100%) (71%) (29%) (1%) (4%) (1%) (1%)

This information was provided by the Department of Information Technology and Management on behalf of theMinistry of Energy & Utilities and was current as at 30 June 2003. Note: Does not include casual staff.

A P P E N D I C E S


State Water and Town Water Treatment and Recycling Services

SALARY TOTAL Respondents Men Women 2A Aboriginal 2C People from People whose 2B People 2B PeopleLEVEL STAFF People and Racial, Ethnic or first Language with a with a Disability



<$27,606 2 2 2 0 0 0 0 0 0(100%) (100%)

$27,606 – $40,535 100 100 77 23 0 0 0 0 0(100%) (77%) (23%)

$40,536 – $51,293 60 60 45 15 0 0 0 0 0(100%) (75%) (25%)

$51,294 – $66,232 73 73 63 10 0 0 0 0 0(100%) (86%) (14%)

>$66,232 (non SES) 77 77 73 4 0 0 2 0 0(100%) (95%) (5%) (3%)

>$66,232 (SES) 2 2 2 0 0 0 1 0 0(100%) (100%) (50%)

Total 314 314 262 52 0 0 3 0 0(100%) (83%) (17%) (1%)

EMPLOYMENT TOTAL Respondents Men Women 2A Aboriginal 2C People from People whose 2B People 2B PeopleBASIS STAFF People and Racial, Ethnic or first Language with a with a Disability



Permanent 262 262 227 35 0 0 2 0 0Full-time/Part-time (100%) (72%) (11%) (1%)

Temporary 38 38 33 5 0 0 0 0 0Full-time/Part-time (100%) (11%) (2%)

Contract – SES 2 2 2 0 0 0 1 0 0(100%) (100%) (50%)

Casual 12 12 0 12 0 0 0 0 0(100%) (4%)

TOTAL 314 314 262 52 0 0 3 0 0(100%) (83%) (17%) (1%)

This information was provided by the Department of Infrastructure, Planning and Natural Resources on behalf of theMinistry of Energy & Utilities and was current as at 30 June 2003.

Due to the different salary levels used by the Department of Information Technology and Management and theDepartment of Infrastructure, Planning and Natural Resources, it has not been possible to combine the data into asingle table. It is anticipated that next year’s report will allow consolidated statistics as all human resource and payrollservices will be provided by the Department of Infrastructure, Planning and Natural Resources.

102

A P P E N D I X 11 AC T I O N P L A N F O R WO M E N

The Ministry’s progress in employing women is outlinedin the EEO data listed on the previous page.

The Ministry is committed to the Spokeswomen’s Programand has two Spokeswomen representatives, a Women’sLiaison Officer and also the assistance of our HumanResources Advisor. The Spokewomen’s Group meetsregularly and members attend relevant training sessions.It is the Group’s role to improve the workplace forwomen and generally raise awareness among all staffabout issues affecting women in the workplace.

Since their election the two spokeswomen and thewomen’s liaison officer all have attended formalspokeswoman training. Information is regularly distributed

via the Director General’s newsletter. The Spokeswomen’sGroup, which links with the Premiers DepartmentSpokeswomen’s program, has had an active year. All femalestaff have participated in informal monthly meetings andinformal activities which provides networking and learningopportunities with other participating organisations.

The Ministry recognises that women were previouslyunder represented in its workforce and remainscommitted to removing any barriers which may hinderwomen from gaining employment or careeropportunities within our organisation. During the pastyear 50 percent of all new advertised positions weresuccessfully filled by women. During the reportingperiod the Ministry further increased the proportion ofwomen in the workplace to 29 percent, a five percentincrease from June 2002.

A P P E N D I C E S

A P P E N D I X 12 OV E R S E A S T R AV E L

The following officers travelled overseas for official purposes during the financial year:

Name Position Country Purpose Funded from

Ken Bennett Dam Safety & Audit Manager USA Technical seminar and study Internaltour on Dam Safety, Operation and Maintenance

Annette Davison Urban Water Risk Assessor USA Water Quality and InternalTechnology conference

Paul Grant Electricity Networks Manager China International Electrotechnical Internal/Commission conference Standards Australia

A P P E N D I X 13 O C C U PAT I O N A L H E A LT H & S A F E T Y

The Ministry has been proactive in managing OccupationalHealth & Safety over the past 12 months. A new OH&SCommittee has been appointed and is in the process ofreviewing all OH&S policies and procedures includingmanual handling, incident and injury reporting, officesafety and ergonomics and stress management.

A Ministry wide audit of occupational health and safetysystems was undertaken in 2002–03 to implement a cycleof continuous improvement and establish benchmarksfor health and safety performance in the Ministry.


Government Energy ManagementPolicy (GEMP) Senior OfficersSteering Committee

Functions: To oversee theenhancement of GEMP and developan action plan which addresses therecommendations of theParliamentary Standing Committee.

Mr Brian Steffen (Chair)Ministry of Energy and Utilities

Mr Mark FogartySustainable Energy DevelopmentAuthority

Mr Dick PerssonFormer Department of Public Worksand Services

Ms Margaret McDonaldThe Cabinet Office

Mr Tim Aldrich (Secretary)Ministry of Energy and Utilities

Government Energy ManagementPolicy (GEMP) Working Group

Functions: To overseeimplementation of GEMP.

Dr Tadipatri Prasad (Chair)Ministry of Energy and Utilities

Mr Tim AldrichMinistry of Energy and Utilities

Dr Franki LeeMinistry of Energy and Utilities

Dr Amjad AdilMinistry of Energy and Utilities

Mr Jeffery ByeSustainable Energy DevelopmentAuthority

Mr Roy CraddockDepartment of Commerce

National Electricity Market(NEM) Senior Officials andAdvisers Working Party

Function: To prepare papers for, andpresent options to ensureimplementation of policy changesby, the NEM Ministers Forum.

Mr Brian Steffen (Convenor)Ministry of Energy and Utilities

Ms Leisl BaumgartnerMinister Sartor’s Office

Mr Richard BoltDepartment of Natural Resourcesand Energy (Victoria)

Ms Robyn McLeodMinister Broad’s Office

Mr John RobinsonDepartment of Treasury and Finance(South Australia)

Mr Mark HancockMinister Conlon’s Office

Mr Scott FlavellQueensland Office of Energy

Mr Leon AllenMinister Mackenroth’s Office

Mr John RobertsonDepartment of Treasury (ACT)

Mr Peter MaddenDeputy Chief Minister andTreasurer Quinlan’s Office

Mr Richard SulikowskiDepartment of Treasury and Finance(Tasmania)

Network Planning GuidelinesWorking Group

Functions: To review and amend

guidelines for developing electricity

systems; to recommend consultative

practices for environmental impact

assessments of electricity network

systems and related facilities; to

recommend best practice attributes

for environmental impact assessments

of electricity network systems; to

review maintenance issues.

Mr Robert Moore (Convenor)Integral Energy

Ms Yolande StonePlanningNSW

Mr Michael de RomeTransGrid

Mr Adrian RayAustralian Inland Energy

Mr Steve HassallCountry Energy

Mr James HartEnergyAustralia

Mr Jonathan WillsMinistry of Energy and Utilities

Electricity UndergroundingSteering Committee

Function: Established to oversee thereview of electricity undergroundingand policy development.

Mr Brian Steffen (Chair)Director-General, Ministry ofEnergy and Utilities

Ms Elsie Choy Ministry of Energy and Utilities

Ms Jennifer VincentThe Cabinet Office

Mr Peter PayneMinister Yeadon’s Office

Mr Jim MitchellDepartment of Local Government

Mr Bill DunbarPremier’s Department

Mr Peter HooglandNSW Treasury

Mr Steve BelcherDepartment of Planning

Mr Bruce Morcombe (Secretariat)Ministry of Energy and Utilities

Electricity UndergroundingTechnical Reference Group

Function: Established to considertechnical and practical issues whichmay arise during electricityundergrounding.

Mr Brian Steffen (Chair)Director-General, Ministry ofEnergy and Utilities

Ms Elsie Choy (Alternate Chair)Ministry of Energy and Utilities

Mr Robert SmithMinistry of Energy and Utilities

Mr Bruce Morcombe (Secretariat)Ministry of Energy and Utilities

Mr Anthony GarbinDepartment of Local Government

Mr Henry Musidlak (Alternate)Department of Local Government

Mr Bob CantwellEnergy Australia

Mr Steve McHardy (Alternate)Energy Australia

Mr Ray McNallyIntegral Energy

A P P E N D I X 14 C O M M I T T E E S

104

Electricity UndergroundingTechnical Reference Group(continued)

Mr Terry HolmesCountry Energy

Mr Adrian RayAustralian Inland Energy and Water

Mr Warren TaylorLocal Government Shire andAssociations

Mr Surinder AnejaBlacktown City Council

Mr Richard JarvisRockdale City Council

Mr Czes PaterTelstra Corporation Limited

Mr Guy Di Paola (Alternate)Telstra Corporation Limited

Mr Darrell MedfordOptus Limited

Ms Judy Anderson (Alternate) Optus Limited

Utility Concessions SteeringGroup

Function: Established by the CabinetStanding Committee on Energy tocoordinate policy arrangements for,and advise the Government onenergy and water concessions.

Ms Elsie Choy (Chair)Ministry of Energy and Utilities

Mr Dennis FardyUtilities Policy and Programs

Mr Bruce Morcombe Ministry of Energy and Utilities

Ms Diana Covell (Alternate)Ministry of Energy and Utilities

Ms Eija RotiStrategic Policy, Department ofCommunity Services

Ms Jennifer VincentEconomic Development Branch,The Cabinet Office

Ms Kate Lawrence-HaynesNSW Treasury

Ms Elena MurtyPrimary Health and Community Care,Department of Health

Mr Mark AikenEnergy & Water Ombudsman NSW

Energy Industry ConcessionsWorking Group

Function: Established by the

Ministry to provide industry input

into the development of the new

energy concessions regime from

1 January 2002.


Mr Dennis FardyMinistry of Energy and Utilities

Ms Diana CovellMinistry of Energy and Utilities

Ms Nadene PalmerCountry Energy

Mr Mal JonesEnergy Australia

Mr Ian GibsonIntegral Energy

Mr Shaun RuddockAGL

Mr Ray ThornAustralian Inland Energy and Water

Ms Vicki Knighton (Alternate)Australian Inland Energy and Water

Greenhouse BenchmarksOfficers Group (GBOG)

Function: To advise on detailed

implementation of the

Government’s policy of introducing

a mandatory greenhouse benchmark

scheme for electricity retailers and

other liable parties.


Dr David HemmingMinistry of Energy and Utilities

Ms Anthea HarrisSeconded to Ministry of Energy and Utilities

Ms Ro CoroneosMinistry of Energy and Utilities

Ms Leisl BaumgartnerMinister’s Office

Ms Kate Lawrence-HaynesNSW Treasury

Ms Jenny RenkoNSW Treasury

Mr Michael McGrathNSW Treasury

Mr Eric GroomIndependent Pricing and RegulatoryTribunal

Mr Paul ButlerDepartment of State and RegionalDevelopment

Mr Jim HorderDepartment of State and RegionalDevelopment

Mr Simon SmithEnvironment Protection Authority

Ms Shayleen ThomsonThe Cabinet Office

Ms Mary DarwellThe Cabinet Office


Mr Tim NelsonThe Cabinet Office

Industry Consultative Group(on Greenhouse Benchmarks)

Function: To advise the GBOG froman industry perspective, on detailedimplementation of theGovernment’s policy of introducinga mandatory greenhouse benchmarkscheme for electricity retailers andother liable parties.




Ms Jennifer Vincent (Observer)The Cabinet Office

Mr Bob LimEnergy Markets Reform Group

Mr Ewen MacphersonAustralian Institute of Petroleum

Mr Peter GanElectricity Supply Association of Australia

Dr Harry SchaapElectricity Supply Association of Australia

Mr Michael CarolinAustralian Business Limited

A P P E N D I C E S

A P P E N D I X 14 C O M M I T T E E S (continued)


Ms Patricia McKenzieGas Market Company

Mr Peter SmithNSW Minerals Council

Ms Rebecca MyersNational Retailer Forum

Mr Richard SiblyNational Retailer Forum

Mr Ric BrazzaleAustralian Ecogeneration Association

Mr Ron KnappThe Aluminium Council

Mr Stephen DahlAustralian Paper Industry Council

Ms Vivienne FillingAustralian Industry Group

Mr Jim BeckwithNational Generator Forum

Mr Andrew BonwickNational Generator Forum

Environmental ConsultativeGroup (on GreenhouseBenchmarks)

Function: To advise the GBOG froman environmental perspective, ondetailed implementation of theGovernment’s policy of introducinga mandatory greenhouse benchmarkscheme for electricity retailers andother liable parties.




Ms Jennifer Vincent (Observer)The Cabinet Office

Dr Frances MacGuireGreenpeace Australia Pacific

Mr Dietrich WillingFriends of the Earth

Mr Jeff AngelTotal Environment Centre

Ms Kathy RidgeNature Conservation Council of NSW

Mr Sebastian CrawfordNature Conservation Council of NSW

Ms Sarojini Krishnapillai(Corresponding member)Australian Conservation Foundation

Greenhouse MethodologyWorking Group

Function: To advise the GBOG ondetailed methodologies in relation toelectricity sales foregone, forest carbonsequestration and generation, inimplementing the Government’s policyof introducing a mandatory greenhousebenchmark scheme for electricityretailers and other liable parties.

Dr David Hemming (Chair)Ministry of Energy and Utilities



Mr Tim NelsonThe Cabinet Office

Mr Michael McGrathNSW Treasury

Ms Cheryl LoIndependent Pricing and RegulatoryTribunal

Mr Paul ButlerDepartment of State and RegionalDevelopment

Mr Brett StevensonEnvironment Protection Authority

Mr Chris DunstanSustainable Energy DevelopmentAuthority

Ms Katy BradySustainable Energy DevelopmentAuthority

Mr Ben KearneySustainergy

Dr George WilkenfeldGeorge Wilkenfeld and Associates

Electricity Industry SafetySteering Committee

Function: to identify opportunitiesfor the Ministry and industry toimprove electricity network safety inorder to eliminate or minimiseexposure of people and property tothe risk of injury or damage fromelectricity network hazards.

Mr Maurice Overy (Chair)Ministry of Energy and Utilities

Mr Paul Grant (Deputy Chair)Ministry of Energy and Utilities

Mr Chris Dalitz (Secretary)Ministry of Energy and Utilities

Mr John EisenhuthEnergyAustralia

Mr John WallaceIntegral Energy

Mr Alan FlettIntegral Energy

Mr Ken StonestreetCounty Energy

Mr Trevor GilsonCountry Energy

Mr Michael DobbinAustralian Inland Energy and Water

Mr Adrian RayAustralian Inland Energy and Water

Mr Bernard RiordanElectrical Trade Union

Mr Bill Wooldridge (Now Retired)Electrical Trade Union

Mr Lionel SmythTransGrid

Mr David Stuart-SmithRail Infrastructure Corporation

Mr Peter HobbsRail Infrastructure Corporation

Mr Jim TinslayNECA

Mr John Giles (Level 1 ASP)United Kilpatrick Green

Mr Victor Liondas ( Level 1 ASP)Connect Engineering Pty Limited

Mr David Jeffcott (Level 2 ASP)Tony Pollard Electrics Pty Limited

Mr Glenn Blattman (Level 2 ASP)Lower Mountains Electrical

Mr Ian LowWorkCover

Gas & Pipelines IndustryConsultation Committee

Function: Government and industry

consultation forum for gas networks

and pipelines in NSW.


Mr Adrian Amey (Deputy Chair)Ministry of Energy and Utilities

Mr Peter BowdenAgility Management Pty Limited

Mr Mike McDermottAgility Management Pty Limited

106

Gas & Pipelines IndustryConsultation Committee(continued)

Dr Allen BeasleyAustralian Pipeline IndustryAssociation

Mr Ian HaddowAustralian Pipeline Trust Limited

Mr Bob AllisonAustralian Pipeline Trust Limited

Mr Wolfgang PetersBP Australia Ltd

Mr Robert MooreCaltex Australia Petroleum Pty Ltd

Mr Stephen DykesDuke Energy International

Mr Geoffrey WalkerGreat Southern Energy Gas Networks

Mr Yin WongMobil Oil Australia Pty Ltd

Mr Mark WalkerQenos Pty Ltd

Mr Allen ParnellShell Refining (Australia) Pty Ltd

Mr Greg FallonShell Refining (Australia) Pty Ltd

Mr Phil ButtNSW WorkCover Authority

Mr Serge MorsonNSW WorkCover Authority

National Government EnergyManagement Group

Function: Formed under theprevious Energy Management TaskForce to implement a consistentdata collection and reporting systemfor Government energy use and toexchange information in energyrelated areas.

Dr Tadipatri PrasadMinistry of Energy and Utilities

Mr Tim AldrichMinistry of Energy and Utilities

Mr Jeffery ByeSustainable Energy DevelopmentAuthority

Mr Bruce KingEnergy South Australia

Mr Roger KluskeSustainable Energy Authority Victoria

Mr Peter MacartneyAustralian Greenhouse Office

Mr Pat SmithSustainable Energy DevelopmentOffice

Mr Leyden DeerCommonwealth Department ofIndustry, Tourism and Resources

Ms Catriona JohnsonCommonwealth Department ofIndustry, Tourism and Resources

Ms Johanna KieboomMines & Energy Northern Territory

Mr M VincentQueensland Department of Minerals& Energy

New South Wales ElectrolysisCommittee

Function: to provide a forum whererelevant agencies can workcooperatively to ensure the safety ofthe environment, the community,and workers by protecting againstthreats to infrastructure posed bystray electrical current corrosion;and to regulate the efficientmanagement of infrastructure.


Mr Adrian Amey (Secratary)Ministry of Energy and Utilities

Mr David NicholasHunter Water

Mr Peter HosfordEnergyAustralia

Mr Gary AveryTelstra Corporation Limited

Mr Bruce FlackAgility Management Pty Ltd

Mr Peter TaylorIntegral Energy

Mr Peter HobbsRail Infrastructure Corporation

Mr Gil DentSydney Water Corporation

Mr Terry LampardEnergyAustralia

Mr Mark FothergillAgility Management Pty Ltd

Mr Mark WalkerGorodok Australia Pty Ltd

Planning Measures forUndergrounding Working Group

Function: Established in December

2002 to consider planning measures

that may promote electricity

undergrounding.


Mr Chris Dalitz (Secretary)Ministry of Energy and Utilities

Mr Jim MitchellDepartment Of Local Government

Mr Steve McHardyEnergyAustralia

Mr Ian RobinsonIntegral Energy

Mr Terry HolmesCountry Energy

Mr Fred RobsonAustralian Inland Energy and Water

Mr Warren TaylorLocal Government Association ofNSW and Shires Association of NSW

Ms Janet FrostLocal Government Association ofNSW and Shires Association of NSW

Mr Richard JarvisRockdale City Council

Mr Czes PaterTelstra Corporation Limited

Mr Michael Ryan (Alternate)Telstra Corporation Limited

Mr Darrell MedfordOptus Limited

Ms Judy AndersonOptus Limited

Mr Steve BelcherDepartment of PlanningInfrastructure and Natural Resources

Mr John BrockhoffDepartment of PlanningInfrastructure and Natural Resources

Ms Mohini NairProperty Council of Australia

Mr Ken RootseyUrban Development Institute ofAustralia (UDIA)

Ms Rachel ShortHousing Industry Association (HIA)

A P P E N D I C E S



Rainwater Tank Subcommittee

Function: To advise the Minister onpolicy issues associated with the useof rainwater tanks in urban areas witha reticulated (piped) water supply.


Mr Dennis Fardy (Alternate Chair)Ministry of Energy and Utilities

Mr Lee Hill (Secretary)Ministry of Energy and Utilities

Ms Christine CowieNSW Health

Dr Paul ByleveldNSW Health (Alternate)

Ms Julie AntillSydney Water Corporation

Ms Robyn AllenSydney Water Corporation

Ms Kristin TomkinsplanningNSW/Department ofInfrastructure Planning and NaturalResources

Ms Annette DavisonDepartment Of Land & WaterConservation/Ministry of Energyand Utilities

Dr Charles EsseryDepartment of Land & WaterConservation/Ministry of Energyand Utilities

Mr John MillayWater Directorate

Mr Robert VerheyLocal Government and ShiresAssociation

EAPA Working Group Members

Function: A consultation, discussionand reference group for the EnergyAccounts Payment AssistanceScheme (EAPA).

Mr David HowardAnglicare

Mr Gary MooreCouncil Of Social Service Of NSW

Mr Eric EllemSt Vincent De Paul Society

Major Marina RandallSalvation Army

Ms Cristina FricaSmith Family

Ms Sandra Walden-PearsonSmith Family

Ms Wendy LuckettWesley Central Mission

Ms Jo-Anne HewittSydney City Mission

Mr Roley TyrrellEnergy Australia

Mr John MoffatIntegral Energy

Mr Paul ClarkCountry Energy

Ms Clare Petre (Energy and WaterOmbudsman)Energy & Water Ombudsman NSW

Mr Dennis FardyMinistry of Energy and Utilities

Ms Diana CovellMinistry of Energy and Utilities

Ms Cherrylin RawlinAGL Centre

Mr Dennis Quin AGL Centre

Ms Trish BensonPublic InterestAdvocacy Centre (PIAC)

Mr Jim WellsmorePublic InterestAdvocacy Centre (PIAC)

MEU/LGA & SA Committee forLocal Government Water Supplyand Sewerage Services

Function: Liaison, informationsharing, dispute resolution and othermatters related to local water utilitywater supply and sewerage services.

Mr Charles Essery (Chair) Ministry Of Energy And Utilities

Mr Colin McLean Ministry Of Energy And Utilities

Mr John Moorhouse Ministry Of Energy And Utilities

Mr Sam Samra (Observer)Ministry Of Energy And Utilities

Mr Piers Toop (Observer) Ministry Of Energy And Utilities

Mr Patrick BrassilLocal Government Association

Ms Jenny McLellan Shires Association

Mr Mike Rayner IPWEA

Ms Stephanie Smith (Observer) Local Government Association &Shires Association

Mr Gary Mitchell Water Directorate

Local Government Association& Shires Association WaterManagement Committee

Function: Liaison, informationsharing, dispute resolution and othermatters related to local water utilitywater services.

Mr Charles Essery (Member) Ministry Of Energy And UtilitiesMr John Moorhouse (Observer) Ministry Of Energy And Utilities

Committee on Uniformity ofPlumbing and DrainageRegulations in NSW CUPDR

Function: Liaison, informationsharing, preparation of CUPDRGuidelines, the NSW Code ofPractice Plumbing and Drainage andother matters related to plumbingand drainage services.

Mr Charles Essery (Chair) Ministry Of Energy And UtilitiesMr John Moorhouse (Observer)Ministry Of Energy And UtilitiesMr Allan Rogers (Executive Officer)Ministry Of Energy And UtilitiesMr Steve Vidot / Colin CribbHunter Water CorporationMr Geoff VickersSydney Water CorporationMs Robyn AllenSydney Water CorporationMr Neil ShawNSW Department of HealthMr Henry MusidlakDepartment of Local GovernmentMr Michael CarrollDepartment of Fair TradingMr Steve DurnfordPlanning NSWMr G MooreNSW TAFE / Mount Druit TAFEMr Paul BennettsAustralian Inland Energy & WaterMs Eugene SarichInstitute of Environmental HealthMr David WoodThe Association of HydraulicServices Consultants AustraliaMr R HallettMaster Plumbers and MechanicalContractors Association of NSWWater Services AssociationMr Charles Essery (Associate Member)Ministry Of Energy And Utilities

108

Representation on Committees(including those listed previously)Mr Brian Steffen

Greenhouse Benchmarks Officers’ Working Group(Chair)

Industry Consultative Group on GreenhouseBenchmarks (Chair)

Environmental Consultative Group on GreenhouseBenchmarks (Chair)

Government Energy Management Policy – SeniorOfficers Steering Working Committee (Chair)

National Electricity Market (NEM) – Senior Officersand Advisers Working Party (Convenor)

National Electricity Market Ministers’ Forum (NEMMF)Standing Committee of Officials and Advisors

Gas Market Company Board (GMC)

Electricity Undergrounding Technical Reference Group

Electricity Undergrounding Steering Committee

Water CEO’s Forum

Ministerial Council on Energy – Standing Committeeof Officials (SCO)

Ministerial Council on Energy – Energy MarketDevelopment Working Group (Chair)

Energy Steering Committee (ESC)

National Gas Pipelines Advisory Committee (NGPAC)

Government Energy Management Policy (GEMP)

Business to Business Working Group (B2B).

Ms Elsie Choy

AGL Corporate Conversion Joint ImplementationGroup (Chair)

Utilities Concessions Steering Committee (Chair)

National Gas Pipelines Advisory Committee (NGPAC)

Gas Policy Forum

Energy Market Development Working Group

Electricity Undergrounding Steering Committee


Water Industry Interdepartmental Committee

Energy Steering Committee.

Planning Measures for Undergrounding WorkingGroup (Chair)

Rainwater Tank Subcommittee (Chair)

Mr Maurice Overy

Electricity Industry Safety Steering Committee (Chair)

Gas and Pipeline Industry Consultation Committee(Chair)

New South Wales Electrolysis Committee (Chair)

Electrical Regulatory Authorities Council (ERAC)

National Oil Supplies Emergency Committee(NOSEC)

Gas Technical Regulators Committee (GTRC).

Ms Ro Coroneos

Greenhouse Benchmarks Officers Group

Mr Charles Essery

MEU/LGA & SA Committee for Local GovernmentWater Supply and Sewerage Services (Chair)

Local Government Association & Shires AssociationWater Management Committee

Committee On Uniformity of Plumbing and DrainageRegulations in NSW CUPDR

Mr Adrian Amey

New South Wales Electrolysis Committee – RiskManagement Group (Convenor)

Australian Standard Committee – ME38 PetroleumPipelines

Australian Standard Committee – ME38/1 Design andConstruction

Gas Water Heater Steering Committee

Major Hazards Interagency Committee

Gas and Pipeline Industry Consultation Committee.

Ms Mona Sahore

Gas Reporting Consultation Committee (GRCC)

Pipeline Reporting Consultation Committee (PRCC).

Mr Paul Grant

National Electricity Network Safety SteeringCommittee (NENS)

National Regulators Forum Steering Committee(NRFSC)

Electricity Industry Safety Steering Committee(Deputy Chair)

International Electrotechnical Commission SC23GAppliance Couplers (Chair)

Standards Australia Committee EL-034 Power Quality

Standards Australia Committee EL-026 EnvironmentalTesting (Chair)

Standards Australia Committee EL-004 ElectricalAccessories.

Mr Colin McLean

MEU/LGA & SA Committee for Local GovernmentWater Supply and Sewerage Services.

Mr John Moorhouse

MEU/LGA & SA Committee for Local GovernmentWater Supply and Sewerage Services

Local Government Association & Shires AssociationWater Management Committee (Observer)

Committee on Uniformity of Plumbing and DrainageRegulations in NSW CUPDR (Observer).

Mr John Speed

New South Wales Government Paint Committee(GPC)

Cement and Concrete Users’ Review Group(CCURG)

A P P E N D I C E S



Standards Australia Committee On BD10AS3972Portland & Blended Cement

Standards Australia Committee On BD33 Chemical Admixtures For Concrete

Standards Australia Committee On BD33-01 Curing Compounds

Standards Australia Committee on BD33-01Expanding Admixtures

Standards Australia Committee on BD33-33-02Cement

Standards Australia Committee on ME-038-08Protective Coatings and Linings for the Oil and GasIndustry

Standards Australia Committee on PL-001 Plastics Pipe Systems Coordination

Standards Australia Committee on PL-006 Polyolefin Pipe Systems

Standards Australia Committee on PL-021 PVC, ABS and Polyamide Pipe Systems

Standards Australia Committee on PL-021-00-01Maintenance Shafts

Standards Australia Committee on PL-044 Reinforced Plastics Pipe Systems, Tanks and Vessels

Standards Australia Committee on PL-045 PlasticsPipe Systems Test and Calculation Methods

Standards Australia Committee on WS-006 Concrete Pipes

Standards Australia Committee on WS-008 Fibre Reinforced Concrete Pipes and Fittings

Standards Australia Committee on WS-009-01Protective Coatings and Linings for the Water Industry

Standards Australia Committee on WS-009-03 Tape Wrapping Systems For Pipes, Fittings and FieldApplied Joint Coatings – Water and Gas Industries

Standards Australia Committee on WS-015 Vitrified Clay Pipes

Standards Australia Committee on WS-016 Cast Iron Pressure Pipes and Fittings

Standards Australia Committee on WS-022 Valves For Water Supply and Sewerage

Standards Australia Committee on WS-022-04 Valve Coatings

Standards Australia Committee on WS-028 Design and Installation of Buried Flexible Pipes

Standards Australia Committee on Water ServicesSpecifications (WS-SPEC) Working Group

Water Services Association of Australia Working GroupCommittee on Water Supply Code 2002

Water Services Association of Australia Working GroupCommittee on Sewerage Code 2002

Water Services Association of Australia Working GroupCommittee on Pumping Station Code of AustraliaWSA06-1999

Water Services Association of Australia Working GroupCommittee on Polyethylene Pipeline Code 2001

Water Services Association of Australia NetworkingGroup Committee on Product Appraisal Scheme

Water Services Association of Australia NetworkingGroup Committee on Network

Mr Paul Briggs

National Electricity Network Safety Working Groupfor the National Guidelines for Selection, Use andMaintenance of Clothing and Personal ProtectiveEquipment for Electrical Hazards.

Mr Chris Dalitz

WorkCover Electrical Working Group (EWG)

Electricity Industry Safety Steering Committee (ISSC).

Planning Measures for Undergrounding WorkingGroup

ESAA Power Poles Committee

Mr Neville Frappell

Gas Technical Standards Committee (GTSC).

Mr Dennis Fardy

EAPA Working Group

Utilities Concessions Steering Group.

Demand Management Working Group

Rainwater Tank Subcommittee (Alternate Chair)

Energy Industry Concessions Working Group

Mr Piers Toop

MEU/LGA & SA Committee for Local GovernmentWater Supply and Sewerage Services (Observer)

Mr Sam Samra

MEU/LGA & SA Committee for Local GovernmentWater Supply and Sewerage Services (Observer)

Local Government Accounting Advisory Group

Australian Non Major Urban (NMU) Water UtilitiesPerformance Monitoring Group

Mr Jonathan Wills

Inter-regional Planning Committee

NEM Ministers’ Forum Standing Committee ofOfficials and Advisors

Network Planning Guidelines Working Group.

Mr Allan Rogers

Committee on Uniformity of Plumbing and DrainageRegulations in NSW CUPDR (Executive Officer).

Water Industry Training Association

Dr David Hemming

Industry Consultative Group on GreenhouseBenchmarks

Environmental Consultative Group on GreenhouseBenchmarks

Greenhouse Methodology Working Group (Chair)

Energy Efficiency and Greenhouse Working Group[E2G2] – reporting to MCE SCO

Green Offsets Working Group [convened by DLWC]

Waste-to-Energy Working Group [of EPA].

110

Dr Tadipatri Prasad

Strategic Energy Supply and Security Working Group(SESSWG)

Steering Committee on Department of Health’sEnergy and Water Management Framework

NSW Statistical Coordination and User Forum

Australian Transport Data Analysis Centre Working Group

National Government Energy Management Group

Cleaner Government Fleet Policies Inter-AgencyCommittee

Cleaner Government Fleet Methodology WorkingGroup

State of the Environment Report Woking Group

Government Energy Management Policy Working Group

Energy Data Gathering and Reporting Working Group

Sites Facilitation Working Group for Statement ofSystem Opportunities

Modelling Advisory Group for Statement of SystemOpportunities

Core Working Group for Statement of SystemOpportunities

Mr Matthew Sloane

Cleaner Government Fleet Policies Inter-AgencyCommittee



Dr Franki Lee

NSW Statistical Coordination and User Forum

State of the Environment Report Woking Group




Australian Transport Data Analysis Centre WorkingGroup

Government Energy Management Policy Working Group

Dr Amjad Adil




Government Energy Management Policy WorkingGroup

Ms Kathy Staggs



Sites Facilitation Working Group for Statement ofSystem Opportunities

Mr Mark Openshaw

Program Management Committee – FRC CustomerInformation Program

Ministerial Council on Energy – DownstreamPetroleum Working Group

Ministerial Council on Energy – Energy MarketDevelopment Working Group (Secretary)

Ministerial Council on Energy – Strategic EnergySupply and Security Working Group

Mr Tim Aldrich

Government Energy Management Policy (GEMP)Senior Officers Steering Committee (Secretary)

National Government Energy Management Group

Government Energy Management Policy WorkingGroup

National Appliance and Equipment Energy EfficiencyCommittee.

Mr Bruce Morcombe

Energy Industry Concessions Working Party

Energy Accounts Payment Assistance (EAPA) WorkingGroup

Utilities Concessions Steering Committee.


Ms Diana Covell

Energy Industry Concessions Working Party

EAPA Working Group

Utilities Concessions Steering Committee.

Mr Anthony Poon

IPART’s Pricing Issues Consultation Group.

Ms Julia Finn

NEMMCO’s Settlement Residue Committee.

Mr Paul Heinrichs

Dams Surveillance Sub-Committee Of The DamsSafety Committee (DSC)

Dams Safety Committee Emergency Matters Sub-Committee

ANCOLD Dams Safety Management Guidelines

ANCOLD Risk Assessment Guidelines

Mr Ross Barrie

NSW Dams Safety Committee

NSW Dams Safety Committee EmergencyManagement Sub-Committee (Chair)

Total Asset Reference Group

MDBC/RMW – Murray River Navigable Pass ProjectSteering Committee

A P P E N D I C E S



Mr Ken Bennett

NSW Dams Safety Committee Surveillance Sub-Committee

Mr Greg Hillis

State Weir Review Committee

Hunter District Emergency Management Committee

Hunter River Salinity Trading Scheme OperationsCommittee

Mr John Nankivell

Hunter River Salinity Trading Scheme OperationsCommittee

Mr Neil Porter

Survey & Mapping Managers Forum

Mr Michael Arandt

Menindee Lakes Ecologically Sustainable DevelopmentProject Steering Committee

Mr Michael Gatt

NSW Service and Installation Rules Committee

Monopoly Fees Working Group

Miscellaneous Charges Working Group

Unmetered Supply Working Group

Asbestos Working Group

Mr Wesley Tuszynski

NSW Service and Installation Rules Committee

Mr Robert Smith


Demand Management Working Group

Private Lines Working Group

Electricity Reporting Consultation Committee(ERCC)

A P P E N D I X 15 C O N S U LTA N C I E S

The total amount paid by the Ministry for consultancies in 2002–03 was $1,685,000. Details of consultancies are:

Fees exceeding $30,000

Consultant Nature Cost

Energy Reform

Frontier Economics Advice on the development of the wholesale and retail electricity $1,450,000markets and the NSW mandatory greenhouse benchmarks scheme

George Wilkenfield Technical advice and expertise in preparing detailed methodologies for $45,000& Associates each broad class of abatement activity in relation to the NSW mandatory

greenhouse benchmarks scheme

Mallesons Stephen Legal advice and expertise in preparing an amendment bill, the $142,000Jaques amendment of the Electricity Supply (General) Regulation 2001

and the development of new rules in relation to the NSW mandatory greenhouse benchmarks scheme

Management

Vector Leadership Advice on change management protocols emanating from the $48,000Public Sector Management Order of 2 April 2003

TOTAL $1,685,000

Fees under $30,000

Nil

112

A P P E N D I X 16 R E S E A R C H A N D D E V E L O P M E N T P RO J E C T S

Projects completed in 2002–03

Project Funding Total SERDF 2002–03 Funding ($)

($) (whole project)

Sputtered coatings for solar power plants 31,304 626,053

Cost competitive solar cells 31,676 205,476

Efficiency improvements of commercial multicrystalline solar cells 12,850 256,976

Heat transfer processes in compact linear fresnel reflector boiling tubes 26,870 268,704

Advanced solar water heating absorber coatings 14,457 41,857

Total 117,157 1,399,066

Projects continuing in 2003–04

Project Funding Total SERDF 2002–03 Funding ($)

($) (whole project)

In-vehicle integrity testing of natural gas cylinders by acoustic emission 29,000 185,000techniques (Stage 2)

Ultimate performance thin film silicon solar cells 54,711218,540

Total 83,711 403,540

A P P E N D I C E S

A P P E N D I X 17 F U N D S G R A N T E D TO N O N -

G OV E R N M E N T C O M M U N I T Y

O R G A N I S AT I O N S

Nil.

A P P E N D I X 18 P U B L I C AT I O N S I S S U E D

I N 2 0 0 2 – 0 3

Consultation Paper – Review of regulatory Framework for

Reticulated Liquefied Petroleum Gas (LPG), June 2003

Draft ISSC Paper – Guide to Managing Vegetation Near

Powerlines, June 2003

Proposed Amendments to the Greenhouse Gas Benchmarks

Rules, May 2003

Electricity Market Operations Rules, May 2003

Consultation Paper – Metering Services Competition,

April 2003

Draft ISSC Guideline – Pre-climbing and Climbing

Assessment of Poles, March 2003

Submission to Essential Services Commission Position Paper:

Installing Interval Meters for Electricity Customers – Costs

and Benefits, February 2003

Draft ISSC Guideline – Enclosed Spaces in NSW

Electricity Networks, December 2002

Electricity Supply (Greenhouse Gas Emission Reduction)

Guideline 2003, December 2002

Greenhouse Gas Benchmark Rules, December 2002

Methodology for Calculating NSW Greenhouse Gas

Abatement Certificates from Demand Side Abatement,

November 2002

Methodology for Large User Abatement Certificates,

November 2002

Options Paper – Demand Side Abatement Methodology for

the Revised NSW Benchmarks Scheme, October 2002

Consultation Paper: Proposed amendments to NSW

electricity and gas regulations and market operation rules,

September 2002

Options Paper – Emissions Calculation Methodology for the

Revised NSW Greenhouse Gas Emissions Benchmark

Scheme, September 2002


A P P E N D I X 19 L E G A L C H A N G E S A N DS I G N I F I C A N T D E C I S I O N S

Acts and Regulations

Electricity Safety (Corrosion Protection) Regulation 2003

A new principal Regulation is being drafted. The newregulation will enhance the current arrangements formanagement of corrosion protection by placing the onusof all interference testing with Corrosion Protection systemowners, while ensuring they provide information about theperformance of their systems in relation to interference.

Sydney Water Act 1994 and Hunter Water Act 1991

Amendments are being drafted to both Acts to removeidentical inefficiencies in the processes required fornotifying customers of changes to the CustomerContracts. Changes are also proposed to remove similarnotification requirements in the Corporations’ OperatingLicence to streamline procedures.

Electricity Supply Amendment (Greenhouse GasEmission Reduction) Act 2002

On 16 December 2002, assent was given to theElectricity Supply Amendment (Greenhouse Gas EmissionReduction) Act 2002. The Act amends the ElectricitySupply Act 1995 to impose mandatory greenhousebenchmarks on electricity retailers and some otherparties, for the period 2003 to 2012.

Electricity Supply Act 1995

Amendments are being drafted to amend the ElectricitySupply Act 1995 to allow for the voluntary surrender ofgreenhouse abatement certificates.

Reviewing the Pipelines Act 1967

The Ministry has prepared proposals for a new PipelinesAct designed to enhance the process of developingpipeline infrastructure. The legislative process to followis awaiting the establishment of regimes for MajorHazard Facilities (MHF’s) and Dangerous Goods beforeproceeding. This will ensure a consistent regulatoryregime is established for the pipeline industry.

The new proposals will assist the extension of energysupplies, principally natural gas, to regional centres in NSW.

Updating Gas Network Safety Regulations

On 1 September 2002, the Gas Supply (Network SafetyManagement) Regulation 2002 was promulgated. ThisRegulation is part of the Ministry’s focus on improvedperformance based regulatory regime for gas distributionnetworks in NSW. The primary objectives of theregulation are the:

• consolidation of regulatory requirements for gasnetwork operators;

• ensuring consistency with electricity and pipelinelegislative requirements in line with the ongoingconvergence of the energy sector in NSW; and

• incorporation, where appropriate, of aspects of safetyplan requirements that are in place in otherjurisdictions of Australia.

Electricity Supply (Safety and Network Management)Regulation 2002

This Regulation took effect on 1 September 2002replacing the Electricity Supply (Safety Plans) Regulation1997. The objective of the new Regulation is to ensurethat operators of electricity transmission and distributionnetworks are publicly accountable for the provision of anadequate, reliable and safe supply of electricity ofappropriate quality. The Regulation requires networkoperators to implement the following plans and to measureand report their performance against each plan, and topublish their performance measurements annually.

• Network management plan

• Public electrical safety awareness plan

• Bush fire risk management plan

• Customer installation safety plan

Statute Law (Miscellaneous Provisions) Act 2002

This amended the Gas Supply Act 1996 by repealing atransitional provision relating to charges for use of publicroads and reserves. The transitional provision had notbeen commenced and was unable to be commenced dueto a sunset clause in the provision.

Statute Law (Miscellaneous Provisions) Act (No 2) 2002

This amended the Gas Supply Act 1996 by altering thedefinition of distribution pipelines. The previousdefinition was linked to the definition used in third partyaccess legislation. The purpose of the amendment was toensure that certain small distribution networks whichwere not covered by the third party access definitionwere subject to the authorisation and other relevantprovisions of the Gas Supply Act 1996.

114

A P P E N D I X 2 0 M A J O R WO R K S I N P RO G R E S S

Description Location Start Complete Est. Total Expenditure Cost to 30/6/03$’000 $’000

Blowering Dam Structural Integrity Tumut 1998 2007 25,604 2,928

Burrendong Dam Flood Security Lake Burrendong 1994 2007 17,858 2,056

Chaffey Dam Bowling Alley Point 1989 2005 15,838 3,490

Copeton Dam Flood Security Copeton 1994 2007 49,840 2,878

Keepit Dam Flood Security Keepit 1994 2007 70,952 7,697

Macquarie River Re-Regulation Capability Warren 1999 2005 6,713 749

Major Periodic Maintenance Of Dams Etc Various 2001 2008 24,036 5,797

River Structures Various 1999 2008 30,834 12,604

Staff Housing At Dams Various 2001 2007 7,032 603

Total Asset Management Planning Various 1997 2008 21,598 10,120And Implementation

Wyangala Dam Upgrade Wyangala 1998 2006 36,641 1,789

A P P E N D I C E S

A P P E N D I X 21 L A N D D I S P O S A L

There were two minor land disposals by State Water,with a combined proceeds of $32,000.

A P P E N D I X 2 2 M A J O R A S S E T S

The major assets of the Ministry, managed by StateWater are:

• 18 Major Dams 12 Minor Dams

• 278 Weirs and Regulators including some privatestructures managed by State Water

• 138 Related structures such as bridges, culverts etc

• 548 buildings.

During 2002–2003 the demolition of the WellingtonDam was completed.

The major dams were revalued as at 30 June 2001 usingthe Modern Engineering Equivalent Replacement Asset(MEERA) Value methodology. The results of thisvaluation of the major dams and the 1996 MEERAvaluations are given in Table 1.


Table 1: Change in MEERA Valuation of Major Dams from 1996 to 2001.

Asset MEERA MEERA Cost Total$M 1996 2001 30/6/03

Blowering Dam 160.0 195.8 2.6 198.4

Brogo Dam 22.5 25.5 0.7 26.2

Burrendong Dam 297.5 239.4 2.6 242.0

Burrinjuck Dam 131.7 130.7 3.4 134.1

Carcoar Dam 24.5 32.7 0.6 33.3

Chaffey Dam 72.5 66.7 0.9 67.6

Copeton Dam 220.9 211.1 2.0 213.1

Glenbawn Dam 199.8 213.8 4.6 218.4

Glennies Creek Dam 50.0 51.5 0.8 52.3

Hume Dam 139.0 149.7 6.9 156.6

Keepit Dam 109.9 81.1 3.6 84.7

Lostock Dam 40.9 40.9 0.9 41.8

Menindee Lakes 108.6 100.7 2.2 102.9

Pindari Dam 92.1 78.9 2.3 81.2

Split Rock Dam 65.3 75.1 1.6 76.7

Toonumbar Dam 29.8 26.5 1.8 28.3

Windamere Dam 87.7 82.3 1.1 83.4

Wyangala Dam 147.8 147.2 3.0 150.2

Total 2000.5 1949.6 41.6 1991.2

The weirs, regulators and associated structures managed by State Water were also valued using the MEERA valuationmethodology as at 30 June 2001.

Table 2: MEERA Valuation of Weirs, Regulators and Associated Structures

State Water Number of Number of Total No. of MEERA Cost Total atCustomer Service Weirs and Related Structures 2001 30/6/03Area ($M) Regulators Structures

Central 72 72 144 76.7 2.4 79.1

Coastal 32 0 32 4.9 1.6 6.5

North 35 2 37 54.8 0.2 55.0

South 139 65 204 185.2 4.8 190.0

Total 278 139 417 321.6 9.0 330.6

116

A P P E N D I X 2 2 PAY M E N T O F AC C O U N T S

Aged analysis at the end of each quarter

Quarter Current Less than Between Between More(i.e. within 30 days 30 and 60 and thandue date) overdue 60 days 90 days 90 days

$ $ overdue overdue overdue$ $ $

September 5,505,997 0 0 0 0Quarter

December 27,737 234 0 0Quarter

March 2,243,218 118,873 3,468 0 0Quarter

June 578,656 0 0 0 0Quarter

Accounts paid on time within each quarter

Quarter Total Accounts Paid on Time Total AmountPaid

Target % Actual % $ $

September 96 98.90 14,472,517 14,632,807Quarter

December 96 98.18 17,904,744 18,235,798Quarter

March 96 97.45 19,717,663 20,233,712Quarter

June 96 98.92 26,034,547 26,318,682Quarter

Comment

Payment performance is based on creditor paymentsmade by the Ministry of Energy and Utilities.

The above data excludes the Town Water & RecyclingBranch and the State Water Business Unit of theMinistry, which have been captured under theDepartment of Infrastructure, Planning and NaturalResources’ annual reporting payment performancedisclosure (as shared corporate service provider).

A P P E N D I X 2 4 A N N UA L R E P O RTI N F O R M AT I O N

Total External Costs of production – $18,973. –

The Annual Report is available on the Ministry’s Websiteat www.energy.nsw.gov.au.

A P P E N D I X 2 5 F R E E D O M O F I N F O R M AT I O NS U M M A RY A N D S TAT E M E N TO F A F FA I R S

The Ministry received four applications under theFreedom of Information Act 1989. All applications weredetermined within the 21 day period allowed.

The Ministry will publish a separate Statement of Affairs.

A P P E N D I X 2 6 R I S K M A N AG E M E N T A N DI N S U R A N C E AC T I V I T I E S

The Ministry has insurance policies in the followingcategories under the Treasury Managed Fund:

• Workers Compensation;

• Property;

• Motor Vehicles;

• Public Liability; and

• Miscellaneous.

Insurance premiums for the 2002–03 financial yeartotalled $46,550. The overall claims performance of theMinistry for the financial year ending 30 June 2003 wassatisfactory, with no claims against the motor vehiclepolicy and two minor workers compensation claimsagainst the workers compensation policy. The workerscompensation claims were both the result of off siteincidents and were dealt with quickly and efficiently bythe insurer.

Risk Management has been introduced to the Ministryduring the merger with State Water and Town WaterTreatment and Recycling Services. Working groups weretrained in and used qualitative risk assessmentmethodologies as per AS 4360:1999; Risk Managementstandard, in assessing risks associated with merger activitiesand business continuity issues. The plan for 2003–04 isto expand the knowledge and data gathered into aconsolidated Ministry wide Risk Management Programme.

A P P E N D I C E S


A P P E N D I X 2 7 WA S T E R E D U C T I O N A N DR E C Y C L I N G AC T I V I T I E S

The Ministry is committed to the Governments WRAPP(Waste Reduction and Purchasing Policy). The Ministryreuses paper and recycles toner cartridges. Waste paperand toner cartridges are collected on a contract basis forrecycling purposes.

The Ministry has continued with the adopted principles of:

• use of the Government’s purchasing contract forsuppliers of ‘Green Wrap’ recycled paper;

• limit the use of ‘white paper’ to Ministerial letterheadonly; and

• use of ‘grey paper’ for all printing and photocopyingjobs with the exception of Ministerial responses.

A P P E N D I X 2 8 G OV E R N M E N T E N E R G YM A N AG E M E N T P O L I C YI N F O R M AT I O N F O R2 0 0 2 – 2 0 0 3

Agency Data

As the agency with the principal supervisory role for theGovernment Energy Management Policy, the Ministry iscommitted to leading by example through byimplementation of its own policy. The Ministry aims toachieve and sustain reduced greenhouse gas emissionsand energy cost savings wherever possible throughimproved energy management of its own operations.

As a tenant in a leased building, the Ministry cooperateswith the landlord and head lessee, the Department ofMineral Resources. This cooperation enables both agenciesto implement lighting controls and other initiatives.The occupancy has achieved a 3 star greenhouse rating.The Ministry continues to purchase 6 per cent GreenPower through the Government Electricity Contract.

AAberdare County Council (Dissolution) Act 1982 . . . . . . . . . . . . . . 6Access to the Ministry . . . . . . . . . . . . . . 99Accident reduction . . . . . . . . . . . . . . . . . 22Account payment . . . . . . . . . . . . . . . . . . . 116Accreditation services . . . . . . . . . . . . . . . 98Accrediting contestable electricity works . . . . . . . . . . . . . . . . . . . . 23–24,98ActewAGL . . . . . . . . . . . . . . . . . . . . . . . . . 18Acts and Regulations . . . . . . . . . . . . . . . 113AGL Corporate Conversion – Joint Implementation Group . . . . . . . . 108AGL Corporate Conversion Act 2002 . 6AGL Gas Networks (AGLGN) . . . . . 5,18,20Albury Gas . . . . . . . . . . . . . . . . . . . . . . . . . 18Allgas Energy . . . . . . . . . . . . . . . . . . . . . . . 18Annual report costs . . . . . . . . . . . . . . . . . 116Appliance energy efficiency . . . . . . . . . 27–29APT Pipelines (NSW) Pty Ltd . . . . . . 20Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Australian Competition and Consumer Commission (ACCC) . . . 18,30Australian National Committee on Large Dams (ANCOLD) . . . . . . . . 42,110Australian Transport Energy Data and Analysis Centre (ATEDAC) . . . . 33

BBiological Oxygen Demand (BOD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,42Buildings, energy-efficient . . . . . . . . . . . 29Bushfires . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Risk management . . . . . . . . . . . . . . . . . 21–22Business and Portfolio Risk Management . . . . . . . . . . . . . . . . . . . . . . . . 44–47Business and Performance Section . . . 52Business hours . . . . . . . . . . . . . . . . . . . . . . 95,99

CCarbon sequestration . . . . . . . . . . . . . . . 8,27,105Cathodic protection services . . . . . . . . 96Chief and Senior Executive Service Positions . . . . . . . . . . . . . . . . . . . . 95–96Childcare . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Cleaner Vehicles Action Plan . . . . . . . . 26Code of Conduct . . . . . . . . . . . . . . . . . . . 99Committee on Uniformity of Plumbing and Drainage Regulationsin NSW (CUPDR) . . . . . . . . . . . . . . . . . 39,107–109Committees . . . . . . . . . . . . . . . . . . . . . . . . 103–111Community grants . . . . . . . . . . . . . . . . . . 112Competition . . . . . . . . . . . . . . . . . . . . . . . . 12,31Complaint resolution . . . . . . . . . . . . . . . 99Computer Aided Improvements toRiver Operations (CAIRO) . . . . . . . . . 45Concurrence Guideline for Liquid Trade Waste Discharges to Sewerage Systems . . . . . . . . . . . . . . . . 39Consultancies . . . . . . . . . . . . . . . . . . . . . . . 111Consumer protection . . . . . . . . . . . . . . . 9, 96Contestable electricity works . . . . . . . 18,23–24Controlled entities . . . . . . . . . . . . . . . . . . 95Corporate plan . . . . . . . . . . . . . . . . . . . . . 4,54Corporate policies and procedures . . 55Council of Australian Governments(COAG) . . . . . . . . . . . . . . . . . . . . . 30,31,41

44,69Country Energy . . . . . . . . . . . . . . .18Country Towns Water Supply and Sewerage Program (CTWS&S) . . . . . .8,10,34,37

39–40,96Customer information program . . . . . 71,110Customer protection . . . . . . . . . . . . . . . . 9,12,96Customer response . . . . . . . . . . . . . . . . . 99

Customer service . . . . . . . . . . . . . . . . . . . 44–45,5253,96–99

Customer transfer . . . . . . . . . . . . . . . . . . 13Customer Service Committee . . . . . . 44

DDams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46–49Dam Safety . . . . . . . . . . . . . . . . . . . . . . . . . 46Dam Safety Emergency Plan . . . . . . . . 42,46Dam Safety Committee (DSC) . . . . . 42,44, 46Demand management . . . . . . . . . . . . . . 5Demand Management Working Group . . . . . . . . . . . . . . . . . . . . . 12,14Department of Commerce . . . . . . . . . . 20,32Department of Community Services(DOCS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,12,15Department of Fair Trading . . . . . . . . . 15,107Department of Health . . . . . . . . . . . . . . 15,104Department of Information Technology and Management . . . . . . . 100,101Department of Infrastructure,Planning and Natural Resources . . . . . 20,29,36

39–40,44101

Department of Land and Water Conservation . . . . . . . . . . . . . . . . . 8,14,39,44

66–67,73,78–79,95

Department of Local Government . . 40Department of Mineral Resources . . 96Department of Sustainable Natural Resources . . . . . . . . . . . . . . . . . . 70,76,101Director-General,statement of performance . . . . . . . . . . . 95–96Disclosure of Controlled Entities . . . . 95Dispute resolution . . . . . . . . . . . . . . . . . . 98–99Downstream Petroleum Working Group . . . . . . . . . . . . . . . . . . . . . 26,31,32Dubbo to Tamworth/Gunnedah Natural Gas Pipeline . . . . . . . . . . . . . . . . 20

EEAPA Working Group Members . . . . 107Eastern Gas Pipeline (Special Provisions) Act 1996 . . . . . . . . . . . . . . . . 6Electricity (Safety Plans) Regulation 1997 . . . . . . . . . . . . . . . . . . . . . 4Electricity Association of NSW (EANSW) . . . . . . . . . . . . . . . . . . . . . . . . . . 22,23

accrediting . . . . . . . . . . . . . . . . . . . . . . . . 23Electricity Industry Concessions Working Group . . . . . . . . . . . . . . . . . . . . . 12,15Electricity Industry Safety Steering Committee . . . . . . . . . . . . . . . . . . . . . . . . . 105Electricity Network Performance Report . . . . . . . . . . . . . . . . 21–22,24Electricity networks . . . . . . . . . . . . . . . . . 18,24

inspections . . . . . . . . . . . . . . . . . . . . . . . . 22Management Report . . . . . . . . . . . . . . 5performance reporting . . . . . . . . . . . . 18, 21, 24regulation . . . . . . . . . . . . . . . . . . . . . . . . . 21–23,96reliability . . . . . . . . . . . . . . . . . . . . . . . . . 21reporting requirements . . . . . . . . . . . . 94safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,21–22

Electricity Safety (Corrosion Protection)Regulation 1998 . . . . . . . . . . . . . . . . . . . . . 53,113Electricity Safety (Corrosion Protection) Regulation 2003 . . . . . . . . . . . . . . . . . . . . . 113Electricity Safety Act 1945 . . . . . . . . . . . 6Electricity Supply Amendment (Greenhouse Gas Emission Reduction)Bill 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,112–113Electricity Supply (General) Regulation 2001 . . . . . . . . . . . . . . . . . . . . . 23,26,111Electricity Supply (Safety and NetworkManagement) Regulation 2002 . . . . . . 18,21,113Electricity Supply (Safety Plans)

Regulation 1997 . . . . . . . . . . . . . . . . . . . . . 20,113Electricity Supply Act 1995 . . . . . . . . . . 6,23,26Electricity Supply Association of Australia (ESAA) . . . . . . . . . . . . . . . . . . . 33,103Electricity Supply General Regulation (2000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98Electricity Undergrounding Steering Committee . . . . . . . . . . . . . . . . 103, 108Electricity Undergrounding Technical Reference Group . . . . . . . . . 103–104Electricity

accrediting contestable works . . . . . 23–24demand management . . . . . . . . . . . . . 5,12,14full retail competition . . . . . . . . . . . . . 4,9,12,53greenhouse gas emissions . . . . . . . . . . 8,26–27,32networks see Electricity networks Performance Report,2001–02 . . . . . 24policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,32–33regulation . . . . . . . . . . . . . . . . . . . . . . . . . 4,5,18,

22–23transmission lines see Powerlines

Electrolysis services . . . . . . . . . . . . . . . . . 98Elgas Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Energy Accounts Payments Assistance (EAPA) . . . . . . . . . . . . . . . . . . 9,15

Working Group . . . . . . . . . . . . . . . . . . . 15Energy Administration Act 1987 . . . . . 6Energy Analysis Section . . . . . . . . . . . . . 26,32,55Energy and Utilities Policy Branch . . . 11–16Energy and Water Ombudsman (EWON) . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,15Energy Concessions Program . . . . . . . . 4,12Energy Data Gathering and Reporting (EDGAR) . . . . . . . . . . . . . . . 32–33,110Energy Efficiency and Greenhouse Working Group (EEGWG) . . . . . . . . . 26,28

31–32,109Energy Industry Concessions Working Group . . . . . . . . . . . . . . . . . . . . . 104Energy Labelling program . . . . . . . . . . . 27–29Energy Market Development Working Group . . . . . . . . . . . . . . . . . . . . . 9,26,31Energy Policy . . . . . . . . . . . . . . . . . . . . . . . 10,12,26,31

33,95–96Energy Research and Development Advisory Committee . . . . . . . . . . . . . . . 98Energy Research and Development Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26–27,71

75,98Energy Strategy Branch . . . . . . . . . . . . . 26–34Energy Strategic Energy Supply andSecurity Working Group . . . . . . . . . . . 26,31–32

34EnergyAustralia . . . . . . . . . . . . . . . . . . . . . 103,

105–106Environment Protection Authority (EPA) . . . . . . . . . . . . . . . . . . . . 14,40,104

105,109Environmental Consultative Group (on Greenhouse Benchmarks) . . . . . . 105Equal Employment Opportunity (EEO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102Eraring Power Station Act 1981 . . . . . . 6Executive and Ministerial support . . . 53Executive Development Program . . . 55Expenditure Planning Tool (EXPLAN) . . . . . . . . . . . . . . . . . . . . . . . . . 45

FFinancial management . . . . . . . . . . . . . . 54Financial statements . . . . . . . . . . . . . . . . 57–92Freedom of Information . . . . . . . . . . . . 116Full retail competition (FRC) . . . . . . . 4, 9, 12, 53Future direction . . . . . . . . . . . . . . . . . . . . 10, 24

118 I N D E X

GGas

full retail competition . . . . . . . . . . . . . 9,12,53licensing . . . . . . . . . . . . . . . . . . . . . . . . . . 4,20,96,99network incidents . . . . . . . . . . . . . . . . . 19network safety regulations . . . . . . . . 18, 113performance reporting . . . . . . . . . . . . 8–9, 224pipelines see Pipelinespricing process . . . . . . . . . . . . . . . . . . . . 12–13Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9–10, 18supply disruptions . . . . . . . . . . . . . . . . 19, 31supply safety . . . . . . . . . . . . . . . . . . . . . . 96services . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Gas & Pipelines Industry Consultation Committee . . . . . . . . . . . 105–106Gas Access Code . . . . . . . . . . . . . . . . . . . 13Gas Industry Restructuring Act 1986 . 6Gas Market Company . . . . . . . . . . . . . . 105,108Gas Network Safety and Operating Plans . . . . . . . . . . . . . . . . . . . . . 18Gas Networks and Pipelines . . . . . . . . 18,24,105Gas Pipelines Access (New South Wales) Act 1998 . . . . . . . . . . . . . . . . . . . . 6Gas Supply (Customer Protection LPGand other Gases) Regulation 1997 . . .13Gas Supply (Network Safety Management) Regulation 2002 . . . . . . 9,16,18,113Gas Supply Act 1996 . . . . . . . . . . . . . . . . 6,13,113Gosford–Wyong Electricity Supply (Special Provisions) Act 1985 . . . . . . . . 6Government Energy Management Policy (GEMP) . . . . . . . . . . . . . . . . . . . . . 5,26,32–33

agency data . . . . . . . . . . . . . . . . . . . . . . . 117Senior Officers Steering Committee . . . . . . . . . . . . . . . . . . . . . . . 32,110Working Group . . . . . . . . . . . . . . . . . . . 103

Greenhouse abatementcertificates . . . . . . . . . . . . . . . . . . . . . . . . 26,113programs . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Greenhouse Benchmarks Officers Group (GBOG) . . . . . . . . . . . . . . . . . . . . 104Greenhouse gas emissions . . . . . . . . . . . 26–27,32,

112,117Greenhouse Methodology Working Group . . . . . . . . . . . . . . . . . . . . . 105Guarantee of Service . . . . . . . . . . . . . . . 96–99

HHealthy Rivers Commission Report . 15Horsley Park to Plumpton Natural Gas Pipeline . . . . . . . . . . . . . . . . 20Hoskinstown to ACT Natural Gas Pipeline . . . . . . . . . . . . . . . . 21Hours of business . . . . . . . . . . . . . . . . . . . 95, 99Human resources . . . . . . . . . . . . . . . . . . . 52,55

Statistics . . . . . . . . . . . . . . . . . . . . . . . . . .100–101Hunter District Emergency Management Committee . . . . . . . . . . . 111Hunter Pipeline Company . . . . . . . . . . 21Hunter River Salinity Trading Scheme Operations Committee . . . . . 111Hunter Water . . . . . . . . . . . . . . . . . . . . . . . 14,107Hunter Water Act 1991 . . . . . . . . . . . . . . 6, 113Hunter Water Corporation . . . . . . . . . . 14,41,47

106

IIllabo to Tumut Natural Gas Pipeline . 20Incidents

Electricity . . . . . . . . . . . . . . . . . . . . . . . . . 21gas network . . . . . . . . . . . . . . . . . . . . . . . 19pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Independent Pricing and Regulatory Tribunal (IPART)

customer protection . . . . . . . . . . . . . . 12

gas performance reporting . . . . . . . . 24greenhouse gas performance . . . . . . 27gas pricing . . . . . . . . . . . . . . . . . . . . . . . . 13managing pipelines . . . . . . . . . . . . . . . . 20Pricing Issues Consultation Group . 110state water compliance . . . . . . . . . . . . 46undergrounding power lines . . . . . . . 13urban water regulation . . . . . . . . . . . . 14–15water performance reporting . . . . . . 40–41

Industry Consultative Group (on Greenhouse Benchmarks) . . . . . . 104Industry Performance Branch . . . . . . . 17–24Information technology . . . . . . . . . . . . . 52–53Information, Communication and Technology (IC&T) . . . . . . . . . . . . . . . . . 53,55Infrastructure and funding . . . . . . . . . . 37-38Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 116Integrated Water Cycle Management (IWCM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Interactive Voice Response (IVR) . . . 45Inter-Regional Planning Committee (IRPC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,109Investment options . . . . . . . . . . . . . . . . . 34

LLand disposal . . . . . . . . . . . . . . . . . . . . . . . 114Legislation

administered by the Ministry . . . . . . 4,99changes to . . . . . . . . . . . . . . . . . . . . . . . . 113Electricity Safety (Corrosion Protection)Regulation 2003 . . . . . . . . . . . . . . . . . . . 113Electricity Supply Amendment (Greenhouse Gas Emission Reduction)Act 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . 113Electricity Supply Act 1995 . . . . . . . . . 113Electricity Supply (Safety and NetworkManagement) Regulation 2002 . . . . . 113energy . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Hunter Water Act 1991 . . . . . . . . . 113Pipelines Act 1967, reviewing . . . . . . 113Statute Law (Miscellaneous Provisions) Act 2002 . . . . . . . . . . . . . . . 113Sydney Water Act 1994 . . . . . . . . . . . . 113trade waste . . . . . . . . . . . . . . . . . . . . . . . 39updating gas network safety regulations . . . . . . . . . . . . . . . . . . . . . . . . 113water industry standards . . . . . . . . . . 40water supply and sewerage services . 39

Licensinggas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,20pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . 94,97

Life Support Rebates Scheme . . . . . . . 12–13,15Liquefied Petroleum Gas (LPG) . . . . 13,18,112Local Government Association & Shires Association Water Management Committee . . . . . . . . . . . 107Local Government Association & Shires Association (LGA&SA) . . . . . . 39,107–109Local Water Utility (LWU) . . . . . . . . . 38–42,107

MMajor assets . . . . . . . . . . . . . . . . . . . . . . . . 114Major Hazard Facility (MHF) . . . . . . . 20,113Major works in progress . . . . . . . . . . . . 114Market Operation Rules . . . . . . . . . . . . 112Marketing Code of Conduct . . . . . . . . 11, 77Marsden to Dubbo Natural Gas Pipeline . . . . . . . . . . . . . . . . 20MEU/LGA & SA Committee for Local Government Water Supply and Sewerage Services . . . . . . . . . . . . . . 107Minimum Energy Performance Standards (MEPS) . . . . . . . . . . . . . . . . . . 27–28Ministerial Council on Energy (MCE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–9,30–32

96,108,110

Ministerial support . . . . . . . . . . . . . . . . . 53, 94Modern Engineering Equivalent Replacement Asset (MEERA) . . . . . . . 40,45

114–115Moomba gas plant . . . . . . . . . . . . . . . . . . 19

NNational Appliance and Equipment Energy Efficiency Committee (NAEEEC) . . . . . . . . . . . . . . . . . . . . . . . . . 27,28,110National Competition Council . . . . . . 40National Competition Policy . . . . . . . .40–41National Electricity (New South Wales)Act 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6National Electricity Market (NEM) . 8–9,23,26

27,29–31,108

NEM Senior Officials and Advisers Working Party . . . . . . . . . . . . . . . . . . . . . . 103National Electricity Market ManagementCompany (NEMMCO) . 31National Electricity Market Ministers Forum (NEMMF) . . . . . . . . . . . . . . . . . . 26,96,103

108National Electricity Network Safety Steering Committee (NENS) . . . . . . . 108National Electricity Network Safety Working Group . . . . . . . . . . . . . . . . . . . . . 109National Government Energy Management Group . . . . . . . . . . . . . . . . 106NationalGreenhouseStrategy (NGS) . 27,29,32Natural gas pipeline project . . . . . . . . . 20Natural Gas Pipelines Advisory Committee (NGPAC) . . . . . . . . . . . . . . 13,108Natural gas see GasNetwork Management Plans . . . . . . . . 21–22,113Network Planning Guidelines Working Group . . . . . . . . . . . . . . . . . . . . . 103New South Wales Electrolysis Committee . . . . . . . . . . . . . . . . . . . 71,106,108Newcastle Pipeline Company . . . . . . . 21Northern Rivers County Council Act 1981 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6NSW Business to Business Steering Committee . . . . . . . . . . . . . . . . 13NSW Financial Planning Model (FINMOD) . . . . . . . . . . . . . . . . . . . . . . . . . 42NSW Greenhouse Abatement Certificate (NGAC) . . . . . . . . . . . . . . . . 27NSW Statement of System Opportunities . . . . . . . . . . . . . . . . . . . . . . 34

OObjectives and Indicators . . . . . . . . . . . 4–5Occupational Health and Safety (OH&S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102Officers, Principal . . . . . . . . . . . . . . . . . . . 95Organisational chart . . . . . . . . . . . . . . . . 7Organisational Development Branch . 51–56Origin Energy LPG . . . . . . . . . . . . . . . . . 18Overseas travel . . . . . . . . . . . . . . . . . . . . . 12

PPayment Assistance Scheme (PAS) . . 12,15,107Payment of accounts . . . . . . . . . . . . . . . . 116Pensioner Energy Rebate Scheme . . . 9,12,15,71Pipelines Act 1967 . . . . . . . . . . . . . . . . . . . 6,20,53

98,113Pipelines Regulation 2000 . . . . . . . . . . . . 18Pipelines

Australian Transport Energy Data Analysis Centre . . . . . . . . . . . . . . . . . . . 26,32Dubbo to Tamworth/Gunnedah . . 20electrolysis corrosion damage . . . . . . 98Gas Access Code . . . . . . . . . . . . . . . . . . 13granting approvals . . . . . . . . . . . . . . . . . 20–21Horsley Park to Plumpton . . . . . . . . . 20


Hoskinstown to ACT . . . . . . . . . . . . . 21Illabo to Tumut . . . . . . . . . . . . . . . . . . . 20licensing . . . . . . . . . . . . . . . . . . . . . . . . . . 20–21managing . . . . . . . . . . . . . . . . . . . . . . . . . 20–21Marsden to Dubbo . . . . . . . . . . . . . . . . 20performance reports . . . . . . . . . . . . . . 24Pipelines Act 1967 . . . . . . . . . . . . . . . . . 6,20,53

98, 113Pipelines Regulation 2000 . . . . . . . . . . 18reporting incidents . . . . . . . . . . . . . . . . 21safety and operating plans . . . . . . . . . 21services . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Planning Measures for Undergrounding Working Group . . . . 106PlanningNSW . . . . . . . . . . . . . . . . . . . . . . 14,103,107Policy development . . . . . . . . . . . . . . . . . 4–5,29,31

32,96,103Policy issues . . . . . . . . . . . . . . . . . . . . . . . . 5,15,30,107Portfolio Risk Assessment (PRA) . . . . 42,45–46Powerlines

undergrounding . . . . . . . . . . . . . . . . . . . 13vegetation management . . . . . . . . . . . 112

Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,99Pricing process for gas . . . . . . . . . . . . . . 12–13Principal officers . . . . . . . . . . . . . . . 95Privacy and Personal Information Protection Act 1998 . . . . . . . . . . . . . . . . . 99Privacy Management Plan . . . . . . . . . . . 99Product Energy Efficiency . . . . . . . . . . 27Public Interest Advocacy Centre (PIAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,15,107Public Works Act 1912 . . . . . . . . . . . . . . 6Publications . . . . . . . . . . . . . . . . . . . . . . . . 112

QQuality issues . . . . . . . . . . . . . . . . . . . . . . . 21,23Queen Charlotte Vale Dam . . . . . . . . . 46Queensland Department of Minerals & Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

RRainwater Tank Subcommittee . . . . . . 107Rainwater tanks . . . . . . . . . . . . . . . . . . . . . 12,14,

107–109Range of services . . . . . . . . . . . . . . . . . . . 96Records management . . . . . . . . . . . . . . . 53Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,117Refrigerator labelling . . . . . . . . . . . . . . . . 27–29Reliability

distribution . . . . . . . . . . . . . . . . . . . . . . . 23electricity networks . . . . . . . . . . . . . . . 22transmission . . . . . . . . . . . . . . . . . . . . . . 22

Renewable energy . . . . . . . . . . . . . . . . . . 30Research and development . . . . . . . . . 112Retail competition . . . . . . . . . . . . . . . . . . 4,9,12,53Risk management . . . . . . . . . . . . . . . . . . . 52,116Role of the Ministry . . . . . . . . . . . . . . . . 4,8

SSafety and Network Management (S&NM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,21–22Safety and Operating Plan UtilityConsumers Advocacy Program (SOP). 18–19Safety and operating plans (SOPs) . . 4–5,18Safety

see also Incidentsdams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42, 46electricity networks . . . . . . . . . . . . . . . 10,18

21–22gas networks . . . . . . . . . . . . . . . . . . . . . . 9, 10, 18improvement . . . . . . . . . . . . . . . . . . . . . 8–9LPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13OH&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,102

SANTOS Natural Gas Plant . . . . . . . . 19

Senior Compliance Officers . . . . . . . . . 18,22Senior Executive Service Officers . . . 95Service/s

guarantee of . . . . . . . . . . . . . . . . . . . . . . 96range provided . . . . . . . . . . . . . . . . . . . . 96

SewerageBacklog Sewerage Loans . . . . . . . . . . 74,76,77Country Towns Water Supply and Sewerage Program . . . . . . . . . . . . 8,10,36

37,76,96developer charges guidelines . . . . . . 41guarantee of service . . . . . . . . . . . . . . . 97industry standards . . . . . . . . . . . . . . . . . 40interstate comparisons . . . . . . . . . . . . 41legislation . . . . . . . . . . . . . . . . . . . . . . . . . 39MEU/LGA & SA Committee for Local Government Water Supply and Sewerage Services . . . . . . . . . . . . 107–109NSW Water Supply and SeweragePerformance Monitoring Report . . . 40payments for assistance . . . . . . . . . . . 83performance reporting . . . . . . . . . . . . 40pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Priority Sewerage Program . . . . . . . . 15Reference Rates . . . . . . . . . . . . . . . . . . . 42Small Towns Sewerage Program . . . 37–38strategic business plans . . . . . . . . . . . . 41technical reports . . . . . . . . . . . . . . . . . . 39trade waste . . . . . . . . . . . . . . . . . . . . . . . 39Water and Sewerage Rebate . . . . . . . 15

Shared corporate services . . . . . . . . . . . 54Significant Electricity Network Incident (SENI) . . . . . . . . . . . . . . . . . . . . 21Snowy Mountains Hydro-Electric Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,47–48Social programs . . . . . . . . . . . . . . . . . . . . . 9,15,73,96South Australia / New South WalesInterconnection (SNI) . . . . . . . . . . . . . . 30Staff support services . . . . . . . . . . . . . . . 56Standing Committee of Officials (SCO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,108–109State Infrastructure Strategic Plan . . . 31Statement of System Opportunities (SoSO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,26,34Statute Law (Miscellaneous Provisions) Act 2002 . . . . . . . . . . . . . . . . 113State Water Branch . . . . . . . . . . . . . . . . . 44–49Stormwater management . . . . . . . . . . . 5,12,14,36Strategic Business Plan (SBP) . . . . . . . 41–42Strategic Energy Supply and Security Working Group . . . . . . . . . . . . . . . . . . . . . 26,31,32

34,110Strategic Framework for Water Reformand National Competition Policy . . . 41Strategic Plan, 2002–05 . . . . . . . . . . . . . 46–47Strategies of the Ministry . . . . . . . . . . . 4–5Study assistance programme . . . . . . . . 55Suspended Solids (SS) . . . . . . . . . . . . . . 41,42Sustainable Energy Development Authority (SEDA) . . . . . . . . . . . . . . . . . . 32,103

105–106Sustainable Energy Policy . . . . . . . . . . . 26–27Sustainable Energy Research and Development Fund (SERDF) . . . . . . . 26–27,71

74,112Sydney Water Act 1994 . . . . . . . . . . . . . . 6,113Sydney Water . . . . . . . . . . . . . . . . . . . . . . . 5,12,14–15

41,106–107System Control and Data Acquisition(SCADA) . . . . . . . . . . . . . . . . . . . . . . . . . . 45

TTown Water Treatment and Recycling Branch . . . . . . . . . . . . . . . . . . . 35–42Training programs . . . . . . . . . . . . . . . . . . . 54–55

TransGrid . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,33,103Transmission . . . . . . . . . . . . . . . . . . . . . . . .22,30Transport energy use . . . . . . . . . . . . . . . . 26,33Triple Bottom Line (TBL) . . . . . . . . . . 40–41Typical Residential Bill (TRB) . . . . . . . 42

UUndergrounding power lines . . . . . . . . 13Urban water regulation and policy . . 14–15Utility Concessions Steering Group (UCSG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,15,104Utility Consumers Advocacy Program (UCAP) . . . . . . . . . . . . . . . . . . . 15

VValues of the Ministry . . . . . . . . . . . . . . 4Vegetation management . . . . . . . . . . . . 5, 112Vehicles, cleaner . . . . . . . . . . . . . . . . . . . . 26Voluntary Pricing Principles (VPP) . . 13

WWaste reduction . . . . . . . . . . . . . . . . . . . . 117Waste Reduction and Purchasing Policy (WRAPP) . . . . . . . . . . . . . . . . . . . . 117Water and Sewerage Rebate . . . . . . . . 90Water CEOs Task Force . . . . . . . . . . . . . 14Water Industry Interdepartmental Committee . . . . . . . . . . . . . . . . . . . . . . . . . 12,14,108Water Management Act 2000 (WMA). 6,38–40,45Water Ordering and Usage (WOU) . 45

Working Group . . . . . . . . . . . . . . . . . . . 107,109–110Water regulation and policy . . . . . . . . . 14–15Water see also Town Water, State WaterWater Policy and Reform Officers . . .39, 40Water (Town)

dam safety . . . . . . . . . . . . . . . . . . . . . . . . 42developer charges . . . . . . . . . . . . . . . . . 42industry reform and planning . . . . . 38–40interstate comparisons . . . . . . . . . . . . 41performance reporting . . . . . . . . . . . . 40–42pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41quality . . . . . . . . . . . . . . . . . . . . . . . . . . . .40, 42reference rates . . . . . . . . . . . . . . . . . . . . 42Strategic Business Plans . . . . . . . . . . . 41Supply and sewerage treatment . . . 42

Water (State)asset management . . . . . . . . . . . . . . . . . 45Bega River . . . . . . . . . . . . . . . . . . . . . . . . 49Border Rivers . . . . . . . . . . . . . . . . 49business development . . . . . . . . . . 46customer service . . . . . . . . . . . . . 44dam safety . . . . . . . . . . . . . . . . . . 42delivery . . . . . . . . . . . . . . . . . . . . 44–45Gwydir Valley . . . . . . . . . . . . . . . 48Hunter Valley . . . . . . . . . . . . . . . . 49information availability . . . . . . . . . . . . 44Lachlan Valley . . . . . . . . . . . . . . . . . . . . 48Lower Darling Valley . . . . . . . . . . . . . 48Macquarie Valley . . . . . . . . . . . . . . . . . 48Murrumbidgee Valley . . . . . . . . . . 48Murray Valley . . . . . . . . . . . . . . . 47Namoi Valley . . . . . . . . . . . . . . . . 48Water Delivery Annual Report . . . . 47Toonumbar Dam . . . . . . . . . . . . . . . . . 49

Welcome Reef Dam . . . . . . . . . . . . . . . . 14Wesfarmers Kleenheat Gas . . . . . . . . . 18Women, action plan . . . . . . . . . . . . . . . . 102WorkCover Electrical Working Group (EWG) . . . . . . . . . . . . . . . . . . . . . . 109WorkCover NSW . . . . . . . . . . . . . . . . . . . 20,105–106Workplace policies . . . . . . . . . . . . . 54–55

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