CHIEF EXECUTIVE OFFICER'S REVIEW

A year in transition toward a highly customer-focused, increasingly safe, efficient and innovative business, best describes FY2016-17 at Essential Energy, as the business continued to keep downward pressure on costs while embracing changing customer expectations and a rapidly evolving energy sector.

A refreshed leadership team and business culture is driving a renewed focus on our core objectives of continuous improvement in safety performance, operating at best practice to ensure best service to customers, delivering reductions in network charges in real terms, and delivering satisfactory returns to our shareholders.

The business is pursuing strategic initiatives focused on best practice systems, technology and processes, commercial capability, customer and community connection and the emerging commercial services our customers demand and a rapidly evolving energy sector require. These initiatives are being balanced with growing opportunities around emerging technologies such as batteries, microgrids, large scale solar, and wind and hydro generation.

This has delivered ongoing improvements in network performance, is preparing our business to be the network service provider of the future, and reinforced Essential Energy’s role as a critical enabler of economic activity and growth across regional, rural, and remote NSW.

We plan to continue on this path – but we don’t profess to have all the answers or absolute certainty on the manner in which our industry will evolve. That’s why ongoing customer engagement will continue to be a driving force for our business. The latter part of FY2016-17 saw customer workshops hosted across NSW which, coupled with an ongoing program of online surveys, meetings with advocacy groups and engagement with customer specialists, enabled us to actively listen to the needs, preferences and opinions of more than 1,500 customers and stakeholders.

This was more than customer engagement. This represented a shift in our thinking, our culture, and our customer connections to ensure Essential Energy is ‘always on’ for today’s and tomorrow’s customer needs and energy sector requirements.

Customers clearly told us that safety remains their top priority and, as we progress into FY2017-18 and beyond, safety for the community, contractors and our employees will continue to be at the forefront. While we have retained safety as the number one focus for all Essential Energy employees, we are not meeting our own high standards and there will be a renewed focus on safety as a critical element of our culture and operating model during 2017/18.

Affordability also continues to be a key customer challenge. Essential Energy recognises this and is focused on delivering network charge reductions for customers over time, alongside improved financial performance. This also remains front and centre as we continue to work with the Australian Energy Regulator (AER) to conclude our 2014-19 revenue determination.

A culture of continuous improvement and a fresh approach to risk, customer service, investment and efficiency will ensure Essential Energy remains responsive, enabling, enduring and local in the years ahead. I thank our employees for their commitment in FY2016-17 and their continued appetite for change, and I look forward to working together to address every opportunity and challenge that lies ahead.

CHIEF EXECUTIVE OFFICER’S REVIEW

A YEAR IN TRANSITION TOWARD A HIGHLY
CUSTOMER-FOCUSED, INCREASINGLY SAFE,
EFFICIENT AND INNOVATIVE BUSINESS, BEST
DESCRIBES FY2016-17 AT ESSENTIAL ENERGY,
AS THE BUSINESS CONTINUED TO KEEP
DOWNWARD PRESSURE ON COSTS WHILE
EMBRACING CHANGING CUSTOMER EXPECTATIONS
AND A RAPIDLY EVOLVING ENERGY SECTOR.

43-Apprentice_Nathan-Cubby-and-Emmily-Moylan-Sept-16_EWP-2_01

RESPONSIVE

MEETING CUSTOMER EXPECTATIONS AND RESPONDING TO THEIR NEEDS 24/7.

ENABLING

FACILITATING THE NEW ENERGY MIX, NEW TECHNOLOGIES AND NEW ENERGY ECONOMICS

LOCAL

LIVING AND WORKING IN THE COMMUNITIES ESSENTIAL ENERGY SERVES AND INTRODUCING NSW CUSTOMERS TO NEW OPPORTUNITIES PRESENTED BY THE GLOBAL ENERGY EVOLUTION.

ENDURING

MANAGING THE NETWORK EFFICIENTLY TODAY AND PREPARING IT FOR THE FUTURE.