Published: 9 Dec 2011
Chief Executive Ian McLeod said the review panel had recognised Ergon Energy’s contribution to a significant improvement in the security and reliability of Queensland’s electricity supply since the original review, known as EDSD in 2004.
“Our undertakings following the 2004 review committed us to significant increases in capital and operating expenditure,” Mr McLeod said.
“The 2011 review panel was particularly impressed with the ability of the corporations to implement the recommendations of the (EDSD) report and found that expenditure since then had resulted in the reliability and robustness of the networks improving by around 40 percent,” Mr McLeod said.
“The panel acknowledged Ergon Energy’s significant performance improvement in network planning, network control and outage response times, as well as maintenance, customer communications and demand management programs.
“It supported our view that the network security of supply measures implemented in 2004 could now be achieved in more cost effective ways, leading to capital cost savings.
“Savings are possible due to the weakening of underlying demand through economic conditions, and, as recognised by the panel, our encouraging progress in demand management measures to address peak demand,” Mr McLeod said.
“We understand that electricity prices are of concern, our customers are hurting and that network capital and operating costs are a contributing factor in electricity price increases,” Mr McLeod said.
Mr McLeod said Ergon Energy looked forward to working with government to quantify potential savings, although much would depend on the pace of economic recovery, particularly in Queensland’s resources industry.
“In saying that, Ergon Energy’s focus will always be to continue delivering a safe, reliable and affordable electricity supply to the people of regional Queensland.”
Contact: John Stock
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