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“Our priority is on safety, keeping the lights on and the business’s financial sustainability.”




A critical investment in the network for the safety of all Queenslanders


We invested $1.5 billion in the state’s electricity networks in 2020-21 to ensure the safety and security of supply and, more broadly, to meet the future needs of our customers.

Funds were allocated to asset inspection, maintenance and renewal to address the safety and performance challenges of an ageing network. The elevated levels of capital investment, particularly in regional Queensland, is being targeted to ensure we meet essential asset safety standards.

To undertake this critical work across our 178,000 kilometres of overhead powerlines and 1.7 million power poles we have enhanced the delivery effectiveness of our program of works. Compared to the previous year, we replaced almost three times the quantity of aged powerlines, and delivered a 19% increase in asset inspections. This drove a 13% increase in power pole replacements/reinforcements and a 20% increase in substation defect rectifications.

We are gaining safety benefits from technological change as we transform our networks into an intelligent state-wide grid.

For example, the safety risk associated with low voltage lines is being addressed by the roll out of smart monitoring devices.

From a workplace safety perspective, our people responded well to everything put in front of them, even with the additional challenges COVID-19 threw our way. They showed true leadership in keeping our people and the community physically safe, and their fellow team mates mentally healthy in unprecedented times.

Our focus on strengthening our learning culture and addressing potentially fatal hazards has resulted in a notable decrease in the number of significant incidents.


Keeping the lights on night and day, throughout the year

The year saw us once again demonstrate the emergency response capability across the Energy Queensland Group.

We had our share of severe weather events, from hailstorms in the South East to cyclonic conditions in the Far North and everything in between, with our crews and support personnel acting quickly and safely to restore power supplies.

We also played our part in responding to the Callide Power Station incident in May 2021 that led to state-wide power outages. Power was restored to the majority of the 470,000 customers impacted within two hours, and the need for controlled load shedding during the evening peak was avoided. This event provided significant insights into the broader emerging challenges around overall system stability and the changing load profile on our networks state-wide.

During the year we had already seen a dramatic drop in day-time minimum system demand with the previous year’s 700MW of additional rooftop solar energy connected to Queensland’s electricity distribution networks exceeding the Australian Energy Market Operator’s high case forecast of 300MW to 400MW.

An industry wide response to minimum demand is an immediate imperative. By 2030 it is forecast that there could be 8.7GW of renewable energy connected to our distribution networks, compared to a total summer peak of just over 8.2GW in demand, creating reverse power flows.

As part of our response, we’re fast tracking our Local Network Battery Plan.

We are initially installing 40MWh of network-connected battery energy storage as part of a five location trial where rooftop solar penetration is high. The batteries will allow the green energy made locally to be stored locally for use locally during the evening peak in demand. This initiative will support the Queensland Government’s goal of 50% renewables by 2030.

We’re also taking action in other ways. We’re progressing changes to the way we move the load we already have under control as part of our demand management program to create a ‘solar soak’, establishing flexible ‘solar’ export limits. We are also looking to tariff reform to incentivise daytime energy use, and to encourage the take up of ‘behind the meter’ energy storage.

Significantly more storage will be required to maintain security of supply as we move to even higher levels of rooftop and large scale solar.

Our customers investment in batteries will need to be augmented by storage capacity throughout the supply chain.

In addition to system security, we increasingly need to manage voltage and reverse power flows at the distribution level.

To advance the integration of Distributed Energy Resources, like solar and batteries, into the network we’re using data to give us greater visibility of the demand and solar energy input to our networks at any point in time.

We’re also working with our customers to find solutions, from consultation on connection standards, to trials and feasibility studies into microgrids and stand-alone power systems (SAPS). Through trial SAP projects we have demonstrated that we can meet the electricity requirements of customers and communities at the edge of the grid through more economic solutions than ‘grid supply’.


Delivering value to Queensland through our financial returns and lower bills

Our focus on our financial sustainability is delivering significant economic value to Queensland and addressing the ongoing affordability of our services for the benefit of both Queensland taxpayers and our customers.

The Group made a Net Profit After Tax of $302 million.

While down from 2019-20, was above our budget target of $97.1 million. This will allow us to pay a dividend of $220 million to the Queensland Government in 2021-22, ultimately benefiting the people of Queensland.

Our economic contribution supports a range of state-wide energy-related initiatives, including the Uniform Tariff Policy, which discounts power bills across regional Queensland where it costs more to supply power, and the $50 electricity asset ownership dividend payment being paid to all Queensland households.

Our focus on efficiencies, along with decreases in finance charges and wholesale energy costs, has helped sustainable savings flow to our customers through lower bills.

The St Vincent de Paul Society Tariff-Tracking Project’s report in November 2020 showed Queensland has the lowest electricity prices across the National Electricity Market.

This is the fourth year in a row that Ergon Retail’s bills have fallen.

In 2021-22 regional Queensland households are projected to see an average decrease of $101 in their annual bill and a typical small business customer an average of $79 reduction.

Looking forward we’ll continue to focus on efficiencies. Right across our businesses we’ve looked at where we can reduce costs, in areas like property, travel and fleet so we can spend more where it is needed to meet our networks’ safety and performance priorities.

To drive further efficiencies and ensure we can meet our customers’ needs into the future our Digital Enterprise Building Blocks program will continue rolling out new systems allowing our people to adapt, learn and embed new processes.

We are also proactively pursuing opportunities to grow our unregulated business.

Yurika has strengthened its position in the marketplace this year not just as a significant electrical EPC (Engineering, Procurement and Construction) contractor, but with an integrated end-to-end offering including energy infrastructure services and telecoms, digital solutions and metering under one unified brand.


We see a bright, electric future

We thank our customers, communities and other stakeholders for their support, and our people across the state and in other markets for their efforts, as we drive all elements of our business forward in what will continue to be a changing energy industry.


Phil Garling
Chairman


Rod Duke
Chief Executive Officer



“Our priority is on safety, keeping the lights on and the business’s financial sustainability.”




A critical investment in the network for the safety of all Queenslanders


We invested $1.5 billion in the state’s electricity networks in 2020-21 to ensure the safety and security of supply and, more broadly, to meet the future needs of our customers.

Funds were allocated to asset inspection, maintenance and renewal to address the safety and performance challenges of an ageing network. The elevated levels of capital investment, particularly in regional Queensland, is being targeted to ensure we meet essential asset safety standards.

To undertake this critical work across our 178,000 kilometres of overhead powerlines and 1.7 million power poles we have enhanced the delivery effectiveness of our program of works. Compared to the previous year, we replaced almost three times the quantity of aged powerlines, and delivered a 19% increase in asset inspections. This drove a 13% increase in power pole replacements/reinforcements and a 20% increase in substation defect rectifications.

We are gaining safety benefits from technological change as we transform our networks into an intelligent state-wide grid.

For example, the safety risk associated with low voltage lines is being addressed by the roll out of smart monitoring devices.

From a workplace safety perspective, our people responded well to everything put in front of them, even with the additional challenges COVID-19 threw our way. They showed true leadership in keeping our people and the community physically safe, and their fellow team mates mentally healthy in unprecedented times.

Our focus on strengthening our learning culture and addressing potentially fatal hazards has resulted in a notable decrease in the number of significant incidents.


Keeping the lights on night and day, throughout the year

The year saw us once again demonstrate the emergency response capability across the Energy Queensland Group.

We had our share of severe weather events, from hailstorms in the South East to cyclonic conditions in the Far North and everything in between, with our crews and support personnel acting quickly and safely to restore power supplies.

We also played our part in responding to the Callide Power Station incident in May 2021 that led to state-wide power outages. Power was restored to the majority of the 470,000 customers impacted within two hours, and the need for controlled load shedding during the evening peak was avoided. This event provided significant insights into the broader emerging challenges around overall system stability and the changing load profile on our networks state-wide.

During the year we had already seen a dramatic drop in day-time minimum system demand with the previous year’s 700MW of additional rooftop solar energy connected to Queensland’s electricity distribution networks exceeding the Australian Energy Market Operator’s high case forecast of 300MW to 400MW.

An industry wide response to minimum demand is an immediate imperative. By 2030 it is forecast that there could be 8.7GW of renewable energy connected to our distribution networks, compared to a total summer peak of just over 8.2GW in demand, creating reverse power flows.

As part of our response, we’re fast tracking our Local Network Battery Plan.

We are initially installing 40MWh of network-connected battery energy storage as part of a five location trial where rooftop solar penetration is high. The batteries will allow the green energy made locally to be stored locally for use locally during the evening peak in demand. This initiative will support the Queensland Government’s goal of 50% renewables by 2030.

We’re also taking action in other ways. We’re progressing changes to the way we move the load we already have under control as part of our demand management program to create a ‘solar soak’, establishing flexible ‘solar’ export limits. We are also looking to tariff reform to incentivise daytime energy use, and to encourage the take up of ‘behind the meter’ energy storage.

Significantly more storage will be required to maintain security of supply as we move to even higher levels of rooftop and large scale solar.

Our customers investment in batteries will need to be augmented by storage capacity throughout the supply chain.

In addition to system security, we increasingly need to manage voltage and reverse power flows at the distribution level.

To advance the integration of Distributed Energy Resources, like solar and batteries, into the network we’re using data to give us greater visibility of the demand and solar energy input to our networks at any point in time.

We’re also working with our customers to find solutions, from consultation on connection standards, to trials and feasibility studies into microgrids and stand-alone power systems (SAPS). Through trial SAP projects we have demonstrated that we can meet the electricity requirements of customers and communities at the edge of the grid through more economic solutions than ‘grid supply’.


Delivering value to Queensland through our financial returns and lower bills

Our focus on our financial sustainability is delivering significant economic value to Queensland and addressing the ongoing affordability of our services for the benefit of both Queensland taxpayers and our customers.

The Group made a Net Profit After Tax of $302 million.

While down from 2019-20, was above our budget target of $97.1 million. This will allow us to pay a dividend of $220 million to the Queensland Government in 2021-22, ultimately benefiting the people of Queensland.

Our economic contribution supports a range of state-wide energy-related initiatives, including the Uniform Tariff Policy, which discounts power bills across regional Queensland where it costs more to supply power, and the $50 electricity asset ownership dividend payment being paid to all Queensland households.

Our focus on efficiencies, along with decreases in finance charges and wholesale energy costs, has helped sustainable savings flow to our customers through lower bills.

The St Vincent de Paul Society Tariff-Tracking Project’s report in November 2020 showed Queensland has the lowest electricity prices across the National Electricity Market.

This is the fourth year in a row that Ergon Retail’s bills have fallen.

In 2021-22 regional Queensland households are projected to see an average decrease of $101 in their annual bill and a typical small business customer an average of $79 reduction.

Looking forward we’ll continue to focus on efficiencies. Right across our businesses we’ve looked at where we can reduce costs, in areas like property, travel and fleet so we can spend more where it is needed to meet our networks’ safety and performance priorities.

To drive further efficiencies and ensure we can meet our customers’ needs into the future our Digital Enterprise Building Blocks program will continue rolling out new systems allowing our people to adapt, learn and embed new processes.

We are also proactively pursuing opportunities to grow our unregulated business.

Yurika has strengthened its position in the marketplace this year not just as a significant electrical EPC (Engineering, Procurement and Construction) contractor, but with an integrated end-to-end offering including energy infrastructure services and telecoms, digital solutions and metering under one unified brand.


We see a bright, electric future

We thank our customers, communities and other stakeholders for their support, and our people across the state and in other markets for their efforts, as we drive all elements of our business forward in what will continue to be a changing energy industry.


Phil Garling
Chairman


Rod Duke
Chief Executive Officer