Annual performance scorecard for 2019–2020 (year 2)
Every five years, Barwon Water develops a Price Submission, a five-year plan which outlines our proposed water and sewerage prices, service standards, infrastructure and operational investments from 1 July 2018 to 30 June 2023.
The plan was developed in partnership with our customers and community following 18 months of community conversation and is our commitment to delivering greater value for our customers.
As part of our Price Submission, we committed to:
- continually involve our customers and community in our decision making
- hold ourselves to account and honour what we said we would deliver
- regular ‘check-ins’ with our customers and community to ensure their values are aligned with our service,
- ensuring our actions align with what our customers want us to do.
During 2019-2020, we worked towards delivering five service outcomes our customers told us they most valued and expected from their water and sewerage services:
- Outcome 1: A reliable, secure water future for our region
- Outcome 2: Timely, innovative services for our customers
- Outcome 3: A healthier environment for all
- Outcome 4: Deeper knowledge and partnerships with our community
- Outcome 5: Affordability for all our customers
Our year 2 annual performance scorecard provides a snapshot of our performance against these outcomes.
With our customers in mind, we set ambitious targets for ourselves and in 2019–2020 we met three of our outcomes and are on track to deliver the remaining two by the end of the regulatory period (30 June 2023). This was against the backdrop of a hotter and drier climate that put extra pressure on delivering water and sewerage services.
The year was also marked by the unprecedented challenges of the coronavirus (COVID-19) pandemic. We responded quickly to ensure we continued to provide our essential water and sewerage services, while maintaining the health and safety of our staff and customers. We also worked hard to ensure there was appropriate support and flexibility options for our residential and business customers financially impacted by coronavirus.
Essential Services Commission outcomes reporting
The Essential Services Commission (ESC) regulates the Victorian water sector and they also monitor and require us to report on our performance against measures for each customer outcome.
The table below summarises our overall performance over the current pricing period to date using a traffic light system for each outcome, with an overall green rating in both years.
|1. A reliable, secure water future for our region||⬤||⬤|
|2. Timely, innovative services for our customers||⬤||⬤|
|3. A healthier environment for all||⬤||⬤|
|4. Deeper knowledge and partnerships with our community||⬤||⬤|
|5. Affordability for all of our customers||⬤||⬤|
Each outcome below is made up of a number of indicators and our performance for each measure is summarised using the traffic light system similar to the table above.
The ESC uses the same methodology in tracking our performance and full details are available on the ESC website which highlight our targets, results and detailed commentary.
Performance Incentive Mechanism
In our Pricing Submission to the Essential Services Commission (ESC) in 2018 we also included a ‘Performance Incentive Mechanism’ which commits that if we do not meet a four specific performance indicators aligned to our customer outcomes, we will return up to $11.5 million to our customers in the next pricing period (2023–2028) or $2.9 M for each of the four overall measures:
- Zero Waste (Outcome 1)
- Customer Service Index (Outcome 2)
- Network Performance Index (Outcome 2)
- Zero Emissions (Outcome 3)
The value to be returned reflects our ESC Outcomes reporting results and how much targets were exceeded.
The current value ($) forecast to be returned in the next pricing period is $0.1 M.
This is based on our 2018-2019 Network Performance Index result, where we did not meet our target regarding the ‘number of customers who have more than two sewer spills to their property in a year’, due to three consecutive overflows on two adjacent properties in December 2018. Because of this, we will return $96,000 back to customers in the next pricing period.
The other key measure at risk of not being met is the ‘Zero Emissions - Total emissions, reported in tonnes of carbon dioxide equivalent (tCO₂-e) by 2022/2023’. The interim targets for 2018/2019 and 2019/2020 have not been met. However, the ultimate performance of this measure is based on meeting tonnes of carbon dioxide equivalent (tCO₂-e) target by 2022/2023.
Although we are currently behind our interim targets, due to the challenges we have faced including higher than expected growth, needing to use more energy intensive water sources and the delay of the Zero Emission Water (ZEW) power purchase agreement, we remain committed to meeting the target by 2022/2023, and therefore at this stage have forecast a return of $0.
|Zero Waste (Outcome 1)|
Volume of recycled water allocated for productive use by 2022/23
Customer Service Index (Outcome 2)
Network Performance Index (Outcome 2)
|Zero Emissions (Outcome 3)|
Total emissions, reported in tonnes of carbon dioxide equivalent (tCO₂-e) by 2022/23
* It should be noted that this measure has been renamed since our 2018 Price Submission where it was called ‘Number of customers engaged and supported through Barwon Water’s hardship payment plans’.
** this measure tracks our performance over 5 years of this pricing period and the value paid will be finalised at the end of these 5 years.