department of energy and water supply annual report 2016-17 · 2017. 9. 29. · department of...

Department of Energy and Water Supply

ANNUAL REPORT2016–2017

CS6917 09/17

ISSN 2201-2095

Public availability

Copies of the Department of Energy and Water Supply annual report are available online at www.dews.qld.gov.au. Limited printed copies are available by calling 13 QGOV (13 74 68) or emailing [email protected], and the electronic version can be found at www.dews.qld.gov.au/our-department/corporate-publications/annual-report.

This publication has been compiled by Business Planning and Achievement of Business and Corporate Partnership.

© State of Queensland (Department of Energy and Water Supply) 2017

This annual report is licensed by the State of Queensland (Department of Energy and Water Supply) under a Creative Commons Attribution (CC BY) 4.0 International licence

In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to the State of Queensland (Department of Energy and Water Supply).

For more information on this licence, visit https://creativecommons.org/licenses/by/4.0/.

The information contained herein is subject to change without notice. The Queensland Government shall not be liable for technical or other errors or omissions contained herein. The reader/user accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this information

Interpreter statement

The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, you can contact us within Australia on 13 QGOV (13 74 68) and we will arrange an interpreter to effectively communicate the report to you.

Department of Energy and Water Supply: Annual report 2016–2017

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1Department of Energy and Water Supply: Annual report 2016–2017

Contents

Letter of compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

About the department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Who we are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Our vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Our purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Our role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Our services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Our operating environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Our strategic challenges and opportunities . . . . . . . . . . . . . . . . . . . . .5

Our performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Government objectives for the community . . . . . . . . . . . . . . . . . . . . .6

Whole-of-government plans and specific initiatives . . . . . . . . . . . . . . . .6

Open data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Government bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Our objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

1. Provide leadership for the energy and water supply sectors— delivering better outcomes for Queensland . . . . . . . . . . . . . . . . . . .8

2. Improve outcomes for stakeholders and customers— engaging with our partners to ensure the best possible outcomes . . . . . .8

3. Meet our future business needs— ensuring improved efficiency and effectiveness in our work . . . . . . . . . .9

4. Maximise learning and development opportunities for staff— building the capability and capacity of our workforce . . . . . . . . . . . . . .10

Service area achievements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Water Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Looking forward: 2017–18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Our ‘why’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Our ‘what and how’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Governance: structure and management . . . . . . . . . . . . . . . . . . . . . . . . . .15

Organisational structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Executive Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

EMT committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Public Sector Ethics Act 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Governance: risk management and accountability . . . . . . . . . . . . . . . . . . . . .18

Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Queensland Audit Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18


Audit and Risk Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Internal audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

External scrutiny . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Information systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Governance: human resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Workforce planning and performance . . . . . . . . . . . . . . . . . . . . . . . .21

Financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Our financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Our income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Our expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Financial statements: 30 June 2017 . . . . . . . . . . . . . . . . . . . . . . . . . .24

Appendix 1: Legislation administered by DEWS . . . . . . . . . . . . . . . . . . . . . . .72

Appendix 2: Government bodies (statutory bodies and other entities) . . . . . . . . .73

Appendix 3: Performance statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74

Appendix 4: Report of the regulator’s activities under the Water Supply (Safety and Reliability) Act 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76

Appendix 5: Compliance checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80

Abbreviations and glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83


Letter of compliance

22 September 2017

The Honourable Mark Bailey MP Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply GPO Box 611 Brisbane Qld 4001

Dear Minister Bailey

I am pleased to submit for presentation to the Parliament the Annual report 2016–2017 and financial statements for the Department of Energy and Water Supply.

I certify that this annual report complies with:

the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009

the detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found on page 80 of this annual report.

Yours sincerely

Professor Paul Simshauser Director-General Department of Energy and Water Supply


About the department

Who we areThe Queensland Government established the Department of Energy and Water Supply (DEWS) through a machinery-of-government announcement on 3 April 2012, under the Public Service Act 2008.

Our vision During the year, we progressed our vision to be a world-class regulatory and policy agency enabling resilient, affordable and adaptable energy and water supply industries for Queenslanders.

Our purpose Our purpose is to ensure Queensland’s energy and water supply services are safely, efficiently and reliably provided to consumers.

Our roleIn support of our vision, DEWS provides a policy, regulatory and strategy platform that ensures Queenslanders have access to safe, reliable and affordable energy and water supply, while embracing the Queensland public service values.

Our servicesDEWS is responsible for overseeing Queensland’s energy and water industries to ensure these essential services are provided to Queenslanders in a safe, efficient and reliable way.

As reported in the 2016–17 Service Delivery Statements, the department’s services are delivered through two main service areas.

Energy

The Energy service area ensures Queensland’s energy sector is efficient, equitable and sustainable. Our work contributes to an adaptive, resilient energy sector that powers consumer value and choice, and Queensland’s economic growth and prosperity.

Water Supply

The Water Supply service area implements water sector reform to ensure the delivery of safe, reliable and cost-effective water supplies and the safety of referable dams, and to plan for water supply security and flood mitigation.

Queensland public service values


Our operating environmentA review of our operating environment identified the following factors that impact our department.

Energy

Customers

There are more than two million residential households and small business electricity and gas customers in Queensland.

There are more than 19 000 large and very large electricity customers.

Generators, transmitters and distributors

There are four government-owned corporations providing generation, transmission (including interstate interconnectors) and distribution network infrastructure (see Appendix 2).

There are more than 100 electricity generators currently operating in Queensland, with approximately 20 supplying electricity to the National Electricity Market—some are privately owned and others are owned by government-owned corporations.

There is also a substantial gas transmission network with interstate interconnectors—Wallumbilla Gas Supply Hub, Brisbane Gas Short Term Trading Market (wholesale) and localised urban distribution networks.

Water Supply

Customers

More than 4.4 million customers are collectively serviced by a registered water service provider.

Catchment, treatment and storage

There are currently 180 registered water service providers delivering potable water, non potable water and/or sewerage services. They include local governments, government-owned corporations, statutory authorities and private businesses.

There are currently 168 registered recycled water schemes.

Seqwater and SunWater are state-owned bulk water entities. Seqwater owns and operates 26 dams for bulk water supply in South East Queensland. SunWater owns and operates 19 major dams and 66 weirs and barrages for bulk water supply outside South East Queensland.

The Mount Isa Water Board and Gladstone Area Water Board are state-owned water authorities. The Mount Isa Water Board supplies quality bulk water to the Mount Isa City Council and industrial customers, while the Gladstone Area Water Board supplies treated and untreated water for domestic and industrial purposes to Gladstone Regional Council and economically significant local industries.

There are currently 109 referable dams in Queensland subject to dam safety regulation. These range in size from small privately owned dams (i.e. farm dams) to large dams.

Our strategic challenges and opportunitiesDEWS manages challenges and opportunities by being risk-aware. Our key strategic challenges include:

using data insights to deliver better outcomes

appropriately managing the impact of external forces on infrastructure owned or managed by the department

focusing on global advances and trends that are transforming our sectors.


Our performance

We have continued to focus our efforts on implementing Queensland Government priorities.

Government objectives for the communityThe department contributes to the Queensland Government’s objectives for the community to support the creation of jobs and a diverse economy, and protect the environment through building renewable energy and biofuels industries. We also support building safe, caring and connected communities by setting and enforcing dam safety and drinking water quality standards, and by undertaking regional water supply planning.

Whole-of-government plans and specific initiativesQueensland is a signatory to the National partnership agreement on energy efficiency between the federal government and all states and territories. The agreement aims to deliver cost-effective energy-efficiency gains through a nationally consistent and coordinated approach, while recognising the need for flexible approaches across jurisdictions.

Powering Queensland plan

On 5 June 2017, the Queensland Government released the Powering Queensland plan. The plan sets out the Queensland Government's strategy to guide the state through the short-term and long-term challenges facing Australia's energy markets. The government is investing $1.16 billion to ensure Queenslanders can continue to enjoy an affordable and secure supply of electricity. The plan will support the transition to a cleaner energy sector, and create new investment and jobs.

Australia’s energy markets are facing significant challenges relating to electricity and gas prices, system security, gas availability, and energy and climate policy. These challenges are being driven by closure of ageing coal-fired generation and gas supply restrictions in southern states, a lack of investor confidence and an uncertain national policy. These challenges are resulting in higher prices for households and businesses, and if left unaddressed may threaten energy security and

Australia’s ability to meet its emissions reduction targets. The Powering Queensland plan sets out the Queensland Government’s strategy to guide the state through the short-term and long-term challenges occurring in the market.

The plan includes providing electricity price relief by:

investing $770 million to cover the cost of the Solar Bonus Scheme

restarting Stanwell Corporation’s 385 megawatt Swanbank E gas-fired power station

directing Stanwell Corporation to undertake strategies to place downward pressure on wholesale prices

investigating the restructure of the government-owned corporation generators and potential establishment of ‘CleanCo’

delivering a $386 million Powering North Queensland plan to strengthen and diversify the north’s energy supply

establishing a Queensland Energy Security Taskforce that will implement accepted outcomes of the Finkel Review

confirming the government’s commitment to a 50% renewable energy target

undertaking a reverse auction for up to 400 megawatts of renewable energy, including 100 megawatts of energy storage

improving large-scale project facilitation, planning and network connections.

Biofuels mandate

The Queensland biofuels mandate is a new legislative framework for growing the biofuels industry that began on 1 January 2017. It applies to petrol and diesel sales by fuel businesses in Queensland. The bio-based petrol mandate requires that 3% of the total volume of regular unleaded petrol sales and ethanol-blended fuel sales by liable retailers must be bio-based petrol (e.g. ethanol).


The bio-based diesel mandate requires 0.5% of all diesel fuel sold to be bio-based diesel.

The mandate is supported by a regulatory framework to collect data, ensure compliance and provide exemptions in certain circumstances. Data from the first quarter of the mandate’s operation showed that a large number of service stations were converted to enable the sale of ethanol-blended fuels and sales had increased by over one-third. A number of fuel businesses were granted temporary exemptions, generally to enable further site conversion programs to be undertaken.

The introduction of the mandate was accompanied by the launch of the E10 OK consumer education campaign to support motorist understanding of, and demand for, biofuel made from ethanol.

National Water Infrastructure Development Fund

Queensland is already a signatory to the national project agreement for part 1 of the Australian Government’s National Water Infrastructure Development Fund. During 2016–17, Queensland also became a signatory to the national project agreement for part 2 of the fund.

Regional water supply security assessments

To help local governments and other water service providers meet their urban water supply responsibilities, the department is collaborating with individual councils in a rolling program to complete regional water supply security assessments for regional Queensland communities. The aim of the assessments is to provide a shared understanding of the capability of each community’s water supply to meet future demand and identify potential risks and challenges ahead.

Open dataMore than 60 sets of our data resources are available to the public and we will continue to maintain effective processes to ensure our data is available and free to anyone who wishes to use it.

The following DEWS datasets for annual reporting purposes are available on the Queensland Government data website at www.data.qld.gov.au:

consultancies

overseas travel.

Government bodiesThe department has relationships with numerous government bodies—entities with decision-making powers established either by an Act of Parliament or by a decision of executive government.

A list of the government bodies relevant to DEWS is available at Appendix 2.


Our objectives

The DEWS strategic plan for 2016–20 sets out four strategic objectives.

1. Provide leadership for the energy and water supply sectors—delivering better outcomes for Queensland

E10 OK biofuels consumer education campaign

The Queensland Government’s biofuel mandate, which requires the fuel industry to meet targets for the sale of bio-based fuels, came into effect on 1 January 2017.

The E10 OK campaign kicked off in September 2016 and has proven a success for Queenslanders and the government by increasing sales of biofuels. The campaign strategy, informed by behavioural research, is driving consumers to a purpose-built online platform where they can determine their vehicle’s compatibility with E10 fuel and learn about the benefits of using E10.

The department set a target to reach half a million vehicle compatibility checks in 12 months—this target was achieved in May, just 7 months into the campaign.

The success of the campaign to date is credited to rigorous research, an innovative brief and effective consultation with major fuel businesses and motoring organisations such as the RACQ. This engagement ensured the views of these parties were fully understood and the department was able to create a campaign complementary to their objectives while delivering a positive outcome for Queenslanders.

South East Queensland water code revised

The department released the newly revised South East Queensland customer water and wastewater code, which sets out the obligations of both suppliers and consumers in relation to water and wastewater services. The code came into effect on 1 April 2017.

The code covers drinking water, recycled water and sewerage services provided by the region’s five council-owned water businesses. The revised code is the result of a three-yearly review of the original code.

Changes to the code will provide the most benefit to tenants of residential properties, including tenants being able to register with their water service provider as a ‘special needs property’ if they require uninterrupted supply of water for medical reasons. Under the original code, only owner–occupiers could register. Another protection afforded to tenants is that service providers will not be permitted to restrict water supply for non-payment of an account, because the property owner is legally responsible for paying the account.

2. Improve outcomes for stakeholders and customers—engaging with our partners to ensure the best possible outcomes

Electricity concessions reform

During the year, the department led a major policy reform to improve the state’s electricity concessions framework. This reform aims to better support vulnerable households and represents a commitment of $170 million over the next four years.

As a result of this reform, some additional 160 000 low-income households are now eligible for the rebate, which will increase to $340 per year from 1 July 2017. Overall, one in three Queensland households are eligible for this electricity bill assistance, with pensioners, seniors and Department of Veterans’ Affairs gold card holders also continuing to receive financial support through the rebate.

Since becoming available to low-income families on 1 April 2017, thousands of new applicants have benefited from the rebate. The Queensland Council of Social Service has commended the change, saying the extension of the rebate will make a genuine difference to the lives of


Queenslanders currently struggling with the cost of living. Further collaboration is continuing with the Queensland Council of Social Service and other community groups to promote the change and encourage people to apply.

Service provider comparative report

The department finalised the Queensland water and sewerage service provider performance comparative report: financial year 2015–2016 in June (available on the DEWS website at www.dews.qld.gov.au). The report is the second in a series of annual reports about the performance of water and sewerage providers in Queensland, enabling the department to identify trends and track performance.

The purpose of the comparative report is to benchmark providers to encourage voluntary performance improvements if necessary. It also provides information to customers across Queensland, enabling them to compare their provider’s performance with others around the state.

The latest report is based on data submitted for the 2015–16 financial year and includes some comparison to data from the 2014–15 financial year. Findings of the report indicate that, despite a challenging year due to drought conditions, providers have performed well over the past 12 months to ensure water supply security for their customers.

3. Meet our future business needs—ensuring improved efficiency and effectiveness in our work

Renewable Energy Expert Panel

On 30 November 2016, the independent Renewable Energy Expert Panel delivered its final report to government, outlining ways to achieve a 50% renewable energy target in Queensland by 2030.

The delivery of Credible pathways to a 50% renewable energy target for Queensland: final report, 30 November 2016 represented the culmination of 10 months activity for the team of departmental staff supporting the expert panel.

Critical to the delivery of the expert panel’s final report, departmental staff undertook a range of research and analysis tasks and provided the panel with support to

draft each of the chapters. In addition to this, the DEWS team was responsible for engaging and managing a range of contractors providing specialist advice to the panel.

The expert panel was also required to undertake an extensive public consultation process to support their advice to government. The DEWS team organised 13 public forums and 2 industry forums held across the state.

Powering Queensland plan

On 5 June 2017, as part of the Powering Queensland plan, the Queensland Government released its response to the expert panel’s final report, including reaffirming the commitment to the 50% renewable energy target by 2030 and investing $1.16 billion so Queenslanders have access to affordable and secure electricity supply.

The expert panel’s final report confirmed its draft findings that a 50% renewable energy target would deliver significant economic benefits to Queensland, with a broadly cost neutral impact on electricity prices while maintaining system security and reliability. On the basis of these recommendations, the government committed to support investment for up to 400 megawatts of a diversified renewable energy capacity by providing revenue certainty through a reverse auction process, including a 100 megawatt energy storage component, with an emphasis on supporting local jobs and benefits.

The Powering Queensland plan includes commissioning a Queensland Energy Security Taskforce—a team of experts to guide the state’s robust energy security for both the short and long term, which includes implementing the accepted Finkel Review recommendations. The first priority for the taskforce would be to work with Queensland’s energy businesses to ensure Queensland’s system remains secure during the high demand periods over the 2017–18 and 2018–19 summers.

Dam data software solution

In June 2017, the department introduced a smart software solution to store information about the state’s referable dams. DEWS is responsible for the regulation of dams that would, in the event of failure, put two or more people at risk. There are 109 of these dams in Queensland and this number continues to grow.

The Referable Dams Register, containing data about these dams, had been maintained by the department for decades but had become limited in its capabilities.


The solution was delivered using an ‘agile’ software development methodology—meaning it evolved through collaboration and testing. As a result, it is fit for purpose and will help the department ensure the safety of the state’s dams into the future.

4. Maximise learning and development opportunities for staff—building the capability and capacity of our workforce

Leadership framework and programs

The leadership framework aims to build exceptional leaders in their respective areas of expertise—both personally and professionally. This will enable our people to effectively establish business priorities and set the right strategic direction. The department continued to invest in leadership development opportunities for staff during the year.

Key initiatives delivered in 2016–17

Exceptional Leadership—The Exceptional Leadership program was targeted at our tier 1 leadership cohort to develop a culture of exceptional leadership across the group and identify each person’s role and commitment to creating more sustainable peak performance capabilities.

GOAL—The Growing Our Adaptive Leaders program for AO7/PO5 and AO6/PO4 employees, which started in March 2016, continued during the year. The first cohort of participants completed a 7-month course in October 2016 and the second cohort completed their 10-month course in April this year.

iLEAD—Our personal leadership is on display every day and has an impact on our work and our relationships with those around us. Each and every one of us has a responsibility to monitor and develop our personal leadership. iLEAD formed the third tier of the department’s commitment to leadership development.

‘TED, LED and FED’ lunchtime forums—These began in February this year, providing staff with the opportunity to connect with others and share leadership experiences. By collectively utilising some of the inspiring TED talks, staff focused on both personal and positional leadership and the benefits for the department.

The department’s senior executive team places great importance on building leadership, reflected by their involvement in all of the programs.


Service area achievements

EnergyIn 2016–17, the Energy service area:

extended the electricity rebate to Commonwealth health care card holders and asylum seekers, providing cost-of-living support to an additional 157 000 households across Queensland

supported four projects through Solar 150, which will see almost 150 megawatts of generation capacity developed (nearly quadruple our original target)

enabled the Queensland Goverment to remove network costs associated with the Solar Bonus Scheme, saving Queensland’s electricity consumers about $770 million over the next three years

enabled the Queensland Goverment to provide $10 million over two financial years to implement a support package for regional business customers, delivering better access to digital metering and more information about tariff options and co-contributions to help customers invest in operation and equipment changes to manage bill impacts

enabled the Queensland Goverment to roll out $5.5 million (from the State Infrastructure Fund’s Significant Regional Infrastructure Projects Program) for the Energy Savvy Families program to help 5500 low-income families in regional Queensland better understand and control their energy use

developed opportunities to use solar PV on government-owned facilities

advanced the Clean Energy Schools program, a joint initiative with the Department of Education and Training and Queensland Treasury, to deploy innovative ways to use solar power and energy efficiency to reduce energy costs across Queensland schools

advanced the Solar for Public Housing joint initiative with the Department of Housing and Public Works, conducting a world-first trial to deliver cheaper solar energy for vulnerable customers living in government-owned public housing

deregulated electricity prices in South East Queensland, supported by a successful education campaign to help consumers capture the benefits of a more competitive market (new retailers entered the market and 120 new residential and small business offers were released)

provided robust guidance and governance on a range of matters, in partnership with Queensland Treasury and government-owned corporations, including the merger of Energex and Ergon to form Energy Queensland Limited

contributed to the whole-of-government response to Tropical Cyclone Debbie, through activation of departmental emergency management procedures and arrangements to assist with the coordinated management of energy issues (this included representation within the State Disaster Coordination Centre and Queensland’s Disaster Management Committee).

Water SupplyIn 2016–17, the Water Supply service area:

facilitated 26 applications for funding from part 1 of the National Water Infrastructure Development Fund (14 of these were successful—more than any other state)

progressed introduction of local management arrangements for SunWater irrigation channels (four transition companies are now established and final due diligence is well underway for those schemes, and further investigations into revised business proposals are underway for four channels)

progressed two regional water supply security assessments for Stanthorpe and Gladstone

continued assessment of emergency action plans for the state’s referable dams

developed and implemented the Inspector-General Emergency Management Recommendations Implementation Plan, delivering 10 workshops and assessing 100% of submissions received


developed and delivered the Queensland bulk water opportunities statement

progressed an interim report to the Prime Minister and Premier about solutions for short-, medium- and long-term water security for Townsville (via the Townsville Water Security Taskforce, a partnership between the federal and state governments and Townsville City Council)

contributed to the whole-of-government response to Tropical Cyclone Debbie, through activation of departmental emergency management procedures and arrangements to assist with the coordinated management of water issues (this included representation within the State Disaster Coordination Centre and Queensland’s Disaster Management Committee)—the Chief Scientist was commissioned to undertake an independent assessment into the operation of Kinchant Dam and warning systems for communities downstream.


Looking forward: 2017–18

During 2016–17, we developed a ‘plan on a page’ to simply define the purpose and priorities of the department. It explains why we do what we do and what brings us all to work every day—this is how we will continue to operate during the coming year.

Our ‘why’ Safe, reliable, affordable energy and water services

to customers.

Enable economic growth and jobs.

Sustainable system over the long term for customers and the environment.

Stewardship of high-performance systems, assets and service providers.

Effective management of risks, market failures and disasters.

Our ‘what and how’

Design for future provision

Develop a response to the State infrastructure plan in relation to water supply infrastructure.

Optimise and implement Queensland’s renewable energy policies.

Design National Electricity Market transformation with the COAG Energy Council and through implementation of outcomes from the Finkel Review (Independent review into the future security of the National Electricity Market: blueprint for the future—June 2017).

Examine opportunities to improve the design and operation of regional energy and water markets.

Ensure Queensland benefits from national investment opportunities.

Support market design work and supply studies of the Queensland Energy Security Taskforce.

Execute policy initiatives

Continue to deliver flood mitigation investigations and regional water security programs.

Reform regional irrigation markets, including local management arrangements.

Implement the biofuels mandate.

Implement changes to administration of the community service obligation payment.

Implement the Powering Queensland plan and Powering North Queensland plan.

Ensure fair, safe, affordable and reliable services

Make electricity more affordable by improving the vulnerable customer framework.

Implement risk-tiered regulatory models.

Develop an expanded emergency action planning framework.

Optimise our non-commercial assets.

Deliver retail and wholesale pricing reforms through the Powering Queensland plan to help affordability by putting downward pressure on prices.

Undertake summer preparedness planning as part of the Queensland Energy Security Taskforce.


Ensure efficient, high-performing, accountable providers

Provide councils with requisite information and assistance through water supply and dam safety regulation, planning support and comparative reporting.

Undertake a review of electricity generators owned by government-owned corporations.

Become a world-class regulatory and policy agency

Invest in the regulatory and policy skills of our people.

Sustain leadership development, performance management and measurement.

Improve stakeholder engagement and an outward-looking culture.

Strengthen data analytics.

ENERGY AND WATER SUPPLYDirector-GeneralPaul Simshauser

WATER SUPPLYDeputy Director-General

Ken Sedgwick

ENERGYDeputy Director-General

Benn Barr

BUSINESS AND CORPORATE PARTNERSHIP

Deputy Director-General

Brenda Parker

Water Supply Policy and Economics

General Manager

Anita Sweet

Water Planning and Regulation

General Manager

Linda Dobe

Energy Industry PolicyGeneral Manager

Gayle Leaver

Consumer and PricingGeneral Manager

Phil Richardson

Regulation, Governance and Analytics

General ManagerCatherine Cussen

Executive DirectorOffice of the Director-General

David Shankey

Human Resources Executive Director

Celia Venables

In-House LegalChief Counsel

Business Planning and Achievement

Executive DirectorSinead McCarthy

Liquid Fuels and EmergencyGeneral Manager

Kathie Standen

CommunicationsExecutive Director

Chantal Llora

Chief Finance OfficerFiona Trenear


Governance: structure and management

Organisational structure


Executive Management TeamThe Executive Management Team (EMT) functions as the department’s board of management—overseeing the present and future work requirements of the department and providing policy and strategic direction.

The EMT also functions as the department’s Strategic Finance Committee, supported by the Operational Finance Committee. The EMT takes a collaborative management approach to addressing the challenges facing the department, and works together to ensure optimal outcomes in line with the department’s strategic priorities.

The collective responsibility of the EMT is to ensure integration and collaboration on strategic issues across the department, and the prioritisation of resources and capabilities to facilitate and deliver key outcomes.

As at 30 June 2017, the EMT membership comprised:

Professor Paul Simshauser, Director-General (chair)

Ken Sedgwick, Deputy Director-General, Water Supply

Benn Barr, Deputy Director-General, Energy

Brenda Parker, Deputy Director-General, Business and Corporate Partnership

David Shankey, Executive-Director, Office of the Director-General.

Paul Simshauser, Director-General

Paul Simshauser was appointed Director-General of DEWS in July 2015.

Prior to his current role, Paul was AGL Energy’s Chief Economist. He has also held senior executive positions at Stanwell Corporation, NewGen Power and Babcock & Brown.

Paul holds bachelor degrees in Economics and in Commerce, has a Master’s Degree in Accounting and Finance, and a PhD in Economics. He is a Fellow of CPA Australia and a Fellow of the Australian Institute of Company Directors.

Paul is also Professor of Economics at Griffith University’s Business School, and is widely published on energy economics in academic journals.

Ken Sedgwick, Deputy Director-General, Water Supply

In 2012, Ken Sedgwick commenced as Deputy Director-General, Water Supply.

Ken is responsible for leading and implementing water policy, reform and regulation to ensure the water supplied to Queensland communities is safe, reliable and delivered cost-effectively.

Prior to this role, Ken was Acting Deputy Under-Treasurer in Queensland Treasury and Trade, where he also worked in a variety of senior roles, including leading Treasury's involvement in the many structural changes that occurred within the Queensland water industry.

Prior to his Treasury career, Ken worked in the former Department of Primary Industries in Brisbane and Townsville.

Benn Barr, Deputy Director-General, Energy

In 2015, Benn Barr commenced as Deputy Director-General, Energy.

Benn is responsible for leading and managing the roles and responsibilities of the Energy division, which includes the delivery of a cost-effective, safe, secure and reliable energy supply.

Benn is also responsible for implementing the government’s renewable energy commitments.

Benn has over 20 years’ public policy experience in Queensland and Australian governments, and graduated from James Cook University with a Bachelor of Economics.

Brenda Parker, Deputy Director-General, Business and Corporate Partnership

In July 2013, Brenda Parker commenced as Deputy Director-General, Business and Corporate Partnership.

Brenda is responsible for leading and managing effective and efficient corporate services within an evolving service delivery environment across multiple agencies.

Prior to this current role, Brenda led the Corporate Services Renewal Taskforce at the Public Service Commission, which was responsible for identifying and implementing recommendations to improve the manner in which corporate services are delivered across all government agencies.


Brenda has over 20 years’ experience in the public sector, including key leadership roles in the provision of corporate services, and has a wealth of experience in human resources, workplace health and safety, rehabilitation and risk management.

David Shankey, Executive Director, Office of the Director-General

In 2016, David Shankey commenced as Executive Director, Office of the Director-General.

David is responsible for leading the ministerial, executive and finance services of the department, which includes parliamentary activities and disaster management across energy and water, and specific projects as requested by the Director-General.

David also provides the secretariat function for the EMT. David has over 10 years’ experience working in public policy and media roles, and graduated from The University of Queensland with a Bachelor of Laws and a Bachelor of Commerce.

EMT committeesIn accordance with the department’s corporate governance framework, the EMT is supported by committees that perform specific tasks or assignments—they are being reviewed to ensure they align with the priorities of the Director-General and EMT. The committees meet either fortnightly or bimonthly, depending on their work programs.

The committees in place during 2016–17 were the:

Audit and Risk Committee

Operational Finance Committee

Agency Consultative Committee

ICT Investment and Strategy Committee

Diversity and Inclusion Committee.

Public Sector Ethics Act 1994The department considers the conduct and performance of employees central to achieving its deliverables and objectives. In 2016–17, comprehensive online training continued, with specific education for inductees on the code of conduct and the ethics principles of the Public Sector Ethics Act 1994. Specific training was delivered to managers and supervisors surrounding implementation of the sector-wide Capability and Performance Excellence framework, providing mechanisms that support early intervention and local resolution of unsatisfactory conduct and performance.

The online code of conduct training was updated on the department’s intranet for staff completion on an annual basis, together with supporting policies and resources that form the basis for human resource management and decision-making.


Governance: risk management and accountability

Risk managementEffective risk management in DEWS ensures we can make informed decisions, meet our compliance obligations and ensure the safety and wellbeing of our people and the community. DEWS recognises that risk is characterised by both threat and opportunity, and manages risk in order to enhance opportunities and reduce threats that may impact on the department’s operational business plans and objectives. The risk management policy and procedure, which align with standard AS/NZS ISO 31000:2009 Risk management—principles and guidelines and Queensland Treasury’s A guide to risk management: July 2011, outline the principles and responsibilities for risk management across the department. DEWS fosters a risk-aware culture in all decision-making through the application of high quality, integrated risk analysis and management, which enables informed decisions to be made at the right time and facilitates visibility of sources of uncertainty.

During 2016–17, the department further refined its approach to proactively identifying, analysing and responding to risk. The DEWS risk management framework was reviewed and confirmed to be fit for purpose. The department developed a refreshed risk appetite and also regularly reviewed and monitored its operational risks (including financial, compliance, safety and wellbeing) as part of its quarterly reporting process at a business division level.

Queensland Audit OfficeThe Queensland Audit Office (QAO) reports to Parliament on a range of matters. The relevant reports for the department are detailed below.

QAO report 1 to Parliament, Strategic procurement—report 1: 2016–2017, was tabled in Parliament on 27 September 2016 and examined whether good quality data was available and whether state government departments were achieving and enabling value for money procurement outcomes through effective strategic procurement. It also examined whether there were sufficient measures in place to develop the necessary procurement capability in the staff who work in this field. The department took a number of actions to implement

the recommendations, including working with the Office of the Chief Advisor—Procurement to address:

spend analysis by the categories established and agreed with the Office of the Chief Advisor—Procurement

the use of existing whole-of-government supply arrangements

agency-specific opportunities (economic, social and environmental) to realise procurement benefits and reduce processing costs

measurable benefits targets (financial and non-financial) against realistic time frames that departments set, but that align to whole-of-government category goals and objectives.

QAO report 16 to Parliament, Government advertising—report 16: 2016–17, was tabled in Parliament on 30 May 2017 and examined the economy of government purchasing of advertising, the effectiveness of a selection of advertising campaigns and the application of governance frameworks. General recommendations for all departments included:

strengthening the evaluation of communication activities by preparing formal post-campaign reports summarising results, cost-effectiveness of advertising mediums and insights into how results inform future campaigns

ensuring that campaign materials submitted to the Government Advertising and Communication Committee have been certified by the relevant authority (Director-General or equivalent) as compliant with the Queensland Government advertising code of conduct 2013, and that evidence of this certification is included in submissions.

In response to the report, the Department of the Premier and Cabinet indicated that many agencies had noted a formal evaluation reporting process was in place and that they will continue this practice. They indicated that guidance and best-practice materials will be developed and shared across government. They also noted that many agencies reported that Director-General approval was already part of the internal process and that this recommendation is therefore complete for all agencies.


QAO report 17 to Parliament, Organisational structure and accountability—report 17: 2016–17, was tabled in Parliament on 31 May 2017 and assessed whether the structure within Queensland Government departments supported the achievement of individual agency strategic objectives as well as government priorities, and whether there was clear accountability for delivering these objectives.

The recommendations for all government departments included:

enhancing strategic planning approaches

establishing clear alignment between accountability and strategic objectives

reviewing delegations of authority in relation to organisational structure

calculating and reviewing staff structures and workforce profiles to ensure that departments allocate employees efficiently and effectively to deliver strategic objectives.

The Department of the Premier and Cabinet and the Public Service Commission will be working with departments to implement the report’s recommendations.

Audit and Risk CommitteeThe Audit and Risk Committee was established in accordance with the Financial and Performance Management Standard 2009 (s. 35). The committee met five times in the period 1 July 2016 to 30 June 2017. The committee observed the terms of its charter, having due regard to the Audit committee guidelines: improving accountability and performance issued by Queensland Treasury (June 2012).

The committee is directly responsible to the Director-General and acts as a forum for dialogue between the Director-General, senior management, Internal Audit Services and the QAO.

The committee provided governance oversight and advice to the Director-General in relation to all aspects of its charter responsibilities.

The committee comprised the following membership:

Peter Dowling, external member (chair)

Benn Barr, Deputy Director-General, Energy (member)

Ken Sedgwick, Deputy Director-General, Water Supply (member)

Kathie Standen, General Manager, Energy (permanent proxy to Benn Barr)

Patrice Sherrie, external member.

The committee’s two external members received a combined total remuneration of $12 000 (excluding GST) for their role on the committee during 2016–17.

Internal auditThe formation of Internal Audit Services (IAS) was approved on 12 June 2012. IAS is a business unit within the Department of Environment and Heritage Protection, and provides internal audit services to four other Queensland Government agencies as part of a co-sourced corporate services arrangement.

The role, operating environment and operating parameters of IAS are established in the 2016–17 internal audit charter (which has due regard to professional standards) and the Audit committee guidelines: improving accountability and performance, issued by Queensland Treasury (June 2012).

IAS provides independent assurance and advice to the Director-General, senior management and the Audit and Risk Committee. It enhances the department’s corporate governance environment through an objective, systematic approach to evaluating the effectiveness and efficiency of corporate governance processes, internal controls, risk assessment and management practices. This is in keeping with the role and responsibilities detailed in the Financial Accountability Act 2009.

IAS reports to the Audit and Risk Committee and its function is independent of management and external auditors. Assurance activities undertaken include compliance and operational reviews, and information system and special review assignments as requested by management.

IAS completed the following reviews under the DEWS strategic internal audit plan (July 2016 to June 2017):

Large Customer Adjustment Trial Grants Program.

IAS commenced the following reviews under the DEWS strategic internal audit plan (July 2016 to June 2017):

Solar 150 Program: Large-scale Solar Investment

Queensland Biofuel Mandate—Phase 2

Risk Management—Maturity Review

Contract Management—Critical Service Contracts

Referable Dam Register

National Water Infrastructure Development Fund.


IAS employees are members of professional bodies, including the Institute of Internal Auditors, Chartered Accountants Australia and New Zealand, CPA Australia and the Information Systems Audit and Control Association.

IAS considers there are adequate controls in place to minimise the opportunity for fraud or mismanagement in those areas of the department that were subject to internal audit in terms of the program of work approved by the Director-General.

External scrutinyQueensland Government agencies can be reviewed or audited by a number of different authorities and bodies, including the Queensland Audit Office, parliamentary committees, the Crime and Corruption Commission, the Queensland Ombudsman, the Information Commissioner Queensland and the Office of the State Coroner.

Information systemsDEWS continues to operate, maintain, develop and decommission a range of information systems to support services, initiatives and corporate operations. Highlights include the following:

All departmental staff were moved to 1 William Street and were upgraded to Windows 10, except a few high-performance desktops required for reporting. All staff were provided with direct access to enhanced mobility capabilities.

The Biofuel Interim database was developed and launched on 1 April 2017. The database allows the department to register fuel sellers and collect initial fuel sale figures to meet legislative requirements.

Recordkeeping The department continues to operate a recordkeeping strategy to ensure that the department is compliant with the Public Records Act 2002, Public Service Act 2008, Information standard 40—recordkeeping and Information standard 31—retention and disposal of public records. Policies are in place for recordkeeping, email management, retention and disposal of records, managing information on shared network drives, information security and digitisation disposal.

The department has a corporate electronic document and records management system (eDOCS) and staff

are encouraged to maximise the use of digital records in business processes. New integration technology was introduced to allow harvesting of documents into the corporate recordkeeping system from other user interfaces. The Records Management unit is appraising new business systems to provide required recordkeeping considerations for compliance.

Digital delivery was introduced for the scanning and delivery of hard copy records to departmental staff. This has increased the efficiency of delivery and protects the physical integrity of the records.

The water records retention and disposal schedule was approved by the State Archivist. Approved retention and disposal schedules and documented processes for records disposal are in place across the department. Time-expired records were identified for disposal and 20 boxes of hard copy files were securely disposed of. Permanent records are being identified so they can be transferred to Queensland State Archives.


Governance: human resources

Workforce planning and performance

Workforce profile

As at 30 June 2017, DEWS employed 225.3 full-time equivalent staff.

The ending of temporary contracts, resignations and retirements led to a 7.51% permanent separation rate for DEWS in 2016–17.

During the period, two employees received redundancy packages at a cost of $328 141. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, during which reasonable attempts were made to find alternative employment placements.

Strategic workforce planning framework

Our strategic workforce plan outlines the department’s people strategies to achieve a world-class regulatory and policy agency. This workforce planning framework focuses on four areas:

1. leadership

2. diversity and inclusion

3. safety and wellbeing

4. professional capability.

To sustain and build on existing capability with DEWS, the strategic workforce plan identifies six goals:

1. bring new ideas, technology and practices into the workplace

2. mitigate the risk of turnover

3. develop high-performing, outcomes-focused policy professionals

4. professional development of our engineering expertise

5. greater collaboration across functional areas

6. embed professional expertise within the department.

To achieve these goals, purpose-designed strategies were implemented during 2016–17 (captured in the following sections).

Diversity and inclusion

The department continued to apply the Diversity and Inclusion Framework that was launched in December 2015, and focused on growing knowledge, acceptance and understanding that diversity and inclusion affects and benefits all staff. The communication piece My Story and the inaugural in-depth staff diversity and inclusion program shaped delivery of the framework, and over the past 12 months the focus areas were:

mainstreaming flexible working through the rollout of mobile technology, optional timesheets, leaders working flexibly and key communication and capability pieces

creating more opportunities for all through ‘sprints’ (inclusive higher duty and learning and development opportunities)

supporting parents and carers through a peer support network, information and flexibility

partnering with a domestic violence shelter and putting a spotlight on this critical social issue in the workplace

LGBTIQ+ (lesbian, gay, bisexual, transgender, intersex and queer) inclusion through champions, training, events and open conversation

Path to Parity Program for part-time workers and renewing our focus on the talent pipeline for women

‘not every disability is visible’ education campaign and a detailed staff survey on this issue

starting a journey of cultural capability through the Lockhart River Champions and commencing cultural capability training and workshops using renowned Indigenous leaders.

Diversity and inclusion employment rates for 2016–17 were:

Aboriginal peoples and Torres Strait Islanders—1.70%

non–English speaking background—16.60%

people with a disability—2.55%

women in senior officer/senior executive service officer positions—34.42%.


Employee performance management

To attain a workplace culture of respect and a workplace that delivers results, existing resources such as performance and development agreements, code of conduct requirements, and sector-wide Conduct and Performance Excellence training continue to be reinforced.

Capability framework

Identified through the department’s strategic workforce plan, the capability framework focused on professional development in 2016–17. The objective was to support our people to be influential, credible, authoritative and respected in analytics and their respective technical areas of expertise.

To build this capability the department delivered:

the Karen Masnata scholarship

the Persuasive Communication Program

the Stakeholder Engagement Program

‘TED, LED and FED’ lunchtime forums

a redesigned workforce that focuses on recruiting analytical capability within the business

a specifically designed Graduate Certificate in Policy Analysis program, which commenced in June 2017.

Working for Queensland Employee Opinion Survey

The department undertook a significant engagement and communication campaign in order to increase employee participation in the annual sector-wide Working for Queensland Employee Opinion Survey. The results of the survey showed significant improvement in a number of areas.

The Executive Management Team prioritised taking action in response to the survey feedback, and it was a critical informer of the workforce strategies implemented throughout the year.

Industrial and employee relations

The department has a contemporary Human Resource Management Framework that includes a suite of resources and guidance on employee entitlements and resolving issues that may arise in the workplace.

Information is proactively distributed and assistance is provided to managers and employees to ensure employees are receiving their correct entitlements.

Of note is the recent implementation of changes resulting from the new Industrial Relations Act 2016 and amendments to the Public Service Act 2008. New resources were developed and information sessions conducted to ensure managers and employees were aware of the new processes and employee entitlements, including the new general protections regime, new appeal rights in relation to unfair treatment, conversion of temporary and casual positions to permanent positions, and new application process and disputes procedure for flexible working arrangements.

Ongoing consultative discussions are held with Together Queensland and the Industrial Union of Employees and Professionals Australia through regular formalised meetings of the Agency Consultative Committee. Essentially, the role of the Agency Consultative Committee is to ensure that the department implements and complies with all relevant arrangements under the Industrial Relations Act 2016, Public Service Act 2008 and State government entities certified agreement 2015 (core agreement), with particular focus placed on current and emerging industrial issues, workforce strategy and organisational change issues.

Safe and healthy workforce

Our commitment is to create and communicate a culture that promotes safety as an absolute priority. The department is committed to the safety and wellbeing of all employees, offering a wide range of resources, systems and governance structures to assist with operational requirements and the implementation of work practices and procedures to prevent injury while undertaking departmental operations in our community.

Contributing to a healthy workforce, the department invested in the Building Resilient People program. This program focused on educating our people about how pressure impacts their physical, mental and emotional wellbeing, and equipping them with the skills to build individual energy management plans.


Financial performance

The financial statements included in this annual report contain comprehensive financial data on:

controlled entity, which refers to the funds and assets within the control of the department

administered activities, which refers to activities the department does not control but is charged with administering the funds on a whole-of-government basis.

Our financial performanceThe department supports the Queensland Government’s objectives for the community by committing to establish and maintain a policy and regulatory environment for the energy and water sectors, and ensuring integrity, accountability and consultation underpin everything we do.

Our incomeIncome for 2016–17 was $63.4 million (2015–16: $43.4 million) and was predominantly departmental services appropriation to deliver energy and water supply services.

Departmental income, 2016–17

$0.3 millionOther revenue

$57.7 millionAppropriation revenue

$5.3 million Grants and other contributions

Note: Any variance in graph to actuals is due to rounding. See general rounding disclaimer in the ‘Financial statements’ section.


Our expenditureExpenses for the year amounted to $62.2 million (2015–16: $43.4 million). Higher expenditure in 2017 was primarily due to costs relating to the Electricity Consumer Education Campaign, Biofuels Mandate Implementation, National Water Infrastructure Development Fund and Local Management Arrangement programs.

Employee expenses included salaries, related taxes and superannuation contributions totalling $26.7 million (2015–16: $25.2 million), which represent 42.9% of total expenses. Supplies and services for 2016–17 totalled $24 million (2015–16: $10.6 million), 38.6% of total expenditure. Payments to contractors and consultants of $8 million, advertising and promotional expenses of $7.6 million and accommodation expenses of $3.5 million were the predominant expenses within supplies and services. Grants and subsidies expenditure totalled $10.1 million (2015–16: $5.7 million) and represented 16.3% of total expenditure.

Payments to the Australian Energy Market Commission of $4.8 million and for the National Water Infrastructure Development Fund of $3.1 million were the predominant expenses within grants and subsidies (77.9%).

We remain committed to managing our financial performance and minimising our liabilities and risks. Our financial performance is closely monitored within our corporate governance framework to align with departmental priorities.

Departmental expenses, 2016–17

$24.0 millionSupplies and services

$10.1 million Grants and subsidies

$26.7 millionEmployee expenses

$0.03 millionDepreciation and amortisation

$1.4 million Other expenses

Financial statements: 30 June 2017

Foreword and general information

The Department of Energy and Water Supply (DEWS) is a Queensland Government department established under the Public Services Act 2008. DEWS is controlled by the State of Queensland, which is the ultimate parent.

The head office and principal place of business of the department is:

Level 34 1 William Street Brisbane Qld 4000

A description of the nature of the operations and principal activities of the department is included in the notes to these financial statements. For information in relation to these financial statements, please call (07) 3166 0102 or visit www.dews.qld.gov.au.

Note: Any variance in graph to actuals is due to rounding. See general rounding disclaimer in the ‘Financial statements’ section.


Department of Energy and Water Supply

Financial Statements For the Year Ended 30 June 2017

Page 1

TABLE OF CONTENTS Financial Statements Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Statement of Comprehensive Income by Major Departmental Service Statement of Assets and Liabilities by Major Departmental Service Administered Statement of Comprehensive Income Administered Statement of Financial Position Administered Statement of Changes in Equity Administered Statement of Cash Flows Administered Statement of Comprehensive Income by Major Departmental Service Administered Statement of Assets and Liabilities by Major Departmental Service Notes to the Financial Statements General Information Note 1: Objectives and Principal Activities of the Department Note 2: Other Information Controlled note numbers Note 3: Appropriation Revenue Note 4: Grants and Other Contributions Note 5: Employee Expenses Note 6: Supplies and Services Note 7: Grants and Subsidies Note 8: Other Expenses Note 9: Cash and Cash Equivalents Note 10: Receivables Note 11: Property, Plant and Equipment Note 12: Payables Note 13: Accrued Employee Benefits Note 14: Other Current Liabilities Note 15: Commitments for Expenditure Note 16: Contingencies Note 17: Budget to Actual Comparison Administered note numbers Note 18: Appropriation Revenue Note 19: Supplies and Services Note 20: Grants and Subsidies Note 21: Cash and Cash Equivalents Note 22: Receivables Note 23: Property, Plant and Equipment Note 24: Payables Note 25: Prior period error Note 26: Budget to Actual Comparison


Department of Energy and Water Supply and Controlled Entities Statement of Comprehensive Income for the year ended 30 June 2017

Page 2

CONSOLIDATED Notes 2017 2016 $’000 $’000 Income from Operations Appropriation revenue 3 57 721 38 601 Grants and other contributions 4 5 331 4 480 Other revenue 314 284 Total Income from Operations 63 366 43 365 Expenses from Operations Employee expenses 5 26 684 25 244 Supplies and services 6 24 009 10 621 Grants and subsidies 7 10 154 5 672 Other expenses 8 1 364 1 688 Depreciation and amortisation 29 140 Total Expenses from Operations 62 240 43 365 Operating Result for the Year 1 127 -

Other Comprehensive Income Other comprehensive income - - Total Other Comprehensive Income - - Total Comprehensive Income 1 127 -

The accompanying notes form part of these financial statements.


Department of Energy and Water Supply and Controlled Entities Statement of Financial Position as at 30 June 2017

Page 3

CONSOLIDATED Notes 2017 2016 $’000 $’000 Current Assets Cash and cash equivalents 9 25 839 22 025 Receivables 10 1 349 976 Prepayments 198 105 Total Current Assets 27 386 23 106 Non-Current Assets Property, plant and equipment 11 219 278 Total Non-Current Assets 219 278 Total Assets 27 605 23 384

Current Liabilities Payables 12 4 816 1 844 Accrued employee benefits 13 1 286 1 021 Other current liabilities 14 7 247 6 172 Total Current Liabilities 13 349 9 037 Non-Current Liabilities Lease liability 482 - Total Non-Current Liabilities 482 - Total Liabilities 13 831 9 037

Net Assets 13 774 14 347

Equity Contributed equity 10 515 12 215 Asset revaluation surplus 68 68 Accumulated surplus 3 191 2 064 Total Equity 13 774 14 347

The accompanying notes form part of these financial statements


Department of Energy and Water Supply and Controlled Entities Statement of Changes in Equity for the year ended 30 June 2017

Page 4

Contributed Equity

Accumulated Surplus

Asset Revaluation

Surplus Total

$’000 $’000 $’000 $’000 Balance as at 1 July 2015 12 215 2 064 68 14 347 Operating result from operations - - - - Other Comprehensive Income Movement in asset revaluation surplus - - - - Balance as at 30 June 2016 12 215 2 064 68 14 347

Balance as at 1 July 2016 12 215 2 064 68 14 347 Operating result from operations - 1 127 - 1 127 Other Comprehensive Income Movement in asset revaluation surplus - - - - Transactions with Owners as Owners Appropriated equity withdrawal (1 700) - - (1 700) Balance as at 30 June 2017 10 515 3 191 68 13 774 The accompanying notes form part of these financial statements


Department of Energy and Water Supply and Controlled Entities Statement of Cash Flows for the year ended 30 June 2017

Page 5

CONSOLIDATED Notes 2017 2016 $’000 $’000 Cash Flows from Operating Activities Inflows: Service appropriation receipts 3 57 867 39 343 Grants and other contributions 5 331 4 480 GST input tax credits received from ATO 2 661 1 075 GST collected from customers 97 30 Other 539 100 Outflows: Employee expenses (26 418) (25 147) Supplies and services (21 235) (9 520) Grants and subsidies (9 558) (5 672) GST paid to suppliers (2 737) (1 156) GST remitted to ATO (96) - Other expenses (937) (308) Net cash provided by operating activities 5 514 3 226 Cash Flows from Investing Activities Inflows: Loans and advances redeemed - 500 Outflows: Payments for property, plant and equipment - (6) Net cash provided by investing activities - 494 Cash Flows from Financing Activities Outflows: Equity withdrawals (1 700) - Net cash used in financing activities (1 700) - Net increase in cash and cash equivalents 3 814 3 719 Cash and cash equivalents at the beginning of the financial year 22 025 18 306

Cash and cash equivalents at end of financial year 25 839 22 025



Department of Energy and Water Supply and Controlled Entities Statement of Cash Flows for the year ended 30 June 2017

Page 6

Notes to the Statement of Cash Flows Reconciliation of Operating Result to Net Cash Provided by Operating Activities

2017 2016 $’000 $’000 Operating Result 1 127 - Non-cash items included in operating result: Depreciation and amortisation expense 29 140 Net losses on disposal of property, plant and equipment 29 378 Change in assets and liabilities: Increase in receivables (298) (200) (Increase)/decrease in prepayments (93) 15 Increase in GST input tax credits receivable (75) (51) Increase in payables 2 973 2 847 Increase in accrued employee benefits 265 97 Decrease in other current liabilities 1 075 - Increase in lease liability 482 - Net cash provided by operating activities 5 514 3 226


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214

242

5 36

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4 24

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36

219

278

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9

253

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31

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05

23 3

84

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2 70

7 93

8 2

109

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4 81

6 1

844

Acc

rued

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567

476

719

545

1 28

6 1

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4 82

2 2

298

2 42

5 3

874

7 24

7 6

172

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8 09

6 3

712

5 25

3 5

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256

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To

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s 8

323

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2 5

509

5 32

5 13

831

9

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N

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s 4

347

5 54

1 9

426

8 80

6 13

774

14

347


Department of Energy and Water Supply and Controlled Entities Administered Statement of Comprehensive Income for the year ended 30 June 2017

Page 9

Notes 2017 2016 $’000 $’000 Income and expenses administered on behalf of the whole of Government

Administered Income Appropriation revenue 18 1 394 055 571 533 User charges and fees 304 274 Total Administered Income 1 394 359 571 807 Administered Expenses Supplies and services 19 670 1 929 Grants and subsidies 20 1 385 153 560 179 Depreciation and amortisation 8 230 8 717 Other expenses and loss on disposal of non-current assets 2 1 622

Transfers of administered appropriation to government - 709 Transfer of administered revenue to government 304 274 Total Administered Expenses 1 394 359 573 429 Operating Result for the Year - (1 623)

Other Comprehensive Income Items that will not be reclassified to Operating Result Decrease in asset revaluation surplus (51 250) - Total items that will not be reclassified to Operating Result (51 250) -

Other comprehensive income - Total Other Comprehensive Income (51 250) - Total Comprehensive Income (51 250) (1 623)



Department of Energy and Water Supply and Controlled Entities Administered Statement of Financial Position as at 30 June 2017

Page 10

Notes 2017 2016 As at 1 July 2015 restated

$’000 $’000 $’000 Assets and liabilities administered on behalf of the whole of Government

Administered Assets Current Assets Cash and cash equivalents 21 86 227 - 75 803 Receivables 22 38 598 89 423 36 687 Prepayments - - 102 Total Current Assets 124 825 89 423 112 593 Non-Current Assets Property, plant and equipment 23 127 715 187 329 208 363 Total Non-Current Assets 127 715 187 329 208 363 Total Assets 252 540 276 752 320 956

Administered Liabilities Current Liabilities Bank overdraft 21 - 3 575 - Payables 24 122 987 86 277 114 283 Payables to Government 1 826 1 259 - Total Current Liabilities 124 813 91 111 114 283 Total Liabilities 124 813 91 111 114 283

Net Assets 127 727 185 642 206 673

Equity Contributed equity (16 680) (10 016) (1 310) Asset revaluation surplus 175 128 226 379 237 081 Accumulated surplus (30 721) (30 721) (29 098) Total Equity 127 727 185 642 206 673



Department of Energy and Water Supply and Controlled Entities Administered Statement of Changes in Equity as at 30 June 2017

Page 11

Contributed Equity

Accumulated Surplus

Asset Revaluation

Reserve Total

$’000 $’000 $’000 $’000 Balance as at 1 July 2015 (1 310) (29 098) 237 081 206 673 Operating result from operations - (1 623) - (1 623) Other Comprehensive Income Movement in asset revaluation surplus - - (10 702) (10 702)

Transactions with Owners as Owners Equity withdrawal (8 706) - - (8 706) Balance as at 30 June 2016 (10 016) (30 721) 226 379 185 642

Balance as at 1 July 2016 (10 016) (30 721) 226 379 185 642 Operating result from operations - - - - Other Comprehensive Income Increase/(decrease) in asset surplus - - (51 250) (51 250) Transactions with Owners as Owners Equity withdrawal (8 230) - - (8 230) Equity injection 1 700 - - 1 700 Net transfers out to other Queensland Government entities (134) - - (134)

Balance as at 30 June 2017 (16 680) (30 721) 175 128 127 727



Department of Energy and Water Supply and Controlled Entities Administered Statement of Cash Flows for the year ended 30 June 2017

Page 12

Notes 2017 2016 $’000 $’000 Cash flows administered on behalf of the whole of Government

Cash flows from operating activities Inflows: Administered appropriation receipts 18 1 445 611 513 582 User charges and fees 304 274 GST input tax credits received from ATO 65 103 57 889 GST collected from customers - 4 Other - 191 Outflows: Administered appropriation receipts returned to Queensland Treasury (269) (274)

Grants and subsidies 20 (776 982) (3 890) Community service obligation payments 20 (571 481) (586 238) Supplies and services (650) 13 GST paid to suppliers (64 803) (52 165) GST remitted to ATO - (51) Other (501) - Net cash provided by (used in) operating activities 96 332 (70 665) Cash flows from investing activities Outflows: Payments for property, plant and equipment - (8) Net cash used in investing activities - (8) Cash flow from financing activities Inflows: Equity injections 1 700 - Outflows: Equity withdrawals (8 230) (8 706) Net cash used in financing activities (6 530) (8 706) Net increase (decrease) in cash and cash equivalents 89 802 (79 379) Administered cash and cash equivalents at the beginning of financial year (3 575) 75 803

Cash and cash equivalents at the end of financial year 21 86 227 (3 575)



Department of Energy and Water Supply and Controlled Entities Administered Statement of Cash Flows for the year ended 30 June 2017

Page 13

Reconciliation of Operating Result to Net Cash Provided by Operating Activities

2017 2016 $’000 $’000 Operating Result for the Year - (1 623) Depreciation and amortisation expense 8 230 8 717 Loss on disposal of non-current assets - 1 622 Change in administered assets and liabilities: (Increase)/decrease in receivables 50 525 (58 412) Decrease in GST input tax credits receivable 300 5 677 Decrease in other current assets - 102 Increase/(decrease) in payables 36 710 (26 747) Decrease in payables to Government 567 - Net cash provided by (used in) operating activities 96 332 (70 665)


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1 86

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7 32

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127

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187

329

127

727

185

642


Department of Energy and Water Supply and Controlled Entities Notes to the Financial Statements for the year ended 30 June 2017

Page 16

General Information

The Department of Energy and Water Supply (the department) is a Queensland Government Department established under the Public Service Act 2008 and is controlled by the State of Queensland, which is the ultimate parent. The head office and principal place of business of the department is Level 34, 1 William Street Brisbane Qld 4000. Statement of Compliance The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009. The financial statements comply with Queensland Treasury’s Minimum Reporting Requirements for reporting periods beginning on or after 1 July 2016. The department is a not-for-profit entity and these general purpose financial statements are prepared on an accrual basis (except for the Statement of Cash Flow which is prepared on a cash basis) in accordance with Australian Accounting Standards and Interpretations applicable to not-for profit entities. New accounting standards applied for the first time in these financial statements are outlined in Note 2(f).

The Reporting Entity The consolidated financial statements include the income, expenses, assets, liabilities and equity of the ‘economic entity’ comprising the department and the entities it controls where these items are material. All transactions and balances internal to the economic entity have been eliminated in full. Controlled Entities The following entities are directly controlled by the department and relate to local management arrangements (LMA) for irrigation channel schemes. The projects’ objective is to facilitate the future implementation of local management arrangements for SunWater Limited’s eight channel irrigation schemes:

Name of Controlled

Entity

Purpose and Principal Activities of Entity

% Interest in Entity and Basis of Control

Total Assets $’000

Total Liabilities

$’000

Total Revenue

$’000

Operating Result $’000

2017 2017 2017 2017 LMA Support Services Pty Ltd

Administration and support to the activities and objectives of the Local Management Arrangements transition and investigation schemes to facilitate the future implementation.

100% interest in ordinary share

capital enabling control of

majority voting rights

$394 $394 $1,997 -

Mallawa Irrigation Ltd

Entities created for the transition schemes of Emerald, Eton, St George and Theodore where there is a strong commitment to the concept of local management and where government has determined that locally managed schemes can be financially viable. The entities have been created to represent the interests of customers, undertake further investigations and to negotiate terms of transfer with government. There are no financial transactions in the current financial year as the terms of transition are being negotiated

100% interest in membership

interests including voting

rights

- - - -

Fairbairn Irrigation Network Pty Ltd




- - - -

Eton Irrigation Scheme Pty Ltd




- - - -

Theodore Water Pty Ltd




- - - -



Page 17

Controlled Entities Comprising the Economic Entity The consolidated financial statements of the economic entity comprise the transactions and balances of the department and the directly controlled entities listed above. The auditor for the department and all controlled entities is the Auditor-General of Queensland. There are no comparative amounts as all the entities were established during the financial year 2016-2017. Disclosures about wholly-owned Controlled Entities In September 2016 the department participated, with the approval of the Treasurer, in the formation of LMA Support Services Pty Ltd (the company) and controls 100% of the share capital and voting rights in the company. The company’s registered office is in Brisbane, Queensland and is not-for-profit in nature, being formed to provide a procurement and co-ordination function to support the Local Management Arrangement (LMA) project. The LMA project is to facilitate the future implementation of local management arrangements for SunWater’s eight channel irrigation schemes. The company supports the irrigators and other irrigation scheme customers in the transfer of the Transition Schemes to local management arrangements and supports the Investigation Schemes in preparing revised business cases for transferring the Investigation Schemes to local management arrangements in the future. The company’s constitution requires that the company receives and administers funding from the State to act as agent for, and to support the activities of, the Transition and Investigation Schemes. The department is the sole contributor of resources to LMA Support Services Pty Ltd via grant funding and during 2016-17, grants provided totalled $2 million. The company intends to complete their activities in 2018 and it is likely that the company will be wound up upon finalisation of these activities, this is subject to the Government’s decision on whether any of the Investigation Schemes are also ready to commence the transition to local management arrangements, in which case LMA Support Services Pty Ltd may be engaged to support that process. During the financial year, four companies were also established, with the approval of the Treasurer, for the Transition Schemes including Mallawa Irrigation Limited, Fairbairn Irrigation Network Pty Ltd, Eton Irrigation System Pty Ltd and Theodore Water Pty Ltd. These entities are 100% controlled by the department however there are no financial transactions for the current financial year as funding is administered on their behalf by LMA Support Services Pty Ltd. Presentation Rounding and Comparatives Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period. Comparatives restated for a prior period error are detailed at note 25. Current/Non-Current Classification Assets and liabilities are classified as either ‘current’ or ‘non-current’ in the Statement of Financial Position and associated notes. Assets are classified as ‘current’ where their carrying amount is expected to be realised within 12 months after the reporting date. Liabilities are classified as ‘current’ when they are due to be settled within 12 months after reporting date, or the department does not have an unconditional right to defer settlement to beyond 12 months after the reporting date. All other assets and liabilities are classified as non-current. Administered Items The department administers, but does not control, certain activities on behalf of the Government. In doing so, it has responsibility for administering those activities (and related transactions and balances) efficiently and effectively, but does not have the discretion to deploy those resources for the achievement of the department's own objectives. Accounting policies applicable to administered items are consistent with the equivalent policies for controlled items, unless stated otherwise.



Page 18

Authorisation of Financial Statements for Issue The statements are authorised for issue by the Director-General and Chief Finance Officer at the date of signing the Management Certificate. Basis of Measurement Historical cost is used as the measurement basis in this financial report except for land, buildings, infrastructure, and heritage and cultural assets which are measured at fair value. 1. Objectives and Principal Activities of the Department The Department of Energy and Water Supply is responsible for overseeing Queensland’s energy and water industries to ensure these services are provided to Queensland consumers in a safe, efficient and reliable way. The department’s functions are delivered through two main service areas: ‘Energy’ and ‘Water Supply’: Energy The Energy service area objective is to ensure Queensland’s energy sector is efficient, equitable and sustainable. Our work contributes to an adaptive, resilient energy sector that powers consumer value and choice, and Queensland’s economic growth and prosperity. Water Supply The Water Supply service area objective is to implement water sector reform to ensure the delivery of safe, reliable and cost effective water supplies and the safety of referable dams and to plan for water supply security and flood mitigation. The department is principally funded for the services it delivers by parliamentary appropriations. 2. Other Information (a) Financial Instruments Financial assets and financial liabilities are recognised in the Statement of Financial Position when the department becomes party to the contractual provisions of the financial instrument. The department does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, the department holds no financial assets classified at fair value through profit or loss. As the department is appropriation funded the only financial instruments for the department are cash, receivables and payables, these are all current and can be found in the department’s Statement of Financial Position. (b) Taxation The department is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). FBT and GST are the only taxes accounted for by the department. GST credits receivable from and GST payable to the ATO are recognised (refer to Note 10). (c) Key Management Personnel Disclosures Details of Key Management Personnel As from 2016-17, the department’s responsible Minister is identified as part of the department’s KMP, consistent with additional guidance included in the revised version of AASB 124 Related Party Disclosures. That Minister is the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply. The following details for non-Ministerial KMP reflect those departmental positions that had authority and responsibility for planning, directing and controlling the activities of the department during 2016-17 and 2015-16. Further information about these positions can be found in the body of the Annual Report under the section relating to Executive Management.



Page 19

Position Position Responsibility Director-General Overall efficient, effective and economic administration of the

department. Deputy Director-General, Energy Strategic leadership and direction of the Energy functions and

responsibilities of the department. Deputy Director-General, Water Supply

Strategic leadership and direction of the Water Supply functions and responsibilities of the department.

Executive Director, Office of the Director-General

Strategic advice and analysis to the Director-General on departmental, financial, public administration and governance matters.

Deputy Director-General, Business and Corporate Partnership

Strategic leadership and direction of the departments corporate and business support functions of the agency.

KMP Remuneration Policies Ministerial remuneration entitlements are outlined in the Legislative Assembly of Queensland’s Members’ Remuneration Handbook. The department does not bear any cost of remuneration of Ministers. The majority of Ministerial entitlements are paid by the Legislative Assembly, with the remaining entitlements being provided by Ministerial Services Branch within the Department of the Premier and Cabinet. As all Ministers are reported as KMP of the Queensland Government, aggregate remuneration expenses for all Ministers is disclosed in the Queensland General Government and Whole of Government Consolidated Financial Statements as from 2016-17, which are published as part of Queensland Treasury’s Report on State Finances. Remuneration policy for the department’s other key management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008. Individual remuneration and other terms of employment for the key management personnel are specified in employment contracts. Remuneration expenses for those key management personnel comprise of the following components: Short term employee expenses which include:

1. salaries, allowances and leave entitlements earned and expensed for the entire year, or for that part of the year during which the employee occupied a KMP position;

2. performance payments recognised as an expense during the year; and 3. non-monetary benefits - consisting of provision of car parking together with fringe benefits tax applicable

to the benefit. Long term employee expenses include amounts expensed in respect of long service leave entitlements earned. Post-employment expenses include amounts expensed in respect of employer superannuation obligations. Termination benefits are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination. Performance Payments Details of Performance Payment entitlements by Key Management Personnel:

Position Summary of Basis for Entitlement and Assessment

Expensed in 2016-17 Expensed in 2015-16

Date Paid Amount Date Paid Amount Director-General The remuneration package for the

current Director-General does not provide for any performance or bonus payments

N/A N/A N/A N/A

Deputy Director-General, Energy

The remuneration package for the Deputy Director-General, Energy included a performance payment for 2014-15 up to a maximum of 15% of that position’s total fixed remuneration This incentive payment was paid in two payments of which 3% was paid in February 2015 and the remaining 12% paid in August 2015.

N/A N/A 7 August 2015

$24 987



Page 20

Deputy Director-General, Water Supply

The remuneration package for the Deputy Director-General, Water Supply included a performance payment for 2014-15 up to a maximum of 15% of that position’s total fixed remuneration This incentive payment was paid in two payments of which 3% was paid in February 2015 and the remaining 12% paid in August 2015.

N/A N/A 21 August 2015

$29 124

Total Performance Payments N/A N/A $54 111 KMP Remuneration Expense The following disclosures focus on the expense incurred by the department that is attributable to non-ministerial key management positions during the respective reporting periods. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income. 2016-17

Position Short Term Employee Expenses

Long Term

Employee Expenses

Post -Employment

Expenses

Termination Benefits

Total Expenses

Monetary Expenses

$'000

Non-Monetary Benefits

$'000

$'000

$'000

$'000

$'000 Director-General 432 11 8 51 - 503

Deputy Director-General, Energy 242 11 5 25 - 282

Deputy Director-General, Water Supply 224 11 4 25 - 264

Executive Director, Office of the Director-General (from 14/02/2017)

70 4 1 6 - 82

Deputy Director-General, Business and Corporate Partnership*

- - - - - -

2015-16

Position Short Term Employee Expenses

Long Term

Employee Expenses

Post -Employment

Expenses

Termination Benefits

Total Expenses

Monetary Expenses

$'000

Non-Monetary Benefits

$'000

$'000

$'000

$'000

$'000 Director-General (from 27/7/15) 380 9 9 44 - 442

Director-General (to 27/8/15) 332 1 1 7 166 508

Deputy Director-General, Energy 244 10 5 20 - 278

Deputy Director-General, Water Supply 241 10 5 24 - 280

Deputy Director-General, Business and Corporate Partnership*

- - - - - -

* This position is shared with the Department of Natural Resources and Mines (DNRM) and is fully funded by DNRM as per the Corporate Partnership arrangement. Remuneration is disclosed in the financial statements of DNRM.



Page 21

(c) Related Party Transactions Transactions with people/entities related to KMP There were no relationships or transactions with individuals or entities related to the department’s key management personnel impacting these financial statements. Transactions with other Queensland Government-controlled entities The department’s primary ongoing sources of funding for its services are appropriation revenue and equity injections, both of which are provided in cash via Queensland Treasury. In addition to the corporate services delivered from within the department, it also participates in a corporate partnership arrangement whereby certain agencies “host” a number of strategic and operational corporate services to DEWS as “recipient” department. The “host” agency of each corporate service function receives the appropriation of funds and reports full time equivalent positions in the respective agency. The model is multi-layered for different corporate services functions. That is, some functions are provided to two agencies, and some provided to six agencies with any combination in between. As a “recipient” agency, DEWS receives defined services free of charge from the following agencies:

• Department of Agriculture and Fisheries (Records Management) • Department of Natural Resources and Mines (Accommodation Services, Legal Services, Human

Resources, Corporate Communications, Privacy and Ethics, Financial Policy) • Department of Environment and Heritage Protection (Strategic Procurement, Right to Information

and Internal Audit). DEWS also receives Information and Communication Technology services on a fee for service basis from the Department of Agriculture and Fisheries. (d) Property, Plant and Equipment and Depreciation Expense Accounting Policy – Recognition and Acquisition Basis of Capitalisation and Recognition Thresholds Items of property, plant and equipment with a historical cost or other value equal to or exceeding the following thresholds in the year of acquisition are reported as Property, Plant and Equipment in the following classes:

Asset Class Threshold Land $ 1 Buildings $ 10 000 Infrastructure $ 10 000 Heritage and Cultural $ 5 000 Plant and equipment $ 5 000

Items with a lesser value are expensed in the year of acquisition. Expenditure on property, plant and equipment is capitalised where it is probable that the expenditure will produce future service potential for the department. Subsequent expenditure is only added to an asset’s carrying amount if it increases the service potential or useful life of that asset. Maintenance expenditure that merely restores original service potential (lost through ordinary wear and tear) is expensed. Acquisitions of Assets Historical cost is used for the initial recording of all property, plant and equipment acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use. Accounting Policy – Measurement Plant and equipment and Buildings are measured at historical cost in accordance with the Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector. The carrying amounts for such assets are not materially different from their fair value.



Page 22

Land, Infrastructure and Heritage and Cultural assets are measured at fair value as required by Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being the fair value at the date of valuation. The cost of items acquired during the financial year has been judged by management to materially represent their fair value at the end of the reporting period. Property, plant and equipment classes measured at fair value are revalued on an annual basis either by appraisals undertaken by an independent professional valuer or internal expert, or by the use of appropriate and relevant indices. For financial reporting purposes, the revaluation process undertaken for the infrastructure assets has been managed by a team in the department’s Non Commercial Assets branch, who determine the specific revaluation practices and procedures. The department owns a number of non-commercial water infrastructure assets and have recognised these assets under the Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector. These assets are valued using the Current Replacement Cost (CRC) method and applying the Modern Engineering Equivalent Replacement Asset (MEERA) approach i.e. where the replacement cost of an asset is assessed on the basis of design and construction using modern technology. Revaluations using independent professional valuer or internal expert appraisals are undertaken at least once every five years. However, if a particular asset class experiences significant and volatile changes in fair value, that class is subject to specific appraisal in the reporting period, where practicable, regardless of the timing of the last specific appraisal. Materiality is considered in determining whether the difference between the carrying amount and the fair value of an asset is material (in which case a revaluation is warranted). The fair values reported by the department are based on appropriate valuation techniques that maximise the use of available and relevant observable inputs and minimise the use of unobservable inputs (refer to Note 2). Where assets have not been specifically appraised in the reporting period, their previous valuations are materially kept up to date via the application of relevant indices. The department ensures that the application of such indices results in a valid estimation of the assets' fair values at reporting date. The State Valuation Service (SVS) supplies the indices used for the various types of assets. Such indices are either publicly available, or are derived from market information available to SVS. SVS provides assurance of their robustness, validity and appropriateness for application to the relevant assets. Indices used are also tested for reasonableness by applying the indices to a sample of assets, comparing the results to similar assets that have been valued by an independent professional valuer or internal expert, and analysing the trend of changes in values over time. Through this process, which is undertaken annually, management assesses and confirms the relevance and suitability of indices provided by SVS based on the departments' own particular circumstances. Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that class. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.



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Accounting Policy – Depreciation Expense Land and heritage and cultural assets are not depreciated as they have an unlimited useful life. Plant and equipment, buildings and infrastructure are depreciated on a straight-line basis so as to allocate the net cost of each asset, less its estimated residual value, progressively over its estimated useful life to the department. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department. For the department’s depreciable assets, the estimated amount to be received on disposal at the end of their useful life (residual value) is determined to be zero. For each class of depreciable asset the following depreciation rates are used:

Physical asset class Rate % Plant and equipment 10 – 33.3 Buildings 2 - 20 Infrastructure 2 – 5

Accounting Policy - Impairment All non-current physical assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the department determines the asset's recoverable amount as the higher of the asset's fair value less costs of disposal and current replacement cost. Accounting Policy - Fair Value Measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique. Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the department include, but are not limited to, published sales data for land and general office buildings. Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the Characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the department include, but are not limited to, subjective adjustments made to observable data to take account of the characteristics of the department’s assets/liabilities, internal records of recent construction costs (and/or estimates of such costs), assets' characteristics/functionality, and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use. Details of individual assets measured under each category of fair value are set out in the tables at Notes 11 and 23. All assets and liabilities of the department for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:

Level 1 represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities;

Level 2 represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and

Level 3 represents fair value measurements that are substantially derived from unobservable inputs None of the department’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value hierarchy.



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There were no transfers of assets between fair value hierarchy levels during the period. NOTE Basis for Fair Value of Assets Heritage and Cultural Assets – Level 2 Effective Date of Last Specific Appraisal: 30 June 2015 by Artfully Valuers (specialist artwork asset valuers).

Valuation Approach: Current replacement cost (due to no active market for the asset)

Inputs: Fair value is determined by estimating the cost to reproduce the items with the features and materials of the original items, with substantial adjustments made to take into account the artworks characteristics.

Land – Level 2 Effective Date of Last Specific Appraisal: 31 May 2014 by State Valuation Service

Valuation Approach: Market-based assessment

Inputs: Publicly available data on sales of similar land in nearby localities in the six months prior to the date of the revaluation. Adjustments were made to the sales data to take into account the location, size, street/road frontage and access, and any significant restrictions for each individual land parcel.

Subsequent Valuation Activity: Updated annually applying indices provided by The State Valuation Service and derived from observable market data for the respective areas.

Infrastructure – Level 3

Effective Date of Last Specific Appraisal: 1 June 2017 by GHD Australia Pty Ltd

Valuation Approach: Current replacement cost (due to no active market for such assets)

Inputs: The department’s non-commercial water assets were revalued by an independent revaluation conducted by qualified valuers GHD Australia Pty Ltd on a current replacement cost basis (as there is no active market for such assets) using the Modern Engineering Equivalent Asset (MEERA) approach. Significant judgement is also used to assess the remaining service potential of the assets, given local climatic and environmental conditions, projected usage, and records of the current condition of the assets.

Categorisation of fair values recognised as at 30 June 2017 (refer to note 2 (d))

Level 2 Level 3 Total $‘000 $’000 $’000 Land and Buildings 489 - 489 Infrastructure - 127 138 127 138

Categorisation of fair values recognised as at 30 June 2016

Level 2 Level 3 Total $‘000 $’000 $’000 Land and Buildings 593 - 593 Infrastructure - 186 636 186 636



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(f) First Year Application of New Accounting Standards or Change in Accounting Policy The department did not voluntarily change any of its accounting policies during 2016-17 and there are no Australian Accounting Standards that have been early adopted for 2016-17. The only Australian Accounting Standard that became effective for the first time in 2016-17, and materially impacted this financial report, was AASB 124 Related Party Disclosures. This standard requires note disclosures about relationships between a parent entity and its controlled entities, key management personnel (KMP) remuneration expenses and other related party transactions, and does not impact on financial statement line items. As Queensland Treasury already required disclosure of KMP remuneration expenses, there was minimal impact for the department’s disclosures compared to 2015-16 (refer to Note 2(c)). Material related party transactions for 2016-17 are disclosed in Note 2(c). No comparative information is required in respect of 2015-16. (g) Future Impact of Accounting Standards Not Yet Effective AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 As from the department’s financial statements for 2017-18, this standard will require additional disclosures to enable the reader to evaluate changes in liabilities arising from financing activities. These disclosures will include both cash flows and non-cash changes between the opening and closing balance of the relevant liabilities and be disclosed by way of a reconciliation in the notes to the Statement of Cash Flows. AASB 1058 Income of Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers These standards will first apply to the department from its financial statements for 2019-20. The department has commenced analysing the new revenue recognition requirements under these standards and is yet to form conclusions about significant impacts. Potential future impacts identifiable at the date of this report are as follows:

Under the new standards, other grants presently recognised as revenue upfront may be eligible to be recognised as revenue progressively as the associated performance obligations are satisfied, but only if the associated performance obligations are enforceable and sufficiently specific.

Grants that are not enforceable and/or not sufficiently specific will not qualify for deferral, and continue to be recognised as revenue as soon as they are controlled.

Additional disclosures may be required by the new standards in respect of the department’s revenue.

AASB 16 Leases This standard will first apply to the department from its financial statements for 2019-20. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. Impact for Lessees Unlike AABS 117 Leases, AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the obligation to make lease payments) for all leases with a term of more than 12 months, unless the underlying assets are of low value. In effect, the majority of operating leases (as defined by the current AASB 117) will be reported on the statement of financial position under AASB 16. There will be a significant increase in assets and liabilities for agencies that lease assets. The impact on the reported assets and liabilities would be largely in proportion to the scale of the agency’s leasing activities. The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the effective date, less any lease incentive received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense. The lease liability will be initially recognised at an amount equal to the present value of the lease payments during the lease term that are not yet paid. Current operating lease rental payments will no longer be expensed in the Statement of Comprehensive Income. They will be apportioned between a reduction in the recognised lease liability and the implicit finance charge (the effective rate of interest) in the lease. The finance cost will also be recognised as an expense. AASB 16 allows a ‘cumulative approach’ rather than full retrospective application to recognising



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existing operating leases. If a lessee chooses to apply the ‘cumulative approach’, it does not need to restate comparative information. Instead, the cumulative effect of applying the standard is recognised as an adjustment to the opening balance of accumulated surplus (or other component of equity, as appropriate) at the date of initial application. The department will await further guidance from Queensland Treasury on the transitional accounting method to be applied. The Department of Energy and Water Supply has not yet quantified the impact on the Statement of Comprehensive Income or the Statement of Financial Position of applying AASB 16 to its current operating leases, including the extent of additional disclosure required. All other Australian accounting standards and interpretations with future effective dates are either not applicable to the Department's activities, or have no material impact on the department. 3. Appropriation Revenue Reconciliation of Payments from Consolidated Fund to Appropriated Revenue Recognised in Operating Result

2017 2016 $’000 $’000 Budgeted appropriation revenue 57 167 45 514 Lapsed appropriation revenue - (6 171) Unforseen expenditure 700 - Total Appropriation Receipts (cash) 57 867 39 343 Plus: Opening balance of appropriation revenue payable 6 172 4 435 Less: Closing balance of appropriation revenue payable (7 195) (6 172) Plus: Closing balance of appropriation revenue receivable 482 - Net Appropriation Revenue 57 326 37 606 Plus: Deferred appropriation payable to Consolidated Fund (expense) 395 995

Appropriation Revenue recognised in Statement of Comprehensive Income 57 721 38 601

Appropriations provided under the Appropriation Act 2016 are recognised as revenue when realised. Approval has been obtained from Queensland Treasury to recognise accrual adjustments to departmental services revenue. 4. Grants and Other Contributions

2017 2016 $’000 $’000 Industry contributions 5 291 4 439 Services received below fair value 40 41 Total 5 331 4 480

Grants and contributions Grants, contributions and gifts are non-reciprocal in nature. Corresponding revenue is recognised in the year in which the department obtains control over them. Services received below fair value Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense.



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5. Employee Expenses

2017 2016 $’000 $’000 Employee Benefits Wages and salaries 20 590 19 076 Employer superannuation contributions 2 746 2 520 Annual leave levy/expense 2 108 2 050 Long service leave levy/expense 428 436 Termination benefits 247 363 Other employee benefits 31 22 Employee Related Expenses Workers’ compensation premium 122 114 Fringe Benefits Tax (FBT) 56 49 Other employee related expenses 356 614 Total 26 684 25 244

Full-Time Equivalent Employees 225 211

Wages and Salaries Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the current salary rates. As the department expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at their undiscounted values.

Sick Leave Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Annual and Long Service Leave Under the Queensland Government’s Annual Leave Central Scheme and Long Service Leave Scheme, levies are payable by the department to cover the cost of employees’ long service leave and annual leave (including leave loading and on costs). No provision for long service leave and annual leave is recognised in the department’s financial statements. Instead the provisions are reported on a whole of government basis under AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Superannuation Post-employment benefits for superannuation are provided through defined contribution (accumulation) plans or the Queensland Government’s QSuper defined benefit plan as determined by the employee’s conditions of employment.

Defined Contribution Plans - Contributions are made to eligible complying superannuation funds based on the rates specified in the relevant EBA or other conditions of employment. Contributions are expensed when they are paid or become payable following completion of the employee’s service each pay period.

Defined Benefit Plan - The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. The amount of contributions for defined benefit plan obligations is based upon the rates determined by the Treasurer on the advice of the State Actuary. Contributions are paid by the department at the specified rate following completion of the employee’s service each pay period. The department’s obligations are limited to those contributions paid.



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Workers’ Compensation Premiums The department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation. Workers' compensation insurance is a consequence of employing employees, but is not counted in an employee's total remuneration package. It is not employee benefits and is recognised separately as employee related expenses.

Key management personnel and remuneration disclosures are detailed in Note 2(c).

6. Supplies and Services

2017 2016 $’000 $’000 Consultants and contractors 8 035 3 539 Advertising and promotional expenses 7 592 119 Operating lease rentals and associated costs 3 510 2 814 Computer expenses 2 094 1 270 Shared services and service delivery costs 909 1 417 Travel expenses 500 225 Board member fees 493 - Telephone expenses 193 208 Recruitment costs 100 40 Other 583 989 Total 24 009 10 621

Distinction between Grants and Procurement For a transaction to be classified as supplies and services, the value of goods or services received by the department must be of approximately equal value to the value of the consideration exchanged for those goods or services. Where this is not the substance of the arrangement, the transaction is classified as a grant. Operating Lease Rentals Operating leases include office accommodation and storage facilities which are recognised as expenses on a straight line basis over the term of the lease. 7. Grants and Subsidies

2017 2016 $’000 $’000 Contribution to Australian Energy Market Commission (AEMC) 1 4 833 4 430

Contribution to National Water Infrastructure Development Fund (NWIDF) 2 3 078 -

Contribution to Queensland Water Regional Alliances Program (QWRAP) 3 600 600

Contribution to Council of Australian Governments (COAG) Energy Council 4 517 122

Other 1 126 520 Total 10 154 5 672

1. AEMC functions under the National Electricity Law, National Gas Law and the National Energy Retail Law. Queensland is one of the contributors to the AEMC, participating in the National Electricity Market and the National Gas Market.

2. NWIDF is funded by the Australian Government to start the detailed planning necessary to build or augment existing water infrastructure, including dams, pipelines or managed aquifer recharge.



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3. QWRAP is managed by the Local Government Association of Queensland (LGAQ) for investigation and transition to collaborative regional arrangements for the provision of drinking water and sewerage services.

4. COAG Energy Council is a Ministerial forum for the Commonwealth, states and territories and New Zealand, to work together in the pursuit of national energy reforms.

8. Other Expenses

2017 2016 $’000 $’000 Deferred appropriation payable to Consolidated Fund 395 995 Legal fees 554 134 External audit fees 215 84 Insurance premiums – QGIF 49 50 Net losses from disposal of property, plant and equipment 29 378 Other 122 47 Total 1 364 1 688

Audit Fees - total audit fees quoted by the Queensland Audit Office relating to the 2016-17 financial statements are $136,000 (2016: $135,800). There are no non-audit services included in this amount. Insurance Premiums - the department’s non-current physical assets, apart from its non-commercial water infrastructure assets, are insured through the Queensland Government Insurance Fund (QGIF) with premiums being paid on a risk assessment basis.

9. Cash and Cash Equivalents

2017 2016 $’000 $’000 Cash at bank 25 839 22 024 Imprest accounts - 1 Total 25 839 22 025

For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June. Departmental bank accounts grouped within the whole-of-Government set-off arrangement with the Queensland Treasury Corporation do not earn interest on surplus funds.



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10. Receivables

2017 2016 $’000 $’000 Trade debtors 71 259 Annual leave reimbursements 396 347 Appropriation revenue receivable 482 - Other receivable 62 107 1 011 713 GST receivable 340 263 GST payable (2) - 338 263 Total 1 349 976

Receivables are recognised at the amounts due at the time of sale or service delivery, i.e. the agreed purchase/contract price. Settlement of these amounts is required within 30 days from invoice date. Other receivables generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed value. The collectability of receivables is assessed periodically with an allowance being made for impairment where applicable. The department does not have an allowance for impairment loss as all receivables are assessed as recoverable.



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11. Property, Plant and Equipment Closing Balances and Reconciliation of Carrying Amount

Plant & Equipment

Heritage & Cultural Assets Total

2017 2017 2017 $’000 $’000 $’000 Gross 455 210 665 Less: Accumulated depreciation (446) - (446) Carrying amount at 30 June 2017 9 210 219

Represented by movement in carrying amount: Carrying amount at 1 July 2016 68 210 278 Disposals (29) - (29) Depreciation expense (29) - (29)

Carrying amount at 30 June 2017 9 210 219

Plant & Equipment

Heritage & Cultural Assets Total

2016 2016 2016 $’000 $’000 $’000 Gross 985 210 1 195 Less: Accumulated depreciation (917) - (917) Carrying amount at 30 June 2016 68 210 278

Represented by movement in carrying amount: Carrying amount at 1 July 2015 579 210 789 Acquisitions 6 - 6 Disposals (378) - (378) Depreciation expense (140) - (140) Carrying amount at 30 June 2016 68 210 278

12. Payables

2017 2016 $’000 $’000 Accounts payable 4 118 1 754 Grants and subsidies payable 679 73 Other payables 19 17 Total 4 816 1 844

Payables are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured.



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13. Accrued Employee Benefits

2017 2016 $’000 $’000 Salaries and wages outstanding 597 344 Annual leave levy payable 564 567 Long service leave levy payable 121 110 Other 4 - Total 1 286 1 021

No provision for annual leave or long service leave is recognised in the department's financial statements as the liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. 14. Other Current Liabilities

2017 2016 $’000 $’000 Deferred appropriation payable to Consolidated Fund 7 195 6 172 Unearned revenue 52 - Total 7 247 6 172

15. Commitments for Expenditure Commitments under operating leases at the reporting date (inclusive of non-recoverable GST input tax credits) are payable:

2017 2016 $’000 $’000 Building accommodation and other leases 54 595 879 54 595 879 Not later than 1 year 4 047 876 Later than 1 year but not later than 5 years 15 584 3 Later than 5 years 34 964 - Total 54 595 879

Operating leases are entered into as a means of acquiring access to office accommodation. Lease payments are generally fixed, but with inflation excalation clauses on which contingent rentals are determined. The department does not have any capital commitments. 16. Contingencies Litigation in Progress As at 30 June 2017, the department does not have any litigation before the courts (2016: 1 claim filed in the Supreme Court).



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17. Budget to Actual Comparison This section discloses the department’s original published budgeted figures for 2016-17 compared to actual results, with explanations of major variances, in respect of the department’s Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash Flows. Statement of Comprehensive Income

Variance Notes

Original Budget

2017

Actual Result

2017 Variance

$’000 $’000 $’000 Income from Operations Appropriation revenue 57 167 57 721 554 Grants and other contributions 1 4 573 5 331 758 Other revenue 2 138 314 176 Total Income from Operations 61 878 63 366 1 488 Expense from Operations Employee expenses 26 676 26 684 8 Supplies and services 3 28 428 24 009 (4 419) Grants and subsidies 4 6 254 10 154 3 900 Other expenses 5 288 1 364 1 076 Depreciation and amortisation 6 232 29 (203) Total Expenses from Operations 61 878 62 240 362 Operating Result for the Year - 1 127 1 127



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Statement of Financial Position

Variance Notes

Original Budget

2017

Actual Result

2017 Variance

$’000 $’000 $’000 Current Assets Cash and cash equivalents 7 14 958 25 839 10 881 Receivables 753 1 349 596 Prepayments 8 - 199 199 Total Current Assets 15 711 27 386 11 675 Non-Current Assets Property, plant and equipment 9 682 219 (463) Total Non-Current Assets 682 219 (463) Total Assets 16 393 27 605 11 212 Current Liabilities Payables 10 930 4 816 3 886 Accrued employee benefits 1 115 1 286 171 Other current liabilities - 7 247 7 247 Total Current Liabilities 2 045 13 349 11 304 Non-Current Liabilities Provision for lease liability 11 - 482 482 Total Non-Current Liabilities - 482 482 Net Assets/Total Equity 14 348 13 774 (574)



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Statement of Cash Flows

Variance Notes

Original Budget

2017

Actual Result

2017 Variance

$’000 $’000 $’000 Cash flows from Operating Activities Service Appropriation receipts 57 167 57 867 700 Grants and other contributions 1 4 573 5 331 758 GST input tax credits received from ATO 1 042 2 661 1 619 GST collected from customers - 97 97 Other 2 138 539 401 Employee expenses (26 640) (26 418) 222 Supplies and services 3 (28 414) (21 235) 7 179 Grants and subsidies 4 (6 254) (9 558) (3 304) GST paid to suppliers (1 042) (2 737) (1 695) GST remitted to ATO - (96) (96) Other expenses 5 (288) (937) (649) Net cash provided by operating activities 282 5 514 5 232 Cash Flows from Financing Activities Outflows: Equity withdrawals - (1 700) (1 700) Net cash used in financing activities - (1 700) (1 700) Net increase in cash and cash equivalents 282 3 814 3 532 Cash and cash equivalents at beginning of financial year 14 676 22 025 7 349

Cash and cash equivalents at end of financial year 14 958 25 839 10 881

Explanations of Major Variances 1. The actual figure is higher than the budgeted figure due to the contribution provided by AGL Energy in relation

to the department's Vulnerable Customer Support Initiative.

2. The actual figure is higher than the budgeted figure due to funding received from Queensland Treasury associated with the move to 1 William Street.

3. The actual figure is lower than budget primarily due to delays in some consultant and contractor expenditure

related to limited life programs deferred to 2017-18. 4. The actual figure is higher than the budget due to new programs commencing including Solar on Public

Housing Trial, the vulnerable customer initiative and payments to proponents in the delivery of feasibility studies in relation to the NWIDF.

5. The variance is due to a reclassification of expenditure from supplies and services in relation to Local

Management Arrangements.

6. Actual depreciation is lower than budget due to the retirement of property, plant and equipment.

7. Actual cash balance is higher than budget due to timing differences between funding provided by the Commonwealth in relation to NWIDF and payments made to proponents. Also contributing is unspent



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appropriation funding and deferrals at year end. This in turn becomes an appropriation payable to Queensland Treasury.

8. Actuals are higher than budget due to unanticipated prepayments made.

9. Actuals are lower than budget due to the retirement of property, plant and equipment.

10. Actual payables are higher than budget due to higher than anticipated payments outstanding as at year end

and appropriation payable to Treasury. 11. The variance is due to the recognition of a non-current lease payable in relation to the accommodation lease

at 1 William Street. 18. Administered Appropriation Revenue Reconciliation of Payments from Consolidated Fund to Appropriation Income

2017 2016 $’000 $’000 Administered on behalf of the whole of Government Budgeted appropriation revenue 592 534 465 849 Transfer from other headings - 2 053 Unforeseen expenditure 853 077 45 680 Total Administered Appropriation receipts (cash) 1 445 611 513 582 Less: Opening balance of appropriation revenue receivable (84 248) (25 747) Plus: Closing balance of appropriation revenue receivable 33 224 84 248 Plus: Opening balance of appropriation revenue payable 1 259 - Less: Closing balance of appropriation revenue payable (1 791) (1 259) Net Appropriation Revenue 1 394 055 570 824 Plus: Deferred appropriation payable to Consolidated fund - 709 Appropriation revenue recognised in Statement of Comprehensive Income 1 394 055 571 533

19. Administered Supplies and Services

2017 2016 $’000 $’000 Administered on behalf of the whole of Government Infrastructure maintenance 594 1 421 Consultants and contractors 73 463 Other 3 45 Total 670 1 929



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20. Administered Grants and Subsidies

2017 2016 $’000 $’000 Administered on behalf of the whole of Government Grants – Drought Relief from Electricity Charges Rebate 5 981 3 904 Community service obligations and grants for Energy 1 367 211 544 006 Community service obligations – Water 11 961 12 269 Total 1 385 153 560 179 Community service obligations (CSO) and Grants for Energy consist of:

Energy Queensland – Solar Bonus Scheme Compensation 771 000 - Ergon Energy – CSO Uniform Tariff Policy 595 080 547 296 Ergon Energy – Drought Relief 5 981 3 866 Origin Energy – CSO Uniform Tariff Policy 1 130 935 Energex – CSO - (359) Drought Relief – Non-Ergon Customers 1 38 Total Energy 1 373 192 551 776 Community service obligations (CSO) for Water Supply consist of: SunWater – CSO Rural Irrigation Water Price Subsidy 3 716 4 738 Sunwater – CSO Cloncurry Pipeline Water Price Subsidy 5 870 5 406 SeqWater – CSO Rural Irrigation Water Price Subsidy 2 375 2 078 Other - 46 Total Water Supply 11 961 12 269

21. Administered Cash and Cash Equivalents

2017 2016 $’000 $’000 Administered on behalf of the whole of Government Cash at bank 86 227 - Bank overdraft - (3 575) Total 86 227 (3 575)



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22. Administered Receivables

2017 2016 $’000 $’000 Administered on behalf of the whole of Government Appropriation receivable 33 224 84 248 Equity adjustment receivable 476 - Regulatory fees receivable 294 271 GST input tax credits receivable 4 604 4 904 Total 38 598 89 423


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Page 40

24. Administered Payables

2017 2016 $’000 $’000 Administered on behalf of the whole of Government Community service obligations – Ergon Energy 119 109 82 653 Community service obligations – Origin Energy 689 128 Community service obligations – Sunwater 929 1 185 Community service obligations – Seqwater 23 94 120 750 84 060 Trade creditors 2 237 2 217 Total 122 987 86 227

25. Prior period error The department undertook an independent revaluation of the Infrastructure asset class during the 2017 financial year. During the revaluation, nine infrastructure assets were identified using the incorrect construction dates to calculate the depreciation since the last machinery of government transfer in 2012. This has resulted in the accumulated depreciation reported as at 30 June 2015 being understated and the accumulated surplus being overstated by $20.093 million. Comparatives numbers reported in the 2015-16 Statement of Financial Position, and at the beginning of the comparative financial year (1 July 2015) have been restated to correct these errors below. The financial statement line items affected are as follows:

2014-15 2015-16

Published Financial

Statements Correction

of error Restated Actual 1

July 2015

Published Financial

Statements Correction

of error Restated

Actuals

$’000 $’000 $’000 $’000 $’000 $’000 Statement of Financial Position

Infrastructure 563 543 - 563 543 558 892 - 558 892 Accumulated Depreciation (335 901) (20 093) (355 994) (352 163) (20 093) (372 256)

227 642 (20 093) 207 549 206 729 (20 093) 186 636 Total Property, Plant and Equipment 228 455 (20 093) 208 362 207 422 (20 093) 187 329

Contributed Equity (1 310) - (1 310) (10 016) - (10 016) Asset Revaluation Surplus 237 081 - 237 081 226 379 - 226 379

Accumulated Surplus (9 005) (20 093) (29 098) (10 628) (20 093) (30 721) Total Equity 226 766 (20 093) 206 673 205 735 (20 093) 185 642



Page 41

26. Administered Activities – Budget to Actual Comparison

Variance Notes

Original Budget

2017

Actual Result

2017 Variance

$’000 $’000 $’000 INCOME AND EXPENSES Administered Income Appropriation revenue 1 592 534 1 394 055 801 521 User charges and fees 269 304 35 Total Administered Income 592 803 1 394 359 801 556 Administered Expenses Supplies and services 2 6 745 670 (6 075) Grants and subsidies 3 577 083 1 385 153 808 070 Depreciation and amortisation 8 706 8 230 (476) Other expenses - 2 2 Transfers of Administered Income to Government 269 304 35 Total Administered Expenses 592 803 1 394 359 801 556 Operating Result for the Year - - - ASSETS AND LIABILITIES Administered Assets Current Cash and cash equivalents 4 44 513 86 227 41 714 Receivables 5 48 627 38 598 (10 029) Total Current Assets 93 140 124 825 31 685 Non-Current Property, plant and equipment 6 211 045 127 715 (83 330) Total Non-Current Assets 211 045 127 715 (83 330) Administered Liabilities Current Payables 7 94 832 122 987 28 155 Payables to Government - 1 826 1 826 Total Current Liabilities 94 832 124 813 29 981 Net Administered Assets 209 353 127 727 (81 626)

Notes Explaining Major Variances for Administered Activities 1. Appropriation revenue is higher than budget due to actual Ergon CSO payments under the Uniform Tariff

Policy higher mainly due to higher network costs and shifts in loads and tariffs during the year. Also, $771 million was received for the Solar Scheme Compensation Program which was not in the original budget.



Page 42

2. The actual figure is lower than the budgeted figure due to project delays for repairs and maintenance on water infrastructure assets.

3. Ergon’s community service obligations for the year includes $771M payment to Energy Queensland for the

Solar Bonus Scheme Compensation Program.

4. Cash and cash equivalents are higher than budget due to underspends on repairs and maintenance and greater payables at year end than anticipated.

5. The actual figure is lower than budgeted figure due to reduced receivable from Treasury in relation to Ergon

CSO claims. 6. The variance relates to the restatement of net book value of non-commercial assets as a result of GHD

valuation.

7. The actual figure for Ergon CSO claims at year end was higher than the anticipated claims as at 30 June.


Appendix 1: Legislation administered by DEWS

Electricity Act 1994

Electricity–National Scheme (Queensland) Act 1997

Energy and Water Ombudsman Act 2006

Gas Supply Act 2003

Gladstone Power Station Agreement Act 1993

Liquid Fuel Supply Act 1984

National Energy Retail Law (Queensland) Act 2014

National Gas (Queensland) Act 2008

Nuclear Facilities Prohibition Act 2007

Land Act 1994

To the extent it is relevant to the Pentland Biofuels Project of Renewable Developments Australia Pty Ltd in the plan area of the Water Resource (Burdekin Basin) Plan 2007

South-East Queensland Water (Distribution and Retail Restructuring) Act 2009

South East Queensland Water (Restructuring) Act 2007

In so far as the minister is a jointly responsible minister for the purpose of Chapter 2 of this Act

Water Act 2000

Chapter 1A, Chapter 2A, Chapter 4 (to the extent that it is relevant to category 1 water authorities), Chapter 9, Part 2 and, to the extent relevant to all these parts, Chapters 5, 6 and 7

Chapter 8, s. 999 and Part 4A (jointly administered by the Minister for State Development and Minister for Natural Resources and Mines)

Chapter 8, Part 5 (jointly administered by the Minister for State Development, Minister for Natural Resources and Mines, Minister for Environment and Heritage Protection and Minister for National Parks and the Great Barrier Reef)

To the extent that it is relevant to the Water Resource (Burdekin Basin) Plan 2007

Water Efficiency Labelling and Standards (Queensland) Act 2005

Water Supply (Safety and Reliability) Act 2008


Appendix 2: Government bodies (statutory bodies and other entities)

Ministerial Advisory Council for Flood Mitigation Manuals

Act or instrument Section 570 of the Water Supply (Safety and Reliability) Act 2008

Functions The role of the Ministerial Advisory Council for Flood Mitigation Manuals is to assess flood mitigation manuals and provide advice to the minister on whether to approve or not approve a revised and submitted flood mitigation manual.

Achievements The Ministerial Advisory Council for Flood Mitigation Manuals advised the minister to approve the updated flood mitigation manuals in November 2016.

Financial reporting Included in the Department of Energy and Water Supply’s annual report

Remuneration

Position Name Meetings/sessions attendance

Approved annual, sessional or daily fee

Approved sub-committee fees if applicable

Actual fees received

Chair Rowena McNally 5 $520 daily N/A $3640

Independent hydrologist William Weeks 5 $400 daily N/A $800

Independent hydrologist Mark Babister 5 $400 daily N/A $0

Local government member Jim Lindsay 1 $0 N/A $0

Local government member Andrew Chesterman

5 $0 N/A $0

Local government member Bryce Hines 3 $0 N/A $0

No. scheduled meetings/sessions

5

Total out-of-pocket expenses

$1661 for chair and all members. Out-of-pocket expenses are outlined in the Remuneration procedures for part-time chairs and members of Queensland Government bodies.

The following government bodies relevant to DEWS report these information requirements separately through their own annual reports:

Gladstone Area Water Board

Mount Isa Water Board

Energy and Water Ombudsman Queensland

Queensland Energy and Water Ombudsman Advisory Council.


Appendix 3: Performance statement

Performance measures

Service standard Notes2016–17 target/ estimate

2016–17 estimated actual

Service area: Energy

Service: Energy regulation

Service standards

Effectiveness measure

Level of compliance with energy regulatory requirements by electricity generation, transmission and distribution entities and special approval holders and gas distribution entities:

• compliance monitoring of electricity and gas licence holders (including annual reporting and fees)

1 90% 78%

• complete applications for electricity and gas authorities assessed within four months of receipt of all information and withstand scrutiny under judicial review

90% 100%

• community infrastructure designation requests processed within four months of receipt of all information to the relevant minister and withstand scrutiny under judicial review

2 90% 100%

Service: Energy strategy

Service standards


Overall stakeholder satisfaction with Queensland’s engagement on national and state energy policy issues

3 80% Not available

Service area: Water supply

Service: Water supply regulation

Service standards


Percentage of the state’s drinking water services that have appropriate drinking water quality monitoring and response frameworks in place

100% 100%

Service: Water supply strategy

Service standards


Overall stakeholder satisfaction with Queensland’s engagement on water supply policy issues

3 80% Not available


Variance reporting1. As at 30 June 2017, the 90% target was not achieved. The actual of 78% is an average of the 108 licence holders active in 2015–16—84% submitted

annual reports by the due date and 71% paid their licence fee invoices within 30 days. Five of the seven overdue annual reports related to a single company. Lodgement of an annual report by the due date is a licence requirement. The regulator has been in contact with the relevant licence holders and disciplinary action may be taken. DEWS compliance processes will be reviewed with a view to achieving a more timely response.

2. As at 30 June 2017, no applications for community infrastructure design were received by the department. The target was therefore achieved.

3. This annual survey of key stakeholders regarding engagement by the department on Queensland’s energy and water supply policy issues (at both state and national levels) was discontinued in 2017. Replacement effectiveness measures are being developed for 2018–19.


Appendix 4: Report of the regulator’s activities under the Water Supply (Safety and Reliability) Act 2008Under the Water Supply (Safety and Reliability) Act 2008 (the Act), the chief executive of the department, as the regulator, is responsible for a number of duties including the preparation of an annual report. Other functions include maintaining a register of service providers and monitoring compliance. Regulated activities include drinking water quality, recycled water, performance reporting and demand management. Water Supply Regulation within Water Planning and Regulation is the unit responsible for managing the department’s water quality regulation responsibilities. Throughout this appendix, ‘the regulator’ means ‘Water Supply Regulation’.

Voluntary compliance is encouraged and supported by the regulator through the provision of information and advice. However, enforcement activities may be required from time to time when service providers do not meet their obligations under the Act.

This summary is the regulator’s report for the period 1 July 2016 to 30 June 2017.

Service provider registrationsUnder the Act, an entity that supplies water and/or sewerage services must apply for registration. Currently there are 180 registered service providers, 85 of which are drinking water service providers. These 85 service providers are responsible for the operation of 377 schemes. In 2016–17, 5 new service providers were registered, 1 cancelled and 19 service providers changed their registration details.

Drinking water qualityDrinking water service providers are local councils or other businesses who charge a fee for treating, transmitting or reticulating water for drinking purposes. Each provider is required to develop and have in place a drinking water quality management plan (DWQMP) within 12 months after their registration. All DWQMPs are submitted to the regulator for assessment and approval. There are regulatory processes in place that allow the regulator to ensure that the DWQMPs meet the required criteria before approval is granted. Once approved, a DWQMP must be complied with and regularly reviewed,

audited and amended to ensure it remains current and accurate.

Currently there are 84 service providers with an approved DWQMP and 1 service provider who is currently preparing a DWQMP. During 2016–17, the regulator assessed 53 amendments to plans.

In accordance with their approved DWQMP, all registered drinking water service providers are required to:

monitor their drinking water quality

report drinking water quality incidents to the regulator.

Drinking water quality incidentsDrinking water service providers need to specify in their DWQMPs how they manage public health risks associated with their drinking water supply, and monitor an appropriate range of water quality parameters. The water quality parameters monitored are specific for each water supply and may differ from one provider to the next. Accordingly, water samples are taken regularly at nominated locations and tested for these specific parameters. The regulator uses the guideline values set under the Australian drinking water guidelines as water quality standards, and any exceedance of these standards must be reported to the regulator as ‘incidents’. Reported incidents are categorised by the regulator as either ‘daily’ or ‘rapid’. Rapid incidents are those that could potentially pose a risk to public health, and the regulator works closely with Queensland Health to monitor how the service provider manages the situation.

There have been 1862 drinking water quality incidents reported to the regulator since January 2009. Of these, 172 were reported in the 2016–17 financial year, with:

18 non-reportable (incidents that, when investigated, did not fit within the definition of an incident that is required to be reported)

58 relating to detections of Escherichia coli

4 relating to detections of Cryptosporidium

60 relating to various chemical parameters exceeding a health guideline value


24 events (incidents that have the potential to impact on water quality and cannot be managed using the providers’ existing preventive measures)

8 relating to parameters with no water quality criteria (all detections of parameters without health guideline values must be reported).

DWQMPs also identify areas for improvement through an improvement plan, in which providers identify future projects, infrastructure and other strategies to provide a safe and reliable water supply. The regulator uses this information to assist with decision-making and recommendations for funding submissions through other departments.

Performance reportingRelevant drinking and sewerage service providers are required to report annually on key performance indicators. The Queensland water and sewerage service provider comparative report: financial year 2015–2016 is the second report published by the department in what will become a series of reports about the performance of water and sewerage providers in Queensland.

The purpose of the comparative report is to benchmark providers to encourage voluntary performance improvements if necessary, and provide information to customers across Queensland to enable them to compare their provider’s performance to others around the state.

The 2015–16 comparative report identified a number of key findings, including issues with the accuracy and completeness of data submitted by some providers. Improvement in this area, as compared to 2014–15 reporting, has shown that providers are taking action to refine their data collecting systems.

To help improve reporting, the department (in partnership with providers and industry representatives) has undertaken further work to refine and improve the key performance indicators. The department expects that these refinements will support significant improvements in data accuracy and completeness for future reporting years.

Publishing requirementsRegistered water service providers are required to prepare and publish a number of documents and reports relevant to the water and sewerage services they provide for their customers. Electronic online publication of these documents offers open transparency and confidence to

customers, including a means to access and download the information free of charge. The list of relevant documents, which the majority of service providers must publish online, includes:

customer service standards for water and sewerage

drinking water quality management plan annual reports

performance reports

recycled water management plan annual reports

guidelines for preparing a water efficiency management plan

water and/or sewerage service area maps.

Publishing requirements are monitored by the regulator, and in early 2017 an audit of 85 water service provider websites was conducted. Of these, 47 customer service standards, 35 drinking water quality management plan annual reports, 28 performance reports and 8 recycled water management plan annual reports were observed electronically on relevant water service provider websites. Supporting providers to improve compliance with publishing requirements will be a focus for next year.

Recycled waterAll recycled water schemes need to be registered; however, only certain types of schemes need to have an approved recycled water management plan (RWMP). Of the 168 registered schemes, 6 have an approved RWMP and 2 schemes have their RWMP suspended (not currently supplying recycled water). During 2016–17, the regulator assessed 1 new RWMP and 2 amendments. An RWMP addresses potential hazards, assesses level of risk and identifies how risks will be managed.

Approved RWMP holders are required to keep their plans and procedures current through audits and review processes. The regulator also works closely with Queensland Health to ensure that providers appropriately manage recycled water incidents and protect public health. In 2015–16, five incidents were reported.


Compliance reportingSince the 2014 legislative amendment requiring performance reporting for sewerage and water service providers, the department has successfully implemented several support and educative programs. The aim of these programs is to provide assistance, support and, in some cases, resources to help reduce the regulatory burden on service providers.

The department’s compliance approach is targeted, transparent and effective, and continues to foster engagement with providers early with an aim to seek voluntary compliance. However, if this is not effective, the department will use regulatory tools to achieve compliance. The table below shows the 2016–17 compliance monitoring targets and results.

Key compliance focus Objectives Activity Target 2016–17 result

Routine or maintenance activities

To maintain compliance oversight

Scheduled inspections Conduct a minimum of 5 inspections related to compliance maintenance (normal compliance visits)

Target met

Conduct review on regulatory submissions

Review a minimum of 50% of reports received

Target met

Conduct assessments on applications

Assess 100% of applications received

Target met

Wet season preparedness

Review communications for identified higher risk dams

Target met

Targeted activities responding to non-compliance (higher risk)

To identify and respond to higher risk non-compliance

Higher risk non-compliance response

100% of non-compliance requiring unplanned inspections

There were no urgent non-compliant emergencies identified for the financial year

Strategic activities (proactive prevention)

To manage planned and allocated compliance activities

Targeted visits Conduct a minimum of 5 targeted support visits

Target met

Workshops Conduct 20 workshops Target not met (18 workshops conducted)

Develop and implement Inspector-General Emergency Management Recommendations Implementation Plan

Implement Inspector-General Emergency Management Recommendations Implementation Plan

Target met


Emergency action plansAll dams deemed ‘referable’ through a failure impact assessment must have an emergency action plan in place for that dam. As at June 2017, there are 109 referable dams in Queensland.

DEWS and the emergency action plan team are working with dam owners, local governments, disaster management groups and other key stakeholders to implement recommendations from Inspector-General of Emergency Management reviews of dam owners regarding communicating more effectively with

downstream communities. This has included amending legislation and developing programs to enhance emergency action planning for referable dams.

The table below shows the 2016–17 emergency action plan regulation targets and results.

Key compliance focus Objectives Activity Target 2016–17 result

Strategic activities (proactive prevention)

To manage planned and allocated compliance activities

Develop and implement Inspector-General Emergency Management Recommendations Implementation Plan

Implement Inspector-General Emergency Management Recommendations Implementation Plan

Target met

Workshops Conduct 10 workshops Target met

Routine or maintenance activities

To maintain compliance oversight

Conduct assessments on applications

Assess 100% of applications received

Target met


Appendix 5: Compliance checklist

Summary of requirement Basis for requirement

Annual report reference

Letter of compliance

A letter of compliance from the accountable officer or statutory body to the relevant minister/s

ARRs— section 7 3

Accessibility Table of contents

Glossary

ARRs—section 9.1 1–2

Public availability ARRs—section 9.2 i

Interpreter service statement Queensland language services policy

ARRs—section 9.3

i

Copyright notice Copyright Act 1968

ARRs—section 9.4

i

Information licensing Queensland Government enterprise architecture—information licensing

ARRs—section 9.5

i

General information

Introductory information ARRs—section 10.1 4

Agency role and main functions ARRs—section 10.2 4

Operating environment ARRs—section 10.3 5

Non-financial performance

Government’s objectives for the community ARRs—section 11.1 6

Other whole-of-government plans/specific initiatives ARRs—section 11.2 6

Agency objectives and performance indicators ARRs—section 11.3 8–10

Agency service areas and service standards ARRs—section 11.4 Appendix 3

Financial performance

Summary of financial performance ARRs—section 12.1 23–24

Governance—management and structure

Organisational structure ARRs—section 13.1 15

Executive management ARRs—section 13.2 16–17

Government bodies (statutory bodies and other entities)

ARRs—section 13.3 Appendix 2

Public Sector Ethics Act 1994 Public Sector Ethics Act 1994

ARRs—section 13.4

17

Queensland public service values ARRs—section 13.5 4


Summary of requirement Basis for requirement

Annual report reference

Governance—risk management and accountability

Risk management ARRs—section 14.1 18

Audit committee ARRs—section 14.2 19

Internal audit ARRs—section 14.3 19

External scrutiny ARRs—section 14.4 20

Information systems and recordkeeping ARRs—section 14.5 20

Governance—human resources

Workforce planning and performance ARRs—section 15.1 21

Early retirement, redundancy and retrenchment Directive no.11/12: early retirement, redundancy and retrenchment

Directive no.16/16: early retirement, redundancy and retrenchment (from 20 May 2016)

ARRs—section 15.2

21

Open data Statement advising publication of information ARRs—section 16 7

Consultancies ARRs—section 33.1 7

Overseas travel ARRs—section 33.2 7

Queensland language services policy ARRs—section 33.3 N/A

Financial statements

Certification of financial statements FAA—section 62

FPMS—sections 42, 43 and 50

ARRs—section 17.1

25–67

Independent auditors report FAA—section 62

FPMS—section 50

ARRs—section 17.2

68–71

Notes:FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009ARRs Annual report requirements for Queensland Government agencies


Abbreviations and glossary

agency a department or a statutory body as defined in the Financial Accountability Act 2009

ARRs Annual report requirements for Queensland Government agencies

COAG Council of Australian Governments

DEWS Department of Energy and Water Supply

DWQMP drinking water quality management plan

E10 a blend of fuel up to 10% ethanol and 90% unleaded petrol

EMT Executive Management Team

FAA Financial Accountability Act 2009

FPMS Financial and Performance Management Standard 2009

IAS Internal Audit Service

ICT information and communications technology

LGBTIQ+ lesbian, gay, bisexual, transgender, intersex and queer

PV photovoltaic system

QAO Queensland Audit Office

referable damA dam that presents a risk to two or more people if it fails—this does not include dams containing hazardous waste, a weir or large rainwater tanks

RWMP recycled water management plan


Contacts

Head office Rockhampton office1 William Street Brisbane Qld 4000

Level 2, 209 Bolsover Street Rockhampton Qld 4700

PostPO Box 15216 City East Qld 4002

PO Box 1762 Rockhampton Qld 4700

Phone 13 QGOV (13 74 68) business hours

Annual report enquiriesDirector Business Planning and Achievement Department of Energy and Water Supply PO Box 15216 City East Qld 4002

Email: [email protected]

Phone: 13 QGOV (13 74 68)

FeedbackWe value your feedback on the annual report. Feedback can be provided at www.qld.gov.au/annualreportfeedback.

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