SEW 2014-19 Corporate Plan

South East Water
Corporate Plan 2014-2019

2 South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Contents
This plan outlines our key activities and
projected financial position for 2014-19.
It addresses our obligations under the Water
Act 1989 and the Victorian Government’s
2019 Planning Guidelines. It also reflects
the key priority areas of Melbourne’s Water
Future and incorporates our initiatives
to deliver on the water sector efficiency
initiative (Fairer Water Bills).
Executive summary 03
Statement from our board 04
Statement from our Managing Director 05
01 Statement of Corporate Intent 06
About us 07
Main business undertakings 07
Nature and scope of activities 08
Stakeholders and business objective 09
02 Business Plan 10
Strategic direction 12
Assets 14
1.1 Next generation assets - objectives and actions 14
1.2 Developer relations - objectives and actions 15
1.3 Core activities - objectives and actions 16
Customers 17
2.1 Channel migration - objectives and actions 17
2.2 Customer programs - objectives and actions 18
Employees 19
3.1 Next generation workforce - objectives and actions 19
Sustainability 20
4.1Sustainablebusinesspractices - objectives and actions 20
4.2 Urban water policy reform - objectives and actions 21
Delivery against Melbourne’s Water Future plan 22
03 Key Performance Measures 24
04 Appendices 26
Appendix A - Operating environment scan 27
Appendix B - Asset management 29
Appendix C - Progress against Water Plan 3 34
Appendix D - Ministerial reporting directives 36

3South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Executive summary
Creating a next generation water business
Our strong business performance means that we can
invest further in innovation to create even greater
efficiencies.
Overthelastfinancialyearwehaverealisedan8.3percent
decrease in operating expenditure against growth and
CPI trends. Continuing along this path, and in response
to the Government’s request for water sector efficiency
initiatives, we can accelerate our cost savings and
achieve a further reduction in operating expenditure
from 2012-13 which will be maintained in the long term.
Following our analysis of the recent benchmarking study
and developing our organisation-wide initiatives for the
nextfiveyears,weestimateourefficiencieswillresultin:
> operating savings of $10 million per annum by 2016,
which will result in our operating cost per property
declining in real terms
reduced‘newborrowing’ requirementsafterfiveyears
lower residential bills from July 2014
Key focus areas for our 2014–19 corporate plan include:
optimising our future asset investments using a
whole-of-water-cycle-management (WoWCM)
approach to reflect our customers’ changing
requirements
enhancing the efficiency of our current network
through improved operation
reducing our cost to serve customers through smart
and integrated online tools
fostering an environment to support a strategically-
aligned and outcome-focussed workforce.
Known throughout the industry for being
early adopters of technology and developing
new in-house, cutting-edge solutions.

4 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES South East Water Corporate Plan 2014–19 Published May 2014
Statement
from our board
South East Water’s Corporate Plan is
designed to deliver efficiencies across
the business for the benefit of customers
and stakeholders now and in the future
while ensuring South East Water meets its
statutory obligations.
On behalf of the Board, I’m pleased to present South
East Water’s Corporate Plan 2014-19. Operational
efficiency, financial sustainability and innovation remain
fundamental business drivers within the overarching
objective of safety as our first priority.
South East Water prides itself on being a leading water
business. This plan illustrates how the organisation will
continue to deliver value and options to customers at
the lowest possible cost, respond and adapt quickly to
changes in the environment in which it operates, and
remain at the forefront of the water industry.
This plan provides South East Water with a roadmap
for the next five years. It strikes an appropriate
balance betweentheneedsofallstakeholders.
Itisoutcome-drivenand ensures ownership by all our
people across the business making it easy to provide
updates against performance at individual and
company-wide levels.
Douglas Shirrefs
Chairman
May 2014
Industry benchmarking confirms that
South East Water is consistently performing
to a high level. Water Services Association
of Australia and International Water
Association’s 2012 Asset Management
Process benchmarking for large urban water
utilities across the world, confirms that the
organisation is in the top quartile for asset
acquisition, operation and maintenance;
asset replacement and rehabilitation; and
business support systems.

501 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES South East Water Corporate Plan 2014–19 Published May 2014
Statement
from our
Managing Director
South East Water will continue to leverage its
competitive advantage in network management,
particularly in network control solutions, to optimise
returns and benefits to the Victorian community. Our
immediate objective is to build on and expand current
network control solutions and capitalise on commercial
opportunities through our iota business.
A central driver for creating a next generation water
business is our people. We continue to foster a culture
and workforce that achieves business outcomes
without compromising safety. Next year’s move to
Frankston will bring us all together under the one roof
fostering greater camaraderie as we all work towards the
milestones in this plan. Furthermore, this consolidation
of our people will help reduce our operating costs, in
turn lowering bills for our customers.
Kevin Hutchings
Managing Director
May 2014
Our strengths lie in customer service,
innovation and technology. We demonstrate
this with our innovative and technologically-
advanced products and services
including Tank Talk, Peninsula ECO and
mySouthEastWater.
We are creating a next generation water
business withateamofforward-thinking
people.Thismeans agility and technology
will be at the heart of everything we do in
anticipating customers’ needs and delivering
beyond expectations.
OvertheyearsSouth East Waterhasseen manychanges
in the water industry with technology advancements,
higher customer expectations and increased workforce
capabilities. These changes create new challenges
and opportunities for the organisation, including the
Government’s recent efficiency drive for fairer water
bills. As a strong, financially-sustainable organisation
South East Water will continue to meet these challenges
by focussing on providing valued and affordable
services for our customers now and into the future.
We have some exciting times ahead. This year’s plan
demonstrates how we are building on our existing
strengths to deliver some great projects. You will
see how our strategic framework and previous
achievements provide us with a strong foundation to
develop a blueprint for the next five years and beyond.
Throughout 2014-19 South East Water will continue to
focus on efficiently managing its network assets and
developing a robust, vertically-integrated package of
water sources and network solutions underpinned by
understanding how customers use water.
Customer relationships are critical to the future
direction of the organisation. Understanding how our
customers use water will enable us to deliver the most
appropriate integration of decentralised and centralised
networks. Continuing with the trial of digital meters
will help us understand customer behaviour, optimise
network demand and develop leading-edge customer
solutions.

01 Statement of
Corporate Intent

About us
South East Water is a statutory authority under
the Water Act 1989 and one of Melbourne’s three
metropolitan water retailers. Our licence to operate is
underpinned by a statement of obligations outlining
the Government’s requirements. Broader activities
are governed by a number of other Acts, including the
Catchment and Land Protection Act 1994, Safe Drinking
Water Act 2003, Food Act 1984 and Environment
Protection Act 1970.
Main business undertakings
We provide water, sewerage and recycled water services
to residential, commercial and industrial customers
within our service area in Melbourne’s south east.
Melbourne Water is the wholesale supplier of water and
sewage treatment.
Figure 1: South East Water’s service area
Victoria
Bass Strait
New South Wales

Nature and scope of activities
We service more than
1.65 million people across
3,640 square kilometres and
we are responsible for
$3.4 billion of assets.
We have over 23,000
kilometres of pipeline,
supported by 80 water pump
stations and 255 sewage
pump stations. Last year,
we delivered 125 billion litres
of drinking water, collected
121 billion litres of sewage
and supplied 4.7 billion litres
of recycled water.

Key facts
13,330 km water mains
9,945 km sewer mains
434 km recycled water mains
8 water recycling plants
630,000 residential water customers
600,000 residential sewerage customers
55,000 non-residential water customers
50,000non-residential sewerage customers
Stakeholders
Our key stakeholders include customers, developers,
the community, our people, the Victorian Government’s
departments and regulatory authorities, suppliers, local
councils and our business partners.
Business objective
To transform the water cycle’s contribution to the
community, by delivering smarter networks and
customer solutions.

02 Business Plan

11
2012-132010-11
South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Thecurrentphaseofourbusinessevolutioncommenced
in 2010 with the development of a robust strategic
framework built on delivering value and financial
sustainability, supported by a culture of technical
innovation and efficiencies. This plan illustrates how
we will build on this solid framework and create a next
generation water business, where agility and technology
are at the heart of everything we do in anticipating
customers’ needs and delivering beyond expectations.
Priortodevelopingthisplanwescannedouroperating
environmenttoidentifythechallengesandopportunities
we will face over the next five years. A synopsis of this
operating environment scan is in Appendix A.
This year the Business Plan section of the Corporate
Plan includes key measurable objectives under
each strategic initiative that link to overarching key
performance indicators (KPIs) listed in Section 3.
These objectives will be communicated throughout
the organisation and will be incorporated into individual
performance plans. We will provide our people with
quarterly updates against our performance measures.
Establishing
the framework
Completed an extensive
review of our strategic
planning framework.
This resulted in the
development of our
ACES strategy with
four key focus areas
(assets, customers,
employees and
sustainability) to increase
business attention on core
business activities and
deliver value for money.
Benefits from our
fully-integrated
alliance model created
innovation and business
efficiencies, strengthened
our commercial skills
and achieved full cost
transparency, which are
used throughout our
business today.
Rebuilding
the core
A period of re-alignment
focusing on efficiency.
Reviewed and optimised
the core elements from
each of our key focus
areas and delivered:
a blueprint for new
service delivery models
for capital, operations
and maintenance
a new structure for the
developer services
area and approach to
working with developers
an overhauled
customer relationship
management system
a revitalised customer
experience program
a new structure for our
employee management
area
engagement with the
Government’s
Ministerial Advisory
Committee.
Positioning
for the future
Became a statutory
corporation. This
altered our powers and
obligations, necessitated
a number of operational
changes in relation
to customer-facing
elements, and adjusted
policies and processes.
Key initiatives included:
reducing our regulated
overhead by focusing
on providing a commercial
model and offerings for
core services e.g. call
centres, design services,
procurement services.
Next generation
water business
Agility and technology are
at the heart of everything
we do in anticipating
customers’ needs
and delivering beyond
expectations.
Based on our innovative
solutions we are looking
beyond authority
boundaries towards such
things as CAPEX deferral
through cross-boundary
network efficiencies
e.g. South Gippsland
Water townships, and
whole-of-water-cycle
solutions where they
make sense.
Figure 2: Our business journey
2011-12 2013-14

Strategic direction
Our strategic framework comprises four strategic focus
areas – assets, customers, employees and sustainability
which help us achieve efficiencies and drive the
business. Each strategic focus area has a vision, goal
and strategic initiative/s with a set of measurable
objectives, which we set for five years and review
regularly and update annually as part of the corporate
planning process. The objectives link to high-level KPIs,
outlined in Section 3: Key Performance Measures.
Figure 3: Our strategic framework
Vision healthy water for life
MISSION
Delivering water and sewerage services
our customers value
ACES STRATEGY CORE ACTIVITIES STRATEGIC INITIATIVES
ASSETS
Manage our assets to meet customer needs for safe drinking water,
sewerage and alternative water sources, optimise long-term value
and protect the environment, community and our people.
Asset planning
Asset investment
Operations
Next generation assets
Developer relationships
CUSTOMERS
Reduce our cost to serve and enhance revenue collection,
leveraging the value of each and every interaction and building our
reputation as the next generation utility.
Customer services
Customer property and
field services
Communications
Channel migration
Customer programs
EMPLOYEES
Continue to build a high-performing, safe and constructive culture
and provide the tools to ensure our people reach their potential.
Organisational development
People support services
Next generation workforce
SUSTAINABILITY
Deliver value for money through innovation-led efficiency while
increasing community liveability and environmental benefits
through best practice.
Financial performance
Commercial ventures
Information systems
Corporate governance
Water resource management
Regulations and research
Sustainable business
practices
Urban water policy reform
We have a strong history of providing
specialist services to regional authorities.
Our current partnership with South
Gippsland Water to provide sewerage
services is estimated to provide capital
savings of around 20 per cent. We are also
providing WoWCM advice, including demand
management assistance, to South Gippsland
Water to delay $25 million CAPEX for water
supply upgrades.

Governance and management
We will continue to maintain strong governance and
management to achieve best practice in meeting our
statutory requirements, regulatory obligations and
to effectively deliver Government policy. Our Board
of Directors presides over all significant strategic,
commercial, regulatory, financial and risk-focused
elements of our business.
Quality management systems underpin our
performance against our plan. We have a number of
management systems and standards in place that are
subject to independent auditing and certification, and
we regularly audit our operations to ensure compliance
and identify opportunities for improvement.
Risk management
Our risk management system, which is integrated into
our management systems, processes and culture,
identifies and assesses risks that may impact our ability
to achieve our objectives and develops strategies to
mitigate, manage and control the effect of these events.
All identified risks appear on the company’s corporate
risk register.
Controls are in place for all identified risks, including
operational, financial management and treasury
functions. The board and senior management regularly
review risks, controls, key performance indicators and
assurance levels. This is supported by a comprehensive
insurance program and an emergency management
plan. As a declared essential service and a dam owner,
we are required to effectively exercise responses to
certain emergencies annually.
Clarity
Unity
We know what we’re doing and we
understand why.
We have a clear sense of purpose and a
roadmap for success.
Underpins our success by working together.
We collaborate and build partnerships to
deliver real value.
Agility
We are fast, flexible and courageous.
We embrace change and the opportunity
to improve.
Delivery
We strive for outcomes and
celebrate achievement.
We are decisive and committed. We work
hard to deliver outstanding value and results.
Our strategic framework is underpinned by our four values – clarity, unity, agility and delivery. These values
articulate the behaviour we encourage throughout the organisation in delivering our strategy.
Figure 4: The things we value

Objective Actions
1.1.1 Optimise our future investment in assets and
realise significant capital expenditure savings.
revise and implement new design standards for inner and
outer Melbourne developments that reflect changing land
use and customer behaviour
progress whole-of-water-cycle management (WoWCM)
leading-edge issues such as developing a rainwater tank
management regime, implementing robust asset investment
frameworks and alternative approaches to regulatory
requirements
1.1.2

Enhance the efficiency of the current network
through improved network operation.
optimise the operation of the water and sewerage systems
through asset monitoring technology and dynamic asset
control
complete digital metering trials and pressure zone
management, and implement real-time hydraulic models
for the water supply system
enhance delivery of metering services to improve our
understanding of customer behaviour and ability to manage
water demand and optimise asset design in the long term
1.1.3 Expand the use of resource recovery where it
makes business sense.
determine our optimal role in resource recovery activity
Assets
Vision
Build and operate safe, efficient and reliable
infrastructure for current and future generations.
Goal
Manage our assets to meet customer needs for safe
drinking water, sewerage and alternative water sources,
optimise long term value, and protect the environment,
community and our people.
Strategic initiatives
1.1 Next generation assets
Assets are the largest controllable cost for our
business. Our goal is to address benefits from changes
in technology and industry reforms to decrease our
long term capital investment and operating costs while
supporting the Fairer Water Bills initiative.
Over the next five years the following objectives will be
undertaken to deliver on our initiative. Key performance
indicators (KPIs) will measure achievement against
these objectives. These KPIs are listed in Section 3 of
this plan.

1.2 Developer relations
We have strong partnerships with peak bodies within
the development and building industries, developers,
consulting engineers, civil contractors, builders and
plumbers. Our relationship with the development
industry enables both infill, building-led developments
and greenfield subdivisional developments, by providing
water and sewerage services. These services are
required for the creation of new lots and the connection
of new and re-developed lots to the network.
Over the next five years we are preparing the business
for opportunities presented by inset competition
through improving developer relations and successfully
implementing Aquarevo (located in Evans Road,
Lyndhurst). Key performance indicators (KPIs) will
measure achievement against our objectives. These
KPIs are listed in Section 3 of this plan.
Objective Actions
1.2.1 Become the water authority of choice by
partnering with industry-leading developers.
develop the former Cranbourne Treatment Plant into a
residential development showcasing WoWCM initiatives
(project name Aquarevo, located in Evans Road, Lyndhurst)
1.2.2 Improve efficiency for our organisation and our
developers through improved relationships.
provide customers with the ability to self-service
connections, development applications and asset
information
38 per cent savings across 31 projects from
ournewcapitaldeliverymodelduring2013-14.
$1.63 million OPEX saving per year from our
integrated alliance model, between 2005-13.

PeninsulaECOwillsignificantlyreduce
costsbycapitalisingonourexperiencein
developingremotemeasurement,monitoring
andcontroltechnologiesforpressuresewers.

Objective ACTIONS
1.3.1 Asset planning
Develop asset programs that enable growth
requirements while maintaining system reliability
and service and product quality standards
within the context of whole-of-water-cycle
management.
ensure delivery against the asset management program
detailed in the Asset Management Plan in Appendix B
complete master planning for the Inner City Regional
whole-of-water-cycle management Plan in conjunction
with the Office of Living Victoria and other stakeholders
improve our understanding of asset servicing flexibility and
costs for better decision making
1.3.2 Asset investment
Deliver the asset program at lowest community
cost through an innovative contracting model.
This model enables risk allocation. It is based
on a mixture of competition and collaboration
between contracted businesses to deliver cost
efficiency and deliver on the Fairer Water Bills
initiative.
seek innovative solutions to deliver infrastructure at lowest
community cost, including Peninsula ECO which fast tracks
the delivery of sewage services, while reducing customer
costs
1.3.3 Operations
Continue to operate and maintain assets to
ensure reliable, safe and cost efficient services
that balance the needs of customers and the
environment.
build on our new operations and maintenance model to
encourage competition by comparison, efficiencies in
workflow and improved resource use
improve management of potential environmental impacts
from wet weather spills through the development of
an improved risk-based design criteria and provision of
automated operational control
continue with electricity savings and generation initiatives
including maximising ‘spot’ market opportunities
1.3 Core activities
We continue to drive efficiencies throughout our
core business activities and constantly strive for
continuous improvement. This table outlines the
additional key objectives for the next five years within
assets. Key performance indicators (KPIs) will measure
achievement against these objectives. These KPIs are
listed in Section 3 of this plan.
TheCaseyClyderedevelopmentprovidedthe
firstrealopportunitytotesttheobjectives,
frameworksandaspirationsofMelbourne’s
WaterFuture.Optionsrangingfromthe
traditionalcentralisedsolutiontolocal
treatmentandrainwatertankswere
assessedcollaborativelywithkey
stakeholdersandtheOfficeofLivingVictoria.

Customers
Vision
Leading-edge service delivery.
Goal
Reduce our cost to serve and enhance revenue
collection, leveraging the value of each and every
interaction and building our reputation as the next
generation utility.
2.1 Channel migration
Since last year’s Corporate Plan we have revised our
customer strategy. We have concentrated our focus on
increasing customer value through channel migration,
providing customers with the online channels they are
seeking and delivering significant efficiencies.
Over the next five years we will transform our customer
channels building on our leading-edge Salesforce
platform and existing online offerings. We will further
strengthen our position as the most efficient Victorian
water utility in key customer service areas.
There will be a significant shift in customers interacting
with us through ebilling, online tools and self-service
environments - providing the ability to easily personalise
experience. We will move beyond the transactional
to leading-edge service delivery through the following
objectives. Key performance indicators (KPIs) will
measure achievement against these objectives.
These KPIs are listed in Section 3 of this plan.
Objective Actions
2.1.1 Evolve and optimise online channels, providing a
leading-edge customer experience.
complete ebill tender and deliver leading-edge ebill solutions
expand Live Web Chat and knowledgebase
progressively integrate all customer systems into Salesforce
deliver an online self-service environment for key
non-residential customers
automate high volume, transactional customer interactions
2.1.2 Encourage increased customer migration to
channels that reduce our cost to serve.
leverage Salesforce capacity for targeted, low cost digital
promotions and enhanced credit management
research, design and deploy supporting incentive scheme/s
increase the value of online self-service for customers
including providing innovative water use and efficiency
information and alerts
maintain customer experience research to drive channel
optimisation

2.2 Customer programs
Over the next five years we will design and deliver
outstanding customer programs that support the needs
of key customer segments and industry objectives
such as whole-of-water-cycle management (WoWCM).
Key performance indicators (KPIs) will measure
achievement against these objectives. These KPIs are
listed in Section 3 of this plan.

Objective Actions
2.2.1 Support hardship and vulnerable customers and
deliver equity in tariffs.
continueddeliveryandevolutionofSouthEastWater
Assist, including targeted programs to increase customer
awareness and access to available support
support Vulnerable Customer Taskforce to share learnings
and drive enhanced programs across the utility sector
research, design and deliver a program of initiatives to more
proactively assist non-residential customers
implement occupancy-based charging to more equitably
spread customer charges
2.2.2 Support delivery of WoWCM and industry
reform.
build trust for customers to partner with us in the effective
delivery of innovative household-level WoWCM solutions
support customer adoption of sensible water use and
program efficiencies through targeting ease of access to
leading-edge information, including real-time water use
profiles and alerts
research and establish a value proposition for the
development industry to partner with South East Water,
positioning for potential third party access reforms

Employees
Vision
People reach their full potential and make valued
contributions towards South East Water’s success.
Goal
Continue to build a high-performing, safe and
constructive culture and provide the tools to ensure
people reach their potential.
Strategic initiative
3.1 Next generation workforce
We are on a journey to become a next generation water
business. To help achieve this we are continuing to align
our workforce culture and capability with our strategic
aspiration.
During 2015 the majority of our workforce will be
relocated to our new Frankston office. We are currently
developing a comprehensive change management
program to ensure smooth employee transition and
business continuity.
this plan.
OBJECTIVE Actions
3.1.1 Position South East Water as a preferred
employer and industry leader.
implement an employer value proposition to support
attraction, retention and cultural alignment
enhance employee commitment and engagement through
leadership accountability for actioning engagement survey
outcomes
partner with external stakeholders to develop and deliver
innovative and industry-wide health and safety solutions
3.1.2 Deliver strategic outcomes with an aligned and
capable workforce.
develop and implement an organisational-wide workforce
strategic plan
implement learning pathways across the organisation to
support employee development and progression
ensure the workforce we transition or introduce to Frankston is
culturally aligned with our future direction
3.1.3 Drive behavioural change by leading and creating
a high performing, safe and resilient workforce.
continue our focus on contractor management and culture of
reporting
embed a ‘just and caring’ approach to safety and wellbeing
through our ‘we care’ cultural objective
strengthen the review and assessment of employees against
organisational values and behaviours
deliver integrated learning solutions that enhance innovation
and change leadership, strategic agility and build employee
resilience
enhance our focus on reward and recognition for future-state
behaviours
54percentreductioninseriousinjury
frequencyratein2012-13comparedto
previousyear.

Vision
Provide the platforms for current and future success.
Goal
Deliver value for money through innovation-led
efficiency while increasing community liveability and
environmental benefits through best practice.
Sustainability
Objective Actions
4.1.1 Remain financially sustainable through reduced
borrowing requirements.
This objective will be achieved by realising savings across
the business which have been outlined under the assets and
customer strategies:
deliver our asset program at the lowest cost to the
community
continue with our new operations and maintenance delivery
model
introduce multiple customer self-service channels
transition customers to low-cost payment options
4.1.2 Extract additional value through competitive
contracting arrangements (further to our service
delivery model).
reduce legal, commercial and compliance risks by placing
more vendors onto contracts
renegotiate existing contracts
rationalise purchasing
extract more value from existing contracts
4.1 Sustainable business practices
We continue to drive change and deliver value
by partnering across the business to provide
customers with services at the most efficient cost.
We have recently provided Government with a list of
organisational-wide efficiencies.
this plan.

Aspartofourongoingsustainability,weare
movingourthreeofficestoanewbuildingin
Frankston.Excavationworkhascommenced
andweexpecttomoveinmid-2015.
Thenewbuildingwillsaveapproximately
$20millionover20yearsandenhance
productivityandcollaboration.
Thebuilding’sminimumfivegreenstarrating
willmeetVictorianGovernmentstandards
andourpeoplewillbeabletousepublic
transport,reducingcartravel.
4.2 Urban water policy reform
We continue to influence water policy reform to benefit
the community and wider water sector. We are
committed to engaging in whole-of-water-cycle
management and investigating options to reduce
red tape issues to increase efficiencies.
this plan.
Objective Actions
4.2.1 Partner with stakeholders to deliver the key
priority areas outlined in Melbourne’s Water
Future plan (refer to table 1 on page 22).
continue to implement a new water cycle planning approach
support innovation in small and large-scale projects
continue to influence economic and regulatory industry
reform
4.2.2 Reduce red tape to improve our efficiency to
deliver water and sewerage services.
work with key stakeholders to change regulations and
streamline processes

2.
Economic reform
4.
Regulatory reform
3.
Supporting
innovation in
small and large
scale projects
Continue to work
collaboratively with project
partners to deliver the central
and southern regional WoWCM
plans for our assets strategy.
Commence the development
of our own security of supply
standards for water supply
demand balance.
Reviewing service standards for infrastructure to provide a
more efficient integrated network to support the delivery
of regional and local whole-of-water-cycle management
(WoWCM) plans.
Working with the water sector to finalise the first stage of
unbundling bulk water entitlements to enhance security of
supply and investmentdecisions for each individual business.
Providing services to South GippslandWater to deliver the
best whole-of-water cycle management (WoWCM) solution
for Poowong, Loch and Nyora as a pilot study in ‘out of area’
competition.
Trialling digital metering to provide a superior service offering
through technological innovation.
Undertaking a trial project to assess the role of digital meter
information and consumer water efficiency behaviours to
optimise the design on water/sewer networks, for an inner
development area.
Undertaking development of an exemplary residential
development project to showcase whole-of-water cycle
management (Aquarevo – located in Evans Road, Lyndhurst).
Exploring new products and tariff options through customer
focus groups.
Working with a third party reviewer to provide advice to
Government on possible improvements to Victoria’s
framework for economic regulation of the water sector
and its application.
Commence stage 2 of
disaggregation of bulk water
entitlements to enhance market
evolution and realise the true
price of water while maintaining
a secure supply of water.
Continue to partner with
developers to provide WoWCM
solutions to customers.
Implement outcomes from the
review of Victoria’s framework
for economic regulation.
1.
A new water cycle
Aquarevo
Planned projectsCurrent projects
Key priority area
(outlined in section 2.7 of Melbourne’s Water Future)
Table 1: Delivery against Melbourne’s Water Future plan
This shows our current and planned projects to address the key priority areas in Melbourne’s Water Future.

Commercial ventures
For over a decade, we have focused on innovation and
delivering additional value to customers through our
unregulated business. Our commercial brand, iota,
continues to capitalise on technology developed as part
ofcorebusinessactivities.Ourstrategyistogrowiotaby:
commercially promoting solutions nationally and
internationally to gain non-regulated, profitable
income
enhancing recognition of South East Water as a
provider of technology-based solutions and services
focussing on addressing our customers’ needs and
reducing network costs, while leveraging knowledge
and insights gained from providing solutions to
externalcustomerstofurtherbenefitSouthEastWater.
Shared services
We are continuing to collaborate with the other
metropolitan water businesses to determine whether
economies of scale can be achieved through shared
services for the benefit of South East Water and the
widerwaterindustry.Thebenefitsofanypossible shared
service need to exceed the implementation costs.
Over the next five years we will look at potential shared
services including IT software and hardware, bulk billing
and bill printing, procurement opportunities, call centre
and human resources.

03 Key
performance
measures

Performance indicator (KPI) MEASURE
2012-13
ACTUAL
2013-14
TARGET
2014-15
TARGET
2015-16
TARGET
2016-17
TARGET
2017-18
TARGET
2018-19
TARGET
Asset performance* (rolling 12-month, integrated measure) per cent 48 50 50 50 50 50 50
Asset operations and maintenance cost per property^ $ per property 74.9 79.7+ 75.1+ 76.5+ 77.4+ 78.4+ 78.8+
Customer experience/satisfaction per cent 90 88 88 88 88 88 88
Operating cost per property^ $ per property 157.7 159.0 145.49+ 142.65+ 144.79+ 146.86+ 148.38+
Gearing ratio (net debt/(net debt + equity)) per cent 39.7 35-50 40-45 40-45 40-45 40-45 40-45
Positive shift in staff engagement survey per cent
Metric not
previously used +4 +3 +2 +2 +1
Increase in hazards and close calls reported
per cent increase
on previous year
Metric not
previously used +20 +10 +10 +10 –
* This measure will represent the average performance on a 0-100 per cent scale over four key management level measures: volume of sewage spilled to waters due to failure; drinking water quality complaints
(per 1,000 customers); unplanned water supply interruptions (per 100km of main); and sewerage blockages (per 100km of sewer). The target is set at 50 per cent based on the results from the customers’ willingness to
pay survey conducted as a part of the 2013-18 Water Plan. Customers deemed South East Water’s current level of service as satisfactory and in order to keep overall costs down, they are unwilling to pay more for an
improved asset performance.
^ Inclusive of consumer price index.
+ OPEX per property is in nominal dollars. In real terms this is projected to decline as a result of our efficiency initiatives outlined in this plan. Property numbers are June 2014 forecast based on April 2014 YTD numbers.
Key performance measures
A suite of key performance indicators (KPIs) will be used across the business to measure our achievement against objectives under each strategic initiative listed in Section 2:
Business Plan. We will regularly measure our performance against these indicators to ensure we are delivering against the Corporate Plan.

26 South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICESSouth East Water Corporate Plan 2014–19 Published May 2014
04Appendices

27South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICESSouth East Water Corporate Plan 2014–19 Published May 2014
Appendix A:
Operating
environment scan
We scanned the external operating
environment to identify the challenges and
opportunities facing our organisation over
the next five years. The key themes are
summarised below and have been taken
into consideration in preparation of this
Corporate Plan.
Affordability pressures
As stated in the Victorian Government’s Department of
Planning and Community Development Corporate Plan,
“Victoria still experiences disadvantage, hardship and
barriers to opportunity. This highlights the entrenched
nature of social disadvantage within parts of the
Victorian community and the need for sustained long-
term efforts to address inequality”. The Government’s
recent drive for fairer water bills has meant that all
Victorian water utilities have had to focus on how
they can decrease the customer’s annual water bill.
Additional hardship measures funded as a result of the
recent Essential Services Commission price review
decision will also assist those customers most affected.
Climate change and variability
Greenhouse gas emissions and climate change are
placing the world’s ecological habitats and biodiversity
at risk. How society addresses this issue and the actions
taken now will play a big role in determining what our
world will look like for future generations. Climate
change will place pressure on water cycles and food
production systems.
Climate variability will continue to impact the water
industry. The drought between 1997 and 2010 was
followed by significant floods and the strongest La
Nina conditions on record. Our asset management
approaches will need to be resilient and flexible to adapt
to this uncertainty.
Legislative environment
We are a statutory authority under the Water Act 1989.
Our licence to operate is underpinned by a statement
of obligations outlining the Government’s requirements.
Our broader activities are governed by a number
of other Acts, including the Catchment and Land
Protection Act 1994, Safe Drinking Water Act 2003,
Food Act 1984 and Environment Protection Act 1970.
Key regulators oversee our activities. The Environment
Protection Authority Victoria assesses environmental
impacts, licensed sites and management of recycled
water. The Department of Health assesses drinking
water quality. The Energy and Water Ombudsman
Victoria investigates and resolves customer disputes
if customers are not satisfied with our response to a
complaint.
The State Government, through the Minister for Water,
isresponsibleforsettingoverallwaterpolicy.Ourfinancial
performance is monitored by the Departmentof
TreasuryandFinance, which alsoassesses majorcapital
worksexpenditureonbehalfoftheTreasurer.
Every five years we submit a Water Plan to the Essential
Services Commission. This outlines our price and
service proposal. New prices and service standards for
the period 2013-18 took effect from 1 July 2013.
Operating efficiency
Strong efficiency drivers are expected to be maintained
in the short and medium term. While the global
economy is expected to progressively recover, there
is significant pressure on the state budget. Increased
water industry borrowings have contributed to
pressure on the state credit rating and contributed to
Government’s water sector efficiency initiative.
The State Government has commenced its water
sector efficiency (fairer water bills) initiative to promote
efficient water businesses. We have responded
strongly to the efficiency push and have implemented
numerous short and longer term initiatives, outlined in
our Business Plan in section 2 of this document.
Political environment
The water industry needs to be aware of any ‘shut
down’ period prior to the state election scheduled for
November 2014.
Population change, densification and the
urban growth boundary
Population growth, shifting urban growth boundaries
and alternative approaches to developments present
challenges and opportunities. Melbourne’s growing
population, which is set to increase by one million by
2026, will coincide with significant inner city growth.
TheVictorianGovernment’sMelbournePlanningStrategy
will guide this growth over the next 30 to 40 years.
The increased ‘densification’ of areas like Southbank,
Port Melbourne and Dandenong, coupled with the focus
on whole-of-water-cycle management will drive the
move from ‘one size fits all’ to tailored solutions.

01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / FINANCIALS 05 / APPENDICES 28 South East Water Corporate Plan 2014–19 Published May 2014South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Regulatory reform
In late 2013, the Office of Living Victoria finalised its
Melbourne’s Water Future plan which provides a list
of key priority areas that must be considered by a
water utility. Government has also released Terms
of Reference for a review of Victoria’s framework
for economic regulation for the water sector. The
purpose of the review is to assess the performance of
the existing framework and identify opportunities for
improvement.
In the short term, Government is looking to trial inset
competition for the provision of services to major
greenfield areas and brownfield re-developments, as
well as unbundling bulk entitlements to facilitate future
water trading.
We continue to actively partner with Government and
regulatory agencies to reduce the regulatory burden for
our customers and other stakeholders.
Technology
Technological advancements continue to rapidly
evolve. Access to data is critical and organisations
will increasingly need to integrate information from
multiple data sources. Capturing and analysing data
will provide real business benefit. Our digital metering
trials will provide validation of the benefits that could be
obtained through better data capture and use.
Water resource management
The fundamental components of water resource
management and a long term focus on water security
and minimising customer bills remain. We will continue
to provide targeted customer information on water
efficiency, deliver alternative supplies and use water
trading to realise the benefits of water stored in the
Murray and Goulburn systems. We expect these water
efficiencies and alternative water supply programs
will progressively integrate with the implementation of
Melbourne’s Water Future.

Appendix B:
Asset management
Effective asset management is critical
for our business because it determines our
long-term investment profile and sets a large
proportion of our controllable operating
costs in the short term. Our capital delivery
program remains leading-edge with the
majority of key programs being delivered
on time and within budget. We continue to
perform well against benchmarks for
drinking water quality and service reliability.
Our innovative new competitive/
collaborative delivery model is driving
capital efficiencies.
Five, ten and twenty-five year asset
management plans
Our asset management framework defines how we
manage our infrastructure assets. In planning and
managing our infrastructure, several factors are taken
into consideration:
current or desired levels of service for our customers
and stakeholders
associated costs of providing those service levels
practices and systems that help us to manage our
assets in the most efficient and effective way.
Water, sewerage and recycled water plans assist
implementation of the framework. Each plan is based
on defined service objectives and actions to achieve
them, with strategic performance measures in place to
determine how well the objectives are being delivered.
The optimum mix of current and future capital,
operating and maintenance costs are considered
across the full lifecycle of the assets. Robust risk
assessment is used to determine the preferred timing
for projects, programs and activities. This assessment
is based on the likelihood of failure of the asset
(condition) and the consequence of the asset failing
(criticality). Asset failure is defined as not achieving the
desired service level for our customers.
We expect new whole-of-water-cycle management
investigations and planning initiatives from Office
of Living Victoria will be funded within the 2014–19
planning period, without any major additional capital
outlay.
Based on these considerations, the following five, 10
and 25-year capital investment programs have been
developed.
Five-year capital program
(2014-15 to 2018-19)
Water capacity plan
The objective of the water capacity program is to
ensure South East Water’s system has sufficient
capacity to deliver water to customers to satisfy their
needs, while extending the service for new customers.
The focus remains on growth investment rather than
deficiencies in the existing system.
Major expenditure areas in our region in the future
are predicted to be Hallam North, Officer, Clyde,
Cranbourne and Dandenong. The water capacity
(system extension) plan predicts expenditure of
$72 million over the period, with an average annual
expenditure of $12-16 million. These works will enable
new customers to be connected to the water supply
system while maintaining adequate pressure and flow
standards to existing customers.
Water reliability plan
The objective of our water reliability plan is to avoid
excessive service interruptions for customers. This is
achieved through rigorous assessment and balancing
emergency maintenance, preventative maintenance
and asset renewals. We intend maintaining water
main renewals at historic levels, with $45 million of
investment proposed to renew an average of 30
kilometres each year to maintain current service levels.
Capital expenditure on renewal of critical distribution
mains will continue, and consider both condition
assessments and the risk consequence of a failure
caused by potential bursts in these congested areas.
We are working with Monash University and other
partners on a research project, Advanced Condition
Assessment and Pipe Failure Prediction, to improve our
understanding in regard to large diameter distribution
mains.

01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / FINANCIALS 05 / APPENDICES 30 South East Water Corporate Plan 2014–19 Published May 2014South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
The water reliability maintenance budgets include all
the recurrent costs of running and maintaining the
water supply system. Significant costs include those
related to repairing water mains and replacing service
pipes between the main and meter. Preventative
maintenance costs have decreased through
improvements in monitoring and evaluating planned
mechanical activities and reassessment of civil
inspection programs through revaluing risk profiles and
past performance. The remainder of the plan targets
valves, hydrants, and mechanical and electrical assets.
Water quality plan
The quality of water provided to customers is measured
by laboratories and around the clock monitoring
systems. Expenditure of about $1 million is planned
for the five-year period and relates to installation of
continuous online monitoring equipment, mobile
chlorine dosing units and system alterations to address
water quality issues associated with specific assets.
Sewer capacity plan
The primary objective of the sewer capacity program
is to ensure there is sufficient capacity to safely
collect and transfer sewage to treatment and disposal
systems without risking the health of the community
or environment. The majority of our sewer capacity
programs remain driven by growth (as is the case for
water) and compliance with the current containment
standard.
To enable new customers to connect to the sewerage
system without overloading it, and to ensure our water
recycling plants can accommodate this loading, it is
expected that $117 million will be required over the
planning period, primarily to service the south eastern
growth corridor. Due to population growth our major
plants are at or nearing capacity. Consequently,
upgrades costing $126 million will be required at our
Boneo, Mt Martha, Lang Lang and Pakenham water
recycling plants over the next five years.
Our new initiative, Peninsula ECO, for the delivery of
backlog sewer services for the southern Mornington
Peninsula area is well underway. This initiative will allow
customers who are not on our scheduled program to
connect early (2016), without disadvantage to other
customers.
Sewer reliability plan
The objective of this plan is to ensure we provide a
reliable collection system for sewage, without service
disruption for customers or significant environmental
and social impacts. The structural condition of the
sewer system remains sound and the number of
collapses is small because of our targeted sewer pipe
inspection and renewal program. The reticulation
network is not expected to show much change in the
rate of renewal during the 2014-19 period.
We propose to spend $62 million over the planning
period to maintain the current reliability of the
sewerage system, renewing an average 20 kilometres
of sewerage assets per annum over the period. Major
programs include the reticulation renewal program, with
expenditure of $15 million to reduce the risk of failure
of concrete sewers. Expenditure of $5 million on the
branch sewer renewal program will target larger critical
assets with high consequences of failure.
Investment of $12 million in sewer rising mains is also
planned. This would be confined to the Mornington
Peninsula area to reduce the risk of spills. Other areas of
investment include mechanical and electrical renewals
at pump stations and at facilities associated with water
recycling plants.
Recycled water plan
Between 2014-19 we propose to continue recycling
in the south eastern growth corridor with investment
of $56 million proposed over the period. These
works include building recycled water distribution
infrastructure comprising tanks, pump stations and
pipelines.
Corporate
Corporate capital expenditure of $123 million in the
planning period relates primarily to building our new
head office at Frankston and information technology
expenditure comprising equipment replacements
and upgrades, customer system initiatives and asset
management initiatives.

Ten-year program
The capital program by service (water, sewerage,
recycled water) and by driver (growth, renewal, backlog,
qualityandother)forthenexttenyearsisoutlinedin the
graphsonpages50and51.
200
250
150
100
50
0
Corporate Recycling Sewerage Water
TEN-YEAR PROGRAM BY SERVICE ($MILLIONS)
2013–14
2014–15
2015–16
2016–17
2017–18
2018–19
2019–20
2020–21
2021–22
2022–23
2023–24

32 South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICESSouth East Water Corporate Plan 2014–19 Published May 2014
200
250
150
100
50
0
Other Quality Renewals Backlog Growth
TEN-YEAR CAPITAL PROGRAM BY DRIVER ($MILLIONS)
2013–14
2014–15
2015–16
2016–17
2017–18
2018–19
2019–20
2020–21
2021–22
2022–23
2023–24

33South East Water Corporate Plan 2014–19 Published May 2014
Twenty five-year program
Important trends and assumptions in the 25-year
expenditure program are outlined below.
The Office of Living Victoria’s whole-of-water-cycle
management plan has the potential to significantly
change the long term nature of asset delivery. Our
proof of concept projects at Evans Road, Fishermans
Bend and Port Melbourne will be iconic and provide a
guide for the feasible future direction
of the industry.
Water reliability expenditure will significantly increase
intheperiodfrom2015to2030–risingfrom15percent
of total expenditure to more than 30 per cent by
2030, as asbestos cement and reinforced concrete
water reticulation pipes constructed in the 1950s age
and bursts increase.
Sewer reliability programs are expected to decrease
after 2025 when the pre-1910 concrete reticulation
sewers have been replaced, in addition to a significant
portion of the 1920s concrete sewer assets.
Growth is expected to remain steady within the south
eastern growth corridor with periodic variations
in the sewer budget as water recycling plants and
major trunk routes are upgraded. This is ultimately
dependent on the level of development activity.
We expect increased infill growth, particularly in
Southbank, Fishermans Bend and Port Melbourne.
Backlog sewerage expenditure profile assumes
completing all connections within a 20-year
timeframe.
There are changes in environmental and health
standards emerging. It is assumed that the nature of
these changes will have minimal impact on our asset
management for at least the next 10 years.
D P01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES

34 South East Water Corporate Plan 2014–19 Published May 2014South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Table 2: Progress report – major projects identified in the 2013-18 Water Plan
PROJECT
PROJECT OUTPUT TO BE ACHIEVED
WITHIN REGULATORY PERIOD STATUS COMMENTS
2013–18 WATER PLAN
VALUE ($ MILLION)
Rye - Portsea
backlog scheme
(Peninsula ECO)
This agreed program with the Government
and EPA will continue to replace septic
tanks with sewerage connections to achieve
environmental benefits. The scheme replaces
aging and failing septic tanks, resulting in
significant improvements to public health
and the environment. This also includes the
proposed customer-led backlog scheme.
Commenced advanced reticulation
works on the Portsea/Sorrento and
Rye B sections.
Contracted transfer system to
delivery partner which is now in
detailed design.
First property connection expected
in mid-2014.
Expect to deliver $30 million savings for the
whole project, due to our new competitive
delivery models and favourable economic
conditions.
Budgets of $57 million for reticulation and
$42 million for transfer are expected to be
delivered for $32 million and $37 million
respectively.
$186
Boneo treatment plant
capacity upgrade
An expansion of the sludge drying capacity is
required by 2014–15 with duplication of the
activated sludge plant and tertiary treatment
plant required by 2016–17 to meet discharge
standards.
The sludge drying project is
underway.
The activated sludge is forecast
to commence late in Water Plan 3
without adverse impacts.
Growth demand has eased.
We are considering delivering the project
in stages, with the activated sludge project
completion likely in Water Plan 4.
$48
Mt Martha treatment
plant – long-term
sludge upgrade
Capacity upgrade works required for the
sludge drying system.
On track to be completed in early
2015.
SERWA alliance works progressing. Additional
scope for digester upgrades included.
$22
Lang Lang treatment
plant upgrade
The existing plant, comprising two lagoons, will
no longer be able to produce effluent suitable
for recycling because of the hydraulic and
organic load.
This project is in the planning stage. Increased project scope to receive sewage
from South Gippsland Water townships of
Loch, Poowong and Nyora.
Works being planned in conjunction with a
pressure sewer scheme partnership between
South East Water and South Gippsland Water.
We have substantially reduced the capital
cost of the scheme for South Gippsland Water
by using our OneBox technology from our
commercial arm, iota.
$13
Appendix C:
Progress against Water Plan 3
This section summarises our progress in delivering our top ten projects against the current Water Plan (2013-18 Water Plan).

PROJECT
PROJECT OUTPUT TO BE ACHIEVED
WITHIN REGULATORY PERIOD STATUS COMMENTS
2013–18 WATER PLAN
VALUE ($ MILLION)
Sewer mains
renewal program
Reduce the risk of sewage spills to the
environment and reduce the risk of adversely
impacting customer service levels.
Project on track and under budget. Savings have been possible through our new
competitive renewal delivery model.
$34
Water mains renewal
program
Reduce the risk of unplanned water
interruptions adversely impacting customers.
Project on track and under budget. Savings have been possible through our new
competitive renewal delivery model.
$61
New office and fit out Gain efficiencies through centralising
operations, as our business currently operates
out of three locations.
Building under construction. Facing challenging site conditions. $78
Sewer rising mains
renewal program
Reduce the risk of sewage spills to the
environment.
Program under review.
We are proceeding with projects
based on prioritisation now. Our
current forecast is $13 million
which reflects our new risk-based
approach.
Through improved condition assessment we
will defer some of our reliability projects.
The default position is to renew the entire
asset, however with careful assessment using
a variety of techniques we can target sections
of the asset for renewal Example: The main
budget for Sixth Avenue rising was $9 million,
afterdetailedassessmentwecan reducespend
to $4.5 million and achieve acceptable risk.
$26
Pound Road
sewerage pump station
To cater for residential growth in this
catchment provision of sewerage services is
required. The works need to have flexibility
to accommodate the expected growth while
maintaining environmental compliance with
the one in five-year containment standard.
$6.8 million of this project is forecast to occur
in 2013-14.
Scope of project extended.
Well advanced, on budget and
on time.
Trialling a ‘developer partnership’ where
we take some key risks and the developer’s
consultant manages the developer’s time risk.
Some lessons learnt. It is a good process,
that manages risk well but it is a cumbersome
contracting model that can be improved.
$7
Cranbourne
recycled water tank
To provide the Cranbourne recycled water
customers with water security in periods of
high demand.
Contracted to delivery partner.
Currently at detailed design and site
establishment stage.
We expect the cost be around $9 million
which comes well under our $12 million budget.
$12

01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / FINANCIALS 05 / APPENDICES 36 South East Water Corporate Plan 2014–19 Published May 2014 01 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Appendix D:
Ministerial reporting directives
Performance indicator measure
2012-13
RESULT
2013-14
TARGET
2014-15
TARGET
2015-16
TARGET
2016-17
TARGET
2017-18
TARGET
2018-19
TARGET
FINANCIAL INDICATORS
Internal financing ratio
(net operating cash flow – dividends)/net capital expenditure per cent 32.6 22.0 39.2 61.2 71.3 77.6 90.8
Gearing ratio (debt to assets)
total debt (including finance leases)/total assets per cent 31.7 34.8 35.4 36.3 36.4 36.2 35.8
Interest cover (cash)
net operating cash flows before net interest and tax/net
interest payments times 3.2 2.5 2.9 2.6 2.7 2.7 2.9
Current ratio
current assets/current liabilities (excluding long-term employee
provisions and revenue in advance) ratio 0.7 0.7 0.7 0.8 0.7 0.7 0.7
Return on assets (based on statutory asset values)
earnings before net interest and tax/average assets per cent 4.3 4.2 4.3 4.4 4.7 5.0 5.5
Return on equity
net profit after tax/average total equity per cent 3.4 5.2 3.3 3.2 3.6 4.0 4.7
EBITDA Margin
(earnings before interest, tax, depreciation and amortisation)
/total revenue per cent 30.1 24.5 27.7 27.4 27.9 28.6 29.8
Table 3: Ministerial reporting directives / Financial indicators

3701 / STATEMENT OF CORPORATE INTENT 02 / BUSINESS PLAN 03 / KEY PERFORMANCE MEASURES 04 / APPENDICES
Table 4: Ministerial reporting directives / Non-financial indicators
Performance indicator measure
2012-13
RESULT
2013-14
TARGET
2014-15
TARGET
2015-16
TARGET
2016-17
TARGET
2017-18
TARGET
2018-19
TARGET
NON-FINANCIAL INDICATORS
Service and environmental performance indicators (each treatment facility)
Reuse indicators
Effluent reuse per cent 23 23 23 23 23 23 23
Biosolids reuse (dry mass) per cent 91 100 100 100 100 100 100
Sewage treatment standards
Number of analyses complying with license agreements as per cent of samples per cent 100 100 100 100 100 100 100
Service and environmental performance indicators (whole of business)
Water supply interruptions
Number of customers receiving five unplanned interruptions in the year
per cent 0.027 0.027 0.047 0.047 0.047 0.047 0.047
Interruption time indicators
Average duration of unplanned water interruptions
minutes 89.0 86.6 89.7 89.7 89.7 89.7 89.7
Restoration of water supply
Unplanned water supply interruptions restored within 5 hours
per cent 99.0 99.4 99.0 99.0 99.0 99.0 99.0
Reliability of sewerage collection services
Sewage spills from reticulation and branch sewers (priority 1 and 2)
number 390 500 539 539 539 539 539
Containment of sewer spillages
Sewage spills contained within 5 hours
per cent 100 100 100 100 100 100 100
Customer complaints indicators
Water quality complaints per 1,000 customers
number 2.7 2.5 2.7 2.7 2.7 2.7 2.7
Sewerage service quality and reliability complaints per 1,000 customers number 0.00 0.01 0.01 0.01 0.01 0.01 0.01
Billing complaints per 1,000 customers number 0.38 0.53 0.50 0.50 0.50 0.50 0.50
Sewage odour complaints per 1,000 customers number 0.03 0.05 0.05 0.05 0.05 0.05 0.05
Total net C02 equivalent emissions tonnes 39,741 42,000 42,900 43,700 44,600 45,500 46,400
South East Water Corporate Plan 2014–19 Published May 2014

20 Corporate Drive
Heatherton VIC 3202 Locked Bag 1
Moorabbin VIC 3189 Australia
Telephone (03) 9552 3000 Facsimile (03) 9552 3001
southeastwater.com.au/enquiries
For a full suite of South East Water’s
corporate reports, visit southeastwater.com.au
South East Water Corporation ABN 89 066 902 547

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