2013 Sustainability Report

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About Us
A sustainable
energy business
Brand Guidelines
Achieving
operational
efficiency
Brand_Guidelines.indd 5
5/04/12 12:46 PM
Operating a safe
and engaged
workforce
Establishing deep
relationships
with customers
Maintaining licence
to operate
Preparing for the
new energy system
GRI reporting
and assurance
market
report 2013
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About Us
About Us
Chairmans Message
Managing Directors Message
About our Report
Awards and Recognition
Feedback
Progress against 2012 targets
Chairmans Message
On behalf of the Board of Directors, I am
pleased to present EnergyAustralias
2013 Sustainability Report.
In 2012, the CLP Group changed the composition
of the EnergyAustralia Board by appointing
an independent non-executive chairman and
four independent non-executive directors,
Ken Dean, Christine OReilly, John Borghetti
and Jane McAloon, bringing the total number
of directors to nine. It is my privilege to serve
as the inaugural independent chairman.
EnergyAustralias aim is to build sustainable,
long-term success for the company. To do this, it
is essential that EnergyAustralia achieves strong
financial performance, manages operational,
market and regulatory risks effectively, provides
competitive services to our customers, and

establishes EnergyAustralia, our new corporate
name, as a trusted and respected brand.
Our approach to sustainability is central to
achieving these goals. As the new Chairman, I
was pleased with the good work that has been
done across the company over recent years to
embed good sustainability practices. During 2013,
we progressed this objective by realigning our
sustainability framework with our revised corporate
strategy and our new framework for managing
environmental, social and governance risks.
Energy is an essential service that underpins
Australias economic prosperity and growth. Reliable
energy supply, produced and distributed costeffectively, underpins a good quality of life for the
Australian community. While this is self-evident,
we do not take our social licence to operate for
granted. Our ability to build a sustainable business
requires us to engage as good corporate citizens
with the communities which we serve and in
which we operate. Our commitment is, therefore,
to manage our impact on the environment
with care, to deal fairly and respectfully with
our workforce, customers, contractors and
neighbours, and to have robust governance in
place to ensure that we operate ethically and to
the highest standards of safety and reliability.
This report sets out how EnergyAustralia has
performed against these objectives over the
past year, and outlines the targets we have
set for ourselves for the period ahead.
Graham Bradley AM
Chairman
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About Us
Managing Directors
Message
Market sustainability is the theme of our Sustainability
Report this year, as it is the common thread across
our operations. Since 2005, we have been able to
build one of Australias largest vertically integrated
energy companies, growing our customer base from
1.1 million to 2.8 million accounts and our generation
capacity from 3,692 megawatts to 5,613 megawatts.
Today we face new challenges associated with
the introduction of the Australian Governments
Clean Energy Future legislative package, falling
electricity demand and a suppressed wholesale
electricity price environment. We are determined
to be successful despite this challenging
environment. We will do that by managing our
costs to ensure we have a business capable of
transforming to meet the changing demand for
energy and by focusing our investment on creating
long term sustainable business opportunities.
Our sustainability commitment is not only to get
better at what we do, but to continue to take
a long term view and make efficient business
decisions that create value for our shareholder,
customers, employees and the wider community.
Snapshot of 2012
2012 presented a number of significant challenges
for the energy sector. Our business also faced a
major weather-related challenge. In June a breach
in the Morwell River Diversion flooded the coal mine
at our Yallourn facility. The scale of the challenge we
faced in dealing with the environmental and social
aspects of the flood were significant. Impressively,
our people came together as a team and quickly
put in place measures to maintain energy supply.
Within a month we had three out of four units up and
running while remediation work was carried out.
From a retail perspective, we continued to make good
progress with the integration of the legacy TRUenergy
and EnergyAustralia retail businesses. The most
significant change was our decision to bring the two
brands together under a revitalised EnergyAustralia
brand. We also rolled out a new customer care and
billing system at the beginning of September. These
projects are crucial to giving us a stable platform
for our retail business, as well as enabling us to
offer sources that give customers more control and
choice, delivering deeper customer relationships.
Likewise, the introduction of MyEnergyReport, now

rebranded eWise, marked a critical change in our
relationship with customers. eWise represents a
shift away from simply being a supplier of energy,
towards partnering with customers to provide
a detailed view of their energy consumption
so they can make informed choices.
Unfortunately, following the introduction of our
new customer care and billing system postimplementation issues led to increased demands
on our Call Centres and an increase in customer
complaints. We have been working with our system
suppliers, Oracle and IBM, to resolve these issues as
quickly as possible. Our customer facing employees
have acted with integrity and professionalism through
this difficult period. We share the frustration some
customers feel from being billed inaccurately or too
late. Once these technical issues are resolved the
new system will deliver enhanced customer service,
including the capacity to offer new products to our
customers, and to do so more quickly and effectively.
Through this demanding year of change we
have maintained the focus of our employees
on continually improving safety across the
EnergyAustralia business. Our Total Injury
Frequency Rate (which measures the number
of injuries per million hours worked) was 4.73
for the year, well below previous years. While
we will not be content until we can achieve our
goal of zero, this performance is an encouraging
sign of our employees commitment to safety.
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About Us
At EnergyAustralia we also recognise that diversity

enhances our ability as an organisation to achieve
our goals. To support diversity within our business,
and promote its benefits, in 2012 we created a
diversity framework built on three pillars - age, gender
and individuality. The framework is underpinned
by a Diversity Charter and Diversity Policy that
express our commitment to diversity, and a Diversity
Council, which I chair, whose role is to ensure that
this commitment is applied within our business.
As an enterprise, we understand that we do not

just live in an economy, we live in a community.
That is why it is important we invest in community
programs. When we take decisions on which
community projects to support, we are firmly fixed
on those projects that can make a real difference
to people in their lives. In 2012 we strategically
partnered with local schools, groups addressing
homelessness, sporting clubs and environmental
projects to support local eco-systems.
The energy sector faces much political and

regulatory uncertainty. For example, the Federal
election outcome in 2013 will have a major
bearing on carbon policy settings in Australia. The
current Opposition has announced that it would
abolish the current Governments Clean Energy
Future legislation and replace the carbon pricing
scheme with a direct action program. Most State
governments continue to regulate retail prices
and impose non-price regulatory measures that
may result in a failure to develop new gas supply
options in the most efficient and transparent way.
Our sustainability framework
EnergyAustralia has a long and respected history

of dealing with Australian and state governments.
We have established long term relationships built on
mutual trust by offering informed, authoritative and
reasoned policy options and solutions. We provide
an industry view consistent with our sustainability
principles and advocate on a range of public policy
issues, from retail price to gas and electricity market
design and the Renewable Energy Target.
In 2012, we also commenced a review of our

corporate strategy to ensure we are well prepared
to respond to the challenges described above.
Our revised corporate strategy is supported
by a refreshed sustainability framework.
We have re-aligned our sustainability framework
by assessing market and consumer trends,
and identifying material issues as they relate
to our core business. Through this process we
identified five core sustainability themes:
1. Achieving operational efficiency we will
continually strive to operate our resources
at an efficient and effective level.
2. Operating a safe and engaged workforce
we will offer our staff a safe workplace
and continue to develop and manage
a loyal and engaged workforce.
3. Establishing deep relationships with
customers we will listen to our customers
and evolve our services and products
to meet our customers needs.
4. Maintaining our licence to operate we will

work with the communities in which we operate
and retain their support of our operations.
5. Preparing for the new energy system we
will keep up with technological changes as
well as influence and adapt to changing
economic, market and regulatory conditions.
We then integrated these sustainability themes
into our risk framework, which we use to identify
and assess strategic, operational, project and
technology risks that the business may face.
To ensure that our progress in these areas is
not merely aspirational, we identified a series of
priorities that in turn are supported by specific
targets. Reporting on the early progress against
these targets is a central purpose of this Report.
Sustainability as a driver of growth

There are no easy solutions to addressing the
risks and opportunities ahead. Our commitment
is that we will not waiver from our sustainability
path. To date, our dedication has stood us in
good stead in dealing with the challenges. We
will continue to push for improvement to seek
out sustainable progress, to remain accountable
for things we control and to converse with
communities to achieve positive outcomes.
About Us
This Report is a clear expression of our commitment

to open reporting on the economic, social and
environmental performance of our business. I would
like to thank all our staff, customers and partners
who contributed to the performance of the business
under difficult market circumstances in 2012.
I hope you enjoy reading the Report
and encourage your feedback through
the channels outlined on page 9.
Richard McIndoe
Managing Director
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About Us
With headquarters in Melbourne, Australia,

EnergyAustralia Holdings Limited (EnergyAustralia)
is a leading vertically integrated and diversified
Australian energy company. At the end of 2012,
EnergyAustralia had total assets of approximately
A$9.3 billion and employed 1,486 employees
across a number of locations in Australia. In
2012 we sold 188.7 million gigajoules (GJ)
of electricity and gas and had a Standard
and Poors credit rating of BBB/Stable.
Major cities

No. of accounts
QLD ~96,000
SA ~154,000
NSW ~1,370,000
VIC ~1,150,000
Gas
Electricity Generation
QLD
Brisbane
We have been on a significant journey over

the last decade and on Monday 8 October 2012
we recognised this by rebranding TRUenergy
Holdings Pty Ltd (TRUenergy) to EnergyAustralia.
EnergyAustralias portfolio of businesses
comprises upstream fuel supply operations
and long term contracts, electricity generation,
gas storage and processing, and electricity and
gas retailing. EnergyAustralia does not own,
operate or have an interest in electricity and
gas transmission and distribution networks.
Our business activities and location of assets
are described in the diagram to the right.
Narrabri (20%
interest in 2,500PJ)
SA
Delta West Gentrader

(2,400MW)
NSW/ACT
Sydney
Adelaide
Hallet Power Station

(203MW)
Pine Dale
coal mine
Tallawarra Power
Station (420MW)
VIC
Cathedral Rocks
(66/33MW)
Yallourn Power Station and

Coal Mine (1,480MW)
Waterloo
(111MW)
Gas Storage Facility
(22PJ storage; 500TJ/d
processing)
Ecogen Hedge
(up to 966MW)
Upstream fuel supply assets

We own, or have an interest in, a range of upstream
fuel supply assets including brown coal, black coal,
conventional gas and coal seam gas. We also
have a portfolio of long-term black coal and gas
supply contracts. We also own or have contracts
with a range of renewable energy assets and
actively promote and sell solar energy systems.
Click here
to view
assets
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About Us
Generation
Retail
About our Report
We are the largest privately owned supplier

of electricity in the National Electricity Market
(NEM), owning, or having long term contractual
arrangements to the output of around 12 percent
of the generation capacity of the NEM. This is
made up of 21 percent of the Victorian region,
9 percent of the South Australian region and
16 percent of the New South Wales region.
EnergyAustralia retails gas and electricity to

approximately 2.8 million residential, small business,
large commercial and industrial customer accounts
in New South Wales, Victoria, South Australia,
Queensland and the Australian Capital Territory.
This is EnergyAustralias second

annual Sustainability Report.
Read more about our Upstream, Generation

and Retails assets in the Achieving
Operational Efficiency chapter.
EnergyAustralia is a wholly-owned subsidiary of CLP
Holdings Limited (CLP), which is publicly listed in
Hong Kong. CLP is one of the largest investor-owned
power businesses in the Asia Pacific region and
operates in Hong Kong, Australia, India, Mainland
China, Taiwan and Thailand. It is also a leading
renewable energy developer with wind farms, hydro,
biomass and solar accounting for more than 20
percent of CLP Groups total generation portfolio.
For more information on CLP Group, visit

https://www.clpgroup.com
The Report has been prepared in accordance

with the Global Reporting Initiatives (GRI)
Sustainability Reporting Guidelines version 3.1,
the GRI Electric Utility Sector Supplement and
the Energy Supply Association of Australias
(esaas) Sustainability Practice Framework.
The Report contains detailed information and
performance data to reflect our progress against
our Climate Change Strategy and 2020 targets.
Unless stated explicitly, the performance data
provided in the Report relates to assets that we
had operational control for the period 1 January
2012 to 31 December 2012. See the About
Us section for information on the assets
for which we had operational control.
For assets where we do not have operational control,
we have only provided information where available
and deemed to be material. We have not reported
on the performance of the formal agreements with
Delta West, Ecogen and Santos. We have provided
customer service information for the Ausgrid Call
Centre, which we currently manage through a
transitional services agreement with the New
South Wales government, but we do not report on
employee engagement and safety for the Ausgrid
Call Centre as staff employment conditions are
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About Us
under the operational control of Ausgrid and will

remain so, post the completion of the agreement.
Contractors are included in safety metrics when they
are working on our operationally controlled sites and
contractor greenhouse gas emissions occurring on
operationally controlled sites are also included.
Defining Report content
Assurance
This Report addresses the sustainability issues

identified as most important by our leadership
team in consultation with our staff and key external
stakeholders.
The Report also contains information on our activities

for the first half of calendar year 2013 where we
believe the information is material to provide context.
In identifying material issues, we used the outcomes

of an independent review by Net Balance of our
adherence to the AccountAbility (2008) Principles
of inclusivity, materiality and responsiveness for
sustainability reporting, which included a review of
our materiality assessment of issues for our 2012
Sustainability Report. Five core sustainability themes
relating to material issues emerged during review.
Read more about these themes in Our Approach
to Sustainability.
Thirteen selected performance data indicators

for our operational controlled assets, which are
considered material to our stakeholders, have been
independently verified at a limited assurance level
by an external service provider, Net Balance, in
accordance with the ASAE3000 Assurance Standard.
Net Balance has also conducted an independent
review of EnergyAustralias adherence to the AA1000
(2008) Principles of inclusivity, materiality and
responsiveness using the AA1000 (2008) Principles
of inclusivity, materiality and responsiveness using
the AA1000 (2008) Assurance Standard (AA1000AS).
Previous sustainability
related reports
Last years Sustainability Report was
launched in August 2012 under the
TRUenergy brand and is located here
We produced business-wide
Environmental and Social Reports in
2005, 2006 and 2007 and these can be
obtained by requesting a copy:
sustainability@energyaustralia.com.au
Our Yallourn Power Station and Mine

produces annual Environmental and
Social Reports as part of our obligations
under the Environment Protection
Authority of Victoria (EPAV) licence for
the power station and mine. A copy on
the latest Report can be found here
A copy of Net Balances statement can be

located here
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About Us
Awards and Recognition
Feedback
Our 2012 Sustainability Report was shortlisted

in the Relevance and Materiality category for the
2013 CorporateRegister corporate responsibility
reporting awards (CRRA13). The CRRA13 is the
only independent global annual awards for corporate
responsibility reporting.
If you have questions about our

Sustainability Report, please contact us.
Tallawarra Lands was awarded the 2012 Award for

Landscape Planning from the Australian Institute
of Landscape Architects of New South Wales. The
priority of the award programme is to highlight the
importance of the climate change and sustainability
considerations implemented by landscape projects.
Our retail business was awarded the 2012 Canstar
Blue Star for most satisfied customers, electricity
provider in South Australia. We were awarded five
stars for uninterrupted supply of energy to homes
across the state, availability of payment plans,
customer service, information and advice about
energy efficiency, and overall customer satisfaction.
EnergyAustralia was a 2011 Canstar Blue award
winner for South Australian natural gas suppliers,
and a 2010 winner for South Australian electricity
providers (operating under the name TRUenergy).
Email: sustainability@energyaustralia.com.au
Address: Level 33, 385 Bourke Street,
Melbourne, VIC, 3000
Phone: (03) 8628 1000
GRI Content Index

The Global Reporting Initiatives (GRI) Sustainability
Reporting Guidelines version 3.1 constitutes a
set of universal sustainability reporting indicators.
The GRI Electric Utility Sector Supplement
(EUSS) was developed to provide specific content
guidelines important to the energy sector.
GRI version 3.1 and EUSS report indicators are
presented in the table at the end of the Report
alongside the relevant sections in the Sustainability
Report. Net Balance has prepared the GRI
Application Check and they have assessed the
Sustainability Report at a B+ Application Level
against the GRI criteria for reporting status.
Progress against 2012

targets
In last years Sustainability Report we outlined our
2012 sustainability targets. The table on the next
page shows our progress against those targets.
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About Us

Aim
Objective
2012 Target
2012 Performance
Pillar 1: Business Performance

Continually increase
business value
1. Create long-term
shareholder return
2. Continually improve our
business
3. Enhance individual
organisational capability
4. Operate our business
ethically
Integrate sustainability considerations into the TRUenergy risk matrix

and monitor these risks through the regular risk management report
Completed
Click here for further details
Invest two percent equivalent of total payroll expenditure in leadership

and development programs
2.4 Percent of total payrol spent on

learning and development in 2012
Ensure all parts of the business are ready for the commencement of
the Clean Energy Future legislation
Completed
Comply fully with each power stations generation performance

standards, as agreed with the Australian Energy Market Operator
Complied
20 percent of TRUenergys energy mix supplied by renewable

technologies by 2020, in line with Renewable Energy Target
On track
Comply with energy efficiency regulatory schemes
Met
Invest in the acquisition of / permitting for at least two wind farm sites
Met
Pillar 2: Energy Supply

To deliver world-class
products and services
1. Supply energy reliably

2. Be energy efficient,
Plant, office & transport
Efficient use of resources
3. Adopt emerging technology
in a timely manner
4. Help our customers better
manage their energy usage
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About Us

Aim
Objective
2012 Target
2012 Performance
Pillar 3: Environment
Towards minimal
environmental impact
1. Use resources responsibly

2. Reduce greenhouse gas
emissions intensity
3. Minimise biodiversity impact
Continue a long path of reducing greenhouse gas emissions intensity

by one third of 2007 levels by 2020
On target, 2012 emissions intensity 0.99

TC02/MWh
Develop biodiversity register across our operational sites
On track
100% compliance with environmental licence conditions
One water discharge breach at Yallourn

power station and mine
Stakeholder engagement plan implemented and reviewed
Completed
Produce an annual Sustainability Report
Completed
Achieve the AON Hewitt Brest Employer range for employee

engagement performance
2012 engagement score of 53 percent

Total injury frequency rate less than 8.0
2012 TIFR achieved 4.73

Completion of annual Healthy, Wealthy, Fit and Wise program
On track
Achieve Net Promoter Score for customer loyalty at Ieast 10 points

higher than the next tier 1 energy company
EnergyAustralia brand met target

TRUenergy brand behind target
Review, update and implement revised hardship policy
Completed
Pillar 4: People
To meet the
evolving
expectations of
our stakeholders
1. Consider stakeholder views in

business decision making
2. Zero injuries and a healthy
workforce
3. Develop committed and
motivated employees
4. Be a responisible neighbor
5. Respond effectively to
hardship challenges
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A sustainable energy business
A sustainable
energy business
Our Corporate Strategy
Our Sustainability Framework
Governance
Our Stakeholders
Our core business has been to produce and

sell centralised energy. Our portfolio of assets
has been strategically constructed to ensure
EnergyAustralia has a long term and sustainable
presence throughout the energy value chain, ranging
from upstream fuel supply to gas processing and
storage, electricity generation and downstream
retail customers. We have and will continue to
develop a diverse generation portfolio supported
by a strong fuel position that allows us to continue
to be a dependable, cost competitive supplier of
electricity and gas. Importantly, we believe the
business has the flexibility to navigate through
an environment characterised by high levels of
regulatory, market and economic uncertainties.
Our Corporate Strategy

Faced with market, regulatory and business
uncertainties in 2012, we reviewed and
advanced our corporate strategy.
Under our revised corporate strategy we aspire
to be Australias leading electricity and gas
company. Our goal is to increase the value of the
business significantly through industry leading
customer service, the highest levels of employee
engagement and continuous improvement in the
economic return on our assets. EnergyAustralias
aim is to be dependable, reliable and safe - and
the notion of helping Australians with efficient
energy solutions underpins everything we do.
We have a clear approach to ensure a sustainable
business model for today and tomorrow. Today
we are focusing on optimising our integrated
business. We will achieve this by:
Maximising and growing value
in our existing assets;
Reducing costs and striving for
process and system efficiencies;
Continuing to improve service;
Undertaking effective advocacy; and
Continuing to build business capability.
We are operating in a dynamic and challenging
environment, which means we need to be
flexible, innovative and responsive in our
approach to meeting future challenges.
We have already begun planning for tomorrow, which

involves focusing on delivering seamless energy to
our customers, whether from a pipeline, the grid or
even generation from the home. We have begun
to offer smart and innovative solutions to find better
ways for our customers to get the most from their
energy choices. At the same time we are seeking to
diversify our earnings and realise superior value for
our shareholders. It is imperative that we continue to
build pathways to changing energy demand and over
the longer term create options for sustainable growth.
To achieve our strategy, we will continue to
attract and support outstanding people who
share our vision to provide Australia with brighter
energy solutions for today and tomorrow.
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Our Sustainability
Framework
At EnergyAustralia, sustainability is part
of who we are and how we operate. More
than just the environment, sustainability
is about taking a longer term view and
making efficient business decisions that
create value for our shareholder, customers,
employees and the wider community.
Last year we developed four pillars to support
our sustainability framework and underpin our
strategic intent. Specifically, the framework
outlined our sustainability objectives in the
key focus areas of business performance,
energy supply, environment and people.
This year we have re-focused our sustainability
framework so that it assists us to deliver on
the corporate strategy. We have replaced
the four pillars framework with sustainability
themes based on our core activities.
EnergyAustralias sustainability framework journey
2012 Sustainability pillars
Business
Performance
2013 Sustainability themes
Operating
a safe and
engaged
workforce
EnergyAustralia
Sustainability
themes
Energy Supply
Environment
People
Achieving
operational
efficiency
Establishing
deep
relationships
with
customers
Aspire to be
Australias leading
electricity and
gas management
company
Through:
1. Optimising
integrated
business
Preparing for
the new energy
system
Maintaining
licence to
operate
Revised Corporate Strategy
2. Building
pathways to
changing energy
demand
3. Creating options
for sustainable
growth
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In developing the new sustainability framework we

identified material issues to the business through
conducting face-to-face interviews with the Group
Executive Management (GEM) team, surveying staff
and conducting an external independent review.
Five core themes relating to material issues emerged
during this process. The five sustainability themes are:
an engaged, loyal and experienced workforce.

Their combined talents, skills, knowledge, diversity
and commitment shape the Companys long-term
success.
1. ACHIEVING OPERATIONAL
EFFICIENCY
We aim to deliver a reliable supply of electricity and
gas while ensuring a stable return on investment for
our shareholders and value for our business partners.
To do this we must exercise prudent financial
management, maintain a strong financial position
and retain discipline in business operations. Capital
and resources must be used wisely and we must
place a strong focus on the most efficient use of our
resources such as fuel, materials and people.
The relationship between energy retailers and their

customers is rapidly changing. The traditional model
where a retailer has minimal interaction with their
customers, based on quarterly energy bills and
annual price notifications, has significantly changed.
Customers are rightly expecting greater customer
service and interaction, especially around support on
how to best manage energy around their homes and
businesses. In this environment, it is imperative that
we respond by broadening our customer service in a
timely and effective manner.
2. OPERATING A SAFE AND ENGAGED

WORKFORCE
4. MAINTAINING LICENCE TO
OPERATE
With inherent risks associated with the construction,

operation and maintenance of our varied sites,
including power stations, coal mines, gas storage
and processing, call centres and corporate offices,
we need to ensure the highest attention to safety. No
one should be injured as they perform their work. Our
obligations in this regard extend not only to our own
employees but also to our partners, our contractors
and anyone who legitimately enters any of our
facilities.
It is imperative that, at a minimum, we operate our

business within the rules contained in our generation
and retail licences. Breaches of these obligation leads
to a lack of faith from our operating partners and our
customers.
It is our goal that we proactively develop and manage
3. ESTABLISHING DEEP
RELATIONSHIPS WITH
CUSTOMERS
We go beyond legal compliance to ensure our

business gains and maintains the support of the
people that live, work and are affected by our
operations. This social licence to operate is earned
only through us demonstrating our values and acting
according to them. The geographical distribution,

the variety of our fuel supply, generation sources
and large customer base creates an additional
challenge for us since our stakeholders are diverse,
with sometimes conflicting expectations of us.
However, we are committed to proactive engagement
to foster and maintain the trust and support of our
stakeholders.
5. PREPARING FOR THE NEW ENERGY

SYSTEM
Technological change has been a significant
influence on the energy industry, from emerging and
mature technological advancements in generation to
managing and using electricity more intelligently. We
must monitor, assess, adopt and deploy technology
to help us generate and deliver energy in a more
efficient, cost-effective, environmentally friendly and
reliable manner.
The energy sector is also heavily regulated in ways
that affect investment, retail prices, climate change
and renewable energy, environmental performance
and customer service. Uncertainty of future
regulations in these areas represents a significant
commercial risk. We must maintain a strong
advocacy presence.
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The following diagram provides an outline of our

sustainability theme and priorities.
Priorities
Respond effectively to
changing policy, economic
and market conditions
Contribute to policy and
regulatory development
that delivers sustainable
energy markets
Reduce carbon intensity
of the business
Priorities
Continue to develop corporate
community support and
goodwill for the business
Ensure effective local community
engagement in operations and
during business development
Ensure regulatory performance
Priorities
Ensure availability and reliability
Effective financial management
Use resources responsibly and continual
process improvement
Achieving
operational
efficiency
Preparing for
the new energy
system
Sustainability
Themes
Maintaining
licence to
operate
Operating
a safe and
engaged
workforce
Establishing
deep
relationships with
customers
Priorities
Create a safe working
environment
Improve employee
engagement
Ensure sustainability of
talent supply to deliver
business strategy
Priorities
Provide excellent and
consistent levels of
service to our customers
Assist customers to better
manage their energy use
Become the preferred
energy retailer brand
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It would be unrealistic to attain our sustainability

targets overnight, as they depend on many
factors, including but not limited to, business and
regulatory environments, commercial viability and
other changing circumstances. The framework
nevertheless sets the general direction of where
EnergyAustralia wants to be and underscores our
efforts in moving towards being a sustainable
business. How we get there is an unfolding story of
our journey as we navigate through the changing
times with our stakeholders.
Value Chain
EnergyAustralia context
Fuel Supply

Safety
Community Engagement
Environmental Management
Reliability/Availablity
Cost Competitiveness
Embed sustainability into leadership, corporate strategy, governance, ethical

purchasing, risk, media communications & advocacy
We have mapped the five sustainability themes

against our value chain and used our enterprise
risk framework to inform, rank and prioritise our
sustainability risks. We then set performance
targets against the five sustainability themes for
our 2013 Report. The following diagram shows
how these themes align with our value chain
and sustainability risks from our enterprise risk
register. Read more about our approach to risk
management in the Governance chapter. Each
theme is addressed by a Chapter in the Report.
Generation

Safety
Community Engagement
Environmental Management
Reliability/Availablity
Reduce Carbon Intensity
Innovation
Renewable Energy Market
Networks
Transmission
Distribution
Retail

Customer Experience
Brand Values
Service Based
Customer Churn
Energy Efficiency
Sponsorships
Material risks by sustainability themes

Establishing Deep
Relationships
with the Customer
Achieving Operational
Efficiency
Portfolio of gas
supply contracts
Portfolio of black
coal supply
contracts
Yallourn and Pine
Dale coal mines
Underground gas
storage and
processing
Gunnedah Basin
coal seam gas
Yallourn base load

brown coal-fired
power station
Delta West base load black
coal-fired power stations
Ecogen, gas-fired,
intermediate/peaking
power station
Hallett, gas-fired
peaking station
Cathedral Rocks and
Waterloo wind farms
Long term gas and coal supply

Land access (coal seam,
wind farm)
ISO 14001 accreditation
Environmental waste targets
(non carbon)
Preparing for the New

Energy System

No assets
Use of System
Agreements
Supply, reliability and
generator access of
Networks is controlled
by providers
EnergyAustralia
invoices on behalf of
Network providers
2.8m customers
(mass market, small
and medium
enterprises and
large commercial and
industrial)
IBM perform back
office functions
External messaging (public

reports, media releases
submissions)
Customer service
expectations and standards
(inc. hardship)
Customer complaints
Privacy breaches
Third party sales agents
Business partners and
vendors
Communication of retail
products and tariffs
Implementation of long term
strategic initiatives
Timely and accurate billing
Reliability of plant systems

and technology
Uplanned outages
ISO 14001 accreditation
Environmental waste targets
(non carbon)
NA - EnergyAustralia does
not own or operate in
Transmission/Distribute assets
Legislative or government
policy / regulatory change
Climate change
Reduced consumption - mass
market and large commercial
and industrial customers
Non traditional competitors
entering the market and/or
M&A activity
Possibility of carbon repeal
Changes in RET
R&D investment (e.g. brown
coal, energy services, carbon
reduction)
Implementation of long term
strategic initiatives
Maintaining Licence to
Operate

IT Infrastructure
IS vendors
Billing system stability
Ausgrid Integration
Asset management (lntegrity

Containment /Continuing
Operations; Remediation)
Community engagement (inc.
stakeholder communications
across business units)
Land access (coal seam,
wind farm)
Maintain / improve ecosystem
ISO14001 accreditation
Business partners and
vendors
Operating a Safe and

Engaged Workforce

Recruit, develop and retain

motivated, high performing
people
Staff engagement and
communication
Staff safety and
development of safety
Succession planning for
key positions
Workforce planning
Contractor management
EBA negotiation at assets
Relationship with distributors,

regulatory and government
bodies
Compliance with legislative
and/or regulatory obligations
(state, federal )
Disclosure and governance
Price regulation
Click
here to
enlarge
Page | 17
Governance
Ownership
As a private Australian company wholly owned by
CLP Group, EnergyAustralias governance structures
and processes have been established by CLP
Group Management as part of their delegation of
authority from the CLP Group Board of Directors.
The CLP Group Board is charged with promoting
the success of the CLP Group by directing
and supervising its affairs in a responsible and
effective manner. Each Director has a duty to act
in good faith in the best interests of the Group.
Apart from providing reports on performance for the
CLP Group Board meetings, EnergyAustralia is also
required by the CLP Group Board to provide Monthly
Management Reports that contain year-to-date
financials with summaries of key events, outlook,
safety and environmental matters for EnergyAustralia.
More details on CLP corporate governance
framework
can beon
found
oncorporate
CLPs
More details
CLP
web-site,
https://www.clpgroup.com/
governance
framework can be found on
ourcompany/corporategovernance/
CLPs web-site, here
Pages/corporategovernance.aspx.
EnergyAustralia Board
CLP Group Management, as part of their delegated
authority, has established the EnergyAustralia
Board of Directors. A key focus in 2012 was the
improvement of EnergyAustralias Corporate

Governance, with the early adoption of key
aspects of the ASX Corporate Governance
Councils Principles and Recommendations.
In 2012, the CLP Group re-structured the
EnergyAustralia Board (the Board). Previously,
the Board consisted of EnergyAustralia and CLP
Executive Directors. As at 31 December 2012, the
Board consists of a majority of five Independent
Non-Executive Directors from diverse backgrounds,
professions and skill sets as well as three CLP
Executive Directors and one EnergyAustralia
Executive Director. The Independent NonExecutive Directors were appointed between
June and December 2012. The Chairman of
EnergyAustralia is an Independent Non Executive
Director and was appointed on 25 October 2012.
The Board of Directors have been chosen based
on the qualifications, expertise, range of skills,
knowledge and experience to govern effectively
the business. The Non-Executive Directors
contribute operational experience, understanding
of the sectors in which we operate, knowledge of
the regulatory environment in which we operate,
knowledge of the marketing challenges, capital
markets and an understanding of the health,
safety, environmental responsibilities, industrial
relations and community challenges the business
faces. The CLP Executive Directors also bring
the perspective of the ultimate shareholders.
Non-Executive Directors have participated in
structured training and development programs to
build their knowledge of specific EnergyAustralia

business issues and market issues, including
visits to our operations and detailed business
briefings on the business units. The training and
development program also covered regulatory
updates and governance areas covering both
EnergyAustralias obligations and, where relevant,
CLP Group obligations in Hong Kong.
The roles and functions of the Board and those
delegated to senior executives, are set out in
the Board Charter, which was approved by the
Board on 25 October 2012. The Boards role
includes the oversight of the development and
implementation of EnergyAustralias corporate
strategy, its operational performance and the
performance of management, with a view to creating
sustainable, long-term value for shareholders.
The Board has established two standing
committees, the Audit and Risk Committee and
the Nomination and Remuneration Committee.
The Audit and Risk Committee has three members
and does not include the EnergyAustralia Managing
Director. It consists of a majority of Independent
Directors and is chaired by an Independent
Director. The Audit and Risk Committees roles and
functions are set out in the Committees Charter,
which was approved by the Board on 25 October
2012. The role of the Committee includes the
oversight of the integrity of the EnergyAustralia
Groups external financial reporting and financial
statements; the appointment, remuneration,
Page | 18
independence and competence of EnergyAustralias

external financial auditors; the performance
of the internal and external audit functions
and review of their audits; the effectiveness of
EnergyAustralias system of risk management
and internal controls and EnergyAustralias
systems and procedures for compliance with
applicable legal and regulatory requirements.
are set out in the Committees Charter, which was

approved by the Board on 25 October 2012. Its
responsibilities include identifying and making
recommendations regarding the necessary and
desirable competencies of Directors and composition
of the Board, so that it encourages efficient decision
making. It also assists in reviewing Board and
senior executive renumeration, incentive scheme,
performance objectives, succession plans and
processes including for the Managing Director
and other senior executive positions, including
the GEMs and being conscious of each Directors
tenure, to maintain an appropriate balance of skills,
experience, expertise and diversity; and having
regard to EnergyAustralias operating performance,
The Nomination and Remuneration Committee

has three members and does not include the
EnergyAustralia Managing Director. It consists of
a majority of Independent Directors and is chaired
by an Independent Director. The Nomination and
Remuneration Committees roles and functions
financial position and strategic objectives.

In addition, the Competition Consumer Compliance
Committee has been established to assist the Board
and EnergyAustralias management to ensure
EnergyAustralia adopts robust compliance processes
to meet its obligations under the Australian Consumer
Law (ACL), and appropriately liaise with the
Australian Competition and Consumer Commission
(ACCC) and all other relevant regulators.
The Board has committed to evaluate its
performance annually, having regard to
the extent to which the Board has met its
responsibilities in terms of its Charter.
Board Members, as at 31 December 2012

Name
Position
Gender
Age
Nationality
Committee activities
Mr Graham Bradley BA, LLB (Hons 1), LLM, FAICD
Non-Executive
Chairperson
Male
64
Australian
Chair, Nomination and Remuneration Committee

Chair, Competition Consumer Compliance Committee
John Borghetti
Non-Executive Director
Male
57
Australian
Member, Nomination and Remuneration Committee

Member, Competition Consumer Compliance Committee
Ken Dean BCom (Hons), FCPA, FAICD
Male
60
Australian
Chair, Audit and Risk Committee
Christine OReilly, BBus
Female
52
Australian
Member, Audit and Risk Committee
Jane McAloon, BEc (Hons), LLB, GDipGov, FCIS
Female
49
Australian
Andrew Clifford Winawer Brandler, MA, MBA, ACA
CLP Executive Director
Male
57
British and Canadian
Mark Takahashi, BSc (Eng.)
Male
54
American
Member, Audit and Risk Committee
Peter William Greenwood, MA, FCS, FCIS
Male
56
British
Richard Iain James Mclndoe, MA, MBA
Executive Director
Male
48
British
Member, Competition Consumer Compliance Committee
Page | 19
Group Executive Management

(GEM) team
The GEM team is responsible for establishing
and executing the corporate strategy within
the parameters set and approved by the
EnergyAustralia Board. The GEM comprises the
Managing Director and seven direct reports.
The GEM team is also responsible for overseeing
the continued improvement of EnergyAustralias
sustainability framework. Key social and
environmental information, such as total injury
frequency rate, employment levels and turnover
rates, customer service and generation performance
levels are reported to and assessed by the GEM
team on a monthly basis in conjunction with key
financial metrics. In early 2013, a new GEM was
appointed with direct responsibility for overseeing
EnergyAustralias corporate and sustainability
strategies. Among other responsibilities, this GEMs
team is responsible for capturing environmental and
social considerations into the corporate strategy.
A portion of the GEMs incentive is currently linked
to EnergyAustralias agreed safety targets. In 2013,
GEMs and their direct reports will also have part of
their short term incentive determined by the 2013
employee engagement results. The Nomination and
Remuneration Board Committee will also play a
more direct role in setting and aligning remuneration
to EnergyAustralias sustainability priorities.
Ethical practices
EnergyAustralias management and employees
adhere to extensive governance policies and
practices to ensure actions are accountable,
ethical and transparent. These policies and
practices are guided by CLP Groups Code
on Corporate Governance, which provides a
strong framework for ongoing performance
and management of EnergyAustralia.
In 2012, the EnergyAustralia Board
agreed to the GEM team developing an
EnergyAustralia Code of Conduct.
CLP Group Code of Conduct

The CLP Group Code of Conduct outlines
EnergyAustralias commitment to acting with
integrity at all times in dealings with customers,
stakeholders and with each other. Acting ethically
goes beyond the narrow letter of the law, entailing
us to act honestly, fairly and with no undue influence
from others. The Code applies to all employees,
officers, contractors and Board of Directors, with
specific obligations for selected individuals in
key positions throughout EnergyAustralia. All
employees of EnergyAustralia, irrespective of their
position and functions, are expected to fully adhere
to the principles contained in the Code and are
required, as part of their employment conditions,
to undertake annual training on the Code.
In 2012 there were 12 breaches of the

Code by EnergyAustralia employees and
contractors. Sanctions applied ranged
from reprimand to dismissal. None
of the breaches were material to our
financial or operational performance.
Page | 20
Company Management and

Authority Manual (CMAM)
The CMAM sets out the key governance and
authorisations protocols for the overall operation
and management of EnergyAustralia. The CMAM
outlines the necessary reviews, endorsements
and approvals required from the relevant Board of
Directors, committee bodies and the GEM team
for all transactions, financial commitments and
policies to be entered into by EnergyAustralia.
In particular, any matters that could materially
affect the business affairs, financial standing and
reputation of EnergyAustralia are brought to the
attention of the EnergyAustralia Board (including
by way of regular reporting of financial and nonfinancial information as well as the holding of
meetings of the Board of Directors at regular
intervals) and/or any relevant bodies, including the
Finance and General Committee of CLP Group.
Risk Management
A strong and comprehensive risk management
structure and detailed risk management policies
establish a framework to ensure that risks across
EnergyAustralia are identified, managed and reported
in accordance with standards approved by the
EnergyAustralia Board of Directors and CLP Group.
Our enterprise risk management policies require

business units to develop and maintain risk
profiles. EnergyAustralias risk profiles articulate
the possible exposures and events that may
occur preventing the business from achieving
its corporate strategy and objectives. They are
prepared and updated on a regular basis and
are used to influence decision-making and
investment governance decisions. In 2012, we
also used the framework to rank and prioritise our
sustainability risks and set performance targets.
We have an enterprise risk profiling procedure that
describes the process for developing risk profiles.
The profiling procedure is consistent with the
International Risk Management Standard ISO31000
and industry best practice. The risk types and
categories in the procedure include: people and
safety; legal and regulatory; environment; operations
and systems; financial; strategic projects; strategic
business partners and vendors; asset reliability;
wholesale market and energy supply chain.
Risk management is also embedded in project
management and integrated within our generation
asset operations. We also have a business
continuity framework and plans addressing
mission critical and highly important processes.
Procurement
We procure products and services with
businesses that share our values.
We evaluate suppliers ability to meet the
expectations outlined in CLPs Responsible
Procurement Policy Statement (RePPS). The
Statement addresses four key principles: compliance
with law; respect for people; ethics and business
conduct; and responsible environmental stewardship.
View the RePPS at https://www.clpgroup.
com/ourcompany/aboutus/valueframework/
Pages/valueframework.aspx
We also evaluate suppliers level of sustainability
risk in the context of several risk factors including:
product / service;
level of subcontracting;
country; and
brand association.
We also segment suppliers and, for those deemed
critical, we undertake a deeper assessment of
their processes around assessing sustainability
risk, supply continuity and risk management.
Page | 21
Internal Audit
esaa Sustainable Practice Framework
CLP Group uses an internal audit group to assist

the EnergyAustralia GEM team by providing
independent appraisals of the degree of compliance
with prescribed policies and procedures that fit under
the governance framework and evaluations of the
effectiveness of all financial and related controls.
EnergyAustralia is a member of the Energy

Supply Association of Australia (esaa). The esaa
is a CEO-led, peak industry body representing the
stationary energy sector in Australia. The esaa is
fuel and technology neutral and member businesses
have investments across a wide range of fossil
fuel and renewable generation technologies.
The GEM team is required to evaluate all

internal audit findings and recommendations
and to take action as appropriate, with
particular attention to prompt corrective action
regarding deficiencies in internal controls.
Political donations
We participate in political fundraising events but we
do not make direct political donations. These events
enable us to directly communicate with members
of parliament and other business leaders on our
strategic priorities. The Managing Director or a GEM
attends such events. In 2012 we contributed $37,800
to political parties through attendance at 30 events.
Read more about our public policy development
and participation in the Contribute to policy
and regulatory development section of the
Preparing for the New Energy System chapter.
In 2012 EnergyAustralia became a signatory

to the esaas Sustainable Practice Framework.
The Framework takes into account the Global
Reporting Initiative Guidelines and its related
Electric Utilities Sector Supplement. The energy
indicators developed for the esaa Framework
have been referenced by the Institute of Chartered
Accountants in a supplement to its Broad-based
Business Reporting Framework. Adoption of the
Framework by esaa members is voluntary.
Page | 22
Our Stakeholders
EnergyAustralias key stakeholders are groups
or individuals that influence, or are influenced
by, our business operations and key assets.
We have identified and selected them through
our long history of operation in Australia. These
key stakeholders are long term partners in our
business success. Their views and concerns
guide our sustainability framework and underpin
how we prioritise the information presented
in this Report. Our key stakeholder groups
are described in the following diagram.
Due to the diverse nature of our stakeholders,
we customise our engagement activities to meet
each groups needs. As such, in any given year
we converse with our stakeholders through
multiple channels, including: consultations;
submissions to governments; knowledge
sharing forums; collaboration projects with
community and interest groups; staff forums;
briefings and digital communication; formal
meetings; reporting and correspondence with
our partners; and visits to our facilities.
This ensures that our stakeholders have a good
understanding of the energy sector and our
operations specifically. It also allows us to gain
insights into what issues are important to our
stakeholders and feed them into our business
planning processes. The process also allows us
to inform our stakeholders of activities in which we
are involved and how we are dealing with issues
Providers of
capital
Local
communities
Employees
Stakeholders
State and Federal

Governments
Customers
Suppliers and
business partners
of importance to them. Through these activities,

we are able to develop a more robust business
strategy and continue to improve our operations.
In 2012 we used the AA1000 Stakeholder
Engagement Standard to re-confirm the list of
stakeholders as part of preparing our inaugural
Sustainability Report. Net Balance also conducted,
in September 2012, an internal review of
EnergyAustralias sustainability management
approach against AA1000 (2008) principles of
materiality, inclusivity and responsiveness. The Net
Balance Report found considered and systematic

approaches to stakeholder engagement exist
and made a number of recommendations for
continuous improvement. We adopted a number
of recommendations from the Net Balance report
to improve our processes for indentifying and
responding to our key stakeholders, including
developing formalised policy positions and
guidelines on stakeholder engagement for
our government relations activities. We also
set up an investor relations unit to deepen our
engagement with the investment community.
Page | 23
The table below provides an outline of the key issues of interest for each
group and how we communicated with each group in 2012.
We engaged with our stakeholders in 2012 through means such as

Stakeholder
Typical interests and concerns
Activities
CLP Group
Long-term financial security; impact of

carbon policy and regulatory intervention;
alignment with group wide company values
Monthly Management Reports to the CLP Group Board of Directors that contain
financial, operational, environmental and social performance updates;
Providing financial, environmental and social information for inclusion in CLP Group Annual and
Sustainability reports as well as quarterly CLP Group investor briefings and ad-hoc investor
presentations, https://www.clpgroup.com/ourcompany/investors/Pages/investors.aspx;
Input of EnergyAustralia environmental performance data to the CLP Group Environmental Reporting System;
Participation of EnergyAustralia specialist staff on CLP Group wide quarterly safety, environment and sustainability forums.
Employees &
Contractors
Workplace health and safety; social,

environmental and economic impact of
new developments and use of existing
assets; career development opportunities;
performance management; senior
leadership
Annual Employee Opinion Survey where employees have the opportunity to provide input on the performance of the
Company with staff engagement (Read more in the Operating a Safe and Engaged Workforce chapter);
A number of business units ran quarterly internal Net Promoter Score surveys in 2012;
Performance Development program that encourages staff to hold regular discussions with their managers
and provide feedback on business unit and individual performance against corporate strategy;
Ask the Management function that allows employees to submit questions or feedback
directly to members of EnergyAustralias Executive Management Team;
Quarterly Managing Director staff briefings and Executive Management Team briefings that outline the performance of
Company against business strategy and provide staff the opportunity to ask questions on performance and strategy;
Use of regular e-mail and intranet to provide staff with information on safety and wellbeing programs as well as major business development updates.
Customers
Quality customer service; billing issues,

energy and carbon pricing; use of roof top
solar and feed-in tariffs; smart meter roll out
in Victoria; responsible sales and marketing;
service offerings; environmental impact of
energy generation.
EnergyAustralia Market Retail Contract Terms and Conditions that outlines our customer
service commitment as well as what we expect from our customers;
Information on our website on our products and services as well as an opportunity
for customers to provide feedback, www.energyaustralia.com.au;
Dedicated Call Centres to assist customers with queries and complaints
(Read more in the Establishing Deep Relationships with Customers chapter);
Personalised support for our commercial and industrial customers through dedicated account managers;
A Customer Welfare team that provides personalised support to customers experiencing ongoing financial hardship
with paying their energy account (Read more in the Establishing Deep Relationships with Customers chapter);
Weekly social media reports that provide a summary of what customers are saying about us
through this communication channel as well as using social media to inform customers of
energy efficiency opportunities and responding to customer queries through Twitter.
Page | 24
We engaged with our stakeholders in 2012 through means such as

Stakeholder
Typical interests and concerns
Activities
Key business
/ joint venture
partners
Land management; good corporate

governance and risk management
practices; impact of carbon policy and
regulation; customer service; workplace
safety; local community consultation
Transitional Services Agreement with the state-owned network business Ausgrid (formerly the EnergyAustralia
network business) to provide operational and billing services to EnergyAustralia for up to three years;
Gentrader Agreement with Delta West for the output of the Wallerawang and Mt Piper Power Stations (Delta West
is a New South Wales Government business) with administration and management of the Agreement through a coordination committee made up of EnergyAustralia and Delta representatives (Read more in the About Us chapter);
Formal Hedge Agreement with Ecogen, 100 percent owned by Industry Funds Management, that gives EnergyAustralia the
right to trade the electricity output of the Newport and Jeeralang Power Stations (Read more in the About Us chapter);
A long-term contractual agreement and a structured governance framework with IBM Services to provide EnergyAustralia
with billing and related operational services as well as technology development, maintenance and infrastructure services;
Alliance arrangement with Roche Thiess Linfox to operate and maintain the Yallourn Mine and with Silcar
to maintain the Yallourn Power Station, as well as a partnership with Programmed Facility Management to
deliver site facilities management and protective services at the Yallourn Power Station and Mine;
A formal arrangement, including quarterly joint committee meetings, with Santos for 20 percent interest
in the coal seam gas reserves in the Gunnedah Basin (Read more in the About Us chapter);
Formal agreement with Acciona for joint ownership of the Cathedral Rocks wind farm.
Governments
Regulatory compliance; energy security;

investment in cleaner and renewable
energy sources; quality customer service;
local community relations
Government and regulatory team members hold regular dialogue with Federal and State government
members and advisers, regulators (including, consumer law, energy and environmental based
regulators), departmental staff, state based Energy Ombudsman Schemes and consumer advocacy
groups (Read more in the Preparing for the New Energy System chapter);
Appear at and provide expert industry views at Parliamentary Committees and Inquiries;
Submissions to relevant government, regulator, market institutions and departmental reviews
and inquiries (Read more in the Preparing for the New Energy System chapter);
Membership of political party networking groups and attend political fundraising
events from time to time (Read more in the Governance chapter);
EnergyAustralia Executives participate as expert speakers and members of discussion groups in energy
forums, conferences and events, including the Managing Director being the key note speaker at the
Committee of Economic Development of Australias (CEDAs) Queensland Energy Outlook seminar
and delivering the keynote address at the Infrastructure Partnerships Australia 2013 Conference on
The requirement and pathways to achieve a functional and efficient national energy market.
Local
communities
Local social and economic impacts of

developments and infrastructure (e.g.
land disturbance, emissions output,
noise, health); employment opportunities;
workplace health and safety
Regular community/environmental liaison group meetings are held at existing and new
assets (Read more in the Maintaining Licence to Operate chapter);
Conduct Open Days to obtain community feedback on proposed construction of generation assets at respective locations;
EnergyAustralia sites sponsor and staff participate in local community environmental and
social events (Read more in the Maintaining Licence to Operate chapter);
Corporate community and sponsorship programs (Read more in the Maintaining Licence to Operate chapter).
Lenders
Long-term financial security; impact of

carbon policy and regulatory intervention;
alignment with group wide company values
Delivery of half yearly and annual financial statements (Read more in the Achieving Operational Efficiency chapter);
Biannual reporting of performance against prescribed financial ratios;
Periodic confirmation of compliance with undertakings contained in the relevant debt documents.
Page | 25
Achieving operational efficiency
Achieving
operational
efficiency
Core themes and Priorities
2013 Targets
Sites to comply with their Generator Performance Compliance Plan

Yallourn Mine recovery completed to planned time and cost
Maintain BBB stable credit rating
Use resources responsibly and

continual process improvement
Progress EnergyAustralia / Ausgrid integration in line with

service agreement with New South Wales Government
Seek out Information System improvements that
support more effective and efficient outcomes
Continue to identify ways to reduce water use
and waste and recycling initiatives

Use resources responsibly and continual
process improvement
Case study: Re-branding to
EnergyAustralia
Our vertical integration business model (described
in About Us) underpins our economic and
operational performance. The model allows us to
balance the price fluctuations in the wholesale energy
market by being both a supplier of energy to the
wholesale market as well as an energy buyer. Our
geographically diversified generation portfolio allows
us to better manage state-based wholesale price
movements, allowing us to supply a higher volume
of generation into those markets where we have a
larger customer base. We also have a mix of base,
intermediate and peak load generation that allows us
to better manage financial risks associated with peak
and critical peak periods in the wholesale market.
Ultimately, the vertically integrated business model
means we can run a more efficient business, deliver
more cost competitive energy to our customers and

remain profitable over the longer term.
of customers until at least the expiry of the current

mining licence in 2026.
Ensure availability and

reliability
We also own the Iona gas processing and storage

facility near Port Campbell in Victoria, which is used
to process offshore gas and manage gas supply and
demand imbalances.
EnergyAustralia owns and operates a portfolio of

energy generation and storage facilities, including
coal, gas and wind assets. With locations across
Southern and Eastern Australia, our portfolio includes
peak, intermediate and baseload generation. We aim
to deliver a secure supply of electricity to Australian
customers by ensuring our electricity generation is
reliable and efficiently produced.
We have a 20 percent ownership interest in an

early stage gas position in a coal seam gas project
located near Narrabri, New South Wales. Santos is
the project operator and holds 80 percent ownership
interest. We also have a portfolio of gas supply
contracts.
Upstream fuel assets

Though it is carbon intensive, coal continues to be
a reliable fuel that delivers low cost electricity for the
majority of Australian users. We have a secure, low
cost and continuous source of fuel at the Yallourn
Brown Coal Power Station, with reserves, based
on current estimates, to meet the projected needs
In June 2012 we acquired the Pine Dale black coal

mine (Enhance Place) located at Blackmans Flat
in New South Wales. The mine supplies around
350,000 tonnes of black coal each year to the Mount
Piper and Wallerawang Power Stations and is a
strong strategic fit for EnergyAustralia. The coal
from the mine is supported by a portfolio of black
coal contracts, providing a reliable source of fuel for
generation at the Mt Piper and Wallerawang Power
Stations.
Page | 26
Electricity generation
EnergyAustralia is the largest privately owned
supplier of electricity in the National Electricity Market
(NEM), owning or having long term contractual
arrangements to the output of 11.4 percent of the
generation capacity of the NEM.
At the end of December 2012 EnergyAustralia owned
and operated four electricity generation assets
totalling 2,247 MW in capacity:
the Yallourn brown coal Power Station;
the Tallawarra combined cycle gas-fired
Power Station. We also own 536 hectares of
private land adjacent to the Tallawarra Power
Station site, known as Tallawarra Lands;
the Hallett gas-fired Power Station; and
the Waterloo Wind Farm.
We also have 50 percent ownership of the Cathedral
Rocks Wind Farm with a consortium led by Acciona.
In addition to our partial ownership, we also provide
operations and maintenance services to the
Cathedral Rocks Wind Farm.
We have two contractual arrangements (known as
Ecogen and Delta West Gentrader) that give us
the right to trade the electricity output of four power
stations on the wholesale electricity market. These
contracts provide 3,366MW in aggregate generation
capacity. The Delta West Gentrader Power Stations
are located in Lithgow New South Wales (Mt Piper
and Wallerawang) and are fuelled by black coal.
The Gentrader agreements run to 2043 (Mt Piper

1,400MW) and 2029 (Wallerawang 1,000MW).
We do not own these power stations, so have
no management responsibility for operating and
maintaining them. However, we are responsible for
supplying fuel as input to the power stations. We
have hedge arrangements for a further 966MW of
generation capacity through the Ecogen Master
Hedge Agreement until 2019. The Ecogen power
stations are both located in Victoria (Newport and
Jeeralang) and are fuelled by natural gas.
Page | 27
Table 1: EnergyAustralias electricity assets by fuel, capacity,

ownership and merit order by location, as at 31 December 2012
Plant
Fuel
Capacity (MN)
Ownership
Merit Order
Yallourn
Brown Coal
1,480
Own
Base
Mt Piper
Black Coal
1,400
Contract
(until 2043)
Base
Wallerawang
Black Coal
1,000
Contract
(until 2029)
Base
Tallawarra
Gas
420
Own
Intermediate
Hallett
Gas
203
Own
Peak
Newport
Gas
500
Contract
(until 2019)
Peak
Jeeralang
Gas
466
Contract
(until 2019)
Peak
Waterloo
Wind
111
Own
Semi-scheduled
Cathedral Rocks
Wind
661/332
Own (50%)
Non-scheduled
1. Total capacity
2. Equity share
VIC
NSW
SA
Page | 28
Table 2: EnergyAustralia gas interests, as

at 31 December 2012
Upstream Gas
Gas Supply Contracts
Acquired 20 percent interest in coal seam gas in
Portfolio of gas supply contracts from multiple
Site operated by Santos who has over 50 years
Total volumes of 1,100PJ under contract over the
the Gunnedah Basin (New South Wales)

experience in the Australian gas industry
Gas Storage

Gas storage facility at Iona (Victoria)

22PJ of underground gas storage
Capacity of 500TJ/day processing capability
Supplies gas to Victoria and South Australia
suppliers
next seven years
Gas assets
Our upstream gas assets reinforce our integrated
energy business model, allowing us to better manage
against rising gas price risk while we explore potential
gas-fired development opportunities and provide gas
to our customer base. Our gas assets include:
Gas processing and storage facility a 22PJ
underground gas storage facility and 500TJ/
day of gas processing at Iona in Victoria,
which is used to process offshore gas from
the Casino Field and manage supply and
demand imbalances along with take or pay
gas requirements across the portfolio;
A 20 percent minority ownership in an early stage
upstream coal seam gas position via the Narrabri
project in the Gunnedah basin, New South
Wales, which is anticipated to provide gas to the
portfolio from the second half of the decade; and
Gas contracts a portfolio of long term
gas supply contracts, which are used to
supply gas to EnergyAustralias generation
facilities and gas retail customers.
Page | 29
Table 3: EnergyAustralia owned and operated generation

and gas storage facilities performance, 2010 to 2012
2010
2011
2012
10,675
10,664
8,167
Availability (percent)
89.5
88.9
88.4
Thermal efficiency (percent)
24.2
24.2
23.8
Coal supply reliability (percent)
100
100
93.0
Yallourn brown coal (Victoria)

Generation sent out (GWh)
Tallawarra gas (New South Wales)

2,550
2,265
2,673
90.9
82.4
95.9
55.8
50.0
50.5
Hallett gas (South Australia)

28
12
Availability Factor (percent)
96.0
92.8
93.8
21.0
22.0
16.0
Performance of assets
A key component of maintaining a high performing
generation fleet is to adhere to the Australian Energy
Market Operators (AEMOs) generation performance
standards. In 2012, each power station complied
with its performance standard. Read more about the
performance standards at www.aemo.com.au
Table 3 sets out the utilisation and availability of
EnergyAustralias operationally owned generating
portfolio for 2010 to 2012.
Iona gas storage facility (Victoria)

Gas throughput (PJ)
46.4
48.9
49.8
Gas stored1 (PJ)
7.8
17.0
14.9
Utilisation (percent)
31.0
30.5
27.2
Commercial Availability (percent)
98.8
99.5
98.4
Plant Availability (percent)
92.9
94.1
93.3
Cathedral Rocks wind (South Australia)

na
151
178
na
92.4
91.4
Capacity factor (percent)
na
31.2
Waterloo wind (South Australia)

na
299
199
na
95.5
97.3
Capacity factor (percent)
na
34.3
1. Gas storage level as at 31 December 2012

na: not applicable - EnergyAustralia assumed
operational control of these assets in July 2011
Page | 30
Our Yallourn Power Station and Mine faced a number

of challenges in 2012. These included decreasing
demand for electricity in the NEM, which in turn led
to suppressed wholesale prices; the introduction of a
carbon price as part of the Australian Governments
Clean Energy Future legislation; and disruption to
operations following the collapse of the Morwell River
Diversion and ingress of water into the coal mine.
Tallawarra and Hallett Power Stations performed
safely and reliably during the year. The energy
produced by the Tallawarra Power Station was more
cost competitive after the introduction of the carbon
price (Read more in the Respond effectively
to changing policy, economic and market
conditions section in the Preparing for New
Energy System Chapter). The Iona Gas Plant also
performed well with high commercial availability.
In 2012, the Santos coal seam gas (CSG) joint
venture project renewed the licences following the
release of the New South Wales changes to the State
regulatory framework. Santos has implemented a
broad program to resolve legacy issues with integrity
of equipment and water treatment facilities. They
have also raised health, safety and environment
standards, which were a legacy of the previous
owners of the facility.
Key programs in 2013 to progress the project towards
development are: further exploration and appraisal
drilling and gas production to expand and confirm
reserves; engineering design and implementation;
community engagement; and preparation of an
Environmental Impact Statement. EnergyAustralia

has established a joint venture management team
and we are developing broad knowledge of the
critical CSG sector.
Morwell River Diversion collapse

On 6 June 2012 water from the Morwell River
Diversion entered the Yallourn mine, following a
structural failure of the Morwell River Diversion.
No one was injured in the incident and work swiftly
commenced to stem the flood and remove the water
from the mine. This flood impacted coaling operations
and reduced the output from Yallourn Power Station.
The total estimated costs of the remediation work
and an impairment of fixed assets as a result of the
collapse was $156 million, as at 31 December 2012.
While this was a serious and costly event, the
response from EnergyAustralias staff, and of partner
companies, was outstanding. Coal transport via
conveyor was re-established from 11 July, allowing
generation to increase from one to three units. All four
units were available from early August. On 8 October,
the mines second coal conveyor was returned to

service. An additional liner system and drainage in
the river diversion is being installed to help prevent
future breaches. This will cover an area of 120,000
square metres along 800 metres of the diversion, and
is due to be completed by August 2013.
The remediation works throughout 2012 included
pumping over 78GL of water from the mine and
piping 62GL river to river. Read more about how
we worked with the environmental regulatory
authorities to meet our water discharge licence
limit in the Water Use section. As of February 2013,
only 14GL of water remains in the mine, compared to
over 60GL at the height of the flooding.
In 2012, there were no injuries and fatalities to the
public involving our company assets including legal
judgments, settlements and pending legal cases of
diseases.
Page | 31
Table 4: EnergyAustralia electricity and gas

sales in the NEM, 2012
State
Electricity Sales Volumes 2012 - GWhr
State
RES
SME
C&I
Total
NSW (ACT)
VIC
SA
QLD
6,121
2,838
420
533
2,217
838
101
197
9,317
4,200
797
3,795
17,654
7,876
1,317
4,525
Total
9,912
3,352
18,109
31,373
Gas Sales Volumes 2012 - TJ

RES
SME
C&I
Total
NSW (ACT)
VIC
SA
QLD
5,484
27,516
1,110
-
2,455
6,027
197
-
4,651
27,231
1,084
-
12,590
60,775
2,391
-
Total
34,110
8,679
32,967
75,756
Chart 1: EnergyAustralia NEM market share*,

as at December 2012
In 2012 we sold 13,264GWh of electricity and 42,789TJ of gas to our mass market
customers. We also sold 18,109GWh of electricity and 32,967TJ of gas to our
major commercial and industrial customers.
Percent
30
25
Retail
20
EnergyAustralia is Australias third largest energy retailer. We supply gas

and electricity to households and businesses throughout Victoria, New
South Wales, Queensland, South Australia and the Australian Capital
Territory with a total of around 2.8 million customer accounts.
15
10
5
0
VIC
SA
NSW/ACT
* By customer number, mass market
QLD
TAS
NEM
Page | 32

We faced an exceptionally challenging business environment in 2012, with a
number of external market factors influencing the business. This included the
introduction of the Australian Governments Clean Energy Future legislation,
consumer concern regarding rising energy prices, declining energy demand,
suppressed wholesale electricity prices and a significant downward revision of
future demand projections, all combined with continuing high retail competition in
our key markets. These factors impacted across the industry providing challenging
trading conditions for ourselves and our competitors, with merchant utilities in
Australia significantly underperforming other market sectors.
Nonetheless, Standard & Poors re-confirmed EnergyAustralias credit rating as
BBB in November 2012. The rating was again reaffirmed as BBB in April 2013,
however, the outlook was revised from stable to negative. Standard & Poors
cited a range of sector-wide challenges, such as reduced energy consumption,
increased retail competition and relatively soft electricity prices as the main
reasons for the negative outlook.
Our rating benefits from our higher rated owner, CLP, and reflects the strong
liquidity profile and continued prudent risk management practices in the business.
It also reflects the strength of the vertically integrated generation and retailing
model and the operational flexibility derived from the plant portfolio by fuel and
dispatch merit order.
This was a strong assessment at the end of a challenging year.
Chart 2: Total Assets

$ million
10,000
7,500
5,000
2,500
2009
2010
2011
2012
Page | 33
Our revenue increased in 2012 compared to 2011. This was a result

of the inclusion of a full year of revenue associated with the acquisition
of the EnergyAustralia retail base and generation assets from the
New South Wales Government. However, our earnings before
interest, tax, depreciation and fair value adjustments (EBITDAF) fell.
In May 2012 we completed our second debt raising
issue with the US Private Placement market.
In response to continuing market and media speculation
about the possible listing of EnergyAustralia on the Australian
Securities Exchange, our parent company CLP announced in
August 2012, that its position on a possible public listing was
that it remained an option for serious consideration, but that it
had not taken any decision as to the principle, terms or timing of
any such step. In any event, CLP stated that it did not envisage
that any listing would take place in 2012. This decision reflected
the uncertain state of equity capital markets in 2012.
Chart 3: Earnings Summary

$ million
$ million
1250
10,000
1000
7,500
750
5,000
500
2,500
250
2009
2010
EBITDAF* (RHS)
For further information on
EnergyAustralias financial performance,
refer to CLP Groups 2012 Annual Report,
go here
2011
2012
Revenue (LHS)
* EBITDAF represents underlying performance which excludes fair value

movements and significant items
Page | 34
Table 5: Economic value retained, 2010-2012

2010 $m
2011 $m
2012 $m
Revenue from
operations
3,482.2
6,923.2
8,311.2
Net profit from joint

ventures
1.1
0.1
(1.1)
Other income
27.1
16.3
28.5
Operating costs
(2,983.9)
(6,487.1)
(7,743.5)
Employee wages
and benefits
(124.5)
(145.8)
(201.1)
Finance costs
(116.2)
(237.9)
(229.3)
Taxes
54.5
(57.0)
(37.1)
Community
investments
Not collected
(0.6)
(2.4)
Economic value
retained
340.3
11.2
125.2
Source: EnergyAustralia General Purpose Financial Statement for the

year ended 31 December 2012
As reported in last years Sustainability Report, the passage of the Clean Energy
Future legislation led to an impairment of $350 million for the Yallourn Power
Station in 2011. On 22 June 2012, EnergyAustralia received a cash payment
of $257.5 million (or 25.75 percent of the total first years cash payment under
the Energy Security Fund (ESF) of the Clean Energy Future legislation) and will
receive a corresponding percentage of the annual allocations of 41.7 million free
carbon permits between 2013 and 2016 as part of the ESF. The ESF was set up
by the Australian Government to provide transitional assistance over five years to
the electricity generation sector.
The Clean Energy Future legislation also included a Contract for Closure
program, whereby generators with high carbon intensity could negotiate
payment in exchange for closure of some or all of their generation units by 2020.
EnergyAustralia lodged an expression of interest to participate in this program with
the Australian Government. However, the program was not taken further by the
Government.
Page | 35
Use resources responsibly

and continual process
improvement
Natural resources such as fuel, air, water, and
land are fundamental for energy providers
to generate electricity. Using finite resources
more efficiently has clear economic benefits;
improves productivity, drives down costs and
boosts competitiveness. Producing more energy
with less material input also means limiting our
risk exposure associated with resource scarcity,
lessening our environmental impacts and increasing
energy reliability for the communities we serve.
A more sustainable rate of resource use can be

achieved at EnergyAustralia through our valuechain, from the upstream design, construction and
operation of our power plants, to our buildings, to
promoting more informed energy consumer choices
downstream. Given that our infrastructure is built for
the long term, we see the importance of integrating
resource efficiency into our decisions today.
A key aspect of using our resources responsibly is
seeking out process improvements in our operations.
We do this by systematically analysing what we
do, identifying and evaluating options and solving
challenges so that we can make improvements to
our operations and resource use. We target continual
improvement in areas such as customer value,
energy production techniques, energy and water
use, waste management and the flow of productivity
through the use of systems and processes.
The following section outlines the activities we
undertook in 2012.
One brand - EnergyAustralia

In March 2011, we acquired the retail customer
base of EnergyAustralia and the Delta West
GenTrader rights from the New South Wales
Government. That acquisition more than doubled
our customers, increased our generation capacity
and significantly expanded our presence in
Australias largest energy market, New South Wales.
As a consequence, in October 2012 TRUenergy
rebranded. We merged the best of the legacy
brands in Victoria and New South Wales into a
single brand. A new and revitalised EnergyAustralia
brand was selected as a single national brand in
order to reflect our core activities of both producing
and selling energy in Australian markets.
Page | 36
Case Study: Re-branding

to EnergyAustralia
In October 2012, the TRUenergy brand united
with the EnergyAustralia brand to become
the new and revitalised EnergyAustralia.
The rebrand program focused on both
external and internal communications.
The external communications strategy was fourpart and ran from August to November 2012:
Inform existing customers. TRUenergy
customers were advised via a direct mail
piece that included a magnet thermometer
to keep in their home as a reminder.
Existing EnergyAustralia customers were
advised via the EnergyWise magazine.
Communicate the rebrand to all consumers prior
to the official launch via a national above the
line advertising campaign - Sending Out TVC
Launch campaign of the official rebrand with
a focus on the reinvigorated brand essence
of helping all Australians with energy efficient
solutions - Treadmill TVC - Hairdryer TVC
Provide proof of the revitalised brand
via the launch of new products such
as MyEnergyReport (now eWise) and
Rate Fix product - RateFix TVC
The campaign touched over 5 million
Australians and around 4.5 million Australians
had multiple visibility of the campaign.
To support the external campaign and to ensure staff

understood the new brand essence we conducted
an extensive six month staff engagement program,
which began in March. The campaign included
developing train the trainer programme for leaders
across EnergyAustralia. Leaders were also supported
with a re-brand toolkit and were responsible for
rolling out the revitalised brand to their teams. This
program was also supported by an intranet brand
page, weekly newsletters, a family day, a compulsory
e-learning module and an updated recruitment
and selection process. Read more about the
refreshed brand behaviours in the Operating
a Safe and Engaged Workforce chapter.
Sending Out TVC
Treadmill TVC
Hairdryer TVC
RateFix TVC
Page | 37
Ausgrid retail (previously known as

EnergyAustralia) integration
The EnergyAustralia Integration Program (EAIP) is
the vehicle for completing all post-merger integration
activities associated with the EnergyAustralia
acquisition in March 2012.
The EAIP has been founded on the basis of being
business-driven and business-owned, meaning the
Program team collaborate with all business units
to understand their needs and targets, to prioritise
effort and to implement the necessary changes. The
EAIP is expected to conclude in 2014, in line with the
Transitional Services Agreement with the New South
Wales Government as part of the sales process.
Transition to Clean Energy Future

legislative package
The Federal Governments Clean Energy Future
legislative program commenced 1 July 2012.
EnergyAustralia established a cross-functional
Carbon Readiness Team to ensure the business,
including people, systems and processes, were
capable of meeting our obligations under the
legislation.
Despite the creation of the centralised structure, the
carbon readiness program was built in a manner
that allowed each business unit to retain ownership
over its deliverables, whereas the Carbon Readiness
Team served the purpose of coordinating activities,

identifying issues and escalating the latter to the
Executive Management Teams attention. Carbon
readiness activities undertaken by the individual
business units included, but were not limited to,
training of EnergyAustralia staff on the impact of
the Clean Energy Future legislation, internal and
external communications on the implications of the
legislation for EnergyAustralia and our customers
and suppliers, establishment of internal reporting
processes and procedures for compliance with the
legislation and identification of the financial and
accounting implications. The program was successful
as we transitioned smoothly from a pre to post Clean
Energy Future legislation environment on 1 July 2012
and have continued to operate with no unintended
impacts on business operations.
Improving our retail and corporate cost

base and productivity
As one of the largest energy companies in Australia
we need to seek continuous improvements in how
we function, to be smarter and more efficient in our
approach to business operations. As such, in late
2012 and early 2013 we initiated two productivity
improvement projects across our retail and corporate
parts of the business. The projects objectives are to
better assess and understand the cost base of each
business unit and to identify and manage initiatives
that will deliver improved efficiency, effectiveness and
customer experience.
Energy Efficiency Opportunities for our

power stations
EnergyAustralias Yallourn and Tallawarra Power
Stations and the Iona Gas Storage facility are
registered under the Federal Governments Energy
Efficiency Opportunities program to identify, evaluate
and report publicly on cost effective energy savings
opportunities. As at the end of 2012, our Yallourn
Power Station and Mine had completed a two day
workshop outlining potential ways to better use
energy at the facility. In 2013, these opportunities
will be subject to further evaluation and a pay-back
analysis. Measures that improve energy efficiency
and have up to a four year payback will be reported to
the Australian Government and publicly by December
2013, and a progressive update provided in next
years Sustainability Report.
The Tallawarra Power Station site assessment is
due for completion by June 2014, with the Iona
Gas Storage site assessment completed by June
2015.
Page | 38
Environment
We take pride in pursuing environmental leadership
while helping Australians meet their need for a
reliable supply of electricity and gas. We believe
effective environmental practices result in economic
benefits through using resources efficiently and
productively. We also believe that continuously
seeking out better ways to manage our environmental
impact creates value for us. We can distinguish
ourselves from our competitors, manage our
liabilities to environmental penalties, mitigate the
future impact of tighter environmental regulation
and contribute towards earning our social licence.
Table 6 shows our environmental
performance against the assets we own
to generate electricity, store and process
gas and operate our corporate offices.
Our total carbon emissions fell by around 21 percent
to 12.9 MtCO2e in 2012 compared to 2011 for our
operationally controlled sites (Scope 1 and 2). Our
total carbon emissions for producing electricity
from our operationally controlled assets were 12.8
MtCO2e (Scope 1), down from 16.2 MtCO2e and
16.0 MtCO2e in 2011 and 2010 respectively.
The lower emissions level in 2012 was largely
due to lower production at our Yallourn Power
Station due to the collapse of the river diversion
and because we ran three out of the four units
at the power station in the second half of 2012
as a result of lower aggregate demand and the
introduction of the carbon price under the Australian

Governments Clean Energy Future legislation (Read
more in the Transition to Clean Energy Future
legislative package section of this chapter).
In our Climate Change Strategy we have set our
medium term goal of reducing our emissions
intensity from 1.2 tCO2 in 2007 to 0.8 tCO2 by 2020.
In calculating the emissions intensity we include
generation output from power stations for which we
hold the right to trade on the wholesale energy market
(refer to the About Us chapter for more details
on these arrangements). As such, while we are
not the operators of these power stations, we collect
and record the emissions that the generation output
produces. In 2012, the emissions from the generation
of electricity from these power stations totalled
12.1 MtCO2e, compared to 10.6 MtCO2e in 2011.
The increase is largely due to including a full year
of data for the Delta West arrangements in 2012
compared to 10 months of data for 2011 as we
took control of the generation output from the
Delta West arrangement on March 2011 from
the New South Wales Government. Read more
in the Preparing for the New Energy System
chapter, which contains more information about
our Climate Change strategy and our performance
against the strategy in reducing our carbon
emissions intensity while growing our business.
Apart from the emissions from our electricity

generation we also measure the use of energy as
a company. Relative to our direct emissions from
electricity generation, emissions attributed to our
use of electricity are relatively low. Emissions from
electricity used by EnergyAustralia are calculated
based on the definition of Scope 2 emissions under
National Greenhouse and Energy Reporting (NGER).
In 2012 the emissions from the use of electricity
at the generation sites we own contributed around
1.56 percent (0.207 MtCO2e) of EnergyAustralias
total emissions, where total emissions are an
aggregation of Scope 1 and 2 emissions. Total
Scope 1 and 2 emissions from our Iona gas
storage facility accounted for 0.63 percent of total
company-wide emissions and Scope 2 emissions
from our Corporate Offices accounted for around
0.02 percent of total company-wide emissions.
While emissions directly generated by customers
using electricity is zero, natural gas is combustible at
the end use point and therefore the majority of direct
emissions from natural gas occurs when consumers
use natural gas in their homes and/or businesses.
In 2012, EnergyAustralias emissions from natural
gas usage by our customers were 3.9 MtCO2e
and a further 0.8 MtCO2e was passed through to
major commercial and industrial users of gas.
Page | 39
Table 6: EnergyAustralia direct and indirect energy

consumption and Scope 1 and 2 emissions, 2010 to 2012
Yallourn
Energy
consumption
Tallawarra
Hallett
Iona
Corporate offices
Cath. Rocks Wind farm

(apportion for 50 percent
own)
Waterloo Wind farm
2010
2011
2012
2010
2011
2012
2010
2011
2012
2010
2011
2012
2010
2011
2012
2010
2011
2012
2010
2011
2012
Direct energy
consumption for
electricity generation
GJ (M)
163.9
163.4
127.9
17.3
19.3
19.5
0.6
0.4
0.1
na
na
na
na
na
na
na
na
0.009
na
na
0.01
Direct energy
produced
GJ (M)
41.9
41.8
32.3
8.7
9.8
9.7
0.1
0.08
0.003
na
na
na
na
na
na
na
na
0.3
na
na
1.2
Indirect energy
consumption
(electricity
consumption from
the Grid)
GJ (M)
0.7
0.6
0.6
0.005
0.006
0.002
0.00002
0.01
0.02
0.02
0.006
0.007
0.008
na
na
na
na
Emissions
Scope 1 emissions
from electricity
produced
MtCO2e
15.1
15.2
11.7
0.9
Scope 2 emissions
MtCO2e
0.232
0.187
0.195
0.001
Scope 1 emissions
from gas storage
MtCO2e
na
na
na
na
Na: not applicable
1.0
1.0
0.00001 0.0004
na
na
0.003
0.02
0.006
na
na
na
na
na
na
na
na
0.00002
na
na
0.00001
0.003
0.003
0.003
0.004
0.005
0.005
0.002
0.002
0.003
na
na
0.00007
na
na
0.0002
na
na
na
0.048
0.062
0.007
na
na
na
na
na
na
na
na
na
Page | 40
Water Use
For large scale thermal power plants like Yallourn
and Tallawarra, water is the most important
resource next to input fuels. EnergyAustralia is
committed to the responsible use of water and
closely monitors its utilisation and discharges.
In 2012, EnergyAustralias water use at the Yallourn
and Tallawarra Power Stations was 402.3 million
cubic metres (Mm3). The majority of the Yallourn
share was from freshwater river sources whereas
the majority of Tallawarras was from Lake Illawarra.
The total water discharged in 2012 from these
facilities was 387.1 Mm3, with the majority of
Yallourns discharge being treated wastewater
to freshwater river bodies, while Tallawarras
was discharged to Lake Illawarra.
Water consumption at our other sites is not reported
as it is very low compared to Yallourn and Tallawarra.
Santos has water operating responsibility for the CSG
Narrabri project, while Delta West has responsibility
for the Mt Piper and Wallerawang Power Stations.
However, Delta West is required to seek our consent
to any amendments to their water licence that may
materially affect the operation and maintenance of
the Mt Piper and/or Wallerawang Power Stations.
Treated wastewater discharged to the Morwell

River from the Yallourn Mine is regulated by an
Environmental Protection Authority (EPA) of Victoria
licence, which imposes a limit of an annual daily
discharge average of 50 ML per day and maximum
daily discharge of 104 ML per day (this allows for
discharges to Morwell River of up to 18,250 ML per
year). The 2012 treated wastewater discharge by
Yallourn to the River was 5.5 Mm3. Yallourn Power
Stations water withdrawal from the Latrobe River,
which is governed under the Victorian Water Act,
was also within the regulated bulk water entitlement
allowed from the Latrobe River of 36.5 Mm3.
As a result of the flooding of the Yallourn Mine in
June 2012, EnergyAustralia sought and was granted
an additional EPA licence that granted us emergency
discharge of water to the river over a period of 120
days. We sought and obtained an extension of the
emergency licence from the EPA for a second 120
day period. The extension licence elapsed on 2
February 2013. We discharged 84 Mm3 of water to
the river under the emergency discharge licence and
as part of the remediation work following the collapse.
Page | 41
As part of our compliance with the EPA

discharge approval, we provided the EPA with an
assessment of the environmental risks associated
with the pumping of water from the mine. The
assessment was conducted by independent
environmental engineers, SKM, in accordance
with the EPA Guidelines for Risk Assessment
of Wastewater Discharges to Waterways. The
overall assessment was that the discharge of
water from the Yallourn Mine into the Latrobe River
represented a low risk to the environment and
ecology of the river and the Gippsland Lakes.
Chart 4:
EnergyAustralia Water withdrawal for Yallourn and Tallawarra Power Stations
400
350
300
2009
250
2010
200
150
2011
100
A full copy of the Report can be
found here
50
0
Mm3
Tallawarra Power Station does not have any limits

in place for the amount of water it can use from
Lake Illawarra. The main EPA licence requirement
is the heat of water discharge, which is set at 35
deg/C. All other water quality licence limits for
Tallawarra are referred back to the Australian and
New Zealand Environment Conservation Council
Guidelines for Fresh and Marine Waters.
2012
Yallourn
Tallawarra
EnergyAustralia Water discharge for Yallourn and Tallawarra Power Stations

400
350
300
2009
250
2010
200
150
2011
100
2012
50
0
Mm3
Yallourn
Tallawarra
Page | 42
Waste
Waste and wastewater are inherent by-products of our facilities. We aim to
minimise resource use and recycle or reuse materials before disposal where
feasible. We also follow local regulations on treatment and disposal of waste.
The total amount of waste produced from operational controlled sites in

2012 was 2,226 tonnes of solid waste and 686 kilolitres of liquid waste.
Out of the solid waste produced, 96.6 percent was classified as nonhazardous material and the remaining was hazardous material. All liquid
waste, except for four kilolitres, was classified as hazardous material.
Table 7: By-products and waste at EnergyAustralia operated sites1

Yallourn
Parameter
Unit
2012
2011
2010
2009
Ash produced
kT
279
352
342
340
Ash recycled / sold
kT
produced
T(solid) / kl (liquid)
71 / 229
263 / 156
564 / 176
526 / 131
recycled
1 / 229
2 / 142
4 / 175
40 / 119
disposed
70 / 0.2
261 / 15
560 / 1
486 / 13
produced
2,010 / 1
2,989 / 0
3,653 / 0
3,098 / 0
recycled
893 / 0
1,426 / 0
1,194 / 0
1,074 / 0
disposed
1,117 / 0
1,563 / 0
2,459 / 0
2,024 / 0
By-products & waste management
Hazardous waste
Non-hazardous waste
Page | 43
Tallawarra
Parameter
Unit
2012
2011
2010
produced
0/1
6 / 36
0/3
recycled
0/0
6/0
0/1
disposed
0/1
0 / 36
0/2
produced
29 / 1
58 / 0
5/0
recycled
3/1
4/0
5/0
disposed
26 / 0.03
54 / 0
0/0
Unit
2012
2011
2010
2009
produced
0/0
0/0
0/0
0/0
recycled
0/0
0/0
0/0
0/0
disposed
0/0
0/0
0/0
0/0
produced
34 / 0
155 / 0
30 / 0
36 / 0
recycled
10 / 0
38 / 0
3/0
0/0
disposed
23 / 0
117 / 0
27 / 0
36 / 0
Waste management
Hazardous waste
Non-hazardous waste
Hallett
Parameter
Waste management
Hazardous waste
Non-hazardous waste
Page | 44
Iona
Parameter
Unit
2012
2011
2010
2009
Condensate generated
kl
5,125
4,705
5,714
4,159
Condensate recycled / reused / sold
kl
5,125
4,705
5,714
4,159
produced
5 / 452
9 / 268
3 / 307
3 / 359
recycled
0.1 / 3
0 / 268
0/0
0/0
disposed
5 / 449
9/0
3 / 307
3 / 359
produced
52 / 0
26 / 0
38 / 0
48 / 0
recycled
26 / 0
0/0
0/0
0/0
disposed
26 / 0
26 / 0
38 / 0
48 / 0
By-products & waste management
Hazardous waste
Non-hazardous waste
Waterloo
Cathedral Rocks
Waste management
Waste management
Hazardous waste
Unit
2012
Hazardous waste
Unit
2012
produced
0/0
produced
0/0
recycled
0/0
recycled
0/0
disposed
0/0
disposed
0/0
Non-hazardous waste
Non-hazardous waste
produced
9/1
produced
16 / 2
recycled
2/1
recycled
1/2
disposed
8/0
disposed
15 / 0
1 Contractor waste has been included.
Direct actions to improve resource use at our

corporate offices are equally as important as
initiatives to improve the efficiency of our generation
sites. While EnergyAustralia is not the owner of the
head office in Melbourne and therefore we do not
have direct control of the building efficiency, the
specifications for the refurbishments we made to
Head Office at 385 Bourke Street Melbourne were
aimed at achieving a Greenstar rating of 4+ star level.
During 2012, staff communications were sent to
promote more efficient use of personal computers,
laptops and monitors in the office. It was estimated
that the business can achieve potential savings from
switching off this equipment overnight and weekends
of up to $670,000 per annum as well as saving up to
5,200 tonnes of carbon emissions per annum. Other
staff communications reinforced activities such as
closing window blinds during the summer period so
that the building air conditioning runs more efficiently
and the proper disposal of waste in bins, split
between green waste, landfill and co-mingled waste.
Page | 45
Page | 46
Operating a safe and engaged workforce
Operating a safe
and engaged
workforce
Create a safe working environment
2013 Targets
Create a safe working environment
Total Injury Frequency Rate <5 incidents

per million hours worked
Zero fatalities
Improve employee engagement
Achieve a minimum of five percentage point

increase per annum en route to AON Hewitt best
employer benchmark (>74percent) by 2017
Ensure sustainability of talent supply to deliver business

strategy
Implement talent management and

succession planning process
Establish succession index for critical roles with
a target to reach an index of two by 2017
Improve employee engagement

Ensure sustainability of talent supply
to deliver business strategy
Our employees are the key to EnergyAustralias

success. They have the capacity and passion
to run an efficient business and deliver
a sustainable future for our customers,
shareholder and the wider community.
Since the 2012 Sustainability Report we rebranded
the TRUenergy business to EnergyAustralia. As part
of the rebrand we developed new company-wide
behaviours and personality values and supporting
materials to guide how we interact in the workplace.
Our behaviours are focused on:

Acting as a team We achieve more
by working together. We collaborate with
each other, share our knowledge and skills
and consider our impact on others.
Find better ways We do the hard work
by developing products and services that
have a positive impact on our customers.
Rock solid dependability Energy is at
the heart of what we do and our commitment
is to be reliable, responsive and safe.
While our personality is built on:

Straight talking We are straight-up and
efficient in everything we do. We cut through
complexity, making it easy to do business with us.
Smart We are retail and production
savvy, and use our energy in the right
way to find smart and efficient solutions
for people and the environment.
Energetic We are excited about what
we do, and we do it with more personality
and purpose than our competitors.
Page | 47
We understand that EnergyAustralias reputation

depends on our ability to live these behaviours
and personality traits. We believe that living
these behaviours and personality traits will help
us deliver a better customer experience, grow
our business and earn our social licence.
Our behaviours and personality framework underpins
our employment practices. We do not employ child,
forced or compulsory labour, regardless of legal and
regulatory provisions. In 2012, none of our operations
or significant suppliers had citations or convictions
related to and/or were identified as having significant
risk for incidents of child, forced or compulsory labour.
CLPs Responsible Procurement Policy Statement,
which guides our procurement practices,
also prohibit illegal child labour and forced /
compulsory labour practices from our suppliers.
Our employees and those of our significant suppliers
also have the freedom to become members or
join associations, unions or professional bodies.
We respect any legal requirements in regard to
union membership and/or collective bargaining. In
September 2012 we began negotiations for a new
Enterprise Bargaining Agreement (EBA) with the
Yallourn employees and their union representative.
Employment
As at 31 December 2012, EnergyAustralia had 1,486 employees, corresponding to 1,431 full-time equivalent
(FTEs) employees. EnergyAustralias workforce has grown by 37 percent (38 percent growth in FTE employees)
compared to 2010. The size of the workforce has grown to keep pace with business expansion. In 2012 we
continued to build our peoples capability to support our growth. We hired over 800 people into all levels of the
organisation.
Ninety-seven percent of employees are located in Victoria, 2.5 percent in New South Wales, 0.5 percent in South
Australia and 0.2 percent in Queensland.
In 2012, the gender balance was 54 percent males and 46 percent females. In our Victorian sites, the gender
balance was 53 percent males and 47 percent females. In New South Wales it was 89 percent males and 11
percent females. In South Australia it was 75 percent males and 25 percent females. In Queensland it was 66
percent males and 33 percent females.
Chart 5: Gender split of EnergyAustralia employees, 2010-2012
Percent
60
50
Males
40
Females
30
20
10
0
2010
2011
2012
Page | 48
Around 83 percent of staff are employed on

a permanent full-time basis - 50.3 percent
males and 33.4 percent females. A further 10.8
percent of staff are employed on a permanent
part-time basis, with a large proportion, 9.5
percent of the 10.8 percent being female.
Our operating sites employ more male workers,
with Yallourn having less than 10 percent female
representation, while Tallawarra has 11 percent
female representation (up two percentage
points compared to 2011). The Iona gas facility
has a 17 to 83 percent split of females to
males. Alternatively, our Call Centres employ
more females by a ratio of two to one.
Our workforce is diverse in terms of age and skill
basis. Our generating sites are heavily influenced
by a relatively older, male workforce with a focus
on trades, manual and engineering work skills. Our
retail Call Centres are predominantly a younger,
female workforce with a strong culture of service and
sales. In 2012, 41.2 percent of our total workforce
was 40 years of age or older, compared to 43
percent at the end of 2009. 82.4 percent of our
Yallourn employees were 40 years of age or older
in 2012, while the majority of the Call Centre staff
(76.3 percent) were aged under 40 years of age.
Table 8: Proportion of EnergyAustralia employees employment status by

gender, as at December 2012
By Gender
Full-time Staff on
Permanent Term
(percent)
Full-time Staff on
Fixed Term
(percent)
Part-time Staff
on Permanent
Term
(percent)
Part-time Staff
on Fixed Term
(percent)
Intern
(percent)
Male
50.3
2.7
1.3
0.1
0.3
Female
33.4
2.2
9.5
0.3
Page | 49
Table 9: Summary of EnergyAustralia employment characteristics, 2012

Melb
CBD
Call Centres
Iona
Hallett
Tallawarra
Yallourn
EnergyAustralia
Full-Time Equivalent (FTE)
829.3
302.2
52.2
7.5
37
202.9
1431.1
Total employment
850
334
53
37
204
1486
Full-time
788
238
52
37
200
1322
Part-time
62
96
164
<20
20-24
24
38
25-29
52
39
10
105
30-34
101
29
150
35-39
83
116
>=40
170
16
24
19
164
398
<20
20-24
18
30
49
25-29
81
52
133
30-34
114
47
167
35-39
82
23
112
>=40
141
63
214
51:49
65:35
17:83
25:75
11:89
4:96
46:54
Male
(number)
Female
(number)
Female : Male Gender Balance

percent
Page | 50
Such a diverse age profile and skill base means

our People and Culture activities are focused at
the site and/or business unit level. Our approach
is to provide corporate services (which include
recruitment, learning and development, payroll and
employee engagement support) to each business
unit with specific People and Culture personnel
embedded in most of the key sites to address
specific issues. This model is most appropriate
to both the diversity profile and environment
of the local team and allows business units to
tap into the corporate services for support.
The following sections outline the key

sustainability priority areas for our employees
and our 2012 performance in these areas.
rated safety in the workplace as the number one

issue for EnergyAustralias sustainability framework.
for OH&S. The Committee meets quarterly.
We have strict occupational health and safety

(OH&S) policies and procedures in place,
monitored by Health and Safety Committees at
each of our sites. Around 12.5 percent of the total
workforce participated and represented all staff in
a formal Health and Safety Committee in 2012.
In 2012 we out-performed our total injury

frequency rate (TIFR) target. Our overall result
was 4.73, exceeding the target of less than
8.0 incidents per million hours. While we will
not be content until we can achieve our goal of
zero, this performance is an encouraging sign
of our employees diligence in this area.
These committees report to the Peak Health and

Safety Committee, ensuring that our approach to
OH&S is consistent across the business. The Peak
Health and Safety Committee members consist of
the Managing Director, two other members from
the GEM team and the Senior Manager in the
People and Culture team with direct responsibility
Importantly, there were no employee or contractor

fatalities during the reporting period. Further, there
were no injuries and fatalities to the public involving
EnergyAustralia assets, including legal judgements,
settlements and pending legal cases of diseases.
In 2013, we have set a TIFR target of less
than 5.0 incidents per million hours.
Create a safe working

environment
We strongly believe that a job not done safely is a job
not done properly. This belief and expectation applies
to all employees and contractors, our shared goal is
zero injuries. Everyone is expected to work together
to achieve these safety standards. This belief is
also supported by the results of our 2012 staff
sustainability survey, where employees from across
the company, as well as the site specific locations,
Total injuries / million employee hours
Chart 6: Safety performance1: Total injury frequency rate, 2009 - 2012

12.00
11.00
10.00
9.00
8.00
7.00
6.00
5.00
4.00
2009
2010
TIFR
2011
2012
Target
1 The data includes contractors working onsite or on behalf of EnergyAustralia off site.
Page | 51
Table 10 shows our lost days rate as a result of injuries. In 2012, EnergyAustralia had a
lost day rate of 5.5, with all the lost days occurring at the Call Centre site.
Table 10: EnergyAustralia Lost Days rate* for operational sites 2009 to 2012
Year
Melb
CBD
Call
Centres
Iona
Hallett
Tallawarra
Yallourn
EnergyAustralia
Males
Females
2010
0.1
0.4
0.0
0.0
0.0
0.6
1.1
0.6
0.5
2011
0.4
0.4
2.4
0.0
0.0
1.9
5.2
5.2
0.0
2012
0.0
5.5
0.0
0.0
0.0
0.0
5.5
0.0
5.5
3 Year Average
0.2
2.1
0.8
0.0
0.0
0.9
3.9
1.9
2.0
* Per 200,000 hours, site proportioned against Company-wide rate

The increase in the lost day rate at our Call
Centre in 2012 is a result of two injuries occurring
in the tea room, predominately from water
spillages. In response, employees at the site
have had reinforced their responsibility to clean
up any water that is noticed in the tea room.
We have also introduced random walk through
spot checks to ensure the tea room is tidy,
clean and no spillages are left unattended. We
have also worked with the cleaners at the site
to ensure they comply with their responsibility
to check and immediately clean the floors.
Table 11 shows that Corporate and Retail offices
accounted for all Lost Time Injuries (LTIs). Whereas,
contractors at the Yallourn Mine and Power Station
accounted for nearly all the Disabling Injuries
(DIs) and Medical Treatment Injuries (MTIs).
Table 11: Injuries by site and type, 2012

Employees
Contractors
LTIs
DI
MTIs
LTIs
DI
MTIs
Yallourn
Tallawarra
Hallet
Iona
Waterloo
Cathedral Rocks
Corporate and Retail
LTIs: Lost Time Injuries, DIs: Disabling Injuries, MTIs: Medical Treatment Injuries
Page | 52
Table 12 provides data on the percentage of

permanent contractors that have completed
core EnergyAustralia OH&S training
as at 31 December 2012 by site.
Table 12: Percentage of

contractors completing OH&S
core compliance training across
sites, as at 31 December 2012
Percentage
Corporate offices
37
Yallourn
66
Tallawarra
na
Call & Service Centres
82
Hallett
75
Total
59
na: not applicable

We introduced a number of initiatives in
2012 to continue to improve our safety
record at our sites, including:
Weekly GEM People and Culture Safety
Update e-mail broadcast to all employees
and contractors at our corporate offices;
The EnergyAustralia Safety Plan for Corporate
Office locations introduced in July 2012. The
Plan sets out corporate safety philosophy,
provides guidance to all employees on how
they can proactively manage safety in the

workplace, and outlines the staff responsibilities
to maintain a safe working environment. It also
covers reporting and compliance obligations and
supports the health and wellbeing framework;
A compulsory OH&S component was introduced
into position descriptions that did not include
such a component, leading to all position
descriptions now having an OH&S aspect; and
We appointed a new OH&S Co-ordinator in
the Operations and Construction team to coordinate OH&S activities across our assets
and provide expert support and advice to
the Operations and Construction group.
to industry professionals to help them maintain and

improve their personal wellbeing. A number of events
were run during 2012 that focussed on different
aspects of staff safety and wellbeing, including:
We are pleased that these initiatives had an

immediate impact with our overall safety performance
improving in 2012. However, our goal is to achieve
zero injuries and therefore we will continue to
monitor and seek out opportunities to further
enhance our safety management framework
to ensure that a safe working environment
exists for all our employees and contractors.
While many of the activities are common across

our various sites, each site has the opportunity to
also choose activities that are relevant to them.
For example, as our Yallourn Power Station and
Mine has an older age profile, the power station
conducts regular Health Assessments on-site by a
registered Health Nurse, to assist in identifying and
addressing concerns not only from an employee
wellness perspective but to assist in planning for any
future illnesses/injuries that may potentially impact
on absenteeism (see below). The nurse compiles a
summary of findings for the management team and
from the summary management, in consultation with
their teams, determines activities for future programs.
Examples of programs include awareness sessions
on mental illness, stress, work/life balance and onsite assessments by medical specialists (in 2012
skin cancer checks were conducted, which resulted
in a significant number of referrals for further tests).
Health
Healthy employees provide a number of benefits
for the individual and our business. Employees
are more likely to be alert and responsive, which
helps to reduce potential safety risks and incidents.
Assisting employees to lead a healthier lifestyle
improves productivity and engagement.
The EnergyAustralia Healthy, Wealthy, Fit and Wise
Wellness Program provides employees with access
Social;
Emotional, including stress management;
Financial;
Dietary and nutritional;
Hygiene; and
Personal care.
In 2012, we also continued with the preventive

voluntary winter flu vaccination program.
Page | 53
In addition to events throughout the year, staff across

all sites have access to 24-hours-a-day, sevendays-a-week support through the Fitness2live online
system. Fitness2lives online service provides staff
with a wide range of interactive tools and guides to
help them improve their health and wellbeing and to
track their progress. This web-based system includes
personalised diet, exercise and lifestyle plans.
The People and Culture team coordinates
the program, under the sponsorship of the
EnergyAustralia Peak Occupational Health and
Safety Committee and the Managing Director.
We also provide staff and their family members
with access to an Employee Assistance
Program (EAP). We engage an independent
provider to deliver the EAP program. This is a
free, professional and confidential telephone
counselling service. It is available to assist
employees and their family (household) members
with work-related and personal issues.
Work - Life balance

There is no objective measure or standard for work
- life balance. It is a personal and subjective matter,
with each individual deciding what the right balance is
for them. Individual views on what is the right balance
may also change, depending on the stage they are
at in their career and family circumstances. Work
life balance is important to EnergyAustralia because
we understand if individuals feel they have achieved
a balance, they are more likely to stay with us.
We aim to ensure our employment terms and
conditions assist employees to maintain work - life
balance. We offer reasonable and flexible contractual
working hours where possible, a standard vacation
provision supported by a range of special leave
allowances. We also offer family friendly leave
benefits including paternity and compassionate
leave. We ensure that our remuneration and benefits
are market competitive so that individuals have
the financial means to enjoy life outside of work.
Under the Future Stars program, employees with

families have a range of services to assist them
with work - life balance. The program offers a
range of practical support options and services,
including a search function to locate accredited
childcare centres near employees homes, online booking facilities for babysitters, emergency
care, temporary care, and before and after school
care, as well as a parent resource centre with
tips and ideas that may relate to parenting.
EnergyAustralias absenteeism rate across the
various operational sites fell from 3.9 to 3.6 in
2012 compared to 2011, with both the male and
female rate declining. The rate decreased at
our Call Centre and Yallourn sites but increased
at the Iona, Hallett and Tallawarra sites.
Table 13: EnergyAustralia absenteeism rate* for operational sites 2010 to 2012
Year
Melb
CBD
Call
Centres
Iona
Hallett
Tallawarra
Yallourn
EnergyAustralia
Males
Females
2010
2.7
7.1
1.8
0.7
2.2
3.9
3.9
3.2
4.9
2011
2.6
6.4
1.0
0.7
1.8
4.4
3.9
3.2
5.0
2012
2.6
5.7
2.8
2.1
2.6
4.2
3.6
3.0
4.3
3 Year Average
2.6
6.4
1.9
1.1
2.2
4.2
3.8
3.1
4.7
* Absenteeism rate has been calculated using the LA7 GRI Indicator, excluding the 200,000 factor.
Page | 54
Occupational disease
There are a number of hazards at our
operational sites which can, if uncontrolled,
result in occupational diseases. For these
hazards EnergyAustralia has specific Standard
Operating Procedures. The hazards include:
Noise (Yallourn, Waterloo,
Cathedral Rocks and Hallett);
Asbestos (Yallourn and Hallett);
Synthetic Mineral Fibre (Yallourn
and Tallawarra); and
Chrome Based Refractory (Yallourn).
The Standard Procedures provide specific information
on the disease and good work practices/strategies
for employees to follow to avoid injury and/or illness.
The procedures sit within the respective site safety
management systems, and are updated as required
in response to changed site conditions, changes in
industry best practice or regulatory requirements. In
addition, the procedures are subject to regular review
by each sites subject matter expert, with the review
period being ranked according to our risk framework.
Improve employee
engagement
We understand that business performance and
productivity are enhanced by a workforce that is
engaged. EnergyAustralia is committed to employees
and is committed to promoting a fair workplace
based on a culture where diversity is embraced.
We conduct regular surveys to understand
our employees opinion of the company and
to identify areas for improvement. In 2012, 93
percent of employees responded to the Employee
Engagement Survey. Conducted by AON Hewitt,
the survey results provide a snapshot of how the

current level of engagement amongst employees
compares with previous results, the energy
and utilities sector more generally and against
AON Hewitts Best Employers standard.
The 2012 survey results indicate that, overall,
53 percent of EnergyAustralia employees
were engaged. This is around six percent
lower than the 2011 survey of employees,
but slightly higher than the 2012 energy and
utilities sector (51 percent) results. The Best
Employer range defined by AON Hewitt includes
engagement scores of 65 percent and above.
Energy & Utilities
Best employer
40
Destructive
Range
20
Indifferent
Range
High Performance /
Aon Hewitt Best
Employer Range
100
Serious
Range
80
In 2012, there were no claims associated with

the hazards listed above. As occupational
disease claims are very low, we do not capture
and report on occupational disease rates.
60
Page | 55
The areas for greatest improvement are our

reputation (defined as EnergyAustralia is
considered one of the best places to work),
career opportunities (defined as EnergyAustralia
offers good career opportunities) and brand
promise (defined as EnergyAustralia delivers
on the promises it makes to employees).
Employees responded more positively to questions
around diversity (defined as EnergyAustralia being
very open and accepting of individual differences)
and strategy (defined as EnergyAustralias goals
and objectives are meaningful to employees).
Employees also responded strongly to questions
relating to co-workers (co-workers respect others
thoughts and feelings) and accomplishment
(achieving a sense of accomplishment from work).
The survey results were used as the basis for
establishing 2013 action plans to drive improvements
in employee engagement both at a business unit level
and across the business as a whole. Overall, our
goal is to achieve a minimum five percentage point
increase per annum in engagement en route to AON
Hewitt best employer benchmark (>74 percent)
by 2017. The results of the employee engagement
survey were reviewed in detail at the Board level.
Equal Employment Opportunities

EnergyAustralia is committed to providing an
equitable work environment for all employees that
is safe, flexible, fair, culturally appropriate and
professional. Our Equal Opportunity Policy requires
that people are treated fairly and equitably and that
employees are judged on their ability to do the job
based on merit, skills, qualifications and experience.
The policy applies to all EnergyAustralia employees,
including contractors and temporary staff. The policy
also applies to people who work on EnergyAustralia
sites but for another employer and any customers or
suppliers of EnergyAustralia in their dealings with us.
In 2012, EnergyAustralia had one internally reported
cases of discrimination. As a result, an official warning
was issued and the case was subsequently resolved.
We also had an external complaint of discrimination
made via the Federal anti-discrimination body, which
has subsequently been resolved and no further action
has been taken by EnergyAustralia.
During the year the following equal employment
opportunities activities were carried out:
The Equal Employment Opportunities Policy
was communicated to employees through the
induction program for new staff members; and
Staff were required to complete
annual, compulsory equal employment
opportunities training modules online.
In 2012, we also had an application in the Federal

Court of Australia filed against us, seeking relief for
dismissal in contravention of the general protections
provisions (commonly referred to as adverse action)
in the Fair Work Act 2009. The matter has been listed
for hearing in August 2013.
Diversity
In 2012 we launched a Diversity Policy that
operates in conjunction with the Equal Employment
Opportunities Policy. The Diversity Policy includes
the creation of a Diversity Charter and Council, plus
targeted programs to address diversity issues such
as age, gender, cultural background and disability.
The Diversity Council reviews and monitors the
effectiveness of our Diversity Policy, as well as
approves objectives for raising awareness of diversity
in the business. As part of raising awareness we
appointed Diversity Champions. Champions are
voluntary groups of employees with particular
interests, experiences and perspectives who will
use these attributes to raise awareness through
networking, exchanging views and creating innovative
business-focused solutions. The Champions act as a
conduit between employees and the Council and they
represent an inclusive environment that is welcoming,
collaborative and productive for all.
Page | 56
Ensure sustainability of
talent supply to deliver
business strategy
We are committed to attracting and developing great
leaders who build teams that are highly engaged and
that deliver our business strategy. In 2012 we further
strengthened our leadership development with 2.4
percent of payroll (salaries) spent on learning and
development.
We invest in the ongoing development of our
workforce through both internal and external training
courses. Our approach to employee development
has the following key objectives:
Ensuring EnergyAustralia has the right
skills in the right place at the right time;
Balancing the current needs of the
business with the individual development
goals of employees; and
Facilitating employees career development
and ensuring employees have the skills and
experience necessary for EnergyAustralia
to meet its future business requirements.
In 2012, employees received 3.6 days of training on
average, compared to 3.2 days in 2011.
Employees are expected to discuss their career
development aspirations with their manager as
part of the formal Performance Development Plan
process. All permanent and fixed-term employees

have a Performance Development Plan covering
performance objectives, behavioural expectations
and personal development. This is created in
conjunction with their manager at the beginning of
each calendar year. A formal review is also held
bi-annually to discuss and evaluate an individuals
progress against their plan. At the end of 2012, 85.5
percent of permanent and fixed-term employees had
a Performance Development Plan in place. Those
without a plan were new staff that had commenced
within three months of the end of 2012 and some
award based staff.
We utilise a contingent (contracting) workforce in
various parts of our business, as work volume/
needs may require. As contractors are employed
by an external agency and not by EnergyAustralia
directly, feedback on contractor performance is
directed to the external agency in the first instance.
Therefore, it is not a requirement of our business to
have performance development plans in place for
contractors.
We have developed an on-line learning and
development catalogue which employees can use
to identify relevant training program(s) that align with
their Performance Development Plan. The on-line
catalogue aligns a range of external programs to
our Company-wide capability set so that employees
can select an appropriate program for development.
Linking of programs to capabilities is important in
providing employees with a clear and transparent
framework for career advancement and promotion.
We also have an Education Assistance Policy that

offers financial and/or study and examination leave
support for staff to undertake further studies.
We aim to ensure that employees are supported by
a range of opportunities to develop and broaden their
skills and experience through career opportunities
within EnergyAustralia. Where possible, these career
opportunities are available through:
Advertising internal vacancies across
the company and providing opportunities
for all employees to apply for roles;
Seeking opportunities for internal transfers
where possible, to enable employees to
broaden their experience, share their skills
and knowledge with colleagues and expand
their own understanding of the business;
Encouraging the appropriate use of secondments
by providing opportunities for employees to
develop skills and knowledge in new areas; and
Supporting specific development programs
with opportunities to gain experience
in different parts of the business.
In the second half of 2012 we evolved our corporate

strategy. Our People and Culture team has
subsequently developed a strategy with key themes
supporting the corporate strategy.
Building sustainable leadership capability and
Developing an agile and fit for purpose workforce
are two key pillars that will support our ability to attract
and retain highly skilled staff to enable us to more
effectively deliver our corporate strategy.
Key initiatives for 2013 include a review of the
development programs and aligning them with
implementing a talent management and succession
planning process, which will include establishing
a succession index for critical roles. It is our target
to attain a succession index for critical roles of two
by 2017. The development of career pathways
and increased self service learning approaches to
increase accountability for learning are also prioritised
initiatives for 2013.
Retirement is an important turning point for
individuals. It requires preparation, adjustment and
adaptation. To assist those employees entering that
stage of their life we provide pre-retirement resources
and workshops covering financial, superannuation
and tax planning.
Page | 57
Page | 58
Establishing deep relationships with customers
Establishing deep
relationships with
customers
Provide excellent and consistent
levels of service to our customers
2013 Targets
Provide excellent and consistent levels of service to

our customers
>75 percent offered calls answered within 30 seconds

Achieve ombudsman customer complaints below
market share for each State by 2015
Provide access to our customer welfare program
for customers facing energy hardship
Adapt our services to interact with our
customers, when and how they prefer
Assist customers to better manage their energy use
Develop new energy efficiency products and services to

assist customers to better understand their energy use
Become the preferred energy retailer brand
Focus on improving customer experience to

obtain industry leading standards by 2015
Leverage sponsorships to raise brand awareness and reputation
Assist customers to better manage

their energy use
Case study: Smart Grid, Smart City
Become the preferred energy
retailer brand
The relationship between EnergyAustralia

and its customers is evolving. In the past, the
relationship has been one where we supply the
power and the customer pays the electricity and
gas bills. Our emerging relationship is becoming
more interactive, with customer expectations
at the core of how we deliver our product and
services. Customers increasingly expect energy
companies to work together with them to improve
the efficiency and effectiveness of using energy
around the home and/or in the workplace, as well
as developing and delivering more innovative
and value added products and services.
Retail electricity prices for both mass market and

industrial customers in all States were increased
on 1 July 2012 as a result of the introduction of a
carbon price by the Australian Government. Prices
in New South Wales, Queensland and South
Australia were also increased at the same time
in line with the annual price review process.
These retail price increases are understandably
unwelcome to customers. When combined with
the highly competitive retail energy market in
Australia, such increases reinforce the need for
EnergyAustralia to enhance customer service,
whilst controlling cost, in order to retain existing
customers and to attract new ones. In this
respect, EnergyAustralia performed well in 2012.
Our churn out rate, which measures customers
switching from us to another energy retailer, was
well below the industry average in Victoria and
only marginally above market in New South Wales
despite the aggressive push for market share in

the electricity market by non-incumbent retailers.
Page | 59
No. of calls
seconds
300,000
800
700
600
500
400
300
200
100
0
250,000
200,000
150,000
100,000
50,000
Calls Offered
Calls Handled
12
c-
12
De
v-
No
-1
ct
12
p-
Se
12
g-
Au
l-1
Ju
12
n-
Ju
ay
-1
2
M
r-1
Ap
-1
ar
12
Fe
b-
12
0
n-
Customer service performance is at the heart of EnergyAustralias retail business.

We currently have two Call Centres, we own and operate the EnergyAustralia
(previously branded TRUenergy) Call Centre and we administer under an
agreement with the New South Wales Government the current Ausgrid Call
Centre. In 2012, 3.69 million customer enquiries were handled, of which 1.70
million were handled by the EnergyAustralia call centre and 1.99 million by the
Ausgrid call centre. This does not include calls handled by the Interactive Voice
Response (IVR) systems, which allow customers to undertake self-service of
routine matters. Chart 7 indicates there was an increase in the number of calls
offered and handled in the second half of 2012. The average handling time also
increased in August and September 2012 as a result of the implementation of the
new billing and customer care system (see further discussion below).
Chart 7: EnergyAustralia Average Handling Time

(AHT*) and Calls Offered and Handled#
Ja
Provide excellent and consistent levels of

service to our customers
AHT
*Average Handling Time (AHT) defined in glossary.

# Calls Offered and Handled equals calls handled within 30 seconds plus
calls abandoned within 30 seconds divided by calls offered.
For Ausgrid customers the average handling times for calls remained fairly
constant for the first half of 2012. It fluctuated more in the second half of the year
with the rate falling and then rising in December 2012 to slightly above the first half
of 2012 average.
Page | 60
Chart 9 shows how the Call Centres performed against the first two measures.
The chart shows that the middle of 2012 was a difficult period for our Call Centres
as a result of a number of factors impacting on their performance.
1. Call wait times provide an indicator of consistent responsiveness

to customer demand. EnergyAustralia targets answering 75
percent of all calls within 30 seconds on a daily basis;
2. Monitoring our average speed to answer customer calls on a daily basis
ensures that consistent customer service is provided across each day; and
3. Quality assurance monitoring and providing feedback on calls received
to improve overall customer experience. Our quality assurance
methodology and rigour evaluates front line staff interactions with our
customers and guides our coaching, training and development targets.
EnergyAustralia
Ausgrid
r
be
m
ce
De
No
ve
be
er
ob
r
O
ct
be
em
st
Se
pt
gu
ua
br
Fe
nu
ar
We measure customer satisfaction through three primary measures:
Ja
# Calls Offered and Handled equals calls handled within 30 seconds

plus calls abandoned within 30 seconds divided by calls offered.
ly
AHT
Au
12
c-
De
12
No
v-
2
-1
ct
12
p-
Se
12
g-
Au
l-1
12
n-
Ju
Calls Handled
Calls Offered
Ju
ay
-1
2
M
r-1
Ap
-1
ar
12
b-
Fe
Ja
n-
12
Ju
50,000
ne
100,000
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ju
150,000
No. of calls
ay
200,000
250,000
ril
300,000
Chart 9: EnergyAustralia Call Centre wait times, percent of

calls answer within 30 seconds, 2012
Ap
500
450
400
350
300
250
200
150
100
50
0
ch
350,000
ar
seconds
No. of calls
ry
Chart 8: Ausgrid Average Handling Time (AHT) and Calls

Offered and Handled#
Target
Page | 61
Chart 10: EnergyAustralia Call Centre average speed to

answer, 2011-2012
Seconds
EnergyAustralia 2012
Ausgrid 2012
r
be
m
ce
De
No
ve
be
er
ob
ct
be
em
st
Se
pt
gu
ly
Au
Ju
ne
Ju
ay
M
ril
Ap
ch
ua
br
ar
Fe
nu
Ja
Call volumes and average handle times for our former TRUenergy call
centres increased above forecasted expectations due to the implementation
of a new customer service and billing system in September 2012. All staff
have been fully trained in the new system and as their familiarity with the
new system increased, there was a corresponding improvement in the
average handling time per call, reducing from 795 seconds on day one of
implementing the new system, to 596 seconds for the month of December.
As consultants become proficient with the new system and we work through
the new systems stabilisation program, we expect customer service
performance to be better than the performance under the previous system.
ar
ry
750
700
650
600
550
500
450
400
350
300
Overall, 64 percent of all calls for the EnergyAustralia Call Centre in 2012 were
answered within 30 seconds, 11 percentage points short of the target of 75
percent for all states except for South Australia (the South Australian target was
85 percent). Although overall performance was below the targets, the service
achieved is considered a positive result. The introduction of the Clean Energy
Future legislation package (1 July 2012) and the success of the One Big Switch
(OBS) contract (July/August 2012) resulted in a significant increase in the number
of calls received (see page 70 for more discussion on OBS). The Call Centre
handled an extra 170,000 calls in the second half of 2012 compared to the same
period in 2011. This equates to around 1,400 additional calls per day for the six
month period. Importantly, while we had a significant increase in the number
of calls, our abandonment rate (the proportion of calls which are not answered
by either a consultant or the IVR from the total calls offered as a result of the
person hanging up) for 2012 was 6.2 percent compared to 9 percent in 2011.
EnergyAustralia 2011
Ausgrid 2011
Page | 62
In 2012, EnergyAustralia had no significant fines for non-compliance with laws

and regulations concerning the provision and use of products and services.
Customer complaints
Complaints not only offer us an opportunity to correct immediate problems, they
also provide ideas for improving our service and products, adapting marketing
practices, upgrading services, or modifying promotional material and product
information. For example, following negative feedback from our customers
we were the first energy company to discontinue the use of doorknocking as
a sales channel (see the Sales and Marketing section for more details).
Our Customer Resolutions team deals directly with customer complaints.
The team uses a Complaints Management System to capture and manage
customer complaints received either directly from customers or via a state
based energy ombudsman scheme. Information from the system is used to
produce weekly and monthly reports, which are used to monitor the level of
feedback being received, and to highlight the main issues driving customer
complaints. These reports are circulated to the management team as well
as key stakeholders across our different business functions, so that they can
use the information to identify process issues and continuously improve.
However, we received 53,538 customer complaints regarding aspects of our

services including billing, customer service, marketing and registration of new
accounts. This equates to approximately 194 complaints per 10,000 customers.
Overall our complaints for 2012 increased compared to 2011 levels, as a result of:
Inclusion of 12 months of data from the Ausgrid customer
base for 2012 compared to 10 months of data for 2011;
Post implementation issues with our customer billing system as
we transitioned from the previous to the new system; and
As a consequence of greater complexity in the relationship between
retailers and consumers. Issues impacting the relationship between
retailers and customers included increases in retail prices, doorto-door sales, impact of the introduction of a carbon price regime,
rapid rate of adoption of rooftop solar panels and the use of feedin tariffs, and the roll out of new smart meters in Victoria.
Table 14: EnergyAustralia complaints, 2011* and 2012

State
No. Complaints - Direct
No. Complaints - Ombudsman
No. Complaints - Total
2011
2012
Var (percent)
2011
2012
Var (percent)
2011
2012
Var (percent)
NSW (ACT)
3,933
14,977
281
2,165
4,069
88
6,098
19,046
212
Vic
6,767
12,963
92
11,921
15,566
31
18,688
28,529
53
SA
496
1,143
130
1,351
2,231
65
1,847
3,374
83
Qld
1,023
1,808
77
706
781
11
1,729
2,589
50
Total
12,219
30,891
153
16,143
22,647
40
28,362
53,538
89
* Data for Ausgrid customers was for 10 months, March to December 2011, as EnergyAustralia took ownership of the Ausgrid customer base from March 2011.
Page | 63
In addition to tracking our overall complaints, we also look at the proportion of

complaints our customers lodge with State based energy Ombudsman Scheme
against our overall market share for each State. As at the end of the financial year
2011/12, EnergyAustralias national market share was approximately 25 percent
nationally and our share of State based energy ombudsman schemes complaints
was 23 percent. Disappointingly, in Victoria, South Australia and Queensland our
proportion of Ombudsman complaints was higher than our market share.
We expect our Ombudsman complaints proportion to deteriorate in the second
half of 2012 as a result of the issues we encountered transitioning to our new
billing system in October 2012. However, total Ombudsman complaints data for
the 2012 calendar year was not available for all states at the time of publishing the
Report.
Chart 11: State based Energy Ombudsman complaints and

energy market share, 2011/2012
Market Share
Percent
Ombudsman Comlaints
35
30
25
20
15
10
5
0
Victoria
NSW
South Australia
Queensland
National
Privacy
All Call Centre staff complete a customer privacy training module as
part of their induction training. This training is supported by an annual
refresher training course and assessment that all Call Centre staff have to
complete. Staff are required to achieve a successful rating on their annual
assessment. Staff members that do not achieve a successful result on
the assessment are required to complete additional training and satisfy
the accompanying assessment before they can speak to customers.
A performance management process is put in motion for employees who fail
to adhere to EnergyAustralias privacy obligations. The process includes the
monitoring and evaluation of additional calls to ensure future on-going compliance.
In 2012 our legal team reviewed seven complaints regarding potential
breaches of customer privacy details. All claims were investigated
and one case led to disciplinary action taken against the staff member
for breaching our privacy practices and the Code of Conduct.
Page | 64
Hardship
EnergyAustralia defines hardship customers as those
who are willing to meet their financial obligations
but do not have the financial capacity to do so.
When customers have difficulty meeting the cost
of their energy use on an ongoing basis, they may
require targeted and sustained solutions to manage
the underlying causes of their financial difficulties.
These customers are managed by EnergyAustralias
EnergyAssist team. The team offers the following
assistance to customers:
flexible payment options that take into account
the financial circumstances of affected
customers;
energy efficiency advice aimed at educating
customers on ways in which to reduce the impact
of energy bills;
referral to appliance replacement programs
where appropriate;
referral to government energy relief grants;
assisting customers with accessing government
concessions; and
referral and collaboration with financial
counsellors and other relevant counselling
services where applicable.
In last years Report we stated that we planned to
review our Hardship Policy in 2012 and release
an updated policy that shifts the focus from purely
reactive to introducing preventative strategies to
assist customers vulnerable to energy hardship
before they reach crisis.
In 2012 we also provided our hardship customers

with access to a paper based report of eWise (see
Energy Efficiency Services section for more
detail), which proactively provided customers in
hardship with more detailed information on their
energy use and suggestions on how to use energy
more efficiently.
Table 15: Customers on Customer Welfare program

2011
2012
Number
Average debt
($)
Number
Average debt
($)
EnergyAustralia
1,817
1,532
2,255
1,693
Ausgrid
3,365
580
3,236
617
Our updated policy was released in

September 2012 and can be located on
our web-site, here
As at 31 December 2012, 5,491 customers

were participating in our Customer
Welfare program with an average debt of
approximately $1,059 compared to 5,182
customers at the end of December 2011
with an average debt of around $914.
Page | 65
Disconnections
EnergyAustralia treats disconnection for non-payment as a last resort
measure. We encourage customers to contact us as soon as possible
to discuss any payment difficulties and offer a number of services to
assist customers to better manage their bill payments, including:
written and SMS notifications encouraging customers to make contact;
payment extensions and/or plans;
advice on improving energy efficiency at their
premises (homes and businesses);
access to financial counsellors; and
assistance to access government funded debt relief programs and/or funding.
EnergyAustralia works in collaboration with community groups,
financial counsellors and government to provide a holistic solution
to customers experiencing financial difficulty in paying their bills.
We understand that there are circumstances which may result in
payment difficulties. In most cases, we are able to work out special
arrangements for non-payment of accounts to avoid disconnection.
As a result of these initiatives, EnergyAustralias combined
disconnections for non-payment were minimal with around 0.5 per
hundred customers disconnected for non-payment in 2012.
Table 16
Disconnections for non-payment in 2012
Electricity
Gas
NSW
6,009
232
Qld
541
na
SA
408
307
Vic
2,170
2,381
ACT
18
Total
9,146
2,928
na: not applicable
Assist customers to better manage their

energy use
During 2012 we witnessed a decline of electricity usage across our customer
base. For instance, in our Victorian customer base (previously serviced by the
TRUenergy brand), we saw a decline of around 11 percent in average residential
electricity consumption from 5.3MWhs in 2011 to 4.7MWhs in 2012.
A number of factors contributed to the reduction in customer electricity
consumption including the underlying demand changes of a more cost aware
consumer, energy efficiency, weather and the impact of increased take-up of
home solar photovoltaic systems.
Page | 66
We are listening to our customers and adapting to changing market

demand conditions. In keeping with our objective of helping our
customers to take more control of their energy use, we specifically offer
customers two energy-efficiency based products and services:
1. Solar photovoltaic for residential homes; and
2. Energy Efficiency services.
Solar photovoltaic for residential homes

EnergyAustralia offers residential customers the opportunity to purchase
and install solar photovoltaic (PV) on their homes and/or the opportunity
to take advantage of the solar feed-in tariff for any electricity their PV
system generates and supplies back into the electricity grid. As at the end
of December 2012, EnergyAustralia had sold around 2,500 PV systems.
We also have around 91,000 customers on a solar feed-in tariff.
Energy Efficiency services

EnergyAustralias commitment to energy management continued
to grow in 2012 with a number of new initiatives.
In October 2012 we launched MyEnergyReport (the Report
was re-branded to eWise in early 2013), which uses leading
technology to drive large-scale energy savings.
Case Study: eWise Report

eWise provides detailed information and a bigger-picture view of customers
energy consumption so they can make informed choices about when to consume
and therefore potentially reduce their energy bill. eWise customers can:
review electricity usage history and costs; and
Save energy and save money.
Customers can see how their homes energy use compares to nearby
homes that are similar in size, type and features like heating and cooling.
Customers can also track how their homes energy consumption changes
over time and across seasons. Customers can simply sign up and establish
an eWise account via, http://www.energyaustralia.com.au/myenergyreport
A paper based copy of the Report is also sent to selected households.
Page | 67
In 2012 we also became a partner of the Federal Governments Smart Grid,

Smart City initiative, which is aimed at finding intelligent new ways to manage
electricity via in home displays, home area networks and web portals for
customers to track their energy use. EnergyAustralia customers in selected
areas of New South Wales can sign up for tailored energy products, designed
to empower them with knowledge about their energy costs and consumption.
Case Study: Smart Grid, Smart City

EnergyAustralia is the exclusive retail partner in the $100 million Federal
Government funded Smart Grid, Smart City initiative which is testing the business
case for key advanced grid technologies that have the potential to improve the
way we manage and use electricity in the future. EnergyAustralia is trialling
a suite of 12 innovative product bundles designed around household energy
management, including new devices and web portals that show consumers how
much electricity is being consumed as well as greenhouse gas emissions. Some
consumers will also be provided with the ability to control their appliances via the
internet and smart phones whilst others will have their air-conditioning remotely
controlled, for 15 minute periods, by EnergyAustralia during high peak demand.
Selected households in Newcastle, Upper Hunter and Sydney will be invited

to participate in the trial which runs until September 2013. With an Advanced
Metering Infrastructure roll out underway in Victoria and the Federal Governments
Energy White Paper recently released, this project will provide EnergyAustralia
and the wider energy industry with key insights on consumer behaviour and
engagement to drive future energy product and pricing plans. These plans
will help develop a sustainable and reliable energy market and can help
consumers reduce energy costs, consumption and greenhouse gas emissions
by combining new energy pricing tariffs with home energy management tools.
This year we launched our new EnergyAustralia website, including a section
dedicated to energy efficiency tips and savings advice for our customers.
We partnered with the Commonwealth Scientific and Industrial Research
Organisation (CSIRO) to develop two instructional videos on Home
Energy Audits. The videos can be viewed from our new website and the
EnergyAustralia YouTube channel. In the two months since the launch of
the new site there have been around 20,000 unique visitors to the pages.
View the site here
Page | 68
To ensure we stay on track we conduct regular

qualitative and quantitative surveys of our customers.
For example, in 2012 we measured, on a monthly
basis, the likelihood to recommend score of energy
consumers. Chart 12 provides a comparison of the
likelihood to recommend of EnergyAustralia against
our major competitors for 2012. Overall the industry
suffers from a poor reputation with more consumers
not likely to recommend their retailer than more
likely to recommend.
Become the preferred

energy retailer brand
By offering customers a range of products and
services and improving our customer service, we
benefit the communities we serve and strengthen our
role as an essential service provider. Through these
actions, we fulfil our goal of becoming the preferred
energy retailer brand.
Chart 12: Likelihood of recommending brand score, 2012

r
m
be
r
ce
be
De
m
ve
er
No
ct
ob
be
em
Se
pt
st
gu
Au
ly
Ju
ne
Ju
ay
M
ril
Ap
ch
ry
M
ar
ua
br
Fe
Ja
nu
ar
TRUenergy*
AGL
-5
-10
EnergyAustralia
-15
-20
-25
-30
-35
* Due to the recall of TRUenergy brand name, this data was collected and recorded
post the re-branding on October 2012
Origin
The rebrand was an important milestone in our

future as a leading energy business. As such,
we established several high profile partnerships
to support brand awareness of the refreshed
EnergyAustralia brand in key markets, engage
and reward our customers in new ways and
to demonstrate our new brand personality.
In 2012, EnergyAustralia partnered with Swim
Australia to support and encourage participation of
grass-roots swimming programs. Swim Australia
delivers the Learn to Swim and SwimSAFER
programs to swim schools around Australia.
An important part of Swim Australias work is
communicating to parents that swimming is
a vital life skill for the safety of their children.
EnergyAustralia became the presenting partner
of the SwimSAFER message, which will enable
Swim Australia to strengthen this message
amongst their members and the community.
Page | 69
To raise the brand awareness of the re-freshed

EnergyAustralia brand in Victoria, the home state
of the previous TRUenergy brand, which enjoyed
over 90% brand awareness, we also became
the principal sponsor of the Melbourne Stars
Twenty20 cricket team.
such as the global financial crisis and introduction

of the carbon price. In 2013, EnergyAustralia will
review its GreenPower product options and better
tailor the product range to customers needs.
Underpinning the refreshed EnergyAustralia brand

is the goal of becoming the leading customer
service energy retailer through helping Australians
with efficient energy solutions. To support this goal
we also worked on a number of customer-focused
projects in 2012. These included improving our
existing information technology systems, which are
the foundation of our customer service functions and
developed new sales channels. A number of these
initiatives are described in the following paragraphs.
To ensure we adhere to our legal and regulatory

sales and marketing obligations, all our marketing
and sales material is subject to stringent internal
legal and regulatory review. New marketing
collateral is subject to legal and regulatory signoff prior to public release while existing marketing
collateral is subject to regular review to ensure
adherence with existing laws. Staff are also required
to complete annual Australian Consumer Law
refresher training. Any staff member who does
not satisfactorily pass the training assessment
is required to undertake remedial training.
New Billing system

In September 2012 we launched our new Customer
Care and Billing platform. The new system is easier
and more efficient to use than its predecessor and
materially improves the quality of retail data used
in the business, positioning EnergyAustralia to
offer a level of service to our customers which is far
superior to that possible under the legacy system.
The system also provides a platform for a more
effective launch of new customer products,
such as our Rate Fix product, which was
launched in New South Wales in November
2012, and provides customers with a fixed price
for their electricity for a two-year period.
Sales and Marketing
While the new system will deliver significant benefits

to our customers and service consultants, in the
short term we encountered a number of residual
issues as we transitioned from the old legacy
systems to the new system. We have formed a
dedicated team to identify and address these residual
issues that have impacted on the timeliness or
accuracy of billing for a number of our customers.
GreenPower Sales
As at the end of 2012, EnergyAustralia had around
72,000 customers with a green component on
their account, which makes us the second largest
retailer of accredited GreenPower products. We
surrendered 269,539 GreenPower certificates
in 2012, which equates to 269,539MWh of
GreenPower accredited renewable electricity
being generated and exported to the grid.
GreenPower accounts have been on the decline
for the past 24 months due to external factors
All sales agents, whether directly employed

by EnergyAustralia or acting on behalf of
EnergyAustralia, are required to complete and
pass training modules prior to being allowed to talk
to consumers. The training modules are geared
towards educating sales people about their legal
and regulatory obligations, as well as providing
them with knowledge about EnergyAustralia
and our products and services. We have also
developed, and our sales people are required to
adhere to, specific sales practices when dealing
with elderly people, people with disabilities and
those where English is their second language.
Page | 70
While we had a number of measures and processes

in place to maintain a high level of service through
the door knocking channel, this mode of sales
activity continuously received the highest level of
scrutiny of all sales channels in the energy sector.
The consistent feedback from our customers is
that they find door knocking intrusive, and that they
want to control when and how they are interacting
with energy retailers. In response to this feedback
and our goal to become the preferred energy
retailer brand, we led the industry by being the first
energy retailer to announce that we would cease
door knocking activity at the end of March 2013.
Following the announcement that we would cease
door knocking, the Australian Competition and
Consumer Commission (ACCC) filed proceedings in
the Federal Court of Australia against EnergyAustralia
and four marketing and sales companies engaged
by us to undertake door-to-door selling on our
behalf. The ACCC alleges that certain sales
representatives made false, misleading or deceptive
representations. The ACCC alleges this conduct
occurred across Victoria, New South Wales and
Queensland between July 2011 and August 2012.
In 2012, at the time of publishing

the Report, there were no:
incidents of non-compliance with
regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship, by type of outcomes; or
significant fines for non-compliance with laws
and regulations concerning the provision
and use of products and services.
In last years Sustainability Report we noted that we
became foundation signatories to an industry based
marketing Code of Conduct that self-regulates the
marketing behaviour of energy retailers door to door
sales people as well as the conduct of marketers
that provide these services on behalf of retailers. The
Code is administered by Energy Assured Limited.
While we ceased door knocking services from April
2013, we have continued our membership of EAL
as we believe the Code has wider benefits for other
sales channels such as on-line comparators.
One Big Switch campaign

Door-to-door sales is only one option a customer may
use to choose a retailer. We use a number of other
channels, including our own dedicated sales centre,
digital media and advertising on television, radio
and print media. Our aim is to educate and inform
existing and potential customers about the variety of
retail options available to them to help them make
an informed decision based on their circumstances.
In 2012 EnergyAustralia was also successful in being

announced as the retailer of choice for the One Big
Switch campaign. One Big Switch was Australias
biggest ever consumer campaign designed to
provide group discounts on household bills, including
electricity and gas. Up to 200,000 Australian
residents signed up to the campaign and were
eligible to sign up to an EnergyAustralia competitive
energy rate plans as part of the promotion.
Access
EnergyAustralia offers a range of services
to customers with language, cultural,
disability and financial hardship.
We offer customers who have language disabilities
or have English as their second language
access to interpreter services through our Call
Centre. For customers who are deaf or hearing
impaired, EnergyAustralia offers a Telephone
Typing Service (TTS), with information about
how to utilise this service printed on all bills.
Page | 71
Maintaining licence to operate
Maintaining
licence to
operate
Ensure good regulatory performance
Continue to develop corporate
community support and goodwill for
the business
Ensure effective local community
engagement in operations and during
business development
As a responsible energy company with a longterm commitment to Australia, our licence to

operate depends on our ability to meet regulatory
requirements and to respect the communities and
social and environmental conditions where we
operate and where our energy is sold. As such,
we are committed to providing a wide range of
initiatives that bring about positive social and
environmental change. Furthermore, we support
our employees to actively participate in various
activities, volunteering their time, skills and expertise
to causes for which they have a passion.
2013 Targets
Ensure good regulatory performance
Develop a business wide compliance policy program, including

formal Board oversight
In line with CLP requirement, acquire/maintain ISO 14001
certification at operational sites
Develop EnergyAustralia Code of Conduct
Continue to develop corporate community support and

goodwill for the business
Explore opportunities to form relationships with corporate

stakeholders to achieve community acceptance
Rehabilitate the land we disturb or seek out off-set opportunities
Ensure effective local community engagement in

operations and during business development
Establish baseline measurements to understand and quantify

community expectations
Operationally controlled sites to engage with community at least
twice per year
Ensure good regulatory

performance
It is imperative that, at a minimum, we operate
our business within the rules granted to us
under our generation and retail licences.
Breaches of these obligations leads to a lack
of faith from regulators, operating partners
and our customers. In 2012 EnergyAustralia
was issued with the following sanctions:
1. State Revenue Office of Victoria fined
EnergyAustralia $314,603 for failing to lodge
on time its 2012 Unclaimed Money Report. To
mitigate the likelihood of any future breaches,
EnergyAustralia engaged KPMG to review and
recommend improvements to our unclaimed
money process. The outcomes of the review
are improved internal operating processes and
procedures including information technology
enhancements, which aim to mitigate missing
future reporting deadlines and further fines.
2. In June 2012, the Environmental Protection

Agency of New South Wales issued two
penalty infringement notices (of $1,500 for
each instance) against Eastern Star Gas.
Eastern Star Gas was the previous owner of
the Coal Seam Gas fields in the Gunnedah
Basin that Santos purchased and for which
EnergyAustralia has a 20 percent equity interest.
3. The Australian Competition and Consumer
Commission (ACCC) announced that it
would investigate the door-to-door sales
practices of certain third party contractors
engaged by EnergyAustralia. In March
2013, the ACCC announced that it filed
proceedings in the Federal Court of Australia
(for more information see the Sales and
Marketing section of the Establishing deep
relationships with customers chapter).
Page | 72
In 2012 EnergyAustralia was not issued with any

formal non-monetary sanctions by a Regulator.
However, in the Establishing deep relationships
with customers chapter we outline a number of
issues we encountered transitioning from our legacy
systems to our new billing and customer care system.
As part of the transition we proactively worked with
state based and national energy regulators to keep
them informed of progress with the changeover and
the steps and measures we implemented subsequent
to the changeover to improve our customer services
including the provision of timely and accurate bills.
In 2012 we also had a shortfall of energy savings
certificates relating to 2011 New South Wales Energy
Efficiency scheme liabilities. This deficit arose due to
the inability to source energy savings certificates.
While EnergyAustralia was prepared for the
introduction of nationally uniform energy regulations
to take effect from July 2012, a number of State
Governments decided to delay the transition
from state-based regulations to the new national
regulations just prior to the launch date, leaving our
amended approach being technically non-compliant
with the old state based approach.
In the past 12 months CLP Group has made
significant changes to the EnergyAustralia Board
with the appointment of an independent Chairperson
and Non-Executive Directors. Part of the Boards
function is to monitor compliance with environmental,
employment and occupational health and safety
policies and EnergyAustralias relationship with
regulatory stakeholders.
As such, the Board has established the Competition

Consumer Compliance Committee to assist the
Board and Management to:
ensure the Group adopts robust compliance
processes to meet its obligations under the
Australian Consumer Law (ACL), particularly
as they relate to sales and marketing including
the management of third party contracts
and complaints handling issues; and
appropriately liaise with the ACCC and all other
relevant regulators with respect to the current
investigation of the conduct of door-to-door sales
and the Groups compliance with the ACL.
Once the Board determines that the Group has
adopted robust compliance processes, and the
current ACCC investigation has concluded, ACL
compliance processes will be reported to the Audit
and Risk Committee.
For more information refer to the Governance
chapter of the Report.
Continue to develop
corporate community
support and goodwill for
the business
We must go beyond legal compliance to ensure
our business can prosper with the acceptance and
willingness of the communities we serve and in which
we operate. Local communities grant us a continuing
social licence to operate when we demonstrate
our values and act according to them. At the heart
of our brand is our desire to form partnerships that
deliver better and smarter services. When looking at
ways we can do things better, we believe corporate
community-based programs that focus on the
environment, education and safety have a natural
fit with EnergyAustralias core responsibilities as an
energy service provider.
Some of our major 2012 initiatives included:

EnergyAustralia employees continued to support Conservation Volunteers
by volunteering on priority projects, with 14 employees joining Conservation
Volunteers at the LaTrobe Wildlife Sanctuary. Volunteers were part of the
Habitat Enhancement Program that aims to re-introduce mammals into
the Sanctuary, such as bandicoots and dunnarts. Funding also provided
support for community volunteers to undertake further restoration of The
Island, and students from Glen Waverley Secondary College spent two
days maintaining, planting and establishing a trial plot for direct seeding.
This is the 5th year of the partnership and over this period, with our support,
Conservation Volunteers has planted 75,000 trees and shrubs. The planting
program is restoring the site and will protect native vegetation, including four
endangered plant species, and support native animals such as eastern grey
kangaroos and swamp wallabies to continue to live and breed in the area.
Page | 73
A new partnership with St Vincent de Paul Society, including a donation

of $150,000 for the Society to purchase three new soup vans for their
Moe (Latrobe Valley) and city services. As an energy business, one of our
primary functions is to help our consumers use energy more efficiently.
Therefore, as part of our sponsorship, we also assisted the Society to
find new ways to improve the efficiency of their soup vans operations.
Leveraging our Swim Australia sponsorship to support community events
including the SwimSAFER program. This program provides materials to
swim schools and parents to teach kids and parents about water safety.
The EnergyAustralia GO Swim Month was held in October 2012. Under this
program customers could enter competitions to win swimming prizes and
Australian swimmers appeared at local swimming clubs around the country.
Page | 74
Leveraging our Melbourne Stars sponsorship

to support community events including the
EnergyAustralia customer T20 Melbourne Star
ticket offer whereby customers could win money
cant buy opportunities including coin toss,
seats on the ground for customers and their
family members and premium seats packages.
Inspired by Business pilot project with the notfor-profit organization Schools Connect Australia
and Alkira Secondary College in Victoria.
EnergyAustralia partnered with a teacher
to co-design a more engaging and relevant
curriculum unit for students by integrating
industry-based experiences into the teaching
of science and mathematics. The project aims
to strengthen the real world relevance of the
science and mathematics curriculum in schools.
We also offer a free on-line education resource
that provides secondary students with information
to better understand energy generation and how
to use energy more efficiently around the home,
http://energyaustralia.com.au/about-us/mediacentre/educational-resources. In 2012 we were
approached by the Queensland Department
of Education, Training and Employment to use
EnergyAustralias educational tool kit as part
of developing curriculum materials to support
the introduction of the Australian Curriculum.
EnergyAustralia employees donated toys for the

annual 2012 Smith Family Christmas toy run.
Toys donated by staff were distributed by the
Smith Family to children from low income families
from across Australia. We also included a bill
message inviting customers to make a donation
to the annual 2012 Smith Family fundraising
program. 751 customers responded to the
invitation, donating $36,960 to the program.
Page | 75
2012 Investments
In 2012 we invested around $2.4 million for 89 sponsorship, donations and
community programs. Approximately three quarters of the expenditure was for
the commercial initiatives described above and the remainder was for community
specific investments and charitable donations. During the reporting period, 63 staff
donated a total of 397 volunteer hours for community engagement programs, of
which 62 hours was skills based and 335 hours was hands-on support.
Chart 13: EnergyAustralia community involvement,

proportion of $ spent in 2012
As with any investment that EnergyAustralia makes, we are careful that resources
are allocated to community initiatives in a disciplined and systematic way that
leads to positive, sustainable outcomes. We are confident that the selected
2012 community initiatives were carefully chosen, thoroughly implemented and
responsibly monitored, to make a lasting contribution to the community.
We use our parent companys, CLPs, London Benchmarking Group methodology
to measure and evaluate the impact of our community investment initiatives.
This global standard enables us to measure EnergyAustralias contribution to the
community, such as cash, time, management costs and in-kind donations, in a
systematic manner.
Legend:
Community
Youth &
Education
Environment
Networking
Other
Arts &
Culture
Page | 76
Environmental management
and performance
EnergyAustralia maintains effective systems to
manage its environmental obligations, to deliver
continuous performance improvements and to
ensure periodic review of environmental objectives
and targets. All of our major generation sites have
environmental management systems in place
that are certified to the international standard ISO
14001. Our Waterloo and Cathedral Rocks wind
farm sites achieved certification in 2012. This
achievement is in line with our parent companys
(CLPs) requirement to obtain certification
within two years of purchasing new sites.
There were no fines or prosecutions arising from
environmental non-compliance during 2012.
The major inundation of the Yallourn Mine as a
result of the Morwell River Diversion collapse did
not constitute a licence limit exceedence. The
Environment Protection Agency (EPA) of Victoria
issued EnergyAustralia with an emergency discharge
approval. The approval allowed for controlled and
monitored pumping of water from the mine into the
Latrobe River as part of the recovery work (refer
to Water section of the Operational Efficiency
chapter for more information). In March 2012 we
had one unlicensed discharge of saline water to the
Latrobe River at our Yallourn facility. The discharge
did not result in a fine or penalty.
However, compliance is only the minimum standard

we use to guide our environmental management and
performance. For example, in 2012 we continued
to run a business wide Environment Forum that
met on a regular basis. Participants included site
Health, Safety and Environment (HSE) Coordinators,
Plant Managers and other internal stakeholders
working on environment-related issues and activities
throughout the business. The Forums aims are to:
Leverage the breadth of expertise, talent
and experience EnergyAustralia has
in environmental management;
Centralise communication;
Encourage teamwork; and
Efficiently deliver environmental
and business outcomes.
In last years Report we mentioned that we
would commence a Lead Auditor Program.
The program aims to facilitate information sharing
whereby lead auditors (primarily the Health Safety
and Environment Coordinators at each of our
sites) will visit other sites to undertake audits on
key elements of the environmental (and safety)
management system.Unfortunately as a result of the
Morwell River Diversion collapse at Yallourn Power
Station and Mine, progress against this target was
not achieved in 2012.
However, the application of the Lead Auditor Program
remains a key program. Hence, we plan to roll out the
program in 2013.
Biodiversity
Biodiversity and the healthy functioning of ecosystems is important for our business. The design
and maintenance of EnergyAustralia facilities take
into account the avoidance, minimisation and
mitigation of potential biodiversity impacts of our
facilities.
Our operational sites are not located on or near high
value biodiversity areas, except for the Cathedral
Rocks wind farm, which is located within a 2,300ha
Heritage Agreement Area (HA Area). The HA Area
covers about 29km, with a coastal exposure of
nearly 11km. Given the nature of power generation,
land disturbance is an unavoidable consequence of
many of our activities.
The Yallourn Power Station and Mine occupies
around 5,500 hectares of land. Of this area, over
2,500 hectares is occupied by past and present
mining. This disturbance can have a negative
impact on local biodiversity and we recognise our
responsibility to support the healthy functioning of
ecosystems where we operate. Most of the remaining
area is under grazing management by a professional
contractor or as conservation areas.
Page | 77
100
90
80
70
60
50
40
30
20
10
0
Jun-05
2100
2050
2000
1950
1900
1850
1800
1750
Jun-06
Jun-07
Annual
disturbed
area
Jun-08
Jun-09
Annual
rehabilitated
area
Jun-10
Jun-11
Jun-12
Cumulative Disturbed Area, hectares
Annual Area, hectares
Chart 14: Balance of disturbed & mine rehabilitated areas in

Yallourn Mine
Chart 14 shows the area of land

rehabilitated at the Yallourn Mine has
been greater than the land area disturbed
by mining since 2005, so the net disturbed
area has diminished over time.
Cumulative
Disturbed
area
The Tallawarra Power Station is adjacent to Lake Illawarra. Lake Illawarra is an

estuary located between the Illawarra escarpment and the Pacific Ocean on the
New South Waless South Coast, 90 km south of Sydney. The Tallawarra Power
Station is located on the foreshore of the lake and uses water from the lake for
cooling and discharges water back into the lake. In 1988, the New South Wales
Government established the Lake Illawarra Authority (LIA) to manage the waters
and foreshores of Lake Illawarra.
Through site specific Environment Improvement Plans, EnergyAustralia works

alongside local communities on a number of programs to rejuvenate and restore
important natural habitats within the surrounding area of our assets.
Page | 78
Biodiversity register
In last years Report we stated that we planned to
develop a biodiversity register in 2012. While the
Register was not developed, we worked closely
with our parent, CLP, to develop a new CLP Groupwide Biodiversity Policy Statement, Guidelines and
Tool. These documents will assist with incorporating
the assessment of biodiversity risks into internal
pre-investment environmental risk assessment
process. This initiative was developed according
to the principles laid out in the latest International
Finance Corporations Performance Standard 6.
The documents will also guide the
establishment of our biodiversity register.
Yallourn
In Victoria the State biodiversity offset policy requires
positive management interventions to improve or
restore the conservation value of a loss area or halt
its degradation through a like-for-like offset. The
like-for-like criteria and improvement requirements
imply that there is an overall net gain in biodiversity
in offset areas in relation to loss areas. Species
diversity is measured annually in the offset areas
to confirm the effectiveness of the offset area.
We have developed the Yallourn Mine land
rehabilitation program to meet our obligations under
this requirement. In 2012, we rehabilitated 70.0
hectares against a Plan of 69.2 hectares. Despite
widespread flooding of the mine throughout the
second half of the year, the rehabilitation plan
was reallocated to enable the plan to be met.

Rehabilitation and land management activity
included re-vegetation, weed control, pest
animal control and fire season fuel reduction.
More details of the rehabilitation

program is available in the Yallourn
Power Station and Mine Social and
Environmental Performance Summary
2012 Report, here
Tallawarra
Tallawarras EPA licence regulates how we use
water from Lake Illawarra for cooling requirements
to mitigate impact on the Lakes biodiversity.
For example, we are not permitted to discharge
chemicals into the saltwater system, we must
reduce the heat of the water before discharging
back into the lake and undertake regular
monitoring of fish and other species activities.
The power stations Environment Protection
Licence (EPL) requires us to conduct screen
sampling of fish, prawn and jellyfish species from
Lake Illawarra. As per the licence requirement,
the EPA undertook a review after three years of
monitoring and the results consistently showed
there was no significant impact on the plant and
animal life. The EPA agreed to remove the condition
requiring the monitoring of fish, prawns and jellyfish
in 2012. Investigations, monitoring and trials will
continue on options to reduce the impacts to
biota associated with the power stations thermo

shock process for the cooling water system.
The Tallawarra EPL also requires ongoing monitoring
of seagrasses in Lake Illawarra. A new methodology
for seagrass monitoring, Low Level Aerial
Photography (LLAP), was proposed by the EPA to be
undertaken as a trial alongside the existing monitoring
methodology. The Tallawarra EPL was revised to
require the two monitoring methodologies to be
implemented in the summer of 2013. However, the
LLAP methodology details were not finalised by this
time. Routine seagrass monitoring of the lake was
conducted as per the normal licence requirements in
2012. The Tallawarra EPL was subsequently revised
to allow LLAP and the existing seagrass monitoring to
be undertaken in conjunction in the summer of 2014.
Iona
During 2010-11, extensive plantation of native
seedlings occurred to revegetate the area
surrounding the Iona gas facility. To establish these
seedlings, in 2012 we conducted an extensive
program of pest and weed management, mulching
around the seedlings and removed non-native trees.
Water in site wetlands is monitored on a regular basis
to check its quality is within acceptable ranges.
We conduct regular maintenance of site roads
and banks to minimise erosion. As part of this
program, during 2012 we undertook significant
work in our cold vent area to reduce run-off
causing erosion. Environmental inspections are
also conducted monthly to identify any general
environmental issues such as erosion.
Page | 79
Enhance Place coal mine

Enhance Place takes its name from its history of
taking charge of rehabilitation of areas suffering
environmental degradation from historic mining
operations. The previous owners used a business
model of mining residual coal to fund the rehabilitation
required to improve these damaged areas. From this
concept, the name Enhance Place was coined.
The previous owners progressed rehabilitation on
a number of abandoned open cut areas, as well as
restoring damaged land around the pit top of the
historic Wallerawang Colliery, which operated for
around 100 years.
EnergyAustralia has continued this founding
concept through active rehabilitation of the open
cut and funding to continue a monitoring program
of the Environment Protection and Biodiversity
Conservation Act listed Purple Copper Butterfly
that resides in the immediate area. The monitoring
program is managed with the assistance of the
University of Sydney and seasonal employment
of local personnel. The original mining area has
been rehabilitated to pasture land consistent with its
original land use.
EnergyAustralia has lodged an application for
development consent with the New South Wales
Department of Planning and Infrastructure to increase
coal output and extend mining operations through
previously mined areas for a further 15 years. As part
of the proposal, we will continue active rehabilitation
of mined areas and avoid impact to environmentally
significant areas through the provision of mining

exclusions zones. Impacts that cannot be avoided
will be offset by the provision of a biodiversity offset
strategy. Consultation with stakeholders will continue
throughout assessment of the application.
Cathedral Rocks wind farm

The Cathedral Rocks wind farm, of which
EnergyAustralia has 50 percent ownership, is within
a 2,300ha Heritage Agreement Area (HA Area). This
is an offset area agreed with the South Australian
Government in which indigenous plants and animals
are protected in perpetuity. The responsibility for
the care of any HA Area is therefore attached to the
ownership of the property.
Acciona, as the joint partner of the wind farm, has
the responsibility for the day-to-day operational
control of the wind farm. Cathedral Rocks HA
Area has been assessed and determined to be an
important habitat for wildlife with high diversity of
native species, including rare plant species (Acacia
acockii) and protected avian species (Southern
Emu-wren and Western Whipbird). A Heritage
Agreement Management Plan has been approved
by the Native Vegetation Council and the District
Council to manage pressure from stock grazing,
weed infestations, impacts of feral animal grazing and
predation on native species from foxes.
As part of the Heritage Agreement, Cathedral
Rocks maintains biodiversity within the HA Area
that is 80 times larger than the area approved
to be cleared for construction. Administered through

the Heritage Agreement Management Plan, the offset
will lead to a significant biodiversity gain on a local
and regional scale in the long term, while contributing
to the connectivity of habitats on the Lower Eyre
Peninsula between Sleaford Mere and Coffin Bay
National Parks.
Further details are available here
Waterloo wind farm

At the Waterloo wind farm a stand of peppermint box
woodland (Eucalyptus Odorata) is located close to
the operation. An area of 0.15ha of native vegetation
was cleared and eleven individual peppermint box
trees were required to be trimmed or removed at the
commencement of construction in 2009. As a result,
an offset payment was made to the Native Vegetation
Fund for environment benefit within the region. The
Native Vegetation Council, appointed by the South
Australian Government, is responsible for managing
the environment offset for Waterloo. The Waterloo
Environmental Management Plan highlights the
woodland as protected area. In addition to legislated
protection requirements, active Wedge-tailed Eagle
nests are managed to minimise the disturbance to
breeding eagles.
Page | 80
Stony Gap wind farm development site

In last years Report we stated that we anticipated
a decision on our Referral to the Federal Minister
for Sustainability, Environment, Water, Population
and Communities in relation to the potential for
significant impact upon the EPBC Act listed species,
the Pygmy Blue Tongue Lizard, that has been
identified in small numbers at the development site.
However, the Minister sought further information and
clarification of our Referral in the form of additional
very targeted surveys to cover a wider development
footprint. With the assistance of the members of the
South Australia Pygmy Blue Tongue Lizard recovery
team we conducted further surveys and prepared
additional narrative on the construction management
strategies and practices relating to the Pygmy Blue
Tongue Lizard. We lodged the additional information
in November 2012.
In April 2013 we were notified that the Stony Gap
wind farm has been deemed a Controlled Action,
requiring Preliminary Documentation. This means
the project is an acceptable form of development and
can progress to an assessment against the EPBC Act
through the provision of Preliminary Documentation.
Ensure effective local

community engagement
in operations and during
business development
Local engagement
Given the diversity in location of our assets, we tailor
our approach to local community engagement at the
site level. Each site runs regular community liaison
and environmental review committee meetings.
Group members include employees from the local
site, local council representatives, community groups,
contractors and residents. The groups review and
discuss issues of importance for the local community
and the local EnergyAustralia facility, including
construction, operation, environmental and social
matters.
In addition to community liaison and environmental
review committees, in 2012 we also held information
days, met with landowners and local residents,
attended and presented at local council events/
forums, participated in local business community
forums, conducted tours on our sites and held open
days. Topics covered included noise, sponsorships,
bush fire planning and project status updates.
In 2012 there were local community concerns
regarding two EnergyAustralia assets, mainly noise
and health related issues around our Waterloo wind
farm in South Australia and the Narrabri Coal Seam

Gas project near Narrabri in New South Wales. The
following paragraphs provide further details about the
issues and our responses.
Noise and wind farms

In 2012 we received four noise complaints in relation
to the Waterloo Wind Farm, three of which required
monitoring. As required by the relevant legislation
(South Australia EPA Environmental Protection
(Noise) Policy 2007 and Wind Farms Environmental
Noise Guidelines (2003)) EnergyAustralia advised
the South Australian EPA of each substantiated
noise complaint. Further, and in line with our internal
Noise Management Procedure, the results of the
independent noise monitoring were forwarded to
the South Australian EPA to close out the complaint
resolution process. Three of the four complaints
have subsequently been closed and the fourth case
remains under investigation.
Coal Seam Gas

Issues associated with Coal Seam Gas (CSG)
continued to raise community concerns in 2012. This
gave rise to additional conditions recently imposed on
the CSG industry in New South Wales by the State
Government. These new conditions have impacted
on other CSG operations in New South Wales,
which are closer to population centres and/or wine
or equine industry clusters than the Santos and
EnergyAustralia Narrabri CSG project.
Page | 81
Santos has operational control of the site and takes

the lead on community and regulatory engagement
on local issues with the operation of the gas fields.
EnergyAustralia supports Santos on these activities
as required. Santos reports back to us informally on
a regular basis as well as formally through quarterly
joint committee meetings that includes a community/
regulatory standing agenda item. The Narrabri CSG
project has advantages over other New South Wales
CSG ventures in that it:
Involves coal seams with relatively good
natural permeability, which do not require (so
no plan for) hydraulic fracturing (fracking);
Targets coal seams that are hundreds
of metres below (and isolated from) the
shallow aquifers used for water supplies;
Is almost entirely situated in the Pilliga
state forest, so does not impact on any
strategic agricultural land and only requires
a small interaction with other farmland
involving about ten private landholders;
Has the capability to satisfy about 25 percent
of New South Wales gas demand (which faces
supply shortages in coming years); and
Is run by an experienced, high-quality
operator with a good environmental
and community track record.
Since taking over from Eastern Star Gas in 2011,
Santos has implemented its higher environmental
and operational standards. Rehabilitation and
remediation work has been undertaken to reduce the
physical footprint of the site, improving community
confidence in the integrity of the project.
More details are available here
Local activities
Our behaviours and personality framework is the
cornerstone that drives our investment in programs
for social development in the communities where we
operate. Our local operators have the best knowledge
of local priorities and are able to work in partnership
with local governments, community groups and
residents to provide solutions that match their needs.
Read more about our behaviours and personality
framework in the Safe and Engaged Employees
chapter.
These partnerships help to improve our links with
the local community and in many cases, provide
opportunities for employees to lend their support
to causes close to home. Some major activities we
supported and participated in 2012 included:
Yallourn Power Station supported the Moe
Dance Eisteddfod, the EnergyAustralia and
Rotary Club of Moe Fun Run/Walk along
the Moe-Yallourn Rail Trail to raise funds
for the Club and the 2012 Baw Baw Local
Learning and Employment Network jobs expo,
which attracts secondary school students
from across the wider Gippsland area;
Tallawarra Power Station continued to partner
with Conservation Volunteers to rehabilitate Duck
Creek, with 2012 activities focused primarily on
controlling environmental weeds, maintaining

previous restoration sites and further planting.
The power station also continued to support the
Wollongong Surf Life Saving Clubs participation
in the Ocean Thunder Pro surf boat series;
Iona gas facility supported the Warnambool
Aquatic Centres Learn to Swim program. The
Centre and EnergyAustralia held an open day
where local residents learned about water
safety from Australian Olympians James
Magnussen, Travis Mahoney and Sarah
Katsoulis. Other sponsorships included the local
Relay for Life and Cobden Festival Fun Run;
Waterloo Wind Farm sponsored local events
which were strongly supported by the community
including a Local Community Bike Ride (as
part of the Santos Tour Down Under Race),
the Clare Easter Races and the Saddleworth
Community Christmas Street Party; and
Hallett Power Station assisted the local Country
Fire Service (CFS) with a contribution towards
a Breathing Apparatus (BA) recharge station.
We encourage active participation from our
employees in the region in which they live in and,
consequently, have an interest in addressing local
community needs. Through this effort, we reinforce
EnergyAustralias behaviours and personality
framework within the workforce by providing
opportunities for them to apply their expertise and
passion to good causes.
Page | 82
Preparing for the new energy system
Preparing for
the new energy
system
Respond effectively to changing policy,
economic and market conditions
2013 Targets
Respond effectively to changing policy, economic and

market conditions
Continue to partner with industry experts to develop products,

services, technologies and projects
Explore options for fuel supply that align with changes in
electricity demand
Increase the capability and market penetration of solar PV
systems
Contribute to policy and regulatory development that

delivers sustainable energy markets
Continue to develop policy and regulatory advocacy positions

that promote sustainable energy market outcomes
Reduce carbon intensity of the business
Move towards emissions intensity 2020 target (0.8tCO2/MWh)

based on EnergyAustralias 2007 Climate Change Strategy
Continue the development of renewable energy options
consistent with meeting our RET requirements
Achieve 2 percent efficiency improvements from high and
intermediate turbine maintenance at Yallourn
Contribute to policy and regulatory

development that delivers sustainable
energy markets
The energy sector is going through a significant

structural change that is driven by:
Carbon policy and a range of additional
measures, such as the Renewable
Energy Target Scheme;
The realisation of new coal seam
and shale gas reserves; and
Changes in energy demand.
In the coming decades we will see a significant shift
from a heavy reliance on fossil fuels, including a
change in the type of fossil fuel employed, to more
sustainable and renewable energy sources. Rapid
development of new technologies will underpin the
change that energy companies will go through.
From consumers perspective, the relationship

they have with their retailer is also fundamentally
changing. Consumers are seeking a deeper
relationship, they want advice and support on how
they can better manage energy in their homes. New
technology, such as smart meters and software to
let customers take full advantage of them, will give
them a greater capacity to manage their demand.
Innovative products and tariffs will emerge on the
back of that technology.
For example, improvements in the efficiency of
products, such as lighting and smart appliances,
have already begun to reduce the energy intensity of
household use, where energy intensity is defined as
energy use per household. Further, new commercially
attractive technologies are also emerging for the
development and take-up of hybrid and fully electric
passenger vehicles.
Government driven solar feed-in tariff schemes have

also resulted in an increasing faster rate of installation
of solar photovoltaic on residential rooftops over the
last four years. AEMO estimated that total installed
photovoltaic capacity rose from 23 MW in 2008 to an
estimated 1,450 MW by the end of February 2012.
They forecast installed capacity to reach 5,100 MW
by 2020 and almost 12,000 MW by 2031 (based on a
moderate growth scenario)1 .
1 AEMO, ROOFTOP PV INFORMATION PAPER,

National Electricity Forecasting, 2012.
Page | 83
Industry is also fundamentally changing. Since

the 1980s there has been a decline in the relative
contribution to Gross Domestic Product (GDP) from
goods-producing industries, such as manufacturing,
and a rise in the contribution from service industries.
More recently, the mining sector has grown as
developing countries like China and India are using
more and more of Australias abundant mineral
resources. This change in Australian industry has
significant implications for energy use:
Service related industries are less energy
intensive, resulting in a decline in Australias
overall energy intensity even though
energy production has increased.
The composition and location for
industry demand has changed.
EnergyAustralia is responding to and preparing for
these changes.
Respond effectively to
changing policy, economic
and market conditions
The risks and challenges for investment are heavily
influenced by government policy and market and
economic conditions. This is particularly important
in the energy sector where investments tend to be
large and locked in over multiple decades, that is
generally 30 to 40 years. Therefore, we continue to
assess the possibility of such uncertainties and factor
these considerations into our investment decisions.
Responding to Climate Change

One of our key business challenges is climate change
policy and regulation. Our business performance
depends on our ability to manage changes to the
energy industry, which may result from the Australian
Governments Clean Energy Future legislative
package that took effect from 1 July 2012.
Climate change poses risks and opportunities for our
business. These risks include:
Policy and regulatory risk, deriving from existing
and future national policies and regulations
aimed at reducing greenhouse gases. In
evaluating carbon, we take into account
both the obligations (for example, pertaining
to facilities included in the Clean Energy
Future legislation) and the opportunities.
Physical risk, resulting from physical phenomena

(for example, higher temperatures, changes
in the water cycle, increased variability in
extreme weather patterns etc) that result
from changes in the climate. This risk is
considered specifically by each business unit.
Reputational risk, deriving from the opinion of the
various stakeholders with regard to our action or
inaction on climate change. In this respect, we
are careful to engage in meaningful discussions
with our stakeholders, particularly government.
Opportunities include:
Investment in lower and zero emissions
generation technology, such as wind,
solar and geothermal from the Federal
Governments Renewable Energy
Target scheme and establishment of the
Australian Renewable Energy Agency.
Strategic research and development of joint
partnerships into clean coal technology.
New retail products and service opportunities
arising as a consequence of rising energy
prices and state government energy efficiency
schemes, which promote greater focus by
consumers and businesses seeking opportunities
to improve the efficiency of the energy they use.
Page | 84
Our Climate Change Strategy

The launch of our Climate Change Strategy in July
2007 was an unparalleled initiative to define our
responsibilities, and to measure and manage the
impact of our operations on the climate. We were
the first Australian energy utility to publicly commit
to comprehensive short, medium and long-term
emissions reduction targets, as well as a commitment
to our customers to assist them in managing their
impact on the climate through their use of energy.
The overriding goal of our Climate Change Strategy
is to reduce our greenhouse gas emissions by 60
percent by 2050 on a 1990 emissions baseline for
the National Electricity Market (NEM), proportional to
EnergyAustralias market share of the NEM in 2050.
Our targets are described in the diagram to the right.
Both short and longer-term emission reduction targets
are required to ensure EnergyAustralia is responsible
for its proportion of emissions reduction in Australia,
even as the business works towards its goal of
growing its share of the national energy market.
2007 - 2010
2020
2035
2050
Introduce a cap on
carbon intensity
and undertake
immediate
action to reduce
emissions by 2010
Cut emissions
intensity by 1/3 of
2007 levels (from
1.2TCO2/MWh to
0.8CO2/MWh)
Reduce emissions
by 35% on
estimated 1990
baseline by share
of the National
Electricity Market
Reduce emissions
by 60% on
estimated 1990
baseline by share
of the National
Electricity Market
We will meet our climate change targets through four key areas of work:
1. A cap on our carbon intensity We will not build new power stations using traditional coal-fired technologies.
2. Reduce our emissions We will reduce emissions from operations, manage waste
and support carbon dioxide (CO2) community reduction schemes.
3. Invest in low and zero emission technology We will invest in more renewable energy, direct
investment to low emission technologies and support research and development.
4. Help customers manage their own footprint We will offer GreenPower accredited products,
new energy efficient products and services, and help customers to offset emissions.
For information on our progress, see the Establishing Deep Customer Relationships chapter.
Page | 85
The Climate Change Strategy is supporting us to develop commercially

viable and environmentally responsible energy generation assets, such as
our Tallawarra gas-fired Power Station. We will also assist our customers
to reduce their environmental footprint through changes to our products
and services. For example, our eWise report provides households with a
comparison of their energy use with similar households in their local area as
well as information on how to use electricity more efficiently around the home.
Chart 15 shows that EnergyAustralias generation output profile is

representative of the National Electricity Markets (NEM) fossil fuel dependent,
greenhouse intensive economy. In this sense, we face the issue that
confronts Australian society: how to balance our responsibility to satisfy
the energy needs of consumers with our responsibility to minimise the
significant environmental, social and economic impact of climate change.
Chart 15: National Electricity Market and EnergyAustralias

fuel mix, by sent out generation, 2012
Legend:
NEM Fuel Mix
Legend:
EA Fuel Mix
Black Coal
Black Coal
4%
4%
8%
Brown Coal
13%
Brown Coal
12%
Gas
Gas
51%
52%
Hydro
32%
Wind
24%
Wind
Other
Source: EnergyAustralia and AEMO
Page | 86
275,000
250,000
225,000
200,000
175,000
150,000
Year
Actual
2012 NEFR
(Medium,
Scenario 3,
Planning)
2011
ESOO
(Medium)
Source: AEMO, NATIONAL ELECTRICITY FORECASTING REPORT 2012 (p.3-5)
2
-2
21
1
20
-2
20
0
20
-2
19
9
-1
20
18
8
20
-1
17
7
20
-1
16
6
-1
20
15
5
20
-1
14
4
20
-1
13
3
-1
20
12
e)
20
im
at
-1
1
st
20
11
-
12
(e
20
10
0
-1
09
9
20
-0
08
8
20
-0
07
7
-0
20
06
20
-0
125,000
05
There has been a significant change to wholesale

energy market conditions over the past three years.
Chart 16 shows how aggregate electricity demand
from the NEM grid peaked in 2008/09 and 2009/10
and has since declined. Further, the chart shows that
while demand is forecast to grow, it will grow from a
lower base and at a slower rate. The fall in demand
has been driven by general economic conditions,
significant declines in demand from industry and
small to medium size enterprises and the impact of
rising energy prices, the increased uptake of solar PV
on residential homes and energy efficiency policies
on residential customer demand from the grid.
300,00
20
Wholesale energy market
Chart 16: Aggregate Energy Demand in the National Electricity Market
Annual energy (GWh)
In 2012 the risks and challenges were heavily

influenced by the Federal Governments Clean
Energy Future legislative package, which
broadly imposes a fixed price of $23 per tonne
of carbon produced in 2012/2013. Hence, a
carbon price of $23 per tonne combined with
our 2012 emissions would equate to a gross
carbon liability of around $570.4 million.
Page | 87
Another major impact on the wholesale market

in 2012 was the introduction of the Federal
Governments Clean Energy Future legislative
package. The carbon price mechanism is designed to
alter the relative cost competitiveness that determines
how generation from different facilities is bid into the
wholesale market. As carbon prices increase, high
emissions intensity generation (such as coal) will
incur higher costs, lose cost competitiveness and will
ultimately be replaced by lower emission technologies
and fuel sources (such as gas and renewable).
The Federal Renewable Energy Target (RET)
has had an unintended consequence on the
wholesale energy market by requiring new
renewable generation to be built at a time
when current demand is falling (see the
next section for more discussion).
In response to these external factors, in the
second half of 2012 we announced that we would
operate only three of the four units at the Yallourn
Power Station in Victoria and that one 500MW
unit of the Wallerawang Power Station will also
be withdrawn from regular service for the course
of 2013. These units have been operating as
required by the prevailing market conditions.
EnergyAustralia was not the only generator to
re-optimise its portfolio, with other generators
such as Stanwell Corporation and Alinta Energy
making similar announcements. In total, reduced
operation or closure of over 3,000MW of coal-fired
generation was announced in 2012 in the NEM.
Consumer demand and energy

consumption preferences
In 2012 we witnessed a decline of electricity
usage across our customer base. A number of
factors contributed to the reduction in customer
electricity consumption, including the underlying
demand changes of a more cost aware
consumer, energy efficiency, weather and the
impact of increased solar PV penetration.
In keeping with our objective of building pathways
to changing energy demand, EnergyAustralia was
named by the Australian Government as the retail
partner for its Smart Grid, Smart City Project.
We are also developing a range of products and
services to assist customers to better manage
their energy use. For more information read
Establishing Deep Relationships with Customers.
Our customers can access energy tips

and tool kits to help them identify where
their energy use occurs and find ways to
become more energy efficient, here
Contribute to policy and

regulatory development
that delivers sustainable
energy markets
EnergyAustralias relationship with policy makers is
important to enable us to stay abreast of emerging
energy and carbon issues. We also believe our
experience with operating across a range of
segments within the energy sector places us in an
ideal position to provide expert views and analysis in
relation to energy and carbon policy and regulatory
regimes and to ensure these policies are effective
and deliver sustainable benefits to all Australians.
We were also active members via participation
on policy committees and support for submission
preparation of a number of industry associations
including the Energy
Supply Association of
Australia (esaa) and
Energy Retailers
Association of
Australia (ERAA).
Page | 88
In 2012 we undertook extensive advocacy on issues

which impact our business and the sector, including:
Renewable Energy Target (RET) Review

The Renewable Energy Target (RET) is a Federal
Government scheme designed to stimulate the
growth of renewable energy within the National
Electricity Market. Since January 2011, the RET has
operated as two schemes. Under the Large-scale
Renewable Energy Target (LRET), all electricity
retailers and wholesale buyers have a legal liability
to contribute towards the generation of additional
large scale renewable energy, such as wind and
solar, by purchasing Large-scale Generation
Certificates (LGCs). Each LGC is equivalent to
1MWh of electricity sourced from eligible renewable
sources under the RET scheme. The Small-scale
Renewable Energy Scheme (SRES) focuses
on assisting households, small businesses and
community groups with the upfront cost of installing
small-scale renewable technology systems (for
example, solar photovoltaic and solar water heaters).
The RET is one of the few current policy settings
that has bipartisan political support. The RET has
been successful in bringing forward new renewable
generation investment. The Climate Change
Authority (CCA), which began operation in July
2012, was tasked by the Federal Government to
conduct a review of the RET in 2012. One aspect of
the CCA task was to define the 20 percent target.
Substantial and unanticipated reductions on forecast
energy demand in the National Electricity Market
(NEM) over the past few years means the current

overall RET (LRET plus SRES plus existing largescale renewable energy generation) is likely to
achieve over 27 percent of electricity generation by
2020. This is significantly higher than the original
policy intent of the RET which was to achieve
20 percent of electricity production by 2020.
EnergyAustralia commissioned ACIL Tasman, an
independent economic consultancy firm, to conduct
an analysis of various scenarios as input into the
review. The ACIL Tasman modelling found that,
unchanged, the current 20 percent RET would
actually deliver around 27 percent renewable energy
at a cost of nearly $54 billion from 2012 to 2030.
As a result of these findings, we submitted to the
CCA review that in the context of falling electricity
demand, the current RET should be recalibrated
to better align with current electricity demand
forecasts. Through recalibration we showed that
the overall RET subsidy cost could be reduced
by $25 billion (representing $840 for each energy
consumer) while still achieving the original
policy intent of 20 percent renewable energy.
Importantly, the current design of the RET
also puts pressure on the wholesale electricity
market. We argued that a policy that forces new
capacity to be built in an already oversupplied
market, with falling demand, calls into question
the sustainability of the market design itself.
While policy stability is very important, we need
to balance this with a scheme design that can
adjust to fluctuations in demand and not impose

unnecessary costs on the economy and our
customers. Further, there is a real risk that under
the current framework the market will not be able
to deliver enough renewable energy as renewable
projects need careful planning, engagement and
consultation with the community. This may result
in customers paying a financial penalty with no
new renewable capacity actually being built.
The CCAs own modelling showed that adjusting
the target to reflect changes in demand would
actually deliver more renewable energy at 2030
than the current design, but at a lower cost to
customers and with new renewable projects
built over a more sustainable timeframe.
Unfortunately the CCAs final Report, released in
December 2012, recommended that the RET should
remain a fixed 41,000 GWh of renewable energy from
large-scale sources by 2020. The CCA concluded
that adjusting the target (in either direction) would
entail risks. In particular, CCA stated that lowering the
target would risk undermining investor confidence
and increasing risk premiums for prospective
renewable energy projects. More generally, it could
exacerbate existing uncertainty surrounding climate
change policy, and potentially reduce the likelihood
of meeting any given renewable energy target. In
March 2013, the Federal Minister for Climate Change
announced that the Government would leave the
large-scale target fixed at 41,000 GWh by 2020.
Page | 89
EnergyAustralia will continue to advocate for the

recalibration of the RET to achieve a real 20
percent target more in line with existing forecasts
of electricity demand. A recalibration would reduce
the risk of policy failure and will ensure sustainability
of the RET as a robust policy framework.
Retail price regulation

A key endemic regulatory risk in the energy sector
is regulated prices, especially where regulated
prices do not reflect the true underlying costs of
purchasing, transporting and retailing energy to
consumers. EnergyAustralia has consistently
argued that competitive forces should be allowed
to set retail prices and the role of governments
is to establish the conditions for contestability.
Victoria introduced retail price deregulation in
2010 and as a result, the State is reaping the
rewards of a highly competitive retail market where
households have the choice of over a dozen
retailers competing for their business. Competition
has broadened beyond price and includes a variety
of innovative product and service offerings.
In 2012, EnergyAustralia continued to promote the
need for State Governments to de-regulate retail
prices, as we believe this is the most effective way
of promoting retail market competition and keeping
prices as low as possible for consumers. We also
participated in state-based retail price reviews in New
South Wales, South Australia and Queensland. As

part of the Federal Governments inquiry into retail
prices we proposed that State Governments support
the development of a model terms of reference for
retail price regulation to promote greater predictability
where these prices continue to be regulated. In
December 2012 the Standing Council on Energy
and Resources tasked the AEMC to provide
advice on Best Practice Retail Price regulation.
EnergyAustralia welcomed the South Australia
Governments announcement in December 2012
that from February 2013 energy retail prices
would no longer be regulated in the State. The
South Australian Government announcement
led to an immediate increase of competitive
market offers to South Australian consumers.
Gas market development

Gas demand is expected to experience rapid
growth internationally, with growth increasing by
55 percent over the period to 2035 (International
Energy Agency), and equalling global demand
for coal. The growth in gas demand is attributed
to its attractiveness in terms of low prices and
environmental benefits relative to other energy
sources in terms of reduced emissions intensity.
Australias unconventional energy resources,
such as coal seam gas (CSG) and shale gas and
technologies (such as coal-to-liquids and gasto-liquids) have significant potential to expand
our energy exports. Successful development
of unconventional energy resources could

also provide a lower emission energy source
than traditional supplies such as coal.
In Australia, there is currently an absence of
transparent gas price information. This can
make planning difficult, both on the supply and
demand side. Major changes in both supply and
in demand compound the issue by increasing
price uncertainty. As a result of the emerging
and expected changes in market dynamics
(particularly increases in domestic prices), there
have been calls for a national gas reservation
policy to ensure adequate domestic supply.
EnergyAustralia has advocated and will continue to
advocate that market transparency is the best way
to ensure domestic gas is available at competitive
prices. Reservation policies, whereby a proportion of
gas extracted from Australian gas exploration sites
is retained for domestic use, will only risk investment
and leave gas in the ground or coal seams, which
we believe will be to Australias detriment.
Page | 90
Wind farm regulations

The past year also saw a number of proposed changes and/or new regulations for wind farm developments and operations. There were major proposed
regulatory changes that affect EnergyAustralia and
for which we made submissions into, being:
1. Federal Excessive Noise From Wind Farms
Bill (potentially to affect both operational and
development projects), which sets out to provide
appropriate regulation of wind farm noise.
2. South Australia New Wind Development Plan
amendments, which came into effect in late
October 2012 (these affect development projects
for which planning applications had not yet
been lodged) and deals with the specific issue
of visual amenity by making it plain that wind
farms are an acceptable form of development
in areas of relatively low population densities,
usually areas zoned rural and coastal.
3. New South Wales Wind Guidelines proposed
changes (potential to affect new wind projects
in New South Wales that have not yet been
consented), which propose a regulatory
framework to guide investment in wind farms
across New South Wales, while minimising
any potential impacts on local communities.
4. New South Wales Protection of the
Environment Operations Amendment (Wind
Farms) Regulation 2012, which, if enacted,
will require all new and existing wind farm
operators with greater than 30 MW capacity to
obtain an environmental protection licence.
EnergyAustralia has consistently stated through regulatory processes that proposed new regulations
should strike a fair and reasonable balance between investment in a clean and modern electricity
system while also protecting local community amenity. We have also stated that overly stringent
regulation risks the successful and effective achievement of the Federal Governments RET.

As an energy producer, a key measure of our
environmental management performance is the
intensity of greenhouse gases produced from the
electricity we generate. This measure is reaffirmed
by our stakeholders, including the community,
governments and NGOs, who are interested and
support our strategy to manage the transformation of
EnergyAustralia from a high carbon to a lower carbon
business while continuing to provide safe and reliable
energy to underpin economic activity during the
transition phase.
Our Climate Change Strategy commits us to
reducing our proportion of the electricity sectors
emissions as we continue to grow our business. As
a consequence, we set ourselves a medium-term
target to cut our emissions intensity by one third of
2007 levels by 2020.
Such a target is also consistent with our vertical
integration business model as it allows us to match
our generation portfolio in a responsible and
sustainable manner in order to match our
customer base.
While there was no significant additional capacity

added to our generation assets in 2012, we achieved
a reduction in our overall emissions from electricity
generation in 2012, down from 26.9 MTCO2e in 2011
to 24.9 MtCO2e in 2012. Our emissions intensity also
fell by 5.7 percent, declining from 1.05 TCO2/MWh in
2011 to 0.99 TCO2/MWh at the end of 2012.
This represents a fall of 22 percent since the
commencement of our Strategy in 2007. Our goal is
to continue to grow the business and simultaneously
reduce our intensity and achieve a level of 0.8 TCO2/
MWh by 2020, a 33 percent reduction on 2007 levels.
Federal carbon policies will have a large influence on
our success meeting this target.
Page | 91
The main reasons for the decline in our emissions intensity in 2012 were:
Chart 17: EnergyAustralia emissions^ intensity from

electricity generation
Reduced output from Yallourn following mine river collapse in June and
decision post recovery to operate 3 out of 4 units (see goal 14, changes
to wholesale energy market conditions for further discussion).
Full year of black coal generation from Delta West GTA
(only 10 months in 2011), which creates lower greenhouse
gas emissions intensity than brown coal.
1.60
1.40
1.20
Our emissions intensity per MWh is defined as our direct emissions from the
generation of electricity. This is aligned to the definition of Scope 1 emissions
under the National Greenhouse and Energy Reporting (NGER) regime. The
calculation is based on the energy generation assets we own (Yallourn, Tallawarra
and Hallett) as well as the Ecogen and Delta West agreements that give us the
rights to manage the trading of the electricity output of four power stations in the
National Electricity Market (for more information on the arrangements refer to
the Operational Efficiency chapter). We also include the output of three wind
farms, being Cathedral Rocks, Waterloo and Wattle Point, which we either own or
have power purchasing agreements for the off-take of generation.
tCO2e/MWh
1.00
0.80
0.60
0.40
0.20
0.00
2008*
2009
2010
2011
EA Total
EA Owned
EA Managed
EA 2020 Target
* Data for 2008 only includes six months; ^ Emissions is defined as

Scope 1 emission under NGER
2012
The following sections provide an outline of

the initiatives we are exploring to achieve our
Climate Change targets.
Page | 92
Gas-fired Generation
In addition to the Santos joint venture in Narrabri, we are exploring
a number of gas-fired generation options, including:
A 500 MW combined cycle gas turbine (CCGT) option at
our Tallawarra Power Station in New South Wales;
A 1,000 MW gas-fired station at our Yallourn site in Victoria;
Two 1,500MW gas-fired power stations in south east and central
Queensland to meet forecast increases in Queensland electricity demand;
A peaking open cycle gas-fired station (up to 700MW)
at Marulan, New South Wales; and
Up to 800MW open cycle gas-fired station in the
Latrobe Valley region of Victoria.
These investment opportunities will be driven largely by energy demand,
market conditions and energy policy settings.
Renewable energy
A critical aspect of achieving our carbon intensity targets is the ability
to effectively meet our obligations under the Federal Governments
RET, especially the LRET component. To meet our LRET obligations
under the scheme in 2012, EnergyAustralia held power purchase
agreements with three major wind farms, Cathedral Rocks, Wattle Point
and Waterloo in South Australia, as well as purchasing RET certificates.
In 2012, we surrended 3,025,430 LGCs and 7,909,258 STCs.
In September 2012 we also announced the signing of two further
power purchase agreements to buy 100 percent of the renewable
energy generated from the proposed Boco Rock and Taralga
wind farms (totaling 215MW) in New South Wales.
Gas-fired power station development options, as at 31

December 2012
Plant
Capacity
Status
Status
State
Tallawarra B
420MW
Permitted for CCGT
On hold
NSW
Yallourn
CCGT
1,000MW
Permiting has been put on hold
On hold
Vic
Ipswich
Up to
1,500MW
Development process
underway, targeting 2013
investment decision for 500MW
Early
Stage
Qld
Gladstone
Up to
1,500MW
Development process
progressing for 500MW
Early
Stage
Qld
Marulan
700MW
Permitted for open cycle gas

turbine (OCGT)
On Hold
NSW
Latrobe Valley
Up to
800MW
Land option secured
Early
Stage
Vic
We are also exploring a number of other wind farm generation options,

including the following two that are at a late stage of development:
123MW Stony Gap wind farm, South Australia. The Development application
decision is before the Environment, Resources and Development Court.
18MW Waterloo II wind farm, South Australia. The Development application
was lodged in late 2012.
Final decision on these options will be contingent on strategic fit within
our portfolio, market signals and planning approval process progress.
Page | 93
State-based environmental and climate

change schemes
The Victorian, New South Wales and South
Australian Governments have implemented energy
efficiency schemes. While all three schemes have
their own legislation and rules, in essence the
schemes require retailers to obtain and surrender
energy efficiency certificates equal to their share
of reduction in greenhouse gas abatement through
energy efficiency measures they offer consumers.
The Queensland Governments Gas Scheme
requires Queensland electricity retailers to
surrender quantities of Gas Electricity Certificates
that amount to 15 percent of the electricity load
supplied to Queensland customers. The Queensland
Government announced in early 2013 that it would
abolish the Scheme.
EnergyAustralia surrendered the following certificates
in 2012:
Table 18: State based schemes - certificates

surrendered, 2012
Type of certificate
New South Wales and Australian Capital Territory Greenhouse Gas
Certificates*
Queensland Gas Energy Certificates
Victorian Energy Efficiency Certificates
Number of certificates for 2012

1,644,232
682,123
1,216,463
South Australian Energy Savings Certificates#
54,379
New South Wales Energy Saving Certificates
684,453
* The Scheme concluded on 30 June 2012 as a

result of the start of the Federal Governments
Clean Energy Future regime, hence, the period
of reporting is from January to June 2012.
# Under the South Australian scheme, retailers

are required to show how much greenhouse
gas reductions have been achieved through
approved energy efficiency activities rather
than surrender certificates. Further, the South
Australian Government has also set a proportion
of 35 percent of greenhouse gas reduction
activities required to be undertaken in low-income
households as well as the provision of energy
efficiency audits for low-income households
Page | 94
Brown-coal developments
We are working on a range of projects to utilise
brown coal in a more environmentally responsible
manner in the future. This includes participation in
CarbonNet, Victorias carbon capture and storage
project that is supported by the State and Federal
governments, including the Federal Governments
Carbon Capture and Storage Flagships program.
In 2011 we completed two pre-feasibility studies as
part of our participation in CarbonNet. One was for
an integrated gasification combined cycle power
station with carbon capture (IGCC) at Yallourn. The
project was based on Mitsubishi Heavy Industries
high efficiency gasification and gas turbine
technology. The second was for a post combustion
carbon capture plant (PCC), together with Loy Yang
Power, also based on Mitsubishi Heavy Industries
technology. We continue to work with our partners
on options that have the potential to significantly
reduce carbon and other atmospheric emissions.
EnergyAustralia continues to participate in research
and development projects that focus on longer
term innovations that could significantly reduce
the cost of low emissions power generation from
brown coal, including Monash University (chemical
looping and oxyfuel combustion) and the CSIRO
(sulphur tolerant solvent for post combustion
capture). These projects are sponsored by Brown
Coal Innovation Australia and Australian National
Low Emissions Coal Research and Development
group. EnergyAustralia is a member of Brown Coal
Innovation Australia which supports research and

development activities focused on brown coal.
EnergyAustralia is working with a range of
parties to develop technologies and projects
to produce coal-derived products, including
coal drying and conversion of brown coal to
liquids, gases and chemicals. These offer the
potential to add significant value to brown coal
and offer alternatives to electricity generation.
We selected key performance indicators from the
Global Reporting Initiatives reporting guidelines
and other key performance data to provide readers
with an overview of our performance. The 2012
performance data for the indicators shaded green
have been independently verified by Net Balance.
Page | 95
Key Performance Indicators (for operationally controlled assets) 2010-2012
We selected key performance

indicators from Global
Reporting Initiatives
reporting guidelines and
other key performance data
to provide readers with an
overview of our performance.
Units
2010
2011
2012
Total revenue
$m
3,482
6,923
8,311
Earnings before interest, tax and fair value (EBITAF)
$m
630
1,031
916
Total assets (as at year end)
$m
5,360
9,280
9,189
Economic value retained
$m
340.3
11.2
125.2
Community investments
$m
na
0.56
2.4
Gwh
13,253
13,391
11,222
PJ
46.4
48.9
49.8
Million
1.2
2.8
2.8
Coal consumed for power generation
TJ
159,850
159,459
124,122
Gas consumed for power generation
TJ
18,772
16,773
19,694
Oil consumed for power generation
TJ
373
327
294
Electricity consumption from the Grid
GJ
721,421
595,193
614,475
Carbon dioxide emissions intensity*
Kg CO2 / KWh
1.17
1.06
0.99
Carbon dioxide equivalent emissions - Scope 1*
Mt CO2e
16.2
26.9
24.8
Carbon dioxide equivalent emissions - Scope 2
Mt CO2e
0.242
0.197
0.204
Total water withdrawal for power generation
Mm3
381
372
402
Total water discharge from power generation
Mm3
365
360
387
Hazardous waste produced
T (solid) / kl (liquid)
567 / 486
278 / 460
76 / 682
Hazardous waste recycled
4 / 176
8 / 278
1.1 / 232
Hazardous waste disposed
563 / 310
270 / 51
75 / 450.2
Non-hazardous waste produced
3,726 / 0
3,228 / 0
2,135 / 4
Non-hazardous waste recycled
1,202 / 0
1,471 / 0
935 / 4
Non-hazardous waste disposed
2,524 / 0
1,760 / 0
1,215 / 0.03
Number
1,082
1,346
1,486
Percentage (male : female)
56:44
54:46
54:46
Total injuries / million employee hrs
5.28
7.74
4.73
Fatalities
No.
Days lost
Per 200,000 hours
1.1
5.2
5.5
Absent days rate
Per 200,000 hours
3.9
3.9
3.6
Customer complaints
Number
na
28,362
53,538
Customer complaints
As proportion of customer enquiries
na
0.009
0.015
Economic Performance
Generation sent out

Gas throughput of gas storage facility
Retail customer accounts (as at year end)
Environment Performance
Social Performance
Total number of employees
Gender split
na: not available

* Emissions intensity and Scope 1
carbon dioxide equivalent emissions
are of EnergyAustralias total
generation portfolio, including owned
and managed electricity output.
Total Injury Frequency Rate (TIFR)
Page | 96
Glossary
Below are details of the definitions of commonly

used terms and measurement of data represented in
the graphs, charts and commentary of the Report.
Absenteeism rate refers to the proportion of
total number of missed days over the calendar
year divided by the total number of workforce days
worked for the same period, where missed days
includes those days lost by employees because
of an incapacity of any kind (but excludes annual,
compassionate and maternity / paternity leave).
Average Handling Time (AHT) refers to
average time taken to handle a customer call.
Data is collected from Centrepoint (call reporting
portal) by call type as a total. AHT is calculated
using the sum of talk time plus hold time plus
after call work divided by calls handled.
Calls Handled refers to calls answered
by an EnergyAustralia Call Centre
consultant but excludes calls handled by
the Interactive Voice Recording system.
Calls Offered refers to all calls made to an
EnergyAustralia Call Centre as well as those calls
diverted to the Interactive Voice Recording system.
Community Investment refers to the calculation
of direct financial support of community groups
and programs through sponsorship and donations,
as well as indirect support to help promote and
raise awareness of these community organisations
(including commitments) through promotion.
Contractors refers to companies that are

joint venture or are key business partners that
provide a service with their own workforce.
For safety purposes these contractors need to
adhere to EnergyAustralia safety standards and
practices while operating on our premises.
Customer complaints refers to an expression of
dissatisfaction made to us, relating to our products
and/or services, or our complaints-handling
process itself, where a response or resolution is
explicitly or implicitly expected by the customer. A
complaint can be made in person, by telephone or
in writing. We exclude customer service calls that
are escalated from a customer service consultant
to a supervisor / team leader. Data includes
complaints to both EnergyAustralia and Ausgrid.
EBITDAF refers to earnings before interest,
tax, depreciation and fair value movement.
Economic value retained represents our
economic value generated less economic value
distributed as defined by Economic Performance
Indicator EC1 in the GRI Sustainability
Reporting Guidelines (Version 3.1).
Emissions intensity refer to an indexed measure
of the change in emissions per unit of electricity
produced (MWh) compared to a baseline intensity.
This is aligned to the definition of Scope 1 emissions
under the National Greenhouse and Energy
Reporting (NGER) regime. The calculation is based
on the energy generation assets we own (Yallourn,
Tallawarra and Hallett) as well as the Ecogen and

Delta West agreements that give us the rights to
manage the trading of the electricity output of four
power stations in the National Electricity Market.
We also include the output of three wind farms,
being Cathedral Rocks, Waterloo and Wattle Point,
which we either own or have power purchasing
agreements for the off-take of generation.
Energy hardship refers to customers who are
willing to meet their financial obligations but do
not have the financial capacity to do so. When
customers have difficulty meeting the cost of their
energy use on an ongoing basis, they may require
targeted and sustained solutions to manage the
underlying causes of their financial difficulties.
Full-time equivalent employees (FTEs) refers to
a measure of the size of EnergyAustralias workforce
that takes account of part time employees. Full time
employees are given a value of one. The value for
part time employees is based on their regular hours
as a proportion of full time hours. The measure
includes all permanent full and part-time employees
as well as those on permanent fixed contract period.
GJ refers to gigajoules, a metric term
used for measuring energy use. One GJ
is equal to one billion (109) joules.
GL refers to gigalitres, a metric term
used for measuring volume. One GL
is equal to one billion (109) litres.
Page | 97
Glossary
Global Reporting Initiative (GRI) refers to the

generally worldwide accepted framework for reporting
of an organisations economic, environmental and
social performance. The framework contains general
and sector specific content that has been agreed by
a wide range of stakeholders. EnergyAustralia uses
the GRI Sustainability Reporting Guidelines Version
3.1 and the Electric Utilities Sector Supplement in the
development of their annual Sustainability Report.
GWh refers to gigawatt hours, a unit of
energy equivalent to one gigawatt (1 GW) of
power expended for one hour (1 h) of time.
IVR refers to Interactive Voice Response
system, which allows customers to undertake selfservice of routine customer service matters.
Learning and Development refers to
training expenses, seminars/conferences,
employee subscriptions and memberships,
employee education assistance, team building
and development as well as training spend for
telemarketing. Estimate may be conservative
given discrepancies in how training spend is
managed and coded. It also includes labour costs
of internal Learning and Development staff/team.
Likelihood of recommending refers to
a customer metric score where customers
are asked How likely are you to recommend
EnergyAustralia to your friends/colleagues?,
using a rating scale from 0 (not at all likely) to
10 (extremely likely), customers are asked to
provide their loyalty rating against the question.
Lost Days rate refers to the proportion of total

number of days lost due to a workplace accident
and/or disease over the calendar year divided by
the total hours worked by the workforce for the
same period per 200,000 hours, where the hours
are pro-ratated across EnergyAustralia sites.
Scope 2 emissions refers to emissions

released into the atmosphere as a direct result
of our consumption of energy by our facilities.
Mm3 refers to million cubic metres, a

metric term for measuring volume. One
Mm3 is equal to one billion (109) litres.
tCO2e tonnes of carbon dioxide equivalent,

where carbon dioxide equivalent is defined
as greenhouse gas captured by National
Greenhouse and Energy Reporting guidelines
expressed as carbon dioxide equivalents.
MtCO2e million tonnes carbon dioxide

equivalent, where carbon dioxide equivalent is
defined as greenhouse gas captured by National
Greenhouse and Energy Reporting guidelines
expressed as carbon dioxide equivalents.
MW refers to megawatt, a unit of
power equal to one million watts.
MWh refers to megawatt hours, a unit of
energy equivalent to one megawatt (1 MW) of
power expended for one hour (1 h) of time.
Occupational disease refers to disease
occurring from a workplace hazard,
activity and/or work related injury.
PJ refers to petajoule, equal to 1015 joules.
Scope 1 emissions from electricity produced
and gas storage refers to emissions released into
the atmosphere as a direct result of the electricity
production and gas storage activities we carry out.
TJ refers to terajoule, equal to

one trillion (1012) joules.
Master logo
Total injury frequency rate (TIFR) refers to the

number of lost time injuries for each one million
hours worked.
A loststacked
time injury
is horizontal
an injurylogo
that
Full colour
logo and
has resulted in at least one shift/days absence
The stacked version is the primary EnergyAustralia logo. It should be
from work used
andin for
whichof instances.
a workers compensation
the majority
claim has been
lodged
and
liability
accepted.
The horizontal
version
is used
where there
are size constraints
see page 6.
Million hours worked includes all scheduled
The white background is the default and should be used unless
hours, plusNB:
overtime
less leave and also includes
it is not possible.
the hours worked by casual employees.
Water withdrawal and discharge for Yallourn
power station and mine refers to the Victorian
Governments Bulk Water Entitlement and is
underpinned by a Government approved Bulk
Water Metering Plan. The data submitted to the
Government each year appears in the annual
Victorian Water Accounts. There is also a
second obligation on wastewater discharges to
river covered by the EPA Act and EPA licence.

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Page | 1

competitive services to our customers, and

Likewise, the introduction of MyEnergyReport, now

At EnergyAustralia we also recognise that diversity

As an enterprise, we understand that we do not

The energy sector faces much political and

Our sustainability framework

EnergyAustralia has a long and respected history

In 2012, we also commenced a review of our

4. Maintaining our licence to operate we will

Sustainability as a driver of growth

This Report is a clear expression of our commitment

With headquarters in Melbourne, Australia,

We have been on a significant journey over

Delta West Gentrader

Hallet Power Station

Yallourn Power Station and

Upstream fuel supply assets

About our Report

We are the largest privately owned supplier

EnergyAustralia retails gas and electricity to

This is EnergyAustralias second

Read more about our Upstream, Generation

For more information on CLP Group, visit

The Report has been prepared in accordance

under the operational control of Ausgrid and will

Defining Report content

This Report addresses the sustainability issues

The Report also contains information on our activities

In identifying material issues, we used the outcomes

Thirteen selected performance data indicators

Our Yallourn Power Station and Mine

A copy of Net Balances statement can be

Awards and Recognition

Our 2012 Sustainability Report was shortlisted

If you have questions about our

Tallawarra Lands was awarded the 2012 Award for

GRI Content Index

Progress against 2012

Progress against 2012 targets

Pillar 1: Business Performance

Integrate sustainability considerations into the TRUenergy risk matrix

Invest two percent equivalent of total payroll expenditure in leadership

2.4 Percent of total payrol spent on

Comply fully with each power stations generation performance

20 percent of TRUenergys energy mix supplied by renewable

Comply with energy efficiency regulatory schemes

Pillar 2: Energy Supply

1. Supply energy reliably

Progress against 2012 targets

1. Use resources responsibly

Continue a long path of reducing greenhouse gas emissions intensity

On target, 2012 emissions intensity 0.99

Develop biodiversity register across our operational sites

100% compliance with environmental licence conditions

One water discharge breach at Yallourn

Stakeholder engagement plan implemented and reviewed

Produce an annual Sustainability Report

Achieve the AON Hewitt Brest Employer range for employee

2012 engagement score of 53 percent

Total injury frequency rate less than 8.0

2012 TIFR achieved 4.73

Completion of annual Healthy, Wealthy, Fit and Wise program

Achieve Net Promoter Score for customer loyalty at Ieast 10 points

1. Consider stakeholder views in

2. OPERATING A SAFE AND ENGAGED

5. PREPARING FOR THE NEW ENERGY