Western Power is on target to deliver $1.4 billion in savings across the five-year third access arrangement (AA3) period, a result of significant and consistent reductions in capital and operating expenditure.
In an address to the business today, Chief Executive Officer Paul Italiano congratulated employees for progress made since the commencement of AA3 in 2012, and encouraged the organisation to maintain its commitment to continuous improvement.
In 2012, Western Power reviewed its strategic plan to help the company better define its purpose and priorities, and meet the objectives and expectations set out by the Economic Regulation Authority (ERA).
Western Power has since achieved exceptional performance that includes reducing total capital and operating expenditure by $1.4 billion compared with the ERA’s five-year decision.
Savings have been made particularly in discretionary spending including entertainment, travel and consultancy fees, procurement, contract management and risk-based planning.
Other achievements recorded so far in the AA3 period have included:
- Achievement of all 17 service standard benchmarks - the first time since 2006
- Significantly reduced borrowings, $254 million less than 2013/14
- Increased customer satisfaction levels from 78 per cent to 81 per cent
- Delivered the Mid West Energy Project on budget.
Mr Italiano said: “As a business we have become more efficient while delivering on our commitments and meeting the expectations of our customers, stakeholders and regulators.
“Three years into our Access Agreement, we are confident of meeting, and even exceeding, the goals we set out to achieve, and I am pleased to say that everyone at Western Power has contributed to these results.
“While we have achieved strong successes, we plan to continue to meet our customers expectations by operating even more affordably and seeking greater productivity gains.
“As we approach the end of the current regulatory period, it is time to reset and review our priorities so we are best positioned to face future challenges, and continue to deliver efficiencies for the benefit of our customers.”