BUSINESS BREAKFAST17 JUNE 2015

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AGENDATime   Speaker

6:45am Arrival and Registration  

7:00am – 7:05am Welcome & Introduction Bianca Sachdev. Manager Commercial Customer Management

7:05am – 7:30am MD’s Corner Pat McCafferty, MD, Yarra Valley Water

7:30am – 8:00am Networking breakfast  

8:00am –8:30am Introduction to Commercial Services Division at Yarra Valley Water

Steve Lennox, General Manager Retail Services, Yarra Valley Water 

8:30am – 8:55am Waste to Energy Project at Yarra Valley Water

Andrew Edney, Divisional Manager Commercial Services, Yarra Valley Water

8:55am - 9:00am Close & thank you Bianca Sachdev. Manager Commercial Customer Management

Update cover

Business Customer SeminarPat McCafferty – June 2015

YVW 2020 STRATEGY PURPOSE

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STRATEGIC DRIVERS

• Evolving customer and community expectations

• Productivity and affordability

• Rapid technology change

• Population growth

• Environmental sustainability and climate adaptation

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VITAL INFRASTRUCTURE FOR THE NORTH

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MELBOURNE’S WATER STORAGES

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YVW RESIDENTIAL AVERAGE DAILY PER CAPITA WATER CONSUMPTION

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BUSINESS CUSTOMER ANNUAL BILLED VOLUME

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PRICES 2015/16

• Small increases in water (desalination impacts) and sewerage and trade waste to increase by no more than inflation• July accounts contain all detail

• In 2016/17 further reductions expected from wholesale charges

• Long term pricing expected to be stable

THE ADVENT OF A MORE EQUAL RELATIONSHIP

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Nurturing Adult-Child• Generally limited to older customers• A more ‘old-fashioned’ relationship in which the service provider has the expertise and “knows best” – the

respected authority figure• The customer is happy to listen to and take guidance from the provider• Relatively low-maintenance relationship – however losing relevance, and when something does go wrong the

responsibility falls on the service provider

Controlling Adult-Child• In some cases the ‘adult’ service provider becomes a more controlling adult figure (parent, teacher) – with the

customer a rebellious and resentful child• This can happen when the service provider comes across as inflexible and arrogant; and for customers who have

a generally negative view of corporations. • In this case, the customer will see the provider as over-bearing, interfering, and out-of-touch – a difficult

position to recover from!

Adult-Adult

• A more mature relationship, in which each party acknowledges the views and knowledge of the other• Working together to solve the problem• In this case the customer may seek out support, but expects to do it on their own terms• Communication must be 2 way, and respect is key

That was then

This is now

No change from today

Dramatically different

TECH

NOLOGY

Human contact continues

(e.g. call centres)

All billing electronic and instantaneous Self

service portals

Real time water use

monitoring

Problems detected and resolved automatically

Live chat, Skype

Companies telepathically identify and meet customers’ needs

THE TECHNOLOGICAL SPECTRUM OF EXPECTATIONS

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These expected innovations are either met with:Hope about the efficiencies and ease this will create for customers.

Scepticism that it will be driven by cost cutting and result in reduced customer service.

IMPROVING OUR SERVICE TO COMMERCIAL CUSTOMERSSTEVE LENNOXGENERAL MANAGER RETAIL SERVICES

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WE’VE LISTENED TO YOUR FEEDBACK

• Commercial customer satisfaction on average 10% lower than residential customers

• Net Promoter Score for commercial customer interactions with our Customer Contact Centre is significantly lower than that of residential customers

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IMPROVING OUR SERVICE OFFERING

• Organisational restructure 1 November 2014

• Creation of new Commercial Services division

• All commercial customer functions now under one umbrella

• Broader, integrated and focused resourcing

• Implementation of service improvements

• Further service improvements in the pipeline

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INTRODUCING YARRA VALLEY ONLINE WATER

www.yvw.com.au

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INTRODUCING YARRA VALLEY ONLINE WATER• View and print historical accounts

• Compile statements for Tax purposes

• Download transaction history

• Make Payment, establish direct debit arrangement

• Enter meter readings

• Future enhancements

• Electronic billing

• View real time water outages

ORGANIC WASTE TO ENERGY: A NEW SERVICE FOR COMMERCIAL CUSTOMERS

ANDREW EDNEYMANAGER COMMERCIAL SERVICES

YARRA VALLEY WATER WASTE TREATMENT NETWORK

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THE OPPORTUNITY

WASTE MANAGEMENT IS A CORE INDUSTRY COMPETENCY

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1.26 0.110.930.15

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1.1

11.1

Sales

Construction/DemolitionCommercial organicCommercial non organicMunicipal organicMunicipal non organicYVW Direct TreatmentSewage to Melb Water

Waste in million tonnes / per annum

WASTE NETWORKS ARE SIMILAR & OVERLAPPING…….

“Back Door” Waste

“Front Door” Waste

THERE ARE MARKET “GAPS” THAT CAN BE LEVERAGED

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Others’ problem……..Our opportunity?

LEVERAGING OUR CORE OPERATING COMPETENCIES

Anaerobic digestion is core business for the water industry.

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THERE ARE CHALLENGES TO OVERCOME…

1. Insufficient sewage sludge to make anaerobic digestion commercially viable

2. Renewable Energy feed in tariffs insufficient to support business case

3. Energy distributor “reticence”

4. Prohibitive Capital costs

5. Funding difficult to secure

Renewable energy opportunities investigated :

BUT THERE ARE BIG BENEFITS ON OFFER….

Reduce Operating Costs

Potential Revenue

Environmental Performance & Leadership

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SO WHAT ARE WE DOING?

Yarra Valley Water is building a Waste to Energy Facility with an anaerobic digester that can receive and process wet organic wastes such as:

Food processing waste Café and Restaurant waste Grease trap waste Liquid slurries

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OUR PROPOSED FACILITY

FACILITY DETAILS

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FACILITY DETAILS

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Adjoining existing Sewage Treatment Plant

Processing capability - 100t/day of waste

Electricity Generation - up to 1MW

Infrastructure size and footprint similar to existing Sewage Treatment Facility

Best practice noise and odour assessment and control

WHERE WILL THE FACILITY BE LOCATED?

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Aurora Sewage Treatment Plant, Wollert Existing Sustainable Treatment facility:

producing recycled water for Epping – Craigieburn area

Close to CBD with Freeway access Close to organic waste sources Large noise and odour buffer to take

advantage of

WHERE WILL OUR FACILITY BE LOCATED?

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PROJECT STATUS• Partner Engaged

• Australian provider with experienced International Partner• 2nd Tier Waste Management Company

• Detailed Design Complete

• Stakeholder and Community Consultation successful

• EPA, City of Whittlesea and all other approvals obtained

• Construction to commence within weeks

• Facility fully operational by January 2017

• We are looking forward to assisting you with broader waste management solutions