The past year has been one of challenges
and opportunities - for G-MW and for
the many customers and communities G-MW serves across northern Victoria.
Water Resources
From the beginning of the 2010/11 year surface and groundwater
resources across G-MW's region improved rapidly and seasonal
allocations on all regulated river systems reached 100% of
high-reliability water shares for the first time in eight years.
Resource improvements on Loddon, Campaspe, Bullarook and Broken systems
enabled the first low-reliability water share allocations since the
introduction of unbundling in 2007.
Regular rainfall across the season greatly reduced customer demand
and G-MW's 2010/11 water deliveries are the lowest ever recorded -
lower than those recorded during any of the preceding 15 years of
drought. Increased water availability also contributed to a reduced
water trade activity, with G-MW processing 3,205 transactions for the
season - down almost 60% on the previous season. G-MW responded by
maintaining field staff numbers at drought-operation levels and by
scaling back staff resources required to process water trade and
entitlement transactions.
G-MW anticipated the increased allocations and low water use would
result in large volumes of water eligible for carryover at the end of
the 2010/11 season and would trigger spillable water accounts for the
first time for many customers on the Goulburn, Campaspe and Murray
systems. G-MW responded with an expanded customer meeting program during
April along with innovative online tools and information resources that
were well received by customers.
Flood Recovery
During 2010/11 all of G-MW's regulated river catchments
experienced flooding with inflow rates peaking in January - well
outside the traditional spring peak inflow period. Inflows into Eppalock
and Cairn Curran were at least 10 times previous January records. As a
result the regions' improved water resources have come at a price for
many of our customers and communities across northern Victoria. G-MW
continues to work with customers and communities to assist their
recovery.
The floods were the first events of this magnitude experienced
since G-MW was formed. Flood response responsibilities are shared
between several agencies including Victorian State Emergency Service
(VICSES), Catchment Management Authorities and Local Governments. During
the event regular storage inflow and release information was provided
to the Bureau of Meteorology and VICSES to aid the issuing of timely
downstream flood warnings. In the weeks following the flood peak G-MW
provided more than 6,000 G-MW staff hours and over 40 pieces of
significant construction plant and equipment to the State Emergency
Service and Catchment Management Authority in support of emergency
response activities.
G-MW's operational response recognised that while some
customers' properties were inundated, customers further along the same
channel network were continuing to place orders for water deliveries.
Innovative solutions including online maps, regular newspaper updates
and regular communication with customers to confirm or adjust their
water orders assisted customers during this difficult period. G-MW also
extended account payment deadlines for flood affected customers in
addition to G-MW's existing financial hardship policy.
In the weeks immediately following the January floods G-MW
reviewed the operations and performance of the storages and confirmed
that staff operated the storages in accordance with established
procedures. Independent experts are currently reviewing these findings
which will be provided to the Minister for Water.
Delivering Better Services More Efficiently
Throughout 2010/11 G-MW continued to deliver services to
customers, the community and stakeholders in innovative ways,
capitalising on new and more cost-effective technology.
We introduced SMS services to alert customers of allocation
updates and to advise their stop and start times for irrigation
deliveries.
Use of our Irrigator e-news service continues to grow, Dam Levels
emails provide regular storage level updates to subscribers and our
e-storage update is delivering regular information about the development
of Land and On-Water Management Plans to stakeholders and communities
associated with our water storages. Channel automation has also paved
the way for around the clock access to irrigation planners. The
appointment of our first two Customer Account Managers is providing a
new mobile one-to-one service for customers.
Changing Policy and Operating Environment
The Murray-Darling Basin Authority's (MDBA) ongoing development
of its Basin Plan was a major focus for G-MW and our customers during
the year. G-MW provided valued technical input and customer insights via
submissions, through presentations to inquiries and hearings and
through our involvement in tours of the region by MDBA personnel and by
other members of Federal Parliament.
G-MW also continued to work in partnership with NVIRP to encourage
and facilitate the delivery of modernisation works across the channel
delivery network.
NVIRP will complete automation of the '˜backbone' channel
network over the next 15 months, with its remaining program focused on
developing connections between the customers and the backbone, and
remediating high loss backbone pools.
Throughout these processes, G-MW has continued to rely on the
feedback and insights of its Water Services Committees. The committees
are G-MW's primary vehicle for ensuring the concerns and needs of
customers are considered in the development of G-MW's policies and
operations.
Improved Governance and Financial Management
Towards the end of 2010, G-MW identified
a significant understatement of its borrowings in its 2010/11 Corporate Plan.
The understatement triggered an internal review of the
organisation's governance
and financial management procedures,
and culminated in the resignation of all
non-Executive directors in February 2011. The Minister for Water
immediately appointed an interim Board to address the governance issues
and work with management, the Department of Sustainability and
Environment and the Department of Treasury and Finance to resolve the
borrowings and other financial issues. The Minister also brought forward
the 2011 Board appointment process for G-MW from its traditional
September timeline.
G-MW confirmed resolution of the borrowings issue in May and
improved financial management and governance processes were implemented
prior to the appointment of the new eight member Board in June 2011. The
new Board includes two members of the interim Board and the Acting
Managing Director.
We acknowledge the significant contribution of the outgoing Board
and thank them for their dedicated service over the past years.
The Future
G-MW's emphasis on ensuring robust and effective business
foundations is clearly reflected in the 2011/12 Corporate Plan submitted
to the Department of Sustainability and Environment in April 2011. The
Corporate Plan sets a clear and positive path for the organisation and
the many customers and communities it serves across northern Victoria.
A critical focus for G-MW is the ongoing need to engage with
customers to maximise the benefits that will come from the modernisation
of our business as well as NVIRP's modernisation of our channel
infrastructure and the Commonwealth Government's on-farm modernisation
grants programs.
This Annual Report confirms the sound financial and business basis
from which we will pursue our objectives. In accordance with the
Financial Management Act 1994,
we are pleased to attest that the G-MW Annual Report is compliant
with all statutory report requirements. We are pleased to present the
Report of Operations for G-MW for the year ending 30 June 2011.