ANNUAL REPORT 2021-22

22 22 ANNUAL REPORT 2021-22 ANNUAL REPORT 2021-22 23 Internal projects Several internal projects were carried out in the 2021-22 financial year. Internal projects are largely staff and process focused, designed to support the continued provision of safe, reliable and cost-effective electricity services to the Territory. S.FL. 110,000 LT COMBUSTIBLE LIQUID Tank 4 Our assets LH COMBUSTI Diesel tanks at Owen Springs Power Station. As a major supplier of electricity to the Northern Territory, Territory Generation uses a combination of gas, diesel and solar technologies to generate power. Asset management is key to ensuring reliability, availability and safety. ENGINEER CREDENTIALLING PROGRAM In the first half of 2022, Territory Generation partnered with Engineers Australia to offer our engineers access to a new Engineering Workforce Credentialling (EWC) program, the first of its kind in the Territory. The EWC program supports our engineers in accelerating the attainment of their chartered credentials and provides opportunities to develop their skills locally and reach the top of their profession. Engineers Australia Chartership is a globally recognised accreditation that is a mark of excellence, demonstrating the highest level of professionalism in an engineering area of practice. It is also a significant personal achievement. The partnership demonstrates Territory Generation's commitment to engineering excellence and forms part of our retention program. All 25 of our fully qualified engineers will have access to the program and we anticipate across-the-board credentialling by the end of 2022. PROJECT MANAGEMENT OFFICE The Project Management Office (PMO) has matured Territory Generation's portfolio management function and oversight of project delivery over the past 12 months, resulting in improved accuracy and effectiveness for our budget capital spend. The PMO is focused on completing the right projects and enhancing project capability and delivery. The PMO has developed and implemented the Enterprise Project System, which is a digital platform to manage all aspects of project delivery, reporting and approvals. BUSINESS WORKFLOW IMPROVEMENTS Territory Generation invested in the Nintex workflow automation platform to save time, reduce reliance on physical signatures, automate routine tasks and make the most of our ICT infrastructure. Employee onboarding and offboarding were the first processes enhanced during the financial year with several more processes in development, including for travel and procurement. Besides the significant time savings and reduced manual labour, this project also satisfies a strategic initiative for the business. ROC RELOCATION The Remote Operations Centre, known as the ROC, was relocated from Territory Generation's head office in Berrimah to Channel Island in November 2021. The merge resulted in improved collaboration between ROC and Channel Island staff, who now work more closely together and skill share, meaning they have increased their operational ability. In time, the upskilling will lead to greater work satisfaction and improved efficiency. GENERATION OUTPUT Our generation sent outs for the 2021-22 financial year were 1.35 TWh, an increase on 2020-21 sent outs. This has resulted in increased sales primarily driven by the delay in new entrants joining the market and warmer than average temperatures across the Territory. ASSET MANAGEMENT AND RELIABILITY Territory Generation is committed to an industry-best practice asset management system consistent with our vision, values and objectives and in alignment with International Standards Organisation (ISO) 55000 for asset management. We are focused on developing and implementing asset management systems that optimise the return on investment in new and legacy assets. SUSTAINING CAPITAL We continue to invest about $20-25 million a year to upgrade and replace machinery and equipment as part of our Sustaining Capital Program. This helps to ensure our assets are always fit for purpose and operate as efficiently as possible. FUEL COSTS The rising costs of gas and diesel have presented a challenge this past financial year. As a percentage of our revenue, gas cost has been lowered through the more efficient use of turbines. Australian-developed Plexos software has become a key tool in assessing the consequences and benefits of our work. It improves the accuracy and clarity of our business predictions, which helps to reduce the impacts of increasing fuel prices and support efficient investment decisions. Operator, Gary Flatt at the Channel Island ROC.

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