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  • Stakeholder Engagement FrameworkMay 2019

  • Stakeholder Engagement Framework on a page

    Our VisionEmpowering communities to share and use energyfor a better tomorrow

    Our PurposeTo enable energy solutions that improve life

    Our CustomerCommitment

    Respect

    Listen

    Deliver

    Our customer and stakeholder engagement activities have shown our customers value:

    Affordability

    Reliability

    Good customer service and communication

    Transparency/bill itemisation

    Innovative technologies

    Environmentally friendly/encouraging renewables

    Customers' Priorities Our EngagementPrinciples

    Curious

    Accountable

    Courageous

    GENERATION TRANSMISSION DISTRIBUTION RETAIL CUSTOMER

    Generates electricity Carries high voltage electricity long distances

    Essential Energy responsibility Electricitybill

    Power supplied to consumers

    GenerationTransformer

    SubstationTransformer

    We are just one part ofthe electricity network system

    Carries electricity at highand low voltage to communities

    CuriousAccountabl

    e

    Why are youengaging?

    Customer and stakeholder input

    Dynamic and evolving

    Leadership

    IAP2 spectrum

    DefineRequirements

    CreateStakeholderEngagement

    PlanPrepareExecution

    Execute

    Review

    Inputs:Integrated Strategic Plan objectives

    Stakeholder feedbackExternal influences

    DecideStrategy

    Cour

    ageo

    us

    Ongoingincorporationof feedback

    Fit for

    purp

    ose

    Our VisionEmpowering communities to share and use energyfor a better tomorrow

    Our PurposeTo enable energy solutions that improve life

    Our CustomerCommitment

    Respect

    Listen

    Deliver

    Our customer and stakeholder engagement activities have shown our customers value:

    Affordability

    Reliability

    Safety

    Good customer service and communication

    Transparency/bill itemisation

    Innovative technologies

    Environmentally friendly/encouraging renewables

    Customers' Priorities Our EngagementPrinciples

    Curious

    Accountable

    Courageous

    Curious

    Accountable

    Why are youengaging?

    Customer and stakeholder input

    Dynamic and evolving

    Leadership

    IAP2 spectrum

    DefineRequirements

    CreateStakeholderEngagement

    PlanPrepareExecution

    Execute

    Review

    Inputs:Integrated Strategic Plan objectives

    Stakeholder feedbackExternal influences

    DecideStrategy

    Cour

    ageo

    us

    Ongoingincorporationof feedback

    GENERATION TRANSMISSION DISTRIBUTION RETAIL CUSTOMER

    Generates electricity Carries high voltage electricity long distances

    Essential Energy responsibility Electricitybill

    Power supplied to consumers

    GenerationTransformer

    SubstationTransformer

    We are just one part ofthe electricity network system

    Carries electricity at highand low voltage to communities

    Ener

    gy

    Consum

    ers Australia &

    Energy Networks Au

    stral

    ia

    Consumer Engagement

    Award 2018

    Essential Energy I Stakeholder Engagement Framework I May 2019

  • Our Corporate Strategy is shaping our future focus

    This Stakeholder Engagement Framework (SEF) aligns with our Corporate Strategy (Strategy), which provides a road-map for Essential Energy’s future direction.

    The Strategy informs our activities and investment for the next 10 years and will ensure Essential Energy can continue to meet our customers’ changing needs.

    It is important that our business can adapt to the future energy market, whatever form it may take. As such, our Strategy does not dictate a particular future state. Instead, it provides a pathway to ensure we will always be ready for change and capable of providing the services our customers require.

    Essential Energy Corporate Strategy

    Strengthen the core business

    Realise the full value of our network resources

    Maximise thevalue of beingconnected tothe grid

    Deliver energyto customersin new ways

    2 years 2-5 years 5-10 years

    Ourfocus

    Essential Energy I Stakeholder Engagement Framework I May 2019 02

  • Stakeholder Engagement Framework

    Our Stakeholder Engagement Framework (SEF) has been developed as a guide for each division and project team across our business to adopt stakeholder engagement protocols, ensuring customer and stakeholder research and analysis informs future projects and activities.

    Previously reviewed and updated in August 2016, April 2018 and May 2019, Essential Energy’s SEF should be regularly refreshed to reflect feedback received through consultation, research, the changing dynamics of stakeholders and projects, and emerging trends and important innovations in engagement practice.

    Our SEF promotes a culture within Essential Energy that recognises and values working with customers and stakeholders, recognising the diversity of customers and the importance of developing appropriate engagement programs to support customer and business objectives. Application of the SEF helps us to manage material risks and inform strategic business decisions to meet our business objectives.

    Our SEF links directly to Essential Energy’s Strategic Vision and Purpose, underpins our Corporate Strategy and guides our Stakeholder Engagement Strategy, Stakeholder Map and Stakeholder Engagement Plans.

    The development of the SEF has been informed by industry best practice including the International Association of Public Participation (IAP2) Quality Assurance Standard (2015), AccountAbility AA1000 Stakeholder Engagement Standard (2015), AER Stakeholder Engagement Framework (2017) and CSIRO and Energy Networks Australia 2016, Electricity Transformation Roadmap: Customer Engagement Handbook.

    In November 2018, Essential Energy received the Energy Consumers Australia and Energy Networks Australia Consumer Engagement Award 2018 for application of our engagement approach in the 2019-24 regulatory submission.

    BackgroundWe will be

    CuriousEngaging early, to build respectful, inclusive, and collaborative relationships with our diverse stakeholders. Recognising that our stakeholders are diverse, we design our engagement activities to meet the needs of stakeholders, actively seeking feedback to learn and improve.

    AccountableWe are transparent, setting clear deliverables for measuring and evaluating the quality of our engagement. Outcomes from engagement are visible to stakeholders.

    CourageousAction-orientated, open-minded and acting with integrity. Our business is continuously informed and shaped by our engagement.

    Customer and stakeholder engagement informs all of our decision-making processes.

    Our stakeholder engagement plans:

    > Deliver on our engagement programs

    > Collaborate with industry to implement The Energy Charter

    > Deliver on the actions from our 2019-24 Regulatory Proposal engagement

    > Implement a stakeholder management system

    > Embed evaluation and reporting across the business

    “To make good business decisions, we place listening and responding to our customers at the centre of our business using an ‘Outside In: Always On’ approach. This provides genuine opportunities for customers and stakeholders to engage as early in the process as possible. This goes for all areas of our business, and we need to do this authentically.”John Cleland Chief Executive Officer

    03

  • Our relationships are evolving as we interact with customers and stakeholders to inform our business strategy and daily operations. Our community consultation committees, such as our Customer Advocacy Group, provide valuable insight and feedback.

    Everyone is different and within each stakeholder group there will be varying levels of interest, impact, needs, concerns, values, wants, ideas, relationships, perceptions, bias and influence.

    Therefore, stakeholder identification and analysis is an integral part of our engagement planning process. For each engagement activity we seek to engage stakeholders who are impacted or interested in our business activity, process or outcome.

    Understanding our customers and stakeholders

    Governmentand RegulatoryStakeholders

    critical interest in theefficient operationof our organisation

    Industry Partnerswe work with to meet the

    needs of our connected customers:ASPs, solar and alternative

    technology providers

    ConsumerRepresentative Groups

    industry groups,community-based

    organisations,not-for-profit agencies,

    lobby groups

    Connected Customersresidential, small tomedium business,

    large business

    Retailerswe work with retailers

    and energy serviceproviders

    Employeesapprox. 2,900 employeesbased in over 100 local

    depots and regionaloffices across NSW

    Communitiesbroader community;

    people who may be interestedor affected by Essential Energy’s

    distribution infrastructureor activities

    Essential Energy I Stakeholder Engagement Framework I May 2019 04

  • Essential Energy I Stakeholder Engagement Framework I May 201905

    Our approach to stakeholder engagement is based on the IAP2 framework, but designed specifically for each engagement to meet the needs of our business and our stakeholders. It is adapted to support input from stakeholders when decisions are required. More detail about how we use this framework is found in the Appendix.

    Our stakeholder engagement approach

    Inform

    Inform

    Involve

    Involve

    Empower

    EmpowerConsult Collaborate

    Evaluation

    Courageous

    > % evaluations completed per engagement activity

    > % positive feedback on our engagement

    Accountable

    > SEF published on Essential Energy website

    > Mechanisms established to measure, monitor and assess the quality of engagement program and published on Essential Energy website

    > Community samples demographically represented

    > Evidence of how stakeholders influenced the project made available to impacted stakeholders

    Curious

    > Stakeholder interactions tracked and all actions recorded

    > % engagement with stakeholder groups quarterly

    Stakeholder Engagement Resource Hub The Stakeholder Engagement Framework is supported by guidance from the stakeholder engagement team, and an internal Stakeholder Engagement Resource Hub has been created to share templates, tools and reference documents and case studies.

    It is also a place for employees to share ideas, talk about the different engagement methods and tools being considered, and connect with others working on stakeholder engagement activities.

  • Essential Energy I Stakeholder Engagement Framework I May 2019 06

    A checklist to guide you through the engagement planning process.

    Appendix

    Strategy development: Decide engagement strategy 06

    Strategy development: Define requirements 07

    Planning: Create engagement plan 08

    Planning: Prepare for engagement 09

    Delivery: Implement engagement plan 10

    Feedback and reporting: Review engagement outcomes 11

    Reference list 12

    CASE STUDY 1: CURIOUS

    Natalie Lindsay, Head of Regulatory Affairs“The customer research that has been undertaken by Essential Energy has been amazing, in terms of informing our plans for the Regulator.

    Listening to customer’s needs and expectations was central to informing the 2019-2024 Regulatory Proposal. Nothing beats the voice of a ‘real’ customer. In the past, the customer voice was not well represented in the regulatory determination process and didn’t reflect the diversity of our customer and stakeholder priorities. That changed a lot in this most recent submission.

    In preparation for the 2019-2024 regulatory proposal a comprehensive stakeholder engagement program was implemented, involving customer surveys, interviews, deliberative forums, and stakeholder group meetings. By conducting targeted sampling and a diverse range of communication and engagement activities, we are confident we received sufficient and high-quality information and feedback to ensure we considered the needs, values, and concerns of all customer groups impacted by this Proposal.

    As our customer research and analysis matures, I’m really looking forward to where customer insights and engagement takes our business, and our regulatory plans and proposals for the future.”

    Customer Deliberative Forums in seven locations across our service area

  • Essential Energy I Stakeholder Engagement Framework I May 201907

    Ref. Checkpoint N/A Yes No

    1.1 Review Integrated Strategic Plan against Customer’s Priorities

    1.2 Clearly articulate: > Project goals > Engagement goals > Desired project outcome

    1.3 Participate in project risk assessments for key decision-making and business planning processes for identification of issues and identification of opportunities to involve stakeholders in decision-making

    1.4 Analyse stakeholder feedback and lessons learned from previous engagement activities

    1.5 Questions for consideration: > What are the issues you will engage on? > What risks/challenges are anticipated? > Have decisions already been made on these issues? > What issues are not negotiable? > Is community profiling required to understand the nature of stakeholders and the community?

    1.6 Assess the risks of delivering the engagement

    1.7 Consider the constraints to delivering the engagement: > Political, social, economic, environmental, technical and cultural context

    > Timing > Availability of resources and budget

    1.8 Review to ensure we are being Curious, Accountable and Courageous

    Decide engagement strategy

    In this stage:

    > Analyse objectives of Integrated Strategic Plan

    > Conduct integrated risk assessment

    > Use this information to develop Engagement Plan

    Strategy development

  • 08Essential Energy Stakeholder Engagement Framework I May 2019

    Ref. Checkpoint N/A Yes No

    2.1 Identify and categorise stakeholders based on impact, level of interest and influence

    2.2 Identify the individuals, groups or organisations involved in the problem; and who may be part of the solution

    2.3 Develop the questions that could be asked during consultation, and consider the impact those questions may have

    2.4 Articulate what is negotiable and not negotiable and how this will be explained

    2.5 Plan for effective engagement to be implemented as early as practical, to facilitate stakeholder input and participation in the decision-making process

    2.6 Determine the budget

    2.7 Understand the governance processes including: > Approval process > Internal stakeholders:

    – Who should be informed? – Involved?

    > Reporting All media enquiries must be referred to Essential Energy Corporate Affairs Team

    2.8 Invite program partners to be involved in the design, implementation and evaluation of the program

    2.9 Review to ensure we are being Curious, Accountable and Courageous

    Define requirements

    In this stage:

    > Stakeholder identification and analysis

    > Establish governance

    Strategy development

    The 2017-2018 PIAC Evaluation of Consumer Engagement by NSW DNSPs noted that:

    “…of the three NSW DNSPs, Essential Energy showed the most evidence that it is building a culture of engagement in the business. Throughout its Customer and Stakeholder Engagement Program, Essential Energy’s senior management sought to engage directly with network customers and consumer representatives. This indicates a high-level commitment from the business. Essential Energy’s customer engagement was also linked to a broader program of work…(and) this is a very good way of embedding a culture of good engagement in the day-to-day operation of the business.”

    Customer engagement session

  • Essential Energy I Stakeholder Engagement Framework I May 201909

    Ref. Checkpoint N/A Yes No

    3.1 Anticipate customer touchpoints and the opportunities for stakeholder consultation

    > What contributes to their World View so that we can reach them through engagement?

    3.2 Identify the most effective engagement techniques which encourage open dialogue

    > What are the human and digital touch points?

    3.3 Identify opportunities for innovative engagement activities

    3.4 Engagement activities are accessible, proactive, respectful, transparent and inclusive

    3.5 Leverage communication channels and identify ways to create different virtual, physical, and digital experiences to take stakeholders on the journey of the project

    3.6 If appropriate, establish a community consultative committee

    3.7 Understand the stakeholder history: > Level of knowledge? > Previous engagement? > Broken promises? > Relationships – positive, negative? > Level of trust?

    3.8 Is there an opportunity for CAG members to facilitate participation in engagement activities by their members?

    3.9 The communication plan, an element of engagement plan, describes the communication approaches and tools for targeted, inclusive communication and reporting against defined milestones

    3.10 Identify opportunities for coaching and support – internal and external stakeholders (building skills and capacity to engage)

    3.11 Establish indicators to measure the impacts of engagement, defining the measurements of success

    > Qualitative > Quantitative

    3.12 Review to ensure we are being Curious, Accountable and Courageous

    Create engagement plan

    In this stage:

    > Set specific objectives for engagement with stakeholder groups

    > Define the approaches to take for each engagement based on the IAP2 spectrum of engagement

    Planning

  • Essential Energy I Stakeholder Engagement Framework I May 2019 10

    Ref. Checkpoint N/A Yes No

    4.1 Ensure the engagement plan is timely and has clear objectives and outcomes

    4.2 Stakeholder representation is inclusive and supportive of minority and disengaged groups

    4.3 The most appropriate person is engaging with the stakeholder (technical experts, management, engagement professionals, decision-makers)

    4.4 Consultation and communication material is approved

    4.5 Participants are provided pre-reading material

    4.6 The right approvals processes have been followed

    4.7 All engagements and strategies are recorded in stakeholder management system and reviewed throughout the project

    4.8 Review to ensure we are being Curious, Accountable and Courageous

    Prepare for engagement

    In this stage:

    > Finalise engagement plans

    > Continue to adjust and refine based on stakeholder feedback

    Planning

    CASE STUDY 2: COURAGEOUS

    Damian Munday, Land and Routes Team Leader“We undertake stakeholder engagement on 99% of our works from land, easement and encroachment projects. Every day we must manage the balance between removing safety risks from the network in a timely way while maintaining constructive relationships with affected customers. It’s about understanding the customer’s perspective, being clear in our information and fair in our approach. It is not always easy, but critical to our business. Some of our engagements can end in people being frustrated and angry and not being very pleasant to deal with, which can be challenging for the team.”

    What have we learned from these situations?

    Empathy We need to be able to see both sides of each situation and show the landowner that we do understand.

    Consistency Clear, consistent guidelines for dealing with landowners around encroachments are vital.

    Relationships Ensuring a single point of contact for the land owner is not only more practical and efficient, it humanises our business, and builds trust with our stakeholders – which is critical when we need to have those ‘difficult’ conversations.

    At the end of the day, we strive for interactions that balance the needs and concerns of the stakeholder, while delivering the right outcomes for Essential Energy. Engagement with landholders

  • Essential Energy I Stakeholder Engagement Framework I May 201911

    Implement engagement plan

    In this stage:

    > Engage and collaborate with our stakeholders

    > Seek feedback > Record our interactions and stakeholder feedback

    Ref. Checkpoint N/A Yes No

    5.1 Consultation activities address needs of stakeholders, delivering the most appropriate level of engagement

    5.2 The communication and engagement plan has been integrated into the project schedule and is reported on through team meetings and regular reports

    5.3 Be clear who is the dedicated contact for questions from stakeholders and community

    5.4 Key messages are tailored to meet the needs of relevant stakeholder groups and individuals

    5.5 Communication and engagement material is clear, accurate, and timely

    5.6 Mechanisms are in place for feedback to stakeholder groups and regular communication and reporting

    5.7 Prepare for and manage emerging issues

    5.8 Evidence of consultation activities are captured

    5.9 Additional stakeholders may be identified throughout the engagement process therefore refine effective and relevant consultation and communication materials

    5.10 In the event of intensified opponent activity and need for outrage management, employees and identified stakeholders will have access to training and development to support engagement program delivery (e.g. resilience training, IAP2 training, outrage management training)

    5.11 Review to ensure we are being Curious, Accountable and Courageous

    Delivery

    AER’s Chair praised our consumer engagement approach leading to direct benefits for consumers for the 2019-24 Regulatory Proposal:

    “This outcome is an excellent example of how engaging with consumers in a revenue setting process can benefit everyone.” – The Australian, 16 March 2018

    Customer feedback on engagement session

  • Essential Energy Stakeholder Engagement Framework I May 2019 12

    Ref. Checkpoint N/A Yes No

    6.1 Evidence of clear and transparent reporting on community engagement activities is demonstrated

    6.2 Records to include details of engagement including who was consulted and why, channels used, dates and times, objectives of engagement, what was discussed and issues raised, and details of the feedback and commitments met

    6.3 Participation in a project team Lessons Learned Workshop identifies successes and areas for improvement

    6.4 Lessons learned and the benefits of engaging are incorporated into an action plan

    6.5 Complaints and concerns have been actioned as per Essential Energy’s Complaints Policy

    6.6 Employees within Essential Energy, engaging with external stakeholders, have appropriate training and development.

    6.7 Review to ensure we are being Curious, Accountable and Courageous

    Review engagement outcomes

    In this stage:

    > Monitor and evaluate our engagement activities

    > Review engagement program against IAP2 Quality Assurance Standard

    > Summarise and report the outcomes of our engagement with stakeholders

    > Use the feedback as input into future strategies including the Stakeholder Engagement Framework

    Feedback and reporting

  • Essential Energy I Stakeholder Engagement Framework I May 201913

    CASE STUDY 3: ACCOUNTABLE

    Romain Papasidero, Program Manager, Execution Optimisation“Private asset management is an area that has benefited from communication and stakeholder engagement. Essential Energy has statutory obligations to ensure that privately-owned power poles and overhead lines are properly maintained so that they do not pose a serious bushfire or electrical safety hazard for the property owner, the broader community and Essential Energy’s employees. We take this role very seriously as the work we do has a very high customer sensitivity.

    For us, being accountable means not only taking the necessary action to ensure defects are rectified, but being open, transparent and proactive in communicating with, and educating property owners about their responsibilities, requirements and mitigation options if privately owned network components are not safe or properly maintained.

    Last year we implemented a comprehensive stakeholder engagement program with different customer groups to get an understanding of their needs and expectations, and importantly – how well they knew their responsibilities regarding privately owned assets.

    This dialogue with our customers delivered some great outcomes for Essential Energy. Our processes were reviewed and developed in an open and transparent way, with customer’s feedback informing changes to our procedures and communications. This became the basis for a comprehensive education campaign which reinforced key messages about the customer and Essential Energy’s mutual responsibilities.”

    NSW Farmers Conference 2018

  • Essential Energy I Stakeholder Engagement Framework I May 2019 14

    AccountAbility. (2015). AA1000 Stakeholder Engagement Standard (SES) 2015.

    AER. (2017). Stakeholder Engagement Framework. https://www.aer.gov.au/publications/corporate-documents/aer-stakeholder-engagement-framework-2017.

    ENA/CSIRO. (2016a). Electricity Network Transformation Roadmap: Customer Engagement Handbook. http://www.energynetworks.com.au/sites/default/files/customer_engagement_handbook_july_2016.pdf

    International Association of Public Participation (IAP2) (2015). Quality Assurance Standard. https://www.iap2.org.au/Tenant/C0000004/00000001/files/IAP2_Quality_Assurance_Standard_2015.pdf.

    Reference List

    Notes

  • Have your say Our customer engagement is always on. You can provide feedback on our plans in a number of ways:

    engage.essentialenergy.com.au essentialenergyEssentialEnergyAU

    Manager Customer Service, Essential Energy PO Box 5730, Port Macquarie NSW 2444

    13 23 91 [email protected]