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Glossary for the Business Value Drivers

All data relates to the year ended 30 June 2020 unless specified otherwise.

Term

Explanation

Net Promoter Score (NPS)

NPS is a measure of overall brand performance and is based on how likely a customer would be to recommend AGL as an energy provider. AGL’s NPS is measured quarterly via an external survey that asks customers across all energy retailers “On a scale of 0-10, how likely is it that you would recommend Retailer X to a friend or colleague?” The NPS is calculated by subtracting the percentage of zeros to sixes from the percentage of nines and tens. The performance measure relates to the NPS measured in Q4 of the reporting year.

Ombudsman complaints

Reported figures represent complaints to the various state energy Ombudsman offices that are provided to AGL for resolution. Enquiries and complaints referred to other agencies or instances where the customer has been advised by the Ombudsman to contact AGL directly are not included. Numbers are based on complaints figures provided by the Ombudsmen of New South Wales, Victoria, Western Australia and South Australia. Complaints recorded for Queensland are based on AGL’s internal complaints reporting systems until November 2017, after which time AGL started receiving monthly reports from the Queensland Ombudsman.

Number of customers on Staying Connected

Staying Connected is AGL’s program for energy customers who have been identified to be in financial hardship. The performance measure relates to the number of customers on the program as of 30 June in the reporting year.

Average level of debt of customers on Staying Connected

The average level of energy debt calculated represents the outstanding debt at the customer (rather than account) level as of 30 June in the reporting year.

Total average debt across mass market customer portfolio

The average energy debt represents the outstanding debt at the customer (rather than account) level as of 30 June in the relevant reporting year. Debt levels include GST. Data excludes ‘unknown customers’ and commercial and industrial customers. 

Total services to customers

Data comprises AGL’s gas and electricity residential, small and large business, and wholesale customer energy services. From FY20, data also includes Southern Phone Company customers, reflecting each broadband and phone 'services-in-operation' (SIO) connected.

Customer churn

'Churn' is defined as a completed transfer of a customer to a competing retailer. This measure relates to residential and small business energy customers only and does not include commercial and industrial customers.

RepTrak score

The RepTrak score reflects the most recent score reported to AGL by RepTrak at the time of publication of the Annual Report. FY18 and FY19 have been updated this year from March to June to reflect quarterly RepTrak results received after the date of Annual Report publication. The FY20 RepTrak score represents the score for the June 2020 quarter.

Community contribution

Data includes the AGL matched component only of donations raised to the Employee Giving program and fundraising events, not the donations given by employees. Matched amounts are included in the year in which the employee donations were made (even though the matched payment may have been made after the close the financial year). Data is exclusive of GST.

Underlying effective tax rate

AGL’s underlying income tax expense expressed as a percentage of AGL’s underlying profit.

Total injury frequency rate (TIFR)

The rate is calculated as number of lost time and medical treatment injuries classified as TIFR related in a 12-month rolling period, per million hours worked in that 12-month period. FY20 data does not include the safety performance of Southern Phone Company's 131 employees and Perth Energy's 48 employees as they were not fully integrated into AGL's HSE reporting systems as at 30 June 2020.

High potential near miss: recordable incident ratio

A Recordable Incident is a safety or environment incident that resulted in the injury or illness of a person requiring Lost Time or Medical Treatment, or an Environment Regulatory Reportable event. A High Potential Near Miss is an unplanned Event or error that did not result in injury, illness, equipment/property damage or fire but where the potential to do so is ranked high or above as per AGL’s FIRM matrix. This includes a high potential first aid, compliance breach of permits, critical controls and/or lifesaving rules. A High Potential environment near miss is classified as any event where no actual regulatory breach or unauthorised environmental impact occurred but where the potential for this to occur is ranked high or above as per AGL’s FIRM framework. FY20 data does not include the safety or environmental performance of Southern Phone Company or Perth Energy which were not fully integrated into AGL's HSE reporting systems as at 30 June 2020.

Employee engagement

Engagement scores are calculated using the Aon Hewitt’s Employee Engagement Model, utilising the ORC International methodology. During FY20, engagement was measured in June 2020 using a new platform (Culture Amp), with the methodology applied in the calculation of the scores being consistent with prior years. Southern Phone and Perth Energy were not included in the FY20 Engagement Survey. The measure of 62% in FY18 is taken from the results of an engagement pulse survey conducted in early FY19 and was considered a reflection of FY18 employee engagement.

Gender mix in senior leadership pipeline (SLP)

Senior Leadership Pipeline refers to employees in Management Groups A, B, ELT and ET (excluding CEO), in accordance with AGL’s Position Framework. These are equivalent to Hay Level roles 18 and above. FY20 data does not include Southern Phone Company's 131 employees and Perth Energy's 48 employees as they were not fully integrated into AGL's human resource systems as at 30 June 2020.

Material breaches of Code of Conduct

Performance measure relates to the number of substantiated material breaches of AGL’s Code of Conduct. Material breaches are those ranked ‘High’ or above according to AGL’s FIRM framework.

Attrition (total workforce)

Calculated based on the total number of voluntary departures per full-time equivalent. Includes fixed term, permanent full-time, and permanent part-time employees; excludes casuals, labour hire and contract workers. FY20 data does not include Southern Phone Company's 131 employees and Perth Energy's 48 employees as they were not fully integrated into AGL's human resource systems as at 30 June 2020.

Key talent retention

The performance measures relate to employees identified as ‘key talent’ from AGL’s enterprise leadership team (ELT) and direct reports. Internal restructures resulting in changes to roles and talent ratings at the end of FY19 reduced the size of the cohort of AGL people designated as ‘key talent’ at the beginning of FY20, from 186 in FY19 to 89 in FY20. FY20 data does not include Southern Phone Company's 131 employees and Perth Energy's 48 employees as they were not fully integrated into AGL's human resource systems as at 30 June 2020.

Operated scope 1 & 2 emissions (MtCO2e)

Total scope 1 and 2 emissions from facilities over which AGL had operational control during the period. Operational control is defined by the National Greenhouse and Energy Reporting Act 2007.

Controlled generation intensity (tCO2e/MWh)

Total scope 1and 2 emissions divided by total sent out generation of electricity generation facilities which fit within AGL’s controlled boundary1. This metric also forms part of AGL’s Sustainability Linked Loan metrics.

Controlled renewable and electricity storage capacity (%)

The proportion of total controlled renewable and electricity storage capacity (MW) in AGL’s total controlled1 generation capacity (MW), based on the registered capacity as per the AEMO Registration and Exemption List. This metric also forms part of AGL’s Sustainability Linked Loan metrics.

Emissions intensity of total revenue (ktCO2e/$million)

Total scope 1and 2 emissions from facilities over which AGL had operational control during the period divided by AGL’s total revenue. Operational control is defined by the National Greenhouse and Energy Reporting Act 2007.

Revenue from green energy and carbon neutral products and services (%)

The percentage of total revenue derived from green energy and carbon neutral products and services, based on the following:

  • Total revenue represents AGL’s total reported revenue
  • Green energy revenue represents: green revenue excluding state-based green schemes; RET revenue from green charges passed through to customers; and other revenue from state-based charges passed through to customers.

Environmental regulatory reportable incidents

Comprises incidents that trigger mandatory notification provisions under legislation and/or environmental licences. 

Pool generation volume

Pool generation volume refers to electricity that AGL generates that is sold into the National Electricity Market and the Western Australian Wholesale Energy Market (together termed “the pool”) and considers marginal loss factors, non-scheduled generation and auxiliary usage.

Equivalent availability factor (EAF)

EAF measures the percentage of rated energy available when required. Power stations included are Liddell, Bayswater, Loy Yang A, Torrens Island, and Somerton power stations, AGL’s hydroelectric power stations, and wind and solar farms under AGL’s operational control. Site EAF is weighted by megawatt (MW) capacity.

Reportable privacy incidents

Data comprises ‘eligible data breaches’ as defined in the Privacy Act 1988.

Major IT incidents

Data relates to the number of major IT incidents impacting a technology service, system, network or application ranked as ‘critical’ or ‘high’ in accordance with AGL’s IT incident management processes.

  1. 1 AGL’s controlled boundary includes all electricity assets (generation and/or storage) for which AGL Energy has: ownership; and/or operational control as defined by the National Greenhouse and Energy Reporting Act 2007; and/or contracted rights to control the dispatch of electricity of the asset.

The following KPIs were reported in AGL's FY19 Annual Report but have not been reported in the FY20 Annual Report:

  • Notifiable data breaches arising from a material risk relating to cybersecurity, data governance, or failure of internal controls (as data is captured through the disclosure of reportable privacy incidents);
  • Operated generation intensity (this data series continues to be reported in the ESG data centre); and
  • Proportion of operated renewable generation output (data enabling this proportion to be calculated is disclosed in the ESG data centre).

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