DEPARTMENT FOR ENERGY AND MINING
11 Waymouth Street, Adelaide
GPO Box 320, Adelaide SA 5000
www.energymining.sa.gov.au
Contact phone number: 08 8463 3000
Contact email: DEM.OCE@sa.gov.au
ISSN: 2652-7553
Date presented to Minister: 30 September 2022
To:
Honourable Tom Koutsantonis MP
Minister for Infrastructure and Trade
Minister for Energy and Mining
This annual report will be presented to Parliament to meet the statutory reporting requirements of Public Sector Act 2009 (Part 3, s 12) and the Public Sector Regulations 2010 (Part 2, reg 7)) and the requirements of Premier and Cabinet Circular PC013 Annual Reporting.
This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.
Submitted on behalf of the DEPARTMENT FOR ENERGY AND MINING by:
Paul Heithersay
Chief Executive
Date 30 September 2022
Welcome to the Department for Energy and Mining’s annual report for 2021-22, an opportunity to outline the agency’s activities throughout another challenging 12 months as South Australia transitioned its pandemic response and began to look toward a post-COVID-19 recovery.
While most of the first nine months of the year were conducted under the stewardship of the Marshall Government, 19 March 2022 led to a change of leadership under the incoming Malinauskas Government.
As Chief Executive, I welcome the appointment of the Honourable Tom Koutsantonis MP as the Minister for Energy and Mining and look forward to working with the new government to implement their priorities for contributing to the world’s net zero emissions future as part of the global energy transformation. I also want to acknowledge the support provided to the department by the outgoing Minister for Energy and Mining, the Honourable Dan van Holst Pellekaan. Much of the ground this annual report covers relates to his tenure as the Minister responsible for this department.
In 2021-22 the department adopted a vision of becoming the most transformative energy and mining department in the world. The department is one of the very few government departments in the world that has responsibility for the link between mineral resources development and the transition to renewable energy. As a major exporter of copper and uranium, South Australia is already making a significant contribution to the ability of other countries to transition their economies to a low carbon future.
We are also proud of the leadership South Australians have shown in translating our coincidence of solar and wind resources into renewable energy generation. As an early mover in the uptake of renewable energy, South Australia has had to overcome many of the obstacles to increasing the penetration of solar and wind power into our electricity market and have learned fundamental lessons that can be shared with other jurisdictions. These pioneering efforts include the investment in the Hornsdale Power Reserve, best known as the first big battery, and its subsequent expansion. South Australia has also encouraged investment in synchronous condensers to further add power system strength and stability, and we have embarked on greater interconnection within the National Electricity Market, initially from the upgrade of the Heywood Interconnector and subsequently the construction of Project Energy Connect to build a high-voltage transmission line linking South Australia and New South Wales.
South Australia is now poised to move into the next phase of its transformation with hydrogen as a storage medium for renewable energy generation, an increased focus on demand management, and greater electric vehicle and home storage penetration and the opportunities that creates for a achieving the state’s emissions targets.
At the same time, the department continued to provide leading regulation of the mining, petroleum, water, gas and electricity markets through legislative and regulatory frameworks that deliver on the South Australian community’s expectations for safety, sustainability, reliability and affordability. We are also stewards of the trove of geological information built up through decades of exploration and scientific inquiry.
Leadership, delivery and engagement are key to the department’s culture. The department acknowledges the fundamental role the Aboriginal people play as custodians of their heritage and managers of the land and resources. In their tradition, we attempt to manage these resources for the benefit of all South Australians. We also acknowledge the substantial contribution of South Australia’s regional towns as host to the many mineral, energy and renewable projects that are located in their communities.
By engaging with Aboriginal and regional communities in an atmosphere of mutual respect and partnership, the department aims to ensure that South Australia’s ongoing economic development is welcome, and its wider social and environmental benefits are understood and shared for the wellbeing of everyone in the state.
Programs highlighted in the 2021-22 annual report align with these ambitions. For completeness, this annual report also includes previous government programs that were in effect in 2021-22 but are now being wound down as part of the process of reprioritising spending in the incoming government’s first State Budget for 2022-23.
This annual report also covers the initial phases of the Hydrogen Jobs Plan, with the department providing support for the Office of Hydrogen Power South Australia, which was proclaimed as an attached office to the Department for Energy and Mining, under the leadership of inaugural Chief Executive Mr Sam Crafter. As the incoming government’s signature economic policy, the Hydrogen Jobs Plan will be a major endeavour and the department has begun the process of initiating pioneering legislation to guide the development of a hydrogen economy.
As Chief Executive, I acknowledge the hard work and conscientiousness of the staff of the Department for Energy and Mining. Despite the many obstacles created by the pandemic, the department workforce has been adaptive and resilient so that the core services we provide and the industries that we regulate have continued to operate without major disruption, ensuring South Australia is well-placed to lead the way in the post-pandemic recovery.
Paul Heithersay
Chief Executive
Department for Energy and Mining
Contents
- Performance at a glance
- Agency response to COVID-19
- Agency contribution to whole of Government objectives
- Agency specific objectives and performance
- Corporate performance summary
- Employment opportunity programs
- Agency performance management and development systems
- Work health, safety and return to work programs
- Executive employment in the agency
- Risk and audit at a glance
- Fraud detected in the agency
- Strategies implemented to control and prevent fraud
- Public interest disclosure
Overview: about the agency
Our strategic focus
Our Purpose | Supporting a successful energy and mining sector that enables South Australia to responsibly grow and thrive. |
Our Vision | The most transformative energy and mining government department in the world. |
Our Values | Our culture is diverse, professional, accountable, respectful and committed to safety. We demonstrate personal and professional leadership and value recognition as leaders in our field. We engage meaningfully so our work builds a successful, sustainable future for all South Australians. We deliver the best outcomes for all South Australians. |
Our functions, objectives and deliverables |
|
Our organisational structure
Changes to the agency
During 2021-22 there were no changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.
On 19 May 2022 the Office of Hydrogen Power South Australia was established as an attached office to the Department for Energy and Mining.
Our Minister
The Hon Tom Koutsantonis MP was elected to the South Australian Parliament at the age of 26 making him one of the youngest MPs ever elected in South Australia’s history.
He is currently the longest serving MP in the State Parliament having been re-elected by his community for over 24 years in the seat of West Torrens.
Tom is currently Minister for Infrastructure and Transport, Minister for Energy and Mining and the Leader of Government Business in the House of Assembly. He has also previously held the portfolios of Correctional Services, Youth and Volunteers, Gambling, Small Business, State Development and as Treasurer.
Tom was raised in the western suburbs by Greek migrant parents, Tony and Toula. He attended Cowandilla and Netley Primary Schools before attending Adelaide High School and going on to study at the University of Adelaide.
Tom joined the Australian Labor Party at a young age with the encouragement of Labor stalwart and former South Australia Deputy Premier, the late Jack Wright.
He worked as a union advocate at the Shop Distributive and Allied Employees’ Association, then went on to work for the then Shadow Attorney General Michael Atkinson.
Tom entered Parliament to make a difference for working people, people who need the voice and advocacy of a Labor Government. Jobs, green energy and manufacturing are his passions.
Our Executive team
Dr Paul Heithersay, Chief Executive of the Department for Energy and Mining, joined the South Australian public service in 2002 where he has held several senior executive roles. He was awarded the Public Service Medal in 2012 for his outstanding public service to the growth and development of the mineral resources sector. Before joining the public service, Paul spent more than 20 years in the resources industry in Australia, Southeast Asia and China. In 2013 Paul was awarded the prestigious Legend in Mining award for his role in guiding South Australia’s transformation into a major destination for investment in mineral resources and energy.
Alex Blood, Executive Director, Mineral Resources, leads the team responsible for the regulation of mining, quarrying and mineral exploration, and provision of geoscience data and information through the Geological Survey of South Australia. The division has led nationally in geoscience and machine learning – artificial intelligence integration and innovation in data delivery. The team has delivered global crowdsource challenges and partners to support the engineering and technology supply chain. Alex has been awarded Australian Environmental Practitioner of the Year by the Environment Institute of Australia and New Zealand. She is the former chair and a member of the Australia and New Zealand Board for environmental professional certification.
Julianne Cirson, Director Corporate Services, leads a multidisciplinary team that provides high quality advice and delivers business services to support the department achieve its strategic and operational objectives. With a focus on modernising service delivery systems, driving cultural change, building organisational capability, managing resources and corporate governance, the team works in partnership across the department to provide responsive and customer focused services. Julianne has a degree in accounting and is a graduate of the Australian Institute of Company Directors. She has worked in various South Australian Government corporate services leadership roles.
Vince Duffy, Executive Director, Energy and Technical Regulation, heads a team at the forefront of leading and developing responses to the many challenges faced by the state during the ongoing transition in the National Energy Market. Vince's team is also home to the Office of the Technical Regulator, which plays an essential role in maintaining safety in the electrical, plumbing and gas industries. Vince holds a Bachelor of Economics and has vast experience in energy market programs.
In Memory of Barry Goldstein, Executive Director, Energy Resources. Barry held this position in 2021-22 before his death due to ill health in July 2022. In his role of 20 years, he was focused on the development of leading practice regulation, the direction of research and investment attraction for petroleum and geothermal energy, and greenhouse gas storage. Before joining the public service, Barry had more than 30 years international experience in the energy business, exploring for and discovering new fields in Asia, Europe, Africa, the Caribbean and Australia. Barry received an Order of Australia Public Service Medal in 2014, a Lewis G Weeks medal from the Australian Petroleum Producers and Explorers Association for outstanding contribution to petroleum exploration and was inducted into the Australian Institute of Energy – South Australia Hall of Fame.
Nick Panagopoulos, Acting Executive Director, Energy Resources leads the team responsible for managing the states petroleum, geothermal and gas storage assets through world class regulation and compliance monitoring. The division is also focused on helping the state’s transition to modern energy through strategies to facilitate carbon capture and storage technologies, natural hydrogen exploration and hydrogen generation, storage, and transmission. Nick joined the department in April 2013 as the Director Resource Royalties. Prior to that Nick spent 13 years working in the property industry, based in Sydney. He was the Chief Risk Officer for the GPT Group, one of Australia’s largest diversified property groups and a top 50 ASX listed company from 2005 till 2012 and before that worked as the Asia Pacific Regional Risk Manager for Lend Lease.
Nick Smith, Executive Director, Growth and Low Carbon, is responsible for major project development and delivery and the development of low carbon industries, providing opportunities to new and existing suppliers and supporting the creation of new and sustainable jobs in the state. The division also provides communication, marketing and government relations capability across the department. Key initiatives include the Steel Task Force, transformations of Port Pirie, Mintabie and Leigh Creek, Home Battery Scheme, Grid Scale Storage Fund, South Australia’s Virtual Power Plant, Renewable Technology Fund and development of the Hydrogen and Electric Vehicle Action Plans. Nick is the Vice President of the International Association for Hydrogen Safety and a member of the Future Fuels Cooperative Research Centre’s Research Advisory Committee. Before joining government in 2014, Nick held senior commercial and operational roles, predominantly across the LPG and construction materials industries. Nick holds a master’s degree in Business Administration, is a graduate of the Australian Institute of Company Directors and a Fellow of the Australian Institute of Energy.
Legislation administered by the agency
Australian Energy Market Commission Establishment Act 2004
Broken Hill Proprietary Company’s Indenture Act 1937
Cooper Basin (Ratification) Act 1975
Electricity Act 1996
Electricity Trust of South Australia (Torrens Island Power Station) Act 1962
Energy Products (Safety and Efficiency) Act 2000
Gas Act 1997
Mines and Works Inspection Act 1920
Mining Act 1971
National Electricity (South Australia) Act 1996
National Energy Retail Law (South Australia) Act 2011
National Gas (South Australia) Act 2008
Natural Gas Authority Act 1967
Offshore Minerals Act 2000
Opal Mining Act 1995
Petroleum (Submerged Lands) Act 1982
Petroleum and Geothermal Energy Act 2000
Petroleum Products Regulation Act 1995
Port Pirie Smelting Facility (Lead-In-Air Concentrations) Act 2013
Roxby Downs Indenture Ratification Act 1982
Stony Point (Liquids Project) Ratification Act 1981
Whyalla Steelworks Act 1958
Other related agencies (within the Minister’s area/s of responsibility)
The Office of Hydrogen Power South Australia was established as an attached office to the Department for Energy and Mining.
The agency’s performance
Performance at a glance
With the change of government in March 2022, the Department for Energy and Mining’s emphasis has been directed to delivering the incoming government’s priorities, specifically the Hydrogen Jobs Plan, its signature economic policy.
Support was provided for the Office of Hydrogen Power South Australia, which was proclaimed as an attached office to the Department for Energy and Mining. The Hydrogen Jobs Plan will be a major endeavour for the South Australian Government.
The department has begun a process of initiating pioneering legislation to guide the development of a hydrogen economy and is developing a hydrogen export strategy. This strategy will build on previous work of the department including the publication of a marketing tool and partnership with the Australian Government to identify hydrogen export opportunities in the Upper Spencer Gulf.
As part of the government’s election commitments, the department will also investigate mechanisms to increase community renewable energy systems to align with the Australian Government’s community battery and solar banks program, which has already identified Edwardstown as a potential pilot site.
Since the commencement of new Mining Regulations in January 2021, a lean review was completed of all key regulatory processes to streamline and seek to improve efficiency, and to inform the future development of a fully digital mineral resources regulatory system for government and industry.
The department also acknowledges the value given by the Landowner Information Service delivered by Rural Business Support, in providing free, factual and impartial information to landowners, farmers and community members who have queries on resources, exploration, mining and quarrying.
As part of the department’s plain English campaign to improve accessibility to regulatory information, a series of community videos and review of published documentation was also completed. The Mining and Energy Advisory Committee continued to be facilitated by the department providing insight and feedback to the department on energy, resources, innovation and wide-ranging strategic matters.
In collaboration with the Mineral Exploration Cooperative Research Centre, the Geological Survey of South Australia undertook works in the Delamarian region to advance the National Drilling Initiative. This successful program has delivered new data insights into this prospective part of the state and the use of the innovative coiled tubing drill rig has contributed to its further commercialisation and technology testing.
In Energy Resources, the department facilitated and shared a new Cooper Basin reprocessed seismic dataset with industry and researchers and established a virtual core library as part of its online energy resources PEPS database. Significant growth in exploration licence applications throughout 2021 was driven by interest from natural hydrogen and geothermal energy explorers.
Other major initiatives included Roundtable for Oil and Gas projects and support for developing carbon capture, utilisation and storage opportunities in the Cooper Basin.
Through the Office of the Technical Regulator, the department undertook a thorough review and implemented amendments to the Electricity (Principles of Vegetation Clearance) Regulations 2021.
The office also engaged with industry to prepare for the smooth introduction of hydrogen and biogas as future fuels while compliance staff continued to adapt to new and emerging energy technologies, with a strong focus on safety and reliability aspects of distributed energy resources.
A grant contract was awarded to the Royal Automobile Association to build South Australia’s statewide Electric Vehicle Charging Network, targeting 140 sites to deliver 536 rapid and fast chargers in 52 rural, regional and metropolitan service locations. Demand management trials were also rolled out to identify innovative ways to empower consumers as both energy users and providers.
The Remote Area Energy Supply Scheme Future Sustainability Program continued to be rolled out, with installation of smart meters across the entire scheme to improve energy efficiency and service delivery. Smart meters also allowed the introduction of more flexible payment options for participants.
The department continued work to upgrade energy generation on the Anangu Pitjantjatjara Yankunytjatjara Lands, with three megawatts of solar panels and one megawatt of battery storage installed to integrate clean renewable energy into the Central Power House to cut annual diesel consumption by about 700,000 litres.
After providing support to bring forward early works on the South Australia to New South Wales interconnector transmission line, private sector investment partners Electranet and Transgrid progressed Project EnergyConnect through the approvals processes in South Australia and New South Wales. Construction work began in South Australia’s Mid North region on the 900-kilometre transmission line project that will provide greater interconnection within the National Electricity Market.
Support for regional sustainability and major projects was provided to Port Pirie’s continued transformation through the Targeted Lead Abatement Program, and implementation of the Future Town Plan for Leigh Creek.
As part of its People and Culture initiatives, the department has maintained its White Ribbon accreditation, begun updating its Reconciliation Action Plan, introduced new governance structures beginning with terms of reference for the Executive Leadership Team, and continued to place greater emphasis on promoting diversity and inclusion as a key element of the department’s workplace culture.
In the first nine months of the 2021-22 financial year, prior to the change of government, the department implemented programs identified in the South Australia’s Energy and Mining Strategy that sought to contribute to Growth State – Our Plan for Prosperity.
To support this strategy, the Mineral Resources Division developed the Accelerated Discovery Initiative, Explore SA: The Gawler Challenge, the Playford Scholarship engineering program, Core Innovation at Lot Fourteen, Thinking Critical South Australia (Global Supply Chain Competition), the Gawler Challenge Phase 2, South Australia Discovery Mapping geoscience program, the early works for an Underground Innovation Centre at Prominent Hill, Critical Minerals South Australia and Phase 1 of the Mining and Exploration Regulatory System digital project.
Agency response to COVID-19
With the decision to reopen borders as part of the COVID Ready plan, the department adapted its response plan to target tracing, testing, isolation and quarantine as effective measures to minimise the spread of infection within the workplace. The department continued to liaise with energy and mining industry groups and enterprises to ensure similar measures were adopted to maintain business continuity in these sectors that are essential to the ongoing economic activity of the state. The agency continues to provide flexible workplace arrangements and effective social density and personal hygiene protocols to maintain a healthy working environment. The department continues to use online tools to remotely engage with stakeholders and for meeting within the agency. Members of the agency previously mobilised as part of the public sector’s pandemic response, have also now returned to their previous duties.
Agency contribution to whole of Government objectives
The department and its staff contribute to whole-of-government objectives through its work on the Hydrogen Jobs Plan, a hydrogen export strategy and through investigating mechanisms to increase community renewable energy systems.
As a key regulatory agency administering more than 20 Acts of Parliament, the department also contributes to the maintenance of environmental and workplace safety standards across the mineral resources, quarrying, energy resources, electrical, plumbing and gas-fitting industries.
Agency’s contribution |
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Agency specific objectives and performance
Deliver more effective, efficient and transparent regulation of the mineral resources, energy resources and energy market sectors, and the electrical, plumbing and gas-fitting professions. \
Agency objectives | Indicators | Performance |
|---|---|---|
Deliver and enforce effective, efficient and transparent regulation. | Demonstrably provide regulatory frameworks that deliver sustainable development and service standards within technical, safety, social and environmental expectations. | The Office of the Technical Regulator undertook 9,949 safety and compliance audits on plumbing, gas and electrical installations across South Australia and issued 39 expiations for serious beaches of the relevant Acts. The Energy Resources Division conducted 87 individual site inspections. Seven sites were issued environmental improvements notices and four cases required step two persuasive measures to instigate corrective actions. The Mineral Resources Division completed 340 inspections across mining and exploration tenements. A total of 31 mining-related programs were assessed and approved, and 131 exploration programs were assessed and approved. |
Increase the wellbeing of households and support the competitiveness and economic growth of businesses. | Provide a secure, reliable energy system with lower energy prices for all South Australians. | Average annual electricity retail standing offer prices decreased while market offer prices increased for both residential and small business customers over the 12 months to 30 June 2022.
Average annual gas retail standing offer and market offer prices for both residential and small business customers generally increased over the 12 months to 30 June 2022.
As of 30 June 2022, four out of the 10 gas retailers were marketing to either some or all of the regions outside of the Adelaide metropolitan area. Those retailers offered the same gas retail standing offer prices to its metropolitan and non-metropolitan residential customers. Not all retailers had market offers available priced at a discount to its standing offer in 2021-22. There was a wide range of discounts between electricity retail standing offers and market offers. The discount between a retailer’s standing offer and average market offer was 5–19% for residential customers and 9–26% for small businesses. Five of the 12 retailers advertising both standing offers and market offers offered no discounted market offers and three of those retailers set all market offers at a higher price compared to its standing offer. The increase was 5–47% for residential customers and 10–19% for small businesses. Gas retail market offers were also generally priced at a discount to standing offers. The discount between a retailer’s standing offer and its average market offer was 7–16% for residential customers and 1–17% for small businesses. |
Generate precompetitive geoscience and innovative data programs that lead to new discoveries. | Increase exploration and resource investment to support job creation, economic growth and royalties for South Australia. | Just over $3.8 million in grant funding from the Accelerated Discovery Initiative was paid. Seven projects completed for Round 1 and 10 proposals completed for Round 2. Seventeen projects secured funding for Round 3 totalling almost $3.3 million. |
Grow sustainable energy, minerals, petroleum and associated services and value-chain industries for local export markets. | Grow the future economy and lead Australia’s transition to a zero-carbon future. | Mining and energy expenditure for the 2021-22 financial year exceeded $100 million for the first time since 2013-14. Australian Bureau of Statistics figures show significant growth in exploration in South Australia, with $33.7 million spent on mineral deposits in the June quarter, taking the financial year total to $122.3 million. While petroleum exploration for the June quarter in South Australia experienced a slight decrease to $15.4 million, it is anticipated to grow in future quarters due to an increased focus and activity in South Australia’s Cooper Basin. |
Corporate performance summary
The vision of the Department for Energy and Mining is to be the most transformative energy and mining government department in the world. This is central to our new brand that was launched in September 2021 and acknowledges the link between mineral resources development and the transition to renewable energy.
During the year we reviewed our Strategic Directions to include a new priority ‘to enhance organisational and strategic capability’. This recognises the importance and value of our people, processes and technologies in supporting the achievement of our vision and objectives.
Organisational culture remained a high priority and continues to be underpinned by our high performing behaviours and governance frameworks that provide the foundations for engagement, transparency and decision-making.
With COVID-19 continuing to impact our working environment over the year, staff demonstrated adaptiveness, flexibility and resilience with an ongoing commitment to delivery. We continued to embrace flexible working, offering staff the choice in managing their balance between working from the office and home. The department’s Excellence Awards recognised outstanding performance by both individuals and teams and this year included an Unsung Hero category. We continued to build on our commitment to diversity and inclusion and delivered a Lived Experience series, designed to build awareness and understanding on the importance and value of workplace diversity as well as establishing diversity working groups to provide a different approach to giving staff a voice. Business improvements in processes and technology saw several projects including dashboard reporting, cloud strategy and implementation and the migration of data into the cloud being progressed as part of our Digital Transformation program to improve efficiency of operations and customer experience.
Employment opportunity programs
Program name | Performance |
|---|---|
University placements and undergraduate students | The agency hosts students (school and university) for their placement component of their course – primarily in the fields of engineering, geology and economics. |
Graduates | The agency recruits graduates through either individual vacancies or through its inaugural graduate program that launched this year. Five graduates are currently employed in our Energy and Technical Regulation, Mineral Resources and Energy Resources divisions. |
Agency performance management and development systems
Performance management and development system | Performance |
|---|---|
A performance management and development framework within the agency supports employees and leaders to create performance development plans and have regular performance conversations. All discussions are recorded in this system and at appropriate periods reporting is undertaken on completion rates. | Staff participate in two formal performance management and development plan conversations each year. The agency’s performance management and development framework is supported by the iGROW online system. As of 30 June 2022 participation sits at 72%, a slight decrease from 77% as of 31 December 2021. Following renewal of the contract for iGROW, an improvement project is underway to focus on improving staff participation. |
Work health, safety and return to work programs
Program name | Performance |
|---|---|
Wellbeing initiatives | Numerous initiatives support employee wellbeing in the six wellbeing areas of career, social, financial, physical, community and mental. These include:
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Onsite and Employee Assistance Program | Staff have access to free, confidential counselling and support services through offsite Employee Assistance Program appointments or weekly onsite visits from counsellors. |
Flu Vaccination Program | Flu vaccinations are offered to all staff via onsite clinics or pharmacy vouchers. Onsite vaccinations totalled 118 and 71 vouchers were issued. Flu vaccination uptake remained constant with previous years. |
Gov SAfety System implementation | In May 2022 the department transitioned to a new hazard and incident reporting system (Gov SAfety) designed to improve reporting and management of incidents and hazards. |
Workplace injury claims | 2021-22 | 2020-21 | % Change |
|---|---|---|---|
Total new workplace injury claims | 1 | 1 | 0% |
Fatalities | 0 | 0 | 0% |
Seriously injured workers* | 0 | 0 | 0% |
Significant injuries (where lost time exceeds a working week, expressed as frequency rate per 1000 FTE) | 0 | 0 | 0% |
*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)
Work health and safety regulations | 2021-22 | 2020-21 | % Change |
|---|---|---|---|
Number of notifiable incidents (Work Health and Safety Act 2012, Part 3) | 0 | 0 | 0% |
Number of provisional improvement, improvement and prohibition notices (Work Health and Safety Act 2012 Sections 90, 191 and 195) | 0 | 1 | -100% |
Return to work costs** | 2021-22 | 2020-21 | % Change |
|---|---|---|---|
Total gross workers compensation expenditure ($) | $89,328 | $57,332 | +56% |
Income support payments – gross ($) | $42,885 | $48,250 | -11% |
**before third party recovery
Data for previous years is available at: 2020-21 DEM Annual Report - Dataset - data.sa.gov.au
Executive employment in the agency
Executive classification | Number of executives |
|---|---|
SAES1 | 17 |
SAES2 | 4 |
EXF | 1 |
Data for previous years is available at: 2020-21 DEM Annual Report - Dataset - data.sa.gov.au
The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.
Financial performance
Financial performance at a glance
The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2021-22 are attached to this report.
Statement of Comprehensive Income | 2021-22 Budget $000s | 2021-22 Actual $000s | Variation $000s
| 2020-21 Actual $000s |
|---|---|---|---|---|
Total Income | 145,197 | 149,494 | 4,297 | 289,060 |
Total Expenses | (153,489) | (144,517) | (8,972) | (175,211) |
Net Result | (8,292) | 4,977 | 13,269 | 113,849 |
Total Comprehensive Result | (8,292) | 4,977 | 13,269 | 113,849 |
Higher than budgeted income was primarily due to fees and charges being $3.6 million above original budget due to a significant upturn in the mining industry.
Major expenditure movements for 2021-22 primarily relate to grants and subsidies and supplies and services being $36.3 million below budget due to revised milestones and payment schedules across a range of projects, partially offset by a $26.3 million cash alignment transfer to consolidated account reflecting repayment of excess funds recovered from Project EnergyConnect in 2020-21. Further details on agency expenditure are disclosed in the full audited financial statements that are attached to this report.
Statement of Financial Position | 2021-22 Budget $000s | 2021-22 Actual $000s | Variation $000s
| 2020-21 Actual $000s |
|---|---|---|---|---|
Current assets | 12,354 | 138,372 | 126,018 | 137,462 |
Non-current assets | 94,265 | 73,107 | (21,158) | 69,623 |
Total assets | 106,619 | 211,479 | 104,860 | 207,085 |
Current liabilities | (35,800) | (44,447) | (8,647) | (43,040) |
Non-current liabilities | (33,913) | (12,249) | 21,664 | (14,239) |
Total liabilities | (69,713) | (56,696) | 13,017 | (57,279) |
Net assets | 39,906 | 154,783 | 117,877 | 149,806 |
Equity | 39,906 | 154,783 | 117,877 | 149,806 |
Consultants disclosure
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
Consultancies | Purpose | $ Actual payment |
|---|---|---|
All consultancies below $10,000 each - combined | Various | $37,008 |
Consultancies with a contract value above $10,000 each
Consultancies | Purpose | $ Actual payment |
|---|---|---|
Robert I Thomas | Expert strategic advice to mitigate potential environmental and community project risks and adverse outcomes on a range of projects within the Growth and Low Carbon Division | $178,894 |
Evenergi Pty Ltd | Integration study to inform government policy, planning and procurement towards an orderly and cost-effective transition to a 100% Zero Emission Bus (ZEB) Adelaide Metro fleet by 2050 | $172,380 |
PricewaterhouseCoopers | Expert financial, due diligence and risk assessment advice, business case development and project and program assessment for the Steel Task Force | $117,772 |
KSJ Consulting Service Pty Ltd | Facilitate effective working partnerships with traditional owner groups to identify economic opportunities in the oil and gas sector under the Cooper Eromanga Basins Aboriginal Conference program | $115,000 |
Paul Case | Strategic advice and services as required while performing duties as Chair of both the Mintabie Oversight Committee and Leigh Creek Transformation Task Force | $79,477 |
George Wilkenfeld & Associates | Evaluate International Standards for Electrical Vehicle Charges | $55,854 |
University of Adelaide | Advise relating to the Dry Creek Salt Field | $49,442 |
ERM Australia Pty Ltd | Assist implement and integrate a scoping process and report into the department’s existing mining assessment and approval framework | $46,118 |
Aurecon Australasia Pty Ltd | Specialist technical advisory services for the Electric Vehicle Charging Integration Study and Emergency Generators - Elizabeth Operating Defects Review | $39,670 |
Energy Efficient Strategies | Develop activity specifications and metrics for delivery under the proposed Retailer Energy Productivity Scheme | $27,273 |
Clifford William Mallett | Use specialist expertise in the field of underground coal gasification to review licensing, environmental and activity applications to advise the department on its approval decision-making process | $25,188 |
Acil Allen Consulting | National Electricity Market Proposal to provide market consultancy services: Electricity market modelling and report | $21,000 |
Duck and Partners Pty Ltd | Strategic advisory services to engage with stakeholders, undertake program analysis and prepare recommendations to inform future program strategies to increase uptake of the Home Battery Scheme | $19,000 |
Paul Rocks | Specialised review of petroleum plays (targets) in the state's prospective basins and consolidation into a standard industry format | $18,000 |
Evenergi Pty Ltd | Electric Vehicle Smart Charging Subsidy Scheme report on technology readiness; market readiness and engagement | $16,090 |
Fenix Performance Solutions Pty Ltd | Technical, commercial and financial advice and due diligence services for the Whyalla Steel Works Transformation | $15,950 |
Acil Allen Consulting | Market modelling report update, June 2022 | $15,000 |
Bee Squared Consultants | Functional review of Mineral Resources Division | $14,000 |
ERM Australia Pty Ltd | Provide two work packages to assist with integrating a scoping step into the assessment processes for mineral tenements | $13,038 |
Energy Efficient Strategies | Prepare a spreadsheet tool to calculate hot water energy costs | $12,860 |
Ian Dixon Pty Ltd | Assist with strategic discussions and risk management in the design and delivery of a webinar and workshop(s) with external stakeholders as part of the department's Enhancing Land Access for Mineral Exploration initiative | $12,031 |
GBS Consulting | Assess a mining company's submitted program for environment protection and rehabilitation or mining program and produce a departmental internal assessment report including a recommendation to the delegate | $10,380 |
Total | $1,074,471 |
Data for previous years is available at: 2020-21 DEM Annual Report - Dataset - data.sa.gov.au
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Contractors disclosure
The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.
Contractors with a contract value below $10,000
Contractors | Purpose | $ Actual payment |
|---|---|---|
All contractors below $10,000 each - combined | Various | $111,344 |
Contractors with a contract value above $10,000 each
Contractors | Purpose | $ Actual payment |
|---|---|---|
Cowell Electric Supply | Remote Area Energy Supply scheme – electricity generation, distribution and retail services | $4,870,446 |
Money Mob Talkabout Limited | Energy education program and community engagement around the introduction of smart meters in remote towns and Aboriginal communities under the Remote Area Energy Supplies scheme | $1,455,363 |
KPMG | Grant application preparation implementation bid and development bid Utilise the South Australian Government’s Audit and Financial Services panel for advisory services to assist in the successful application of grant funding for an Upper Spencer Hydrogen Hub | $167,455 |
Brubrior Investments Pty Ltd | Strategic advice and services to the Minister for Energy and Mining | $147,560 |
OPEC Systems Pty Ltd | Bulk fuel tank safety and compliance audits at particular remote sites to ensure the tanks are compliant with relevant Australian Standards | $143,932 |
Floodlight Media | Creative services to produce creative assets (videos) to promote the state’s credentials as a leader in clean energy transition (COP26) | $98,600 |
Aurecon Australasia Pty Ltd | Condition assessment of the Brukunga Water Treatment Plant | $94,268 |
Secure Meters (Australia) Pty Ltd | Smart meter services for the Remote Area Energy Supplies scheme | $91,293 |
Converge International Pty Ltd | Onsite employee counselling services | $73,220 |
SRA Information Technology | Delamerian Drilling Atlas Research and Development Program for the Geological Survey of South Australia | $50,000 |
Hylogging Systems Pty Ltd | Maintenance services for HyLogger 3 machine | $44,880 |
Frankie Films Pty Ltd | Produce seven videos on exploration and mining as education resources for public and communities affected by mining projects | $43,371 |
Sonnen Australia Pty Ltd | Store, pack and ship batteries for the Batteries for Bushfire Rebuilding initiative and deployment on government assets | $42,144 |
Jacqui Commerford | Copywriting and editing services to assist with communications, strategy and planning | $41,370 |
CSIRO | Facilitate access and utilisation of equipment to measure a suite of petrophysical properties | $40,000 |
CSIRO | Independent review of the groundwater aspects of a proposal submitted to establish a mine located within the Adelaide Hills region | $38,380 |
Curtin University of Technology | Delivery of up to 30 sensitive high resolution ion microprobe (SHRIMP) geochronological age determinations Analyse apatite samples and deliver sample specific geochronological report on these analyses | $38,182 |
Bureau Veritas Minerals Pty Ltd | Geochemical and geochronological analysis of 307 rock samples | $33,284 |
CDM Smith Australia Pty Ltd | Prepare a strategic framework to improve the knowledge of groundwater resources and utilisation in the Far North region of South Australia | $31,000 |
OPM Consulting Pty Ltd | Assist Geological Survey of South Australia staff deploy up to 12 seismic instruments as part of Geoscience Australia's 2D Grid Survey | $30,996 |
JTwo Solutions | Deliver a working version of the cloud-based Seismic Data Archive | $29,995 |
Bench Directional Drilling and Civil | Replace the rising main for the Brukunga Water Treatment Plant (variation accepted through payment of invoice) | $28,252 |
Design Matters National | Develop training package for Net Zero Energy Ready Homes | $26,500 |
Hannan Duck & Partners Pty Ltd | Assist the Information Technology Security Adviser with the next steps in implementing a South Australian Cyber Security Framework compliant with the Information Security Management System and provide ad hoc security advice to assist with maintaining a secure information environment | $24,581 |
Pointsbuild Pty Ltd | Provide, host and operate a dedicated online learning management system for a range of training resources | $24,500 |
Hughes Public Relations | Provide support across media, public relations, social media, content generation and database building for the Copper to the World 2021 Hybrid Conference in Adelaide | $20,716 |
GPA Engineering Pty Ltd | Feasibility study on efficiency options for Central Powerhouse | $20,448 |
Baigent Geosciences Pty Ltd | Reprocess geophysical data and imagery to update state radiometric grids | $20,000 |
Algo Mas Pty Ltd | Create a brand identity for the Fleet Pledge Program and provide final brand assets, including brand guidelines | $19,935 |
BDO Services | Work relating to system implementation; Remote Area Energy Supply system upgrade and implementation and other related project work if required | $19,140 |
SLR Consulting Australia Pty Ltd | Glint and Glare studies in Yalata and Oodnadatta for proposed installations of solar panels | $18,450 |
Clear Decisions Trust | Assistance with the department’s 2022 Accommodation Project to future proof and update the way desk accommodation is employed | $18,428 |
Techsafe Australia Pty Ltd | Audit nominated Home Battery Installations against predetermined criteria | $17,361 |
BDO Services | Develop an economics dashboard in Microsoft's PowerBI platform to reduce the need to rely on spreadsheets and provide a visual way to understand the department's economic metrics | $17,100 |
BDO Services | Finance dashboard proof of concept | $15,675 |
SA Power Networks | Supply drawings and drawing services | $15,100 |
BDO Services | Prepare Energy and Mining Satellite Account update | $15,000 |
BDO Services | Full time employee dashboard, data automation and training | $13,775 |
Bureau of Meteorology | Weather and climate briefings | $13,222 |
Selina Foat Creative | Mineral exploration code of conduct brochure design | $12,835 |
BDO Services | Procurement assistance in the prepare to go to market to purchase product and services to design / configure / manage and maintain a core departmental business system | $11,790 |
HRM Matters Vlow Pty Ltd | Facilitate establishment and implementation of a redesigned structure in Geological Survey of South Australia | $11,200 |
Earth Systems | Brukunga Treatment Plant Operation Assessment | $10,550 |
Chubb Fire & Security | Remote Area Energy Supply scheme – provide fire protection services at the Central Power House | $10,354 |
Total | $8,010,651 |
Data for previous years is available at: 2020-21 DEM Annual Report - Dataset - data.sa.gov.au
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.
The website also provides details of across government contracts.
Risk management
Risk and audit at a glance
The agency’s Risk and Performance Committee (joint with the Department for Industry, Innovation and Skills, and the Department for Trade and Investment) has oversight of strategic risks. Membership consists of both internal and external members and the committee is independently chaired.
We have a commitment to an environment of sound governance, robust internal controls and a culture that will safeguard public resources. We continued to make significant progress to improve our governance maturity in leadership, culture, strategy, reporting and performance, risk and compliance, and stakeholder engagement. Key activities during the year focused on the development of a performance measurement framework, strengthening our internal control environment with ongoing review of policies and procedure and practices, and our protective and cyber security annual assessment and planning.
The Executive Leadership Team maintains oversight of the strategic risks and undertook a detailed review of these in April 2022 to ensure they remained current following the commencement of the newly elected government.
Fraud detected in the agency
Category/nature of fraud | Number of instances |
|---|---|
Nil | Nil |
NB: Fraud reported includes actual and reasonably suspected incidents of fraud.
Strategies implemented to control and prevent fraud
The agency continues to take a risk-based approach to control and prevent instances of fraud. The control framework includes a policy, procedure and Fraud Control Plan to assist with the prevention and detection of fraud, corruption, misconduct and maladministration.
Strategies and activities during the year included the annual review of financial and human resource delegations, a detailed review of purchase cards, continued segregation of duties for approvals and payments, an internal audit of employees and leave reporting, and improved reporting for finance and projects with the introduction of dashboards.
Data for previous years is available at: 2020-21 DEM Annual Report - Dataset - data.sa.gov.au
Public interest disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:
0
Data for previous years is available at: 2020-21 DEM Annual Report - Dataset - data.sa.gov.au
Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.
Reporting required under any other act or regulation
Act or Regulation | Requirement |
|---|---|
Energy Products (Safety and Efficiency) Act 2000 | Section 25—Annual report (1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's administration of this Act during that financial year. |
Act or Regulation | Requirement |
|---|---|
Electricity Act 1996 | Section 14—Annual report (1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's operations under this Act during that financial year. https://www.energymining.sa.gov.au/about/annual-reports#technical-regulator |
Act or Regulation | Requirement |
|---|---|
Gas Act 1997 | Section 14—Annual report (1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's operations during that financial year. https://www.energymining.sa.gov.au/about/annual-reports#technical-regulator |
The Water Industry Act 2012 | Section 13—Annual report (1) The Technical Regulator, within three months after the end of each financial year, must deliver to the Minister, a report on the Technical Regulator's operations during that financial year. https://www.energymining.sa.gov.au/about/annual-reports#technical-regulator |
Public complaints
Number of public complaints reported
Complaint categories | Sub-categories | Example | Number of Complaints 2021-22 |
|---|---|---|---|
Professional behaviour | Staff attitude | Failure to demonstrate values such as empathy, respect, fairness, courtesy, extra mile; cultural competency | 0 |
Professional behaviour | Staff competency | Failure to action service request; poorly informed decisions; incorrect or incomplete service provided | 0 |
Professional behaviour | Staff knowledge | Lack of service specific knowledge; incomplete or out-of-date knowledge | 0 |
Communication | Communication quality | Inadequate, delayed or absent communication with customer | 0 |
Communication | Confidentiality | Customer’s confidentiality or privacy not respected; information shared incorrectly | 0 |
Service delivery | Systems/technology | System offline; inaccessible to customer; incorrect result/information provided; poor system design | 0 |
Service delivery | Access to services | Service difficult to find; location poor; facilities/ environment poor standard; not accessible to customers with disabilities | 1 |
Service delivery | Process | Processing error; incorrect process used; delay in processing application; process not customer responsive | 0 |
Policy | Policy application | Incorrect policy interpretation; incorrect policy applied; conflicting policy advice given | 0 |
Policy | Policy content | Policy content difficult to understand; policy unreasonable or disadvantages customer | 0 |
Service quality | Information | Incorrect, incomplete, out dated or inadequate information; not fit for purpose | 0 |
Service quality | Access to information | Information difficult to understand, hard to find or difficult to use; not plain English | 0 |
Service quality | Timeliness | Lack of staff punctuality; excessive waiting times (outside of service standard); timelines not met | 1 |
Service quality | Safety | Maintenance; personal or family safety; duty of care not shown; poor security service/ premises; poor cleanliness | 0 |
Service quality | Service responsiveness | Service design doesn’t meet customer needs; poor service fit with customer expectations | 4 |
No case to answer | No case to answer | Third party; customer misunderstanding; redirected to another agency; insufficient information to investigate | 0 |
Total | 6 |
Additional Metrics | Total |
|---|---|
Number of positive feedback comments | 7 |
Number of negative feedback comments | 4 |
Total number of feedback comments | 59 Note:
|
% complaints resolved within policy timeframes | 100% |
Data for previous years is available at: Department for Energy and Mining Annual Report Statistics - Dataset - data.sa.gov.au
Service Improvements
The department launched a new consolidated and easy-to-use website in May 2022 to help improve service delivery through improved systems, technology and access to services and information – all issues identified through analysis of complaints and customer feedback from 2018 to 2022. The management of the department’s Complaint Management System was improved and streamlined for the allocation and review of complaint responses to help support a positive customer experience. Where the agency is not able to resolve a complaint because there is ‘no case to answer’, alternative external sources of assistance are suggested where appropriate, to help support a positive customer service experience. We are reviewing our complaints and feedback policy and procedure, reflecting on our internal processes, to consider further opportunities for service improvements. |
Compliance Statement
The Department for Energy and Mining is compliant with Premier and Cabinet Circular 039 – complaint management in the South Australian public sector | Y |
The Department for Energy and Mining has communicated the content of PC 039 and the agency’s related complaints policies and procedures to employees. | Y |
Please note: There is an error in the Statement of Comprehensive Income table on page 25 of the 2021-22 Annual Report. The 2021-22 Actual figures in the table have been incorrectly transposed from the audited financial statements. The correct table is:
Statement of Comprehensive Income | 2021-22 Budget $000s | 2021-22 Actual $000s | Variation $000s
| 2020-21 Actual $000s |
|---|---|---|---|---|
Total Income | 145,197 | 152,377 | 7,180 | 289,060 |
Total Expenses | (153,489) | (143,386) | (10,103) | (175,211) |
Net Result | (8,292) | 8,991 | 17,283 | 113,849 |
Total Comprehensive Result | (8,292) | 8,991 | 17,283 | 113,849 |
