Australian Utility – Investment Planning

Client

Our client distributes electricity to more than 1.3 million residential, industrial and commercial customers across a population base of around 3.1 million in Australia.

Challenge

• Assess all electricity distribution network assets and the risks presented to the business.
• Develop a range of investment options to reduce risk, improve network performance and maximise investment benefits within imposed capital budget constraints.
• Provide fully auditable means to support regulatory submission.

Deliverables

• Improved asset performance
• Greater reliability and safety
• Lower costs
• Smarter investment decisions

Process

Solution

• Use Condition Based Risk Management (CBRM) model to calculate condition profiles and health indices for specific assets and asset groups.
• Quantify asset risk using derived probability of failure data and consequences of failure information, consolidated into a risk model.
• Develop a portfolio of future asset investment options, designed to manage risk over the medium term.

Benefits

• Recognised and auditable system to support efficient regulatory reporting.
• Improved asset management recommends 20% fewer replacements.
• Constantly updated evidence to support smarter investment decisions.