Presentation by Tim Rourke Chief Executive Officer CitiPower and Powercor

Electricity network operators – more than just poles and wire

2ACCC regulatory conference

MILDURA

BENDIGO

ECHUCA

KYNETON

SHEPPARTON

BALLARAT

HORSHAM

ARDEER

COLAC

WARRNAMBOOLGEELONG

DOCKLANDS

PORT MELBOURNESOUTH MELBOURNE

PRAHRAN

TOORAK

ARMADALEST KILDA

CAULFIELD

HAWTHORNRICHMOND

BRUNSWICK

NORTHCOTE

FITZROYCARLTON

NORTH MELBOURNE

MELBOURNE CBD

COLLINGWOODKEW

NORTH BALWYN

BALWYN

CAMBERWELL

MELBOURNE

CitiPower Network statisticsNetwork route line length: 3,186kmNetwork area: 157sq kmCustomer numbers: 325,917Customer density: 102.30c/kmZone substation transformers: 106Distribution transformers: 4,670Poles: 58,276Underground lines: 42%Network reliability: 99.99%

(As at 31 December 2014)

Powercor Network statisticsNetwork route line length: 67,006kmNetwork area: 145,651sq kmCustomer numbers: 765,241Customer density: 11.42c/kmZone substation transformers: 141Distribution transformers: 83,359Poles: 561,471Underground lines: 12%Network reliability: 99.96%

(As at 31 December 2014)

One business – two very different networks

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Good management has paid dividends to customers – affordability and reliabilityCustomer value drives relevance

Source: AER Economic Benchmarking RINs

Average number of minutes off supply per customer (2006–2013)

CitiPower (VIC)

Jemena (VIC)

ActewAGL (ACT)

Endeavour (NSW)

Ausgrid (NSW)

Energex (QLD)

United Energy (VIC)

0 25 50 75 100

Powercor (VIC)

Source: AER, Electricity distribution network service providers, Annual benchmarking report, November 2014, Figure 6

Unplanned number of minutes off supply per customer (average 2006–2013)

0 100 200 300 400

SA Power Networks (SA)

AusNet Services (VIC)

Essential (NSW)

Ergon (QLD)

TasNetworks (TAS)

How we compare – Distribution charges across Australia (2015 dollars)

CitiPower (VIC)$271

$398

ActewAGL (ACT)

United Energy (VIC)

Powercor (VIC)

Jemena (VIC)

AusNet Services (VIC)

Endeavour (NSW)

SA Power Networks (SA)

Ausgrid (NSW)

TasNetworks (TAS)

Energex (QLD)

Essential (NSW)

Ergon (QLD)

$0 $200 $400 $600 $800 $1,000 $1,200

Source: CitiPower and Powercor analysis

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The network is an enabler of customer choice and evolving technologyEnergy services not essential services

A future network

Battery storage

On and off-grid options for local

generation

Switch retailers faster

Price-sensitive, remotely controlled appliances

Time of use pricing options

Off peak charging of electric vehicle

Weekly power bills on smartphones

Access to detailed consumption data

Technology advancementsenable more efficient operation and management of networks

Competitive suppliersoffering new energy products

and services

Battery storageAutomationDemand response

Solar powergeneration

Wind power generation

Coal power generation (traditional )

Cogeneration and trigeneration

Smart metering

Customers

The empowered customer

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How we are respondingProactive response facilitates customer choice

Smartmetering

Automation

Solar powergeneration

ConnectionsBatterystorage

Customers

6CitiPower and Powercor Regulatory Proposals 2016–2020

Preparing for the futureWe are transforming into an energy services business that has the capability to build a smarter network and leverage new technologies that enables customer choice.

Our commitment to striking the right balance between safety, reliability, growth and affordability is the foundation on which we build a more sustainable future for our communities.

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Thank you