flow retail operational audit 2016 v2flowsystems.com.au/.../retail_operational_audit_2016.pdfhas a...

Water Futures. ABN 97109956961. 66 Merrivale Rd, Pymble 2073. 0409 283 737. [email protected]

t-cAM Consulting. ABN 76559967228. 15 Kim Marie Mew, Moriac 3240. 0412 540 187. [email protected]

ReportontheAuditoftheRetailSupplierOperationalLicenceofFlowSystems

IndependentPricingandRegulatoryTribunalWaterIndustryCompetitionAct2006

RetailSupplier’sLicenceAuditReport(OperationalAudit)

RetailSupplier’sLicenceNo.13_001R:FlowSystems

FinalReport28July2016

ReportontheOperationalAuditofRetailSupplier’sLicenceNo.13_001R(FlowSystems)underWICA. Page2of45DocumentVersion2.WaterFuturesandiq-AM.Lastupdated:28-Jul-2016.DocController:DD.

TableofContents1. EXECUTIVESUMMARY...............................................................................................................................32. INTRODUCTION...........................................................................................................................................42.1 OBJECTIVE........................................................................................................................................................................42.2 LICENSEE’SINFRASTRUCTURE,SYSTEMSANDPROCEDURES..................................................................................42.3 AUDITMETHOD...............................................................................................................................................................4Auditscope.................................................................................................................................................................................4Auditstandard.........................................................................................................................................................................4Auditsteps..................................................................................................................................................................................4Auditteam..................................................................................................................................................................................4Acknowledgements................................................................................................................................................................5Auditgrades..............................................................................................................................................................................5

2.4 REGULATORYREGIME....................................................................................................................................................52.5 QUALITYASSURANCEPROCESS....................................................................................................................................52.6 AUDITFINDINGS.............................................................................................................................................................52.7 AUDITAGENDAFORFRIDAY1JULY2016................................................................................................................6

3. OPERATIONALAUDIT................................................................................................................................83.1 SUMMARYOFFINDINGS.................................................................................................................................................83.2 REVIEWOFACTIONS......................................................................................................................................................83.3 OPPORTUNITIESFORIMPROVEMENT.........................................................................................................................8

APPENDICES


1. ExecutiveSummaryThisreportsetsoutthefindingsofanOperationalAuditcompletedinrespectoftheRetailSupplier’sLicence(LicenceNo.13_001R)forFlowSystemsfortheperiod1July2014to30April2016.ARetailSupplyManagementPlanAudit,whichisreportedseparately,wasundertakeninconjunctionwiththisaudit.

Theauditorswereprovidedwithsufficientandappropriateevidence,asdescribedintheIPARTAuditGuidelineforGreenfieldSchemes,WaterIndustryCompetitionAct2006(NSW),July2013(theAuditGuideline),onwhichtobasetheconclusionsreachedduringtheaudit.

TheauditorshaveobservedtherequirementsoftheAuditGuidelineandtheAuditDeedinconductingtheaudit,determiningauditfindingsandpreparingthisreport.

Thereportedauditfindingsaccuratelyreflecttheprofessionalopinionoftheauditors.ThefindingshavenotbeenundulyinfluencedeitherbytheLicenseeoranyofitsassociatesandexpresstheauditors’opinionsastowhethertheLicenseehasmettheLicenceconditionsandregulatoryrequirementsasspecifiedinthescope.

AsummaryoftheauditfindingsisgiveninthefollowingchaptersandadetailedbreakdownofthefullauditfindingsagainsttheauditedcriteriaisgiveninthedetailedAuditTablesinAppendixA.

TheauditedinfrastructurecompliedwiththeauditedrequirementsoftheRegulationandLicenceconditionsandwasfoundtobeoperatingsafely.TheLicensee,FlowSystems,wasfoundtobeconstructing,repairing,maintainingandoperatingtheinfrastructurewithoutanysignificantnon-compliancesbeingidentifiedwithanyoftheauditedcriteria.Inaddition,fourclauseswerereportedasnorequirement.


2. Introduction

2.1 ObjectiveThisreportpresentsthefindingsofanauditundertakenfortheIndependentPricingandRegulatoryTribunal(IPART)undertheWaterIndustryCompetitionAct2006.

TheauditcomprisedofanOperationalAuditasrequiredinrespectoftheRetailSupplier’sLicence(LicenceNo.13_001R)forFlowSystems.TheLicenseeisFlowSystems.

A Retail Supply Management Plan audit was undertaken in conjunction with this audit and is reportedseparately.

2.2 Licensee’sinfrastructure,systemsandproceduresTheLicensee’sinfrastructure,systemsandproceduresauditedwerethoserelatedtoalllicensedretailwatersupplyschemesmanagedbyFlowSystems.

2.3 Auditmethod

Auditscope

This audit covers the operation and maintenance of the licenced infrastructure and addresses the scopespecified by IPART in its letter to Flow Systems dated 3 March 2016 relating to an Operational Audit inrespectoftheauditperiod1July2014to30April2016.

Auditstandard

TheauditbroadlyfollowedthegenericprinciplesofauditinggiveninISO19011:2011-Guidelinesforauditingmanagement systems. The principal document used to guide the audit was the IPART Audit Guideline forGreenfieldSchemes,WaterIndustryCompetitionAct2006(NSW),July2013(theAuditGuideline).

Auditsarebynecessitylimitedtosamplingprocesses.Itisnotpracticable,nornecessary,toinspect100percentofitemswithinanauditscope.Auditingformspartofthebroaderriskmanagementprocess,providingan independent checkon theveracityof theprocesses andprocedures inplace tomanage risk. Finding abalancebetween audit effort andpracticality requires the exercise of experiencedprofessional judgement.Theamountofeffortallocatedtothisaudithasbeenkepttoareasonableminimumlevel.

The audit was undertaken and reported in accordance with the Audit Guideline and its associatedAppendices.TheaudittemplatesgivenintheGuidelineprovidedthereportingformatfortheauditaswellasthedetailedauditcriteria.

Auditsteps

An Audit Proposal was submitted to both IPART and the Licensee prior to the audit taking place.DocumentationwassuppliedbytheLicenseetoboththeauditorandIPART.

Desktopauditingtookplacebothpriorandsubsequenttothesiteaudit.Anoffice-basedaudittookplaceon1July2016.SomeevidencewasfollowedupaftertheauditwiththereportbeingpreparedandsubmittedtotheLicenseeasdraft,thenafinal,beforesubmissiontoIPART.

The audit process involved seeking objective evidence that the Licensee met the Licence obligationsidentifiedforauditbyIPART.Theauditorscollectedevidencethroughinterviewanddocumentreview.TheauditorsrandomlysampledexamplessufficienttoverifyclaimsmadebytheLicensee.

Auditteam

The auditwas conducted by one auditor,DrDanDeere, andquality reviewedby another auditor,MrTomCarpenter. Both auditors hold relevant Lead Auditor Accreditation under IPART’s Technical Services andWaterLicensingAuditPanel.


Acknowledgements

Theauditteamnotes,andgreatlyappreciates,thepresenceofIPARTstaffmembersJamieLukeandMatthewVanUffelenasvaluableobserversandcommentatorsduringtheaudit.

Theauditteamnotes,andgreatlyappreciates, theworkandeffortput inbythoseaudited, includingLauraDixon,CandiceSuttorandJasonFrey.

Auditgrades

Auditgradeswereawarded inaccordancewiththedefinitionsgiven intheAuditGuideline. Complianceofoperationoftheinfrastructurewiththerelevantlegalandformalrequirementswasassessed.Moregenerallytheinfrastructurewasassessedforitscapabilitytooperatesafely.Gradeswereallocatedasfollows:

• NoRequirement

• Compliant

• Non-compliantInsignificant

• Non-compliantSignificant

2.4 RegulatoryregimeTheschemeoperatesundertheWaterIndustryCompetitionAct2006(WICA)whichinturnreferencesthefollowingrequirements:

• WaterIndustryCompetition(General)Regulation(2008).

• ConditionsofRetailSupplier’sLicenceNo.10_013R.

• IPARTAuditGuidelineforGreenfieldSchemes,WaterIndustryCompetitionAct2006(NSW),July2013.

• RelevantaspectsofthenationalAustralianGuidelinesforWaterRecycling:ManagingHealthandEnvironmentalRisks(Phase1)2006.

• RelevantwaterindustryandenvironmentalNSWandnationalcodesofpracticeandregulations,asapplicable.

2.5 QualityassuranceprocessQuality was assured using a professional review process. The first auditor’s work was reviewed andapprovedbythesecondauditor.BothauditorsarelongstandingmembersoftheIPARTauditpanel.

2.6 AuditfindingsAuditfindingsaresummarisedintheaboveExecutiveSummary;theyarepresentedinmoredetailinsection3andinfulldetailinAppendixA.


2.7 AuditagendaforFriday1July2016

Time Itemandauditquestions

09:00 Openingmeeting

09:10 Incidents

Havetherequiredincidentnotificationstakenplaceandaresystemsinplacetoensurethattheydo?

09:20 Paymentassistance

Haspaymentassistancebeenprovidedandhasthisbeenreported?

09:30 Translation

Hasnoticeoftranslationservicesbeenprovided?

09:40 Customercomplaints

HasacustomercomplaintscodeofpracticebeendevelopedinlinewithAS/ISO10002-2006andhavecustomersbeenkeptinformedofit?

09:50 Debtrecovery

Havecustomers,theMinisterandIPARTbeenkeptinformedofthecodeofpracticefordebtrecoveryanddoesthatcoderallowfordefermentofpayments?

10:00 RSMP

IstheRetailSupplyManagementPlankeptimplementedandunderregularreviewandhastheRSMPbeenauditedifrequired?

10:30 Break

11:00 Website

Doesthewebsitecontaindetailsofrelevantgovernmentpolicies?

11:20 Authoriseduse

Havecustomersbeeninformedofauthorisedusesandhavecustomersonlybeensuppliedwaterforthoseuses?

11:30 Contracts

Haveallwater,recycledwaterorseweragecontractsbeenserviceablewithrespecttoquality,quantity,infrastructure,capacityandconnectivity?

12:00 Termination

Haveanywater,recycledwaterorseweragecustomershadtheirsupplyterminated?

12:15 Restrictions

Haveanywaterrestrictionsbeenplaceduponanycustomers?


Time Itemandauditquestions

12:30 Smallcustomers

Allsmallretailcustomersarecoveredunderacontractthatspecifiesthatcustomerswillnotbedisconnectedbecauseofnon-payment,willnotifycustomersofintenttochangecontractsandcoverstheitemslistedinWICRegSchedule2,cl14(2)and19(2).

Havesmallretailcustomersbeensuppliedwithwaterorsewerageservicesbeensuppliedwithadisclosurenoticeregardingthecustomer'snameandaddress,thedateonwhichsupplyistocommence,feesandchargesthatwillbepayable,circumstancesinwhichthecustomer'spremisesmaybedisconnected,proceduresforhandlingcustomercomplaints,government-fundedrebatesandwherecustomerscanobtainacopyofthecontract.

12:30 Lunch

13:30 Scopeofoperations

Confirmthatwater,recycledwaterorsewerageserviceshaveonlybeenprovidedbymeansofthewaterindustryinfrastructure,forpurposes,tothecustomers,andwithintheareaofoperations,specifiedintheLicence

13:50 Technicalcapacity

IsthetechnicalcapacityandresourceallocationadequatetomeettheLicencerequirements?

14:00 Insurance

Hasinsurancechangedduringtheauditperiod?

14:10 Reporting

HavereportsbeensubmittedasrequiredbytheReportingManual?

14:20 Changesinplans

HaveupdatedLicencePlansbeensubmittedtoIPART?

14:30 Codeofconduct

Hasasuitablecodeofconductbeenestablishedandimplemented?

14:40 Incidentpreparedness

ConfirmthattheRSMPconsiderseventsandcircumstancesthatcouldadverselyaffectthesupplywater,recycledwaterorsewerageservices,risksofsuchevents,riskmanagementoptionsandalternativesourcesofservices.

14:50 Compliance

ConfirmthattheRSMPconsidersthecodeofpracticeforcustomercomplaints,codeofpracticefordebtrecoveryforsmallretailcustomers,themarketingcodeofconductandtransfercodeofconduct.

15:00 Auditclose


3. Operationalaudit

3.1 SummaryoffindingsNonon-complianceshavebeenidentifiedasaresultofthisaudit.

3.2 ReviewofactionsTheLicensee isacknowledged forprovidinghelpfulsuggestions forcorrectionsandclarifications followingthereviewofthedraftreportpriortothefinalreportbeingissued.InadditiontheLicenseehelpedtoexplainindetailhowitaddressedthe languagequestionunderclauseWICRegSched2cl.3 in lightof thefactthatnewcommunitiesdonothavecensusdatafromwhichtodrawlanguageevidence.

3.3 OpportunitiesforimprovementNoopportunitiesforimprovementhavebeenidentifiedasaresultofthisaudit.


AppendixA OperationalAudittables

WICRegSched2c1.1(2)(a-d)

Requirement ComplianceGrade

A retail supplier must immediately notify IPART of anyincident in the conduct of its activities that threatens, orcouldthreaten,waterquality,publichealthorsafety.

A retail supplier must immediately notify the Ministeradministering the Public Health Act 2010 (NSW) and thePublicHealthRegulation2012(NSW)ofanyincidentintheconduct of its activities that threatens, or could threaten,waterquality,publichealthorsafety.

A retail supplier must immediately notify the MinisteradministeringPart2oftheWaterIndustryCompetitionAct2006(NSW)ofanyincidentintheconductofitsactivitiesthat threatens, or could threaten, water quality, publichealthorsafety.

A retail supplier must immediately notify any licensednetwork operator by means of whose infrastructure theretailer supplies water or provides sewerage services ofany incident in theconductof itsactivities that threatensorcouldthreaten,waterquality,publichealthorsafety.

Compliant

Risk

Nosignificantriskswereidentified.

TargetforFullCompliance

N/A

Evidencesighted

§ InterviewswithLauraDixon,CandiceSuttorandJasonFreyheld1July2016atFlowSystemsHeadOffice.

§ FlowSystemsRetailSupplyManagementPlanRevision4dated11February2016(RSMP).

§ FlowSystemsIncidentManagementPlanVersion4datedJune2015(documentreferenceFS-WAT-AUS-PL-INC-1266)(IMP).

§ FlowSystemsscheme-specific[schemename]IncidentManagementManual(IMM).

§ SharePointBusinessManagementSystemIncidentRegisterontheFlowSystemsintranet.

§ Exampleofincidentreportedof11September2014thatwasreportedtoIPARTandEPA.

§ FlowSystemsinternalIncidentNotificationForm.

Summaryofreasonsforgrade

FlowSystems iswellpreparedbothwithrespect to incidentpredictionand incidentpreparednessandresponse, including clarity with respect to contact details of key personnel and alternative supplyoptions. Flow Systems showed evidence of correctly responding to and notifying incidents during theauditperiod.Accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

Section3oftheRSMPdescribesanoverviewoftheincidentsthatFlowSystemsconsidersrelevanttoretailsupplymanagement.Thisincludesqualityandenvironmentalincidentsaswellassupplysecurityandinterruptionincidentsandthesourcingofalternativemeansofprovidingservicesduringincidents.ThislistisinclusiveofwhatIPART,NSWHealthandtheEPAarelikelytoconsiderrelevantandisconsideredtobesufficientlycomprehensive.

ThefinerdetailsofincidentmanagementareheldwithinboththecorporateIMPandtheIMMthatisheldforeachspecificscheme.InthiswayFlowSystemsiscompliantwithitsobligationssinceithasrelated

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riskassessmentanduncertaintytopossibleincidentsandthendevelopedbroadaswellasscheme-specificincidentresponseplansthatcoverquality,environmentalandsupplysecurityincidents.

FlowSystemshasconductedaseriesofriskassessmentworkshopsaspartofitsContinuityofServiceRiskAssessmentaspartofidentifyingrisksanduncertaintiesandtheassociatedcontrolsrequiredtomanagethoserisks.Theseassessmentsarereviewedperiodically.Partofthatriskassessmentprocessinvolvesconsideringincidentmanagement.IncidentsconsideredbyFlowSystemsincludedissuesthatmayarisewiththeuseofphonesystemsandtheinternet,e.g.usingcloud-basedsystemsandbeingabletodiverttomobiles.The1300generalenquirynumberdivertstomobilesifthereisafault.TherisksweredescribedundertheContinuityofServiceRiskAssessment.ThatriskassessmentwassuppliedtoIPART.Risksconsideredincludedfactorssuchastelephonyfailures,internetfailuresandstaffsickness.

Theorganisationhasup-to-dateincidentandemergencyproceduresandevidenceofimplementationoftheseprocedureswhererelevant.Incidentsareloggedandregistered,includingincidentsthatareorarenotreportabletoIPART.

FlowSystemswasabletoprovideevidencebothofincidentsthatithadcorrectlyrespondedtoanddetailsofitsincidentresponsechecklistaspartofitsIncidentNotificationFormthatwasaimedatensuringthatitcorrectlynotifiedrelevantparties.

AnexampleofanincidentwasseenthatwasreportedtoIPARTduringSeptember2014.Thenotificationwasrelatedtoasewerspill incidentandincludednotificationtoIPARTandtheEPA.Anexampleofaninternal Incident Reporting Form was sighted that included a checkbox to alert IPART as well as achecklistsummaryofwhattheFlowSystemsnotificationrequirementswere.

The standard Flow Systems Incident Notification Form describes notification processes and includesrequirements, contactdetails andphonenumbers.Multiple contractorsarenotedasbeingavailable toprovidesupportifrequired.

Recommendations

Therearenorecommendationsinrespectofthisrequirement.

Opportunitiesforimprovement

Noopportunitiesforimprovementhavebeenidentifiedinrespectofthisrequirement.



WICRegSched2cl.2(1)(a-d)


The licensee must implement any relevant governmentpolicythatappliestoit.

The licensee must ensure the details of any relevantgovernmentpolicyareforwardedtoeachofitscustomersatleastonceaquarter.

The licensee must furnish a report to IPART and theDepartmentHeadeachquarterrelatingtothefollowing:

(i) the identity of each customer to whom any paymentassistance, discountor rebatehasbeengivenduring thatquarterpursuanttoanyrelevantgovernmentpolicy,and

(ii) the amount of any suchpayment assistance, discountorrebate.

Thelicenseemustfurnishareporttootherretailsupplierstowhichthereisatransferofwatersuppliesorsewerageservices in respect of a customer referred in (i) above, assoonaspracticableafterthetransfertakeseffectasto:

(i) the fact that the customer has been receiving anypayment assistance, discount or rebate pursuant to anysuchpolicyand

(ii) the amount of any suchpayment assistance, discountorrebate.

Compliant

Risk



N/A

Evidencesighted



Customer requests for payment plans have been appropriately handled and notified during the auditperiod;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemsusestherelevantASICandEWONGuidelines.FlowSystemsreliesonEWONtoadviseofupdatedpolicies. In order tomaintain awareness, Flow Systems retains amembership of EWON (as arequirementoftheirLicence)aswellashavingastaffmemberbeingontheConsultativeCouncilandisthereforeacrossitsobligationsinthisrespect.

FlowSystemsbillsmonthlyinordertoreducebillshock.AnalertsystemhasbeensetuptoalertFlowSystems to situations where bills go up suddenly, e.g. approximately 20%. Flow Systems offer‘SmoothPay’tohelpwithforwardpaymentplanning.Thevastmajorityofcustomerspaybydirectdebitanduseelectronicbills.Currentlytwocustomersareonapaymentplan.

Recommendations






WICRegSched2cl.3


Anynoticethattheretailsupplierisrequiredtosendtoitscustomers,whetherby theWICAct,WICRegulation,oralicence condition, must include or be accompanied by,information as to the existence of, and the telephonenumbers for,anycommunitytranslationservicesthatareavailable.

Such information is to be given in: (a) English, Arabic,Cantonese,Greek,Italian,Spanish,andVietnamese,and(b)insuchotherlanguagesasarespokenbymorethan3%ofthepopulationwithinthelicensee'sareaofoperations.

Compliant

Risk



N/A

Evidencesighted


§ ExamplewaterbillfromGreenSquareWater.

§ FlowSystemsCustomerComplaintsPolicy.

§ FlowSystemsinternetsiteHelpCentre(https://askus.flowsystems.com.au/hc/en-us).


Thebillprovidesthepointerstomulti-lingualguidanceforcustomersintherequiredlanguagesaswellasanadditionallanguage;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

Customersreceivebillsviaemailbasedontemplatesthatarepreparedforcustomers.Boththebillsandemailsincludeinformationaboutotherlanguages.

The bill sighted on the intranet (forGreen SquareWater) and the hard copybills show the complaintnumber,thepaymentplaninformationandthetranslationservicesintherelevantlanguages.

TheHelpCentrehasaninterpretersectionthatcoversawiderangeoflanguages,inadditiontothemainsixthatarerequiredandthatappearonthebill.FlowSystemsalsoprovideageneral flyeronrecycledwater inMandarin andmake use of ‘brand ambassadors’ from a company called Kreate that providebilingualsupportstaff.

ItisverychallengingtopredictwhatthelanguageneedsofFlowSystems’customerswillbeastheseareverynewlandandhousingdevelopmentsandhighriskapartmentblocks.Inthelattercasetheresidentpopulationis likelytobeinarelativelyhighrateoffluxwithmanytenants.Therefore,FlowSystemsisunable to rely on census data to verify the various language requirementswithin its communities. Inordertocomplywiththeintentofthisclause,FlowSystemsputthefollowinginplace:

Allbillsandcoveringemailscontaintranslation information in6 languages(SimplifiedChinese, Italian,Greek,Vietnamese,Spanish,Arabic);

A further 11 languages are included on the Flow Systems Helpcentre website. The Helpcentre issearchable and will direct customer searching for translation services to the correct page(https://askus.flowsystems.com.au/hc/en-us/articles/200658000-Need-an-interpreter-)

Whilst not one of the default requirements, Flow Systems and its partner developers ascertained thatbuyers in the high rise communities had a high likelihood of being Chinese or of Chinese decent and,therefore, Flow Systems developed presales information in printed and electronic form for supply topurchasers alongwith settlement information in simplified Chinese.On settlement daysFlow Systems



boostsitsteamwithbrandambassadorswhospeakbothMandarinandCantonesetoassistintranslationonthedaythatcustomerssettleontheirproperty.

FlowSystemshasstated that it intends tousecensus information ifavailablebutnotes that itwillnotusualyl available untilmany years after settlement inmany cases. Therefore, Flow Systemswill add alanguage question into its online sign up form to help provide the data so that it can provide anappropriatemixoflanguagesforitscommunities.

Recommendations






WIC RegSched 2cl.4(1)(a-c);cl.4(2)


Aretailsuppliermustestablishandcomplywithacodeofpracticeforcustomercomplaintswhetherinrelationto:

(i) the supply of water or the provision of sewerageservices,bytheretailsupplier,or(ii)theoperationofthewaterorsewerageinfrastructurefromwhichthatwaterissuppliedorthoseservicesprovided.Aretailsuppliermustprovide copies of its code of practice for customers'complaintstotheMinister,IPARTandtheombudsman.

Aretailsuppliermustkeepitscustomersinformedasto:

(i) the provisions of the code of practice for customercomplaints, and (ii) the existence of and procedure forreferringcomplaintsordisputestotheombudsman.

A retail supplier must furnish periodic reports to theMinisterandIPARTinrelationtocomplaintsitreceives,insuchformandcontainingsuchinformationastheMinisterorIPARTrequires.

A retail supplier's code of practice for customercomplaintsmust conform to the requirements of AS/ISO10002-2006.

Compliant

Risk



N/A

Evidencesighted



§ ExamplewaterbillfromGreenSquareWater.


§ FlowSystemsCustomerComplaintsCodeofPractice.


§ FlowSystemsHomeownersGuide.


FlowSystemshadanappropriatecodeofpracticewhichwasavailabletocustomerswhosecomplaintswerereportedtoIPART;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

TheFlowSystemsCustomerComplaintsPolicyreferencestheFlowSystemsCustomerComplaintsCodeofPractice.TheFlowSystemsHelpCentreinternetsiteshowstheCustomerComplaintsPolicy.

TheFlowSystems‘ZenDesk’systemgeneratesa‘ticket’assoonasacomplaintcomesin.TheticketsareallocatedtoaparticulartypeofcomplaintandrespondedagainstaServiceLevelAgreement(SLA)andthesecanbeescalatedandalertedifcompliance isn’tachieved.TheFlowSystemsCustomerComplaintsCodeofPracticewasusedtodrivetheSLA.

Recommendations



WICRegSched2cl.5(1)(a-c);(2)


Aretailsuppliermustestablishandcomplywithacodeofpracticefordebtrecovery.

A retail supplier must provide copies of its code ofpractice fordebt recovery to theMinister, IPARTand theombudsman.

A retail suppliermust keep its customers informed as totheprovisionsofthecodeofpracticefordebtrecovery.

Aretailsupplier'scodeofpracticefordebtrecoverymustprovide for the deferment, in the whole or in part, ofpaymentsowedbycustomerssufferingfinancialhardship.

Compliant

Risk



N/A

Evidencesighted






§ FlowSystemsCodesofPracticeforMissedPaymentsandDebtRecovery.


FlowSystemshasacodeofpracticeforMissedPaymentsandDebtRecoverythatwasreportedtoIPARTandthatisinalignmentwiththisobligation;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemshascodesofpracticeforCustomerComplaintsandforMissedPaymentsandDebtRecovery.TheFlowSystemsCustomerComplaintsPolicyreferencesthecodeofpractice.Therefore,FlowSystemshadanappropriatecodeofpractice,whichwasavailabletocustomersviatheinternet,inrelationtodebtrecoveryarrangements, thatwas reported to IPART;accordingly, theLicenceHolderwasCompliant inrespectof thisobligation.TodateFlowSystemshasnothadto implementdebtrecoveryalthoughtwocustomersarecurrentlyonpaymentplans.

Recommendations






WICRegSched2c1.6


A retail supplier must comply with any water industrycode of conduct,marketing code of conduct and transfercodeofconduct.

Compliant

Risk



N/A

Evidencesighted




§ FlowSystemsCodesofPracticeforMissedPaymentsandDebtRecovery.

§ ExamplesofUtilityServicesAgreementdocumentswithotherparties


Flow Systems had correctly referenced the relevant Codes of Practice and Codes of Conduct anddescribedhowitcompliedwiththosecodes.Inaddition,whereno‘codeofconduct’hasbeenagreedwithother utilities, Flow Systems has agreed, or is in the process of finalising, an equivalent documents, aUtilityServicesAgreement,foreachscheme.Accordingly,theLicenceHolderwasCompliantinrespectoftheseobligations.

Discussionandnotes

TheFlowSystemsCustomerComplaintsPolicyreferencestheFlowSystemsCustomerComplaintsCodeofPractice.TheFlowSystemsHelpCentreinternetsiteshowstheCustomerComplaintsPolicy.

Flow Systems had correctly referenced its Codes of Practice for Customer Complaints and forMissedPayments and Debt Recovery under Section 2 of the RSMP and described how it complied with thosecodes. The Flow Systems Customer Complaints Policy references the Code of Practice. There was noevidenceoffailuretocomplywiththosecodes.Accordingly,theLicenceHolderwasCompliantinrespectoftheseobligations.

FlowSystemshadcorrectlyreferencedtheMarketingandTransferCodesofConductunderSection5ofthe RSMP and described how itwould complywith those codes. Accordingly, the LicenceHolderwasCompliantinrespectoftheseobligations.MarketingandTransferCodeofConduct.

Whereno ‘codeof conduct’hasbeenagreedwithotherutilities, FlowSystemshasagreed,or is in theprocessoffinalising,aUtilityServicesAgreementforeachscheme.

Recommendations






WICRegSched2cl.7A(2)(a)


The retail supplier must ensure that its Retail SupplyManagement Plan is fully implemented and kept underregular review and, in particular, that all of its activitiesarecarriedoutinaccordancewiththatPlan.

Compliant

Risk



N/A

Evidencesighted




FlowSystemshadanappropriateandcurrentRetailSupplyManagementPlanwhichhadbeenprovidedtoIPART;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

TheFlowSystemsRetailSupplyManagementPlanRevision4dated11February2016isthemostrecentRetail Supply Management Plan (RSMP), is reasonably up to date and has been provided to IPART.Critical information that can change regularly, such as contact details of key personnel, is retainedseparately. There is evidence that the RSMP is subject to both a programmed review and qualityassuranceprocesswithadefinedfrequencyofreviewinadditiontoaneventbasedreviewprocess.

Recommendations






WICRegSched2cl.7A(3)(a)


If theMinisteror IPARTsodemands,or if anysignificantchangeismadetoitsRetailSupplyManagementPlan,theretailsuppliermustprovidetheMinisterorIPARTwithareport, preparedby an approved auditor in suchmannerand form as theMinister or IPARTmay direct, as to theadequacyofthePlan.

Norequirement

Risk



N/A

Evidencesighted




AnauditontheRetailSupplyManagementPlanwasnotrequiredbyIPARTduringtheauditperiodandthe document hadn’t otherwise significantly changed such that it required an audit prior to the auditconducted alongside that reported here; accordingly, there was NoRequirement in respect of thisobligation.

Discussionandnotes

TheRetailSupplyManagementPlan(RSMP)wasbeingauditedonthesamedayastheOperationalAuditoftheRetailSupplier’sLicence.AnauditontheRSMPwasnotrequiredbyIPARTduringtheauditperiodandthedocumenthadn’totherwisesignificantlychangedsuchthatitrequiredanauditpriortotheauditconducted alongside that reported here; accordingly, there was NoRequirement in respect of thisobligation. The updating of contact details and other administrative updates are not considered torepresenta‘significant’changetotheRSMP.

Recommendations






WICRegSched2cl.7B(1)(f)


The retail supplier's website must contain details of anyrelevant government policy that applies to the retailsupplier.

Compliant

Risk



N/A

Evidencesighted




Flow Systems had an appropriate internet site to guide persons to the relevant government policies;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemsmakesreferencewithin its internetsitetotherelevantgovernmentpoliciesand internetsites.ThesesitesareaccessedviatheHelpCentrewhichreferencestheCustomerContract,WICActsandLicences,EWONinformation,debtrecovery,paymentassistanceandsoon.Theselinksweretestedandfoundtobefunctionalonthedayofaudit.Alloftheselinkswereaccessibleviatherelevanthomepageandwerenotburiedordarksites.

Recommendations






WICRegSched2cl.9(1)(a-b);(2)


A retail supplier of non-potable water must inform anycustomer to which such water is supplied as to theauthorisedpurposesinrelationtothatwater.

A retail supplier of non-potable water must not supplysuch water to any customer for use for an unauthorisedpurpose unless the water is to be processed by thecustomer to become water for which that purpose is anauthorisedpurpose.

Compliant

Risk



N/A

Evidencesighted




§ FlowSystemsOperationsandCommunicationsProtocolHighRiseCommunities.


FlowSystemsprovidedclarityandproactiveawarenessinrelationtopermittedusesofrecycledwaterassetoutinthelicence;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemsandtheFacilitiesManagershaveprovided(intheauditor’sopinion)adequateinstructiontocustomersonappropriatewateruseandhaveputinplaceadequatephysicalbarrierstoinappropriateuse, such as direct connections for toilets and washing machines or unique connectors/threads.Therefore,all reasonablestepshavebeentakentoensurethatcustomersarenotusingsuppliedwaterforunauthorisedpurposes.For landandhousingpackagestheHomeownersGuide isavailable fromtheHelpCentreandissentinhardcopytocustomers.

Forapartmentcustomersdon’thaveaccesstoatap–recycledwateronlyfitstothewashingmachineandtoilet. For apartments, Flow Systemsmaintains its relationshipwith FacilitiesManagers and PropertyManagersratherthanhavingadirectrelationshipwiththetenant.Thedocumentthatisusedtoformalizethatprocess,theOperationsandCommunicationsProtocolHighRiseCommunities,coversWICA,policies,obligations, uses of water, incident reporting, notification, cross-connection checks and customernotification.

Recommendations






WICRegSched2cl.10(1)(a-d);(2)


A retail supplier must not enter into water supplycontracts under which it assumes obligations that it isunabletomeet,oradvertisethatit iswillingtoenterintosuch contracts, having regard to the capacity of therelevant water source to supply water or the volume ofwateravailabletotheretailsupplierfromthatsource.

A retail supplier must not enter into water supplycontracts under which it assumes obligations that it isunabletomeet,oradvertisethatit iswillingtoenterintosuch contracts, having regard to the quality of thewaterderivedfromthatwatersource.

A retail supplier must not enter into water supplycontracts under which it assumes obligations that it isunabletomeet,oradvertisethatit iswillingtoenterintosuch contracts, having regard to thewater infrastructurefromwhichthewateristobesupplied.

A retail supplier must not enter into water supplycontracts under which it assumes obligations that it isunabletomeet,oradvertisethatit iswillingtoenterintosuch contracts, having regard to the conditions onwhichthe retail supplier has access to the infrastructure,whether pursuant to an access agreement or accessdeterminationorotherwise.

Aretailsuppliermustnotenterintowatersupplycontractwithacustomerunlessthepremisestowhichthewateristobesuppliedareconnectedto,orreadilyconnectableto,awatermaintowhichthelicenseehasaccess.

Compliant

Risk



N/A

Evidencesighted


§ FlowSystemsCustomerContractdatedto30October2015.



FlowSystemshasfullawarenessofitscustomerbaseandhasmetitscapacityandqualityrequirementstodateforthesupplyofitsservicesandiscurrentlyexpandingsomeplanttomeetfuturegrowth.ThereisnoevidencethatFlowSystemsismakingfalseclaimsbasedonareviewofitsmarketingmaterialsorservice offering documentation. Accordingly, the Licence Holder was Compliant in respect of thisobligation.

Discussionandnotes

Flow Systems has developed a Customer Contract the most recent version of which was dated to 30October2015.Theupdatehighlightswhat’schangedsincethe2014version.FlowSystemsisplanningtodevelopacustomercharteraswellasaspecialindustrialcontractforathermalplant.

The Flow Systems communities are new,master-planned land and housing or high rise developments



with pre-allocated lot numbers. Flow Systems retains builder and surveyor guidance that shows thelocationsandkeyinfrastructure.Theindividualpropertyrecordisthepointoftruthforeachcustomer.AnexamplewassightedofaPittTownpropertysearchthatcoverscustomeraddressesanddetails.FlowSystemsretains‘asbuilt’drawingsaswellasmaintainingadial-before-you-digregisterofallofitsassetsandcustomerlocations.

At present, Flow Systems only appears to be servicing customers ofwhich it is aware andwithin thecapacity of the systems that it is operating. To date Flow Systems has met its capacity and qualityrequirementsforthesupplyofitsservicesandiscurrentlyexpandingsomeplanttomeetfuturegrowth(e.g.PittTown);accordingly,theLicenceHolderwasCompliantinrespectofthisobligation

Recommendations






WICRegSched2cl.11


Aretailsuppliermustnotterminatethesupplyofwatertoany of its customers within the whole or any part of itsarea of operations unless it has given IPART and theMinisteratleast14dayswrittennotice.

Norequirement

Risk



N/A

Evidencesighted




To date no customers have had their supplies or services terminated; accordingly, there wasNoRequirementinrespectofthisobligation.

Discussionandnotes

Todatenocustomershavehadtheirsuppliesorservicesterminated.

Recommendations






WICRegSched2cl.12


A retail supplier must ensure its customers are keptinformedof anywater restriction that applies to them inany bill or other correspondence it sends to themwhiletherestrictionisinforce.

Norequirement

Risk



N/A

Evidencesighted




To date no customers have had their supplies or services restricted; accordingly, there wasNoRequirementinrespectofthisobligation.

Discussionandnotes

Todatenocustomershavehadtheirsuppliesorservicesrestricted.

Recommendations






WICRegSched2cl.14(1-4)


A retail suppliermust not supply water to a small retailcustomerotherwisethanunderawatersupplycontract.

A retail supplier of small retail customers' water supplycontractsmustaddressthemattersreferredtoinWICRegSchedule2c1.14(2).

A retail supplier of small retail customers' water supplycontracts must provide that the licensee must notdisconnect the customer's premises from the retailsupplier's water main as a consequence of a customer'snon-paymentofadebt.

Aretailsupplier thatproposestosupplywater toasmallretailcustomerontermsthataredifferentfromthosesetout inthe licensee'sstandardwatersupplycontractmustnotify the customer of the various differences before thecustomerentersintothecontract.

Compliant

Risk



N/A

Evidencesighted




Thematters referred to inWIC Reg Schedule 2 c1.14(2) are explicitly addressedwithin theCustomerContract and all customers are connectedwith an associated contract. In addition no customers havebeen disconnected by Flow Systems. Accordingly, the LicenceHolderwas Compliant in respect of thisobligation.

Discussionandnotes

Flow Systems has developed a Customer Contract the most recent version of which was dated to 30October2015.Theupdatehighlightswhat’schangedsincethe2014version.FlowSystemsisplanningtodevelopacustomercharteraswellasaspecialindustrialcontractforathermalplant.NocustomershavebeendisconnectedbyFlowSystems.

Recommendations






WICRegSched2cl.14(5)(a-g)


Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomer with a disclosure notice that specifies thecustomer's name, and the address of the premises to besupplied.

Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomerwith a disclosure notice that specifies the dateonwhichsupplyistocommence.

Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomer with a disclosure notice that specifies the feesandchargesthatwillbepayableinrespectofthesupply.

Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomer with a disclosure notice that specifies thecircumstances in which the customer's premises may bedisconnectedfromthewatermain.

Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomerwithadisclosurenotice that specifies theretailsupplier'sproceduresforhandlingcustomercomplaints.

Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomer with a disclosure notice that specifies theexistenceofanygovernment-fundedrebatesforwhichthecustomermaybeeligible.

Beforeenteringintoacontracttosupplywatertoasmallretail customer, a retail supplier must provide thecustomerwithadisclosurenoticethatspecifieswherethecustomercanobtainacopyofthecontract.

Compliant

Risk



N/A

Evidencesighted





All matters referred to inWIC Reg Schedule 2 c1.14(5) are explicitly addressed within the customercontractandallcustomersareconnectedwithanassociatedcontractthatisassociatedwiththerelevantdisclosurenotice.ThereisnoevidencethatFlowSystemsismakingfalseclaimsbasedonareviewofitscontractdocumentation.Accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

Flow Systems has developed a Customer Contract the most recent version of which was dated to 30October2015.Theupdatehighlightswhat’schangedsincethe2014version.FlowSystemsisplanningto



developacustomercharteraswellasaspecialindustrialcontractforathermalplant.Nocustomershavebeen disconnected by Flow Systems. The matters referred to in WIC Reg Schedule 2 c1.14(5) areexplicitlyaddressedwithinthecustomercontract.

FlowSystemsprovidesasuitableDisclosureNotice,addressingtherequirementsofWICRegSchedule2c1.14(5),thatexistsasastand-alonedocumentthatisdisplayedaspartofregisteringasacustomerontheFlowSystemsHelpCentreinternet.Thisinformationisprovidedinhardcopyifsorequested.

Recommendations






WICRegSched2c1.16(1)(a-c);(2)


A retail supplier must not enter into sewerage servicearrangementsunderwhichitassumesobligationsthatitisunabletomeet,oradvertisethatit iswillingtoenterintosuch arrangements, having regard to the sewerageinfrastructure from which those services are to beprovided.A retail supplier must not enter into sewerage servicearrangementsunderwhichitassumesobligationsthatitisunabletomeet,oradvertisethatit iswillingtoenterintosuch arrangements, having regard to any limitations onthecapacityofthatinfrastructuretodisposewaste.A retail supplier must not enter into sewerage servicearrangementsunderwhichitassumesobligationsthatitisunabletomeet,oradvertisethatit iswillingtoenterintosuch arrangements, having regard to the conditions onwhich the retail supplier has access to the infrastructureservices provided by that infrastructure, whetherpursuant to an access arrangement or accessdeterminationorotherwise.A retail supplier must not enter into sewerage servicearrangement with a customer unless the premises towhich the service is to be supplied are connected to, orreadilyconnectibleto,asewermaintowhichthelicenseehasaccess.

Compliant

Risk



N/A

Evidencesighted





FlowSystemshasfullawarenessofitscustomerbaseandhasmetitscapacityandqualityrequirementstodateforthesupplyofitsservicesandiscurrentlyexpandingsomeplanttomeetfuturegrowth.ThereisnoevidencethatFlowSystemsismakingfalseclaimsbasedonareviewofitsmarketingmaterialsorservice offering documentation. Accordingly, the Licence Holder was Compliant in respect of thisobligation.

Discussionandnotes

Flow Systems has developed a Customer Contract the most recent version of which was dated to 30October2015.Theupdatehighlightswhat’schangedsincethe2014version.FlowSystemsisplanningtodevelopacustomercharteraswellasaspecialindustrialcontractforathermalplant.

The Flow Systems communities are new,master-planned land and housing or high rise developmentswith pre-allocated lot numbers. Flow Systems retains builder and surveyor guidance that shows thelocationsandkeyinfrastructure.Theindividualpropertyrecordisthepointoftruthforeachcustomer.AnexamplewassightedofaPittTownpropertysearchthatcoverscustomeraddressesanddetails.FlowSystemsretains‘asbuilt’drawingsaswellasmaintainingadial-before-you-digregisterofallofitsassetsandcustomerlocations.

At present, Flow Systems only appears to be servicing customers ofwhich it is aware andwithin the



capacity of the systems that it is operating. To date Flow Systems has met its capacity and qualityrequirementsforthesupplyofitsservicesandiscurrentlyexpandingsomeplanttomeetfuturegrowth(e.g.PittTown);accordingly,theLicenceHolderwasCompliantinrespectofthisobligation

Recommendations






WICRegSched2cl.17


A retail supplier must not terminate the provision ofsewerageservicestoanyofitscustomerswithinthewholeor any part of its area of operations unless it has givenIPARTandtheMinisteratleast14days'writtennotice.

Norequirement

Risk



N/A

Evidencesighted




To date no customers have had their supplies or services terminated; accordingly, there wasNoRequirementinrespectofthisobligation.

Discussionandnotes

Todatenocustomershavehadtheirsuppliesorservicesterminated.

Recommendations






WICRegSched2c1.19(1-2);(3a-b)


Aretailsuppliermustnotprovideasewerageservicetoasmall retail customer otherwise than under a sewerageservicecontract.A retail supplier's sewerage service contracts for smallretail customer must address the matters referred to inWICRegSchedule2cl.19(2).A retail supplier's sewerage contracts for small retailcustomers must provide that the licensee must notdisconnect the customer's premises from the retailsupplier'ssewermainasaconsequenceofthecustomer'snon-paymentofadebt.A retail supplier's sewerage contracts for small retailcustomersmustprovidethatthelicenseemustnotreducethe flow of sewage into a retail supplier's sewer mainbelowthatnecessaryforbasichygieneasaconsequenceofthecustomer'snon-paymentofadebt.

Compliant

Risk



N/A

Evidencesighted




Thematters referred to inWIC Reg Schedule 2 c1.19(2) are explicitly addressedwithin theCustomerContract and all customers are connectedwith an associated contract. In addition no customers havebeen disconnected by Flow Systems. Accordingly, the LicenceHolderwas Compliant in respect of thisobligation.

Discussionandnotes

Flow Systems has developed a Customer Contract the most recent version of which was dated to 30October2015.Theupdatehighlightswhat’schangedsincethe2014version.FlowSystemsisplanningtodevelopacustomercharteraswellasaspecialindustrialcontractforathermalplant.NocustomershavebeendisconnectedbyFlowSystems.

Recommendations






WlCRegSched2cl.19(4)(a-g)


Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifies the customer's name, and the address of thepremisestobesupplied.

Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifiesthedateonwhichsupplyistocommence.

Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifies the fees and charges that will be payable inrespectofthesupply.

Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifies the circumstances in which the customer'spremisesmaybedisconnectedfromthesewermain.

Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifies the retail supplier's procedures for handlingcustomercomplaints.

Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifies theexistenceofanygovernment-fundedrebatesforwhichthecustomermaybeeligible.

Before entering into a contract to supply a sewerageservice to a small retail customer, a retail supplier mustprovide the customer with a disclosure notice thatspecifies where the customer can obtain a copy of thecontract.

Compliant

Risk



N/A

Evidencesighted





Thematters referred to inWIC Reg Schedule 2 c1.19(4) are explicitly addressedwithin the customercontractandallcustomersareconnectedwithanassociatedcontractthatisassociatedwiththerelevantdisclosure notice. Those notifications take place as part of and immediately prior to the customerenteringintoacontract.Accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.



Discussionandnotes

Flow Systems has developed a Customer Contract the most recent version of which was dated to 30October2015.Theupdatehighlightswhat’schangedsincethe2014version.FlowSystemsisplanningtodevelopacustomercharteraswellasaspecialindustrialcontractforathermalplant.Nocustomershavebeen disconnected by Flow Systems. The matters referred to in WIC Reg Schedule 2 c1.19(4) areexplicitlyaddressedwithinthecustomercontract.

FlowSystemsprovidesasuitableDisclosureNotice,addressingtherequirementsofWICRegSchedule2c1.19(4),thatexistsasastand-alonedocumentthatisdisplayedaspartofregisteringasacustomerontheFlowSystemsHelpCentreinternet.Thisinformationisprovidedinhardcopyifsorequested.

Recommendations






RetailSupplierLicencecl.A1.1-5,A2.1-5,A3.1-5


TheLicenceHolderand theauthorised thirdpartieshavesuppliedwaterorprovidedsewerageservicesbymeansofthewaterindustryinfrastructurespecifiedintheLicence.

TheLicenceHolderand theauthorised thirdpartieshavesuppliedwater or provided sewerage serviceswithin theareaofoperationsspecifiedintheLicence.

Compliant

Risk



N/A

Evidencesighted





OnlytheLicenceHolderandtheauthorisedthirdpartiessuppliedserviceswhichwereinturnlimitedtoprovisionviathewaterindustryinfrastructureandwithintheareaofoperationsspecifiedintheLicence;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes


TheLicenceHolderandauthorisedthirdpartiesremainastheyaredescribedintheLicence.Onlythoseparties have supplied thewater industry services. Flow Systems’s understanding of the infrastructureusedtosupplycustomersarewithinthosedescribedwithintheLicence.

Flow Systemswas able to illustrate the process of existing properties switching to Flow fromHunterWateratHuntlee.

Recommendations






RetailSupplierLicencecl.B1


The Licence Holder must have the techical capacity tocarry out the activities authorised by this Licence. If theLicenceHolderceasestohavethiscapacity,itmustreportthistoIPARTimmediately.

TheLicenceHoldermusthavetheorganisationalcapacitytocarryouttheactivitiesauthorisedbythisLicence.IttheLicenceHolderceasestohavethiscapacity,itmustreportthistoIPARTimmediately.

Compliant

Risk



N/A

Evidencesighted




The Licence Holder had the technical capacity to carry out the activities authorised by this Licence;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

It was clear from interviews with Flow Systems staff that they had the technical and organisationalcapacity andunderstanding todeliver the required services relevant to the retailingofwater services.FlowSystemshadsetupasituationthatinvolvedexecutivelevelreportingforitsmanageroftheretailandcustomer servicesaswell ashaving three staff in the customer service team.FlowSystemsstatedthat it was planning to grow that team with its customer base. The current head count is based oncustomer forecastnoting thatmostof theworkassociatedwithcustomerservicingoccursupfront– insetting up customer accounts. The teammakes use of multi-skilled staff that cross-pollinate betweenrolestohelpprovidemutualbackup.InadditiontheFlowSystemsfinanceteamhasbeencross-trainedincustomerservicetoprovideextrabackupshouldthatberequired.

Flow Systems actively monitors its customer interactions e.g. number of customer interactions andsatisfaction rating by customers. Furthermore, it is up to customers close tickets rather than FlowSystemsstafftohelpensurefullcustomersatisfactiononcecustomerservicinghasbeencomplete.FlowSystemsislookingtoaddvoicerecordinginfuturetohelpimproveitsservices.

FlowSystemshasa24hourfaultandemergenciesphone(advertisedviaitswebsite)thatdivertstomobiletoapersononcallifrequired.Normalbusinessenquiriesareonlyhandledduringnormalbusinesshoursonlyandthatismadeclearontheinternetsite.

Recommendations






RetailSupplierLicencecl.B3.3


Wheneverthereisachangeinthetype, levelorperiodofinsurance held by the Licence Holder in relation to theactivitiesauthorisedundertheLicence,theLicenceHoldermustprovideacopyofthecertificateofcurrencytoIPARTwithin10daysofthechangebeingmade.

Compliant

Risk



N/A

Evidencesighted


§ Email from Flow Systems to IPARTwith subject:Change of Insurance Coveragedated 19 January2016andIPART’sreplydated21January2016.


Flow Systems has kept IPART informed of changes to its insurance coverage; accordingly, the LicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemsprovidedevidence inthe formofanemail to IPARTnotifyingofchangesto its insurancecoverageon19January2016.Thatemailprovidedthecertificatesofinsuranceaswellasthenotification.IPARTconfirmedtheadequacyofFlowSystems’ insurancebyreplyon21January2016indicatingthatIPARTwascomfortablewiththeinsurancecoverageandthenotificationperiod.

Recommendations








The Licenseemust carry out activities authorised by thelicence in compliance with any requirements of NSWHealththat:

(a)IPARThasagreedto;and

(b)arenotifiedfromtimetotimetotheLicenceHolderbyIPARTinwriting.

Compliant

Risk



N/A

Evidencesighted


§ Letter from IPART to Flow Systems dated 7 April 2015 stating that NSW Health requires FlowSystems to stop using the term 'refinedwater' to refer to recycledwater by 31 December 2015(IPARTreferenceD15/5538).


Flow Systems has a systematic approach to keeping NSW Health informed of incidents and riskassessmentsand fordocumentingandrecording its formal interactionswithNSWHealthandrequeststhatNSWHealthmakes,inparticularanythatareagreedtoinwritingbyIPART.Accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

Flow Systems has developed a good relationshipwithNSWHealth, both theWater Unit andwith therelevant LocalHealthDistrict officers in its areas of operations. Themajor interactionsbetweenFlowSystems and NSW Health come through incidents, where notification is required, or through riskassessments.

FlowSystemshasensuredthatNSWHealthisinvolvedwiththeriskassessmentworkshopsforallofitsschemes.TohelpensurecompliancewithNSWHealthrequests,FlowSystemshasdevelopedastandardinformation request and documented form to capture information from NSW Health and to supportcompliancebyFlowSystemswithNSWHealth’srequests.

FlowSystemsrespondedappropriately to the letter from IPART toFlowSystems(dated7April2015)statingthatNSWHealthrequiresFlowSystemstostopusingtheterm'refinedwater'torefertorecycledwaterby31December2015(IPARTreferenceD15/5538).ThetermisnolongerusedbyFlowSystemsandrelevantdocumentationhasbeenupdatedbyFlowSystems.Compliancewiththisrequesthasbeensubjecttoauditpreviously.

Recommendations








The Licensee must comply with any audit guidelinesissuedbyIPART.

Compliant

Risk



N/A

Evidencesighted



FlowSystemsemploysadedicatedRiskandComplianceManagerwhoactivelymaintainsawarenessofIPART’s audit guidelines and any other compliance requirements and coordinates andmanages FlowSystems’compliancewiththoserequirements.FlowSystemsschemeshavebeenauditedagainstIPART’saudit guidelines and demonstrated awareness and compliancewith those guidelines. Accordingly, theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemsemploysadedicatedRiskandComplianceManagerwhoactivelymaintainsawarenessofIPART’s audit guidelines and any other compliance requirements and coordinates andmanages FlowSystems’compliancewiththoserequirements.

Flow Systems has been audited regularly against IPART’s audit guidelines and has demonstrated itsawarenessofthoseguidelinesandhasattainedasuitablelevelofcompliance.

Recommendations








The Licence Holder must prepare and submit reports inaccordance with the applicable Reporting Manual issuedby IPART and available from IPART's websitewww.ipart.nsw.gov.au.

Compliant

Risk



N/A

Evidencesighted



TheNetworkOperator (for fivesschemes)andRetailSupplierAnnualReportswerecompleted, signedandsubmittedtoIPARTby31August2015,asrequired;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

TheNetworkOperator (for fivesschemes)andRetailSupplierAnnualReportswerecompleted, signedandsubmittedtoIPARTby31August2015,asrequired.

Recommendations








WhenevertheLicenseemakesasignificantamendmenttoaPlan, theLicenseemustprovidea copyof theamendedPlanto IPARTat thesametimethat itprovidesacopytothe approved auditor to prepare a report as to theadequacy of the amended Plan, as required under theRegulation.

Compliant

Risk



N/A

Evidencesighted




The Licence Holder had supplied IPART with up to date copies of its Plans to IPART in good time;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

TheRetailSupplyManagementPlan(RSMP)wasbeingauditedonthesamedayastheOperationalAuditof theRetailSupplier’sLicence.Sincethecompletionof theversionthathadbeensuppliedto IPART,areviewandminorupdateshadtakenplacetotheRSMP.However,thesechangeswerenotsignificant.Theupdating of contact details and other administrative updates are not considered to represent a‘significant’ change to the RSMP and as such the most recent version held by IPART was consideredsufficientlyuptodate.

FlowSystemsmaintainsoldversionsofitslicenceplansonfilesothatit’seasytoseewhathaschanged.Documentsarereviewedandupdatedfrequently.However,theretailfunctionisacrossschemesandsothere is no requirement to significantly update the RSMP just because of the introduction of newcustomersorschemes.

Recommendations






RetailSupplierLicencecl.B9.(1-3and5)


Ifacodeofconducthasnotbeenestablishedunderclause25oftheRegulation,theLicenseemustestablishacodeofconduct (Licensee's code of conduct) in accordance withthisclauseB9.

TheLicensee'sCodeofConductmustsetouttherespectiveresponsibilitiesof:

(a)theLicensee;and

(b) each licensed network operator, licensed retailsupplier and/or public water utility that constructs,maintains or operates any other water industryinfrastructure in the Specified Area of Operations, by, atminimum,providingfor:

(c) if the Specified Water Industry Infrastructure isconnectedtoanyotherwaterindustryinfrastructure,whois responsible for repairing, replacing ormaintaining theSpecifiedWaterIndustryInfrastructure,

(d)whoisresponsibleforwaterquality:

(e)whoisliableintheeventofunavailabilityofwater;

(f) who is liable in the event of failure of the SpecifiedWaterIndustryInfrastructure;

(g)thefeesandchargespayableinrespectoftheuseoftheSpecifiedWaterIndustryInfrastructure;and

(h)whoisresponsibleforhandlingcustomercomplaints.

BeforecommencingtosupplywaterthroughtheSpecifiedWater Industry Infrastructure under this Licence or by alaterdatespecifiedbyIPART(ifany),theLicensee'sCodeof Conduct must be agreed in writing between theLicensee and the other licensed network operators,licensed retail suppliersand/ or public water utilitiesreferredtoinB9.2.

TheLicenseemustnot contravene theLicensee'sCodeofConduct to the extent that it makes the Licenseeresponsibleorliableforthematterssetoutinit.

Compliant

Risk



N/A

Evidencesighted


§ ExamplesofUtilityServicesAgreementdocumentswithotherparties


Whereno ‘codeof conduct’ has been agreedwith other utilities FlowSystemshas agreed, or is in theprocessoffinalising,anequivalentdocuments,aUtilityServicesAgreement,foreachscheme.Accordingly,theLicenceHolderwasCompliantinrespectoftheseobligations.

Discussionandnotes



Whereno ‘codeof conduct’ has been agreedwith otherutilities FlowSystemshas agreed, or is in theprocess of finalising, a Utility Services Agreement for each scheme. These Utility Services AgreementdocumentssetouttherequiredobligationsinaccordancewithRetailSupplierLicencecl.B9.

Recommendations






RetailSupplierLicencecl.B11.(1-2)


TheLicenseemustonlysourceandsupplywaterbymeansofwater industry infrastructuremaintainedandoperatedbyalicensednetworkoperatororapublicwaterutility.

The Licensee must only provide sewerage services bymeans of water industry infrastructure maintained andoperatedby a licensednetworkoperator orpublicwaterutility.

Compliant

Risk



N/A

Evidencesighted





ServiceswerelimitedtoprovisionviathewaterindustryinfrastructureandwithintheareaofoperationsspecifiedintheLicence;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes


TheLicenceHolderandauthorisedthirdpartiesremainastheyaredescribedintheLicence.Onlythoseparties have supplied thewater industry services. Flow Systems’s understanding of the infrastructureusedtosupplycustomersarewithinthosedescribedwithintheLicence.

Flow Systemswas able to illustrate the process of existing properties switching to Flow fromHunterWateratHuntlee.

Recommendations






RetailSupplierLicencecl.B12.(2-3)


a)TheLicenseemustnotifyIPARTinaccordancewiththeReportingManualthat ithascommencedtosupplywaterthrough the relevant Specified Water IndustryInfrastructure;and

(b) provide such notification within 10 days after suchcommencement.

TheLicenseemust:

(a)notifyIPARTinaccordancewiththeReportingManualthat it has commenced to provide sewerage servicesthrough the relevant Specified Water IndustryInfrastructure;and

(b) provide such notification within 10 days after suchcommencement.

Compliant

Risk



N/A

Evidencesighted



FlowSystemshasstatedthatithasprovidednotificationtoIPARTwithin10daysofcommencingsupplyof services through the relevant Specified Water Industry Infrastructure in accordance with theReportingManual;accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Discussionandnotes

FlowSystemsemploysadedicatedRiskandComplianceManagerwhoactivelymaintainsawarenessofIPART’s compliance requirements and coordinates andmanages FlowSystems’ compliancewith thoserequirements.FlowSystemshasbeenauditedregularlyagainstIPART’srequirementsandhasattainedasuitablelevelofcomplianceinthoseaudits.FlowSystemsdemonstratedthatithasbeenabletocomplywithitsrequirementstoprovidenotificationtoIPARTwithin10daysofcommencingsupplyofservicesthroughtherelevantSpecifiedWaterIndustryInfrastructure inaccordancewiththeReportingManual.Accordingly,theLicenceHolderwasCompliantinrespectofthisobligation.

Recommendations


