SPARQ Solutions is preparing for the rollout of a new enterprise resource planning (ERP)/enterprise asset management (EAM) system for Energy Queensland, following the formal 1 July launch of the state-owned company.
SPARQ is a government-owned IT service provider that currently operates an ERP/EAM system for Energex and Ergon Energy. Since 1 July Energex and Ergon, both of which are state-owned corporations, have become part of the Energy Queensland Group.
A staged transition process will eventually see Energy Queensland holding an asset base worth over $24 billion and serving 4.8 million people.
“Energex and Ergon will become subsidiaries of the new government owned corporation,” Queensland’s energy minister, Mark Bailey, said during his 14 June second-reading speech on the Electricity and Other Legislation Amendment Bill 2016.
“The consolidation of Energex and Ergon under a new parent company will create the opportunity to bring together the corporate and administrative functions of both Energex and Ergon, leading to the elimination of duplication and the adoption of industry best practice across the network.”
In answers to a question taken on notice during a parliamentary inquiry into the bill, Queensland Treasury indicated that merging the two organisations would enable cost reductions across board members, executives, employees, contractors, consultants, property costs and ICT expenditure. On the ICT front, Treasury expected savings when it came to the roll out of a new ERP system.
“Although both companies use the same ERP, it is configured differently in Energex and Ergon, while a single roll-out across the merged business is expected to generate significant savings,” Treasury said.
The current ERP/EAM system supports the corporations’ core business processes, spanning finance, HR, payroll, procurement, asset management and works management, an Ergon spokesperson said.
“With the merger of Ergon and Energex, the replacement of this system represents an opportunity to renew business practices of Energex and Ergon Energy to achieve state-wide process alignment and best practice for Energy Queensland,” the spokesperson said.
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The program will begin with an open market Request for Offer released later this month.
“This is a significant systems project and Energy Queensland is looking engage with vendors now to develop the best possible options for the business,” the spokesperson said.“Detailed business cases will follow based on tenders received, and the project will be considered for relevant Energy Queensland Board and government approvals.”