Energy affordability and decarbonisation
Energy affordability and decarbonisation
An energy transition that works for consumers Vector plays a pivotal role in enabling energy systems to meet growing demand for low-carbon electricity while delivering and advocating for equitable and affordable outcomes for consumers. Our focus is to build infrastructure as efficiently as possible to reduce consumer cost, and ensure the costs are allocated equitably, in line with the principle of cost-reflective pricing. Doing this avoids system growth costs being socialised inequitably across existing consumers. A clear example of this principle is a consumer who doesn’t own an EV and who may be experiencing energy hardship; our view is it is inequitable for them to be faced with an increased bill because of other EV-owning consumers or commercial EV-charging providers, driving the need for system growth investment. Developing solutions This year, in alignment with our Symphony strategy, we’ve further developed our Future Technology Roadmap for our electricity network that sets out a critical pathway for achieving an affordable future network investment profile. This profile is based on optimising the huge costs of traditional network reinforcement and capacity upgrades as demand grows, by using advanced data and digital technology to manage peak demand growth, while accommodating the increase in overall demand for electricity as electrification gathers pace to reduce carbon emissions (see Shaving the Peak p 31). Advocating for better outcomes We continue to work with key external partners to better understand the challenges ahead, and bring cutting-edge international insights to New Zealand to challenge sector thinking and traditional energy system regulation. Our firm belief is that the transition to zero carbon requires better and a more dedicated focus and policy alignment to truly drive the change required. For, while the energy sector is one
We’ve achieved a 14.5% reduction in carbon emissions towards our science- aligned target.
24
Vector Annual Report 2023
Made with FlippingBook flipbook maker