Business segment reports
Metering
On 30 June 2023, Vector concluded the deal to sell 50% of the metering operations to investment vehicles managed and advised by Queensland Investment Corporation (QIC). As a result, the metering operations have been classified as discontinued operations for the FY23 period.
Revenue and earnings Metering revenue increased 9.8% to $258.8 million from $235.6 million a year earlier, driven by the increased deployment of advanced meters. Adjusted EBITDA for the Metering business was $188.2 million, up $14.5 million or 8.3% from a year earlier, with gains coming from the continued roll-out of advanced meters, particularly in Australia. Fleet growth In the year to 30 June 2023 we have installed 25,656 additional advanced meters in New Zealand and 88,822 additional advanced meters in Australia. Our advanced meter base grew 5.6% to 2.09 million from 1.98 million the year before. We have now deployed over 578,000 advanced meters in Australia. Capital investment Total metering capital expenditure invested increased by 19.8% to $187.7 million. This reflects the continued deployment of new advanced meters in Australia, the 4G modem replacement programme and the roll-out of advanced gas meters. Customer programmes The modem replacement program to upgrade approximately 1.1 million meters with 4G modems in advance of the expected shut-down of the 2G mobile network has also made progress with 565,332 modems replaced to date. This programme is on track to be completed well ahead of the shutdown of the 2G mobile network. Its completion will extend the life of the meter and enable us to
continue to provide services to our customers for a longer period of time. We have also deployed more than 42,000 advanced gas meters in New Zealand as part of our roll-out of advanced gas meters on behalf of Genesis. This will provide Genesis’ customers with the benefit of full visibility across their gas use at home, giving them more freedom to make decisions about their energy usage long before their bill arrives. New data platform Our industry-leading energy data platform was jointly developed under the strategic alliance between Vector Technology Solutions (VTS) and AWS. This platform is known as Diverge and is part of VTS. Vector Metering retains exclusive rights to use this platform for metering data services within the New Zealand and Australian markets. Following the sale of the 50% interest in Vector Metering, both VTS and Diverge remain 100% owned by the Vector group. This platform means Vector Metering can provide and develop innovative services for energy retailers, networks and other customers that deliver and respond to current and future customer needs. The platform also enables efficient processing of high volumes of additional power quality data that’s useful to electricity networks.
VECTOR METERING’S CUSTOMER INNOVATION Our metering technology platforms enable a wide range of energy-sector participants to take advantage of dynamic load control services, such as hot- water load control, at a much more granular level than has previously been available. We’re providing these services to our customers, spanning from retail to distribution, to meet their needs for enhanced flexibility in electricity markets. Electricity distribution networks have mechanisms in place to control hot water heating during peak demand times to avoid large investments in distribution network infrastructure, or to manage periods of supply constraints at a system level. Traditionally this has been performed by old ‘ripple control’ technology that affects large network areas of many thousands of individual customers. Our dynamic load control services work differently, by providing control at an individual smart meter level, so that our customers can meet targeted load-reduction goals at specific times. This optimises energy pricing and can manage Retailers can assist customers with energy infrastructure investments they may make for themselves (solar, battery, controllable appliances) to drive down the total cost of energy, without impacting customer comfort and energy- use behaviours. Sharing the cost benefits with end-consumers makes this a win-win situation. network constraints, while also meeting strict customer satisfaction criteria.
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