Strong metering performance Our advanced metering business continues to lead from the front, helping retailers to better manage their business and respond to customers’ evolving energy needs. In the six months to 31 December 2019 we installed 22,936 advanced meters in New Zealand and 61,408 advanced meters in Australia. Our advanced meter base grew 10.8% to 1.64 million from 1.48 million the year before. We have now deployed over 221,000 advanced meters in Australia and are on target to install between 130,000 and 140,000 meters in FY20. The growth and innovation opportunities for metering in both New Zealand and Australia are significant. With continued investment and focus on customer service, Vector Metering is on track to deliver another solid performance in FY20. Adjusted EBITDA for the Metering segment was $76.1 million in the six months to 31 December 2019, up $8.0 million or 11.7% from a year earlier. Metering capex invested in the first half-year increased by 8.9% to $65.0 million, with most of this increase reflecting the acceleration of deployment of new advanced meters in Australia. Facilitating the convergence of energy and transport With the Interim Climate Change Commission (ICCC) calling for the electrification of up to half of New Zealand’s vehicle fleet by 2035, Vector remains focused on preparing for the impact this will have on our electricity network. To date, this preparation has included investing in data and analytics capability and establishing Vector DERMS (and other digital platforms) to better manage the demand impact that rising EV uptake will have on Auckland’s electricity network. Complementing this work, in October
2019, we recruited 120 Auckland residents to participate in a trial to test the effectiveness of smart demand-response technology. Through the trial, Vector has installed a 7kW smart EV charger at each participant’s home to collect data on EV charging preferences and how this impacts network load profiles. The trial aims to assess how managed smart EV charging can meet customer expectations while also alleviating peak demands on the network. A key benefit of which could include avoiding the need to invest in expensive network infrastructure upgrades. More recently, Vector announced we will be working with Auckland Transport to look at the impact a fully electric bus fleet would have on Auckland's transport system. This collaboration will enable the electrification of Auckland's bus fleet and help Auckland Transport think innovatively about new technologies and solutions that can be effective and sustainable without placing unnecessary cost burdens on customers. Improved performance by HRV Vector PowerSmart’s HRV business has continued its focus on customer excellence and improved business operations over the six month period. HRV’s financial performance has improved and this is expected to continue in the second half. Vector Fibre has made solid progress in the six month period with plans in place to increase market share in 2020 and deliver outstanding service for customers. We are excited to see how we will capitalise on the rapid changes in the world of telecommunications – specifically the chance for our fibre network to support the roll out of 5G technology against the backdrop of emerging local fibre company regulation opportunities. Furthering our fibre ambitions
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