Vector AR’19 ― Chair and Group Chief Executive report
Chair and Group Chief Executive report
Through investing in the expansion and intelligence of our networks and energy solutions, and by providing greater choice and control to our customers, we are enabling the accelerating change around us.”
Like the world around us, the pace of change at Vector is accelerating. As a company, our work is at the heart of two key challenges facing us – investing to support Auckland’s relentless growth, and providing energy solutions which move us all towards an affordable low-carbon world. businesses and leisure activities and, increasingly, with the new electric vehicles that they drive. They tell us that they value energy services that are safe and reliable as well as giving them greater choice and control of how, where and when they use energy. Vector’s focus is to continue leading the way in meeting these challenges. As signalled in our last two annual reports, significant investment is required to make us future-ready in our traditional energy networks, as well as digital and new energy solutions. While it is our primary responsibility to enable Auckland’s growth, we believe our new energy solutions can benefit everyone – not just Aucklanders. April 2020 marks the start of the next five-year regulatory period in which the Commerce Commission will reset limits for our electricity network revenues and network quality standards. A key focus of our ongoing engagement with the Commerce Commission is how low interest and inflation rates will crystallise challenges within the Our customers continue to adopt new technologies in their homes,
existing regulatory model. We also remain committed to meeting our regulatory compliance requirements. We strongly believe that regulatory settings should not restrict our ability to deliver Auckland growth or invest in technology to future-proof our network. Within the broader regulatory regime, there are avenues for Vector and the Commerce Commission to work together to correct these anomalies, and better align cashflows with investment needs. The Commission’s final reset decision is due on 28 November 2019. As has been signalled previously, we will be reviewing our dividend policy once we have the Commission’s decision. For the past decade, we have worked hard to build a strategic asset portfolio which provides more options for sustainable returns. Alongside our regulated electricity and gas businesses, we have continued to grow our wider businesses, particularly Vector PowerSmart, Vector Advanced Metering Services (AMS) and Vector Communications, which, along with our Gas Trading business, define our company as an energy group with a growing domestic and international footprint. We are pleased to report solid progress towards our vision of creating a new energy future. Through investing in the expansion and intelligence of our networks and energy solutions, and by providing greater choice and control to our customers, we are enabling the accelerating change around us.
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