Vector AR’19 ― regulated networks
regulated networks
$ 260.9 M invested in our Regulated Networks 2 400 + network connected energy resources 14,322 new electricity and gas connections
Our Regulated Networks, which include the electricity and gas distribution networks, provide the strong foundation for us to build a new energy future for Auckland. Maintaining the integrity of these networks is critical as we continue adapting to the disruptive pressures of urban growth, our changing climate, advances in new energy technology and ever-evolving customer needs. In FY19 we invested $260.9 million to improve the safety, reliability and resilience of our network and facilitate Auckland growth. Adjusted EBITDA was $367.0 million, up $8.4 million 1 on last year, largely driven by higher electricity revenue from increased connections due to consistently high residential growth in Auckland. This was partially offset by increased maintenance expenditure. Volumes and consumption trends Volumes transported across the electricity network fell 0.4% to 8,410 GWh, largely due to warmer average temperatures in May and Electricity consumption per household appears to have stabilised after more than a decade of decline. Auckland gas distribution volumes fell 0.7% to 14.4 PJ from 14.5 PJ in the prior year. Enabling urban growth In the last year, we added another 11,000 new electricity connections and 3,322 gas connections to our networks. Total electricity connections stood at 571,125, 1.4% higher than a year ago, and total gas connections were 111,642, up 2.2% from 109,229 in the prior year. Vector plays a critical role in enabling new connections and asset relocation for infrastructure development, including roads and wastewater systems, housing and public transport. June 2019 compared with the corresponding period last year.
During the year, we worked on 17 major asset relocation projects to enable major Auckland infrastructure upgrades. For example, in the City Rail Link project assets were relocated to make way for tunnelling. With no sign of a slowdown, we are working with our regulator to ensure these projects can be appropriately funded in the future. Convergence of transport and energy In the past year, we’ve seen increasing Government policy focus on the accelerated electrification of the transport sector, to help New Zealand achieve its zero carbon goals. Vector has been proactively preparing Auckland for the impacts that the rise of electric vehicles (EVs) will have on our energy systems. With some fast residential EV chargers adding the equivalent of 8.8 new houses to the electricity grid, it is imperative that we understand future network impacts. Over the past year Vector’s 29 EV charging stations installed around the city provided more than 96,000 free charging sessions and 800 MWh of electricity to EV users. The chargers are providing us with valuable insights about customer charging behaviour for future network planning. Improving reliability for our customers In recent years, we have faced a range of challenges which have resulted in the increased frequency and duration of outages on our network. We remain committed to meeting our regulatory compliance requirements, and this year we have strengthened our focus on improving electricity network reliability. An example is a changed approach to the significantly increasing travel times, which remain an ongoing challenge for our crews.
11,383
problem trees removed to protect overhead power lines and 31,000 native trees planted through our Urban Forest initiative
1. For the breakdown of NZ IFRS changes by segment, see notes to the financial statements. 2. Gross regulated capital expenditure.
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