Electricity Asset Management Plan 2019-2029
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While planning to meet the growing and changing expectations of our customers, we have a responsibility to enable Auckland growth and manage any associated constraints. To put this growth into context, in the past five years we have seen the number of subdivisions built in Auckland increase from 84 to 205. Last year, it was reported that 40,000 vehicles were added to Auckland roads over a 12 month period 1 . Further to this, we have a responsibility to align with central and local Government objectives regarding housing and transport. Other considerations include uptake of new technology and the electrification of transport. We also have a responsibility to prepare the network for the impacts of our changing climate. There are various reports, including one we ourselves commissioned from Ernst & Young, that signal greater volatility of weather is coming. We must consider this long-term impact – as an example, we have included a project in this AMP to relocate a low-lying sub-station to higher ground. In summary, preparing the network for the long-term interest of customers is an art not a science. The plan must balance all our responsibilities and challenges. We can choose to bury our head in the sand and ignore the opportunities that lie in front of us, or we can embrace them, take steps to innovate sensibly and with purpose, and invest efficiently so our customers can have confidence for the future and know we are meeting their expectations of today. Vector does not favour building a network that leverages high capital intensity based on historic paradigms. Instead we favour innovation that balances the long-term best interests of consumers whilst earning our shareholders a commercially appropriate return.
EXECUTIVE SUMMARY
Vector’s 2019 – 2029 Asset Management Plan (AMP) sets out what we believe constitutes a leading asset management plan for the long-term interests of Auckland’s energy consumers. For the avoidance of doubt, Vector’s view is that the long-term interests of Auckland’s energy consumers cannot be served by a traditional view of what a network is and needs to deliver. • customer engagement; multiple channels including direct engagement and community groups • customer insights; garnered from analytics applied across various data sources, including socio- economic trends • extensive engagement with leading international energy technology providers; to inform how we can leverage new technologies to deliver for our customers and overcome the myriad challenges in our operating environment • electricity network quality guidelines from other jurisdictions; to better understand how other providers are defining and measuring quality standards according to their customers’ needs • observations from Customised Price Plan (CPP) verifier reports from New Zealand Above all, this engagement and research confirmed there is a rising expectation from our customers that energy should perform like any other modern-day service. It needs to be readily available, provide choice and seamlessly adapt to an individual’s personal needs and preferences. Importantly, for affordability, we must bring down the overall cost of energy solutions and avoid burdening future generations with costs for infrastructure that may no longer be required. To expand this view, we look through the lens of our customers and consider multiple inputs, these include:
1. https://www.newshub.co.nz/home/new-zealand/2018/02/why-auckland-s-traffic-just-keeps-getting-worse.html
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