AMP 2019-2029

Electricity Asset Management Plan 2019-2029

15 Vector Limited://

RIGHT-OF-WAY POLES The ownership structure, maintenance responsibilities and regulation governing right-of-way pole management is a growing concern for Vector. Like service lines, the lines and poles that connect properties located down right-of- ways are technically the responsibility of customers. There is low awareness of this however, and as a result many of the cables, lines and poles have reached end of life or are not being properly maintained. This leads to a poor service experience for some and is also a health and safety risk if the assets are not maintained. It is also driving cost into Vector’s business as customers rely on us to deploy field services crews to diagnose problems with their electricity supply. Vector is of the view that the regulations governing right-of-way assets need review to provide better planning certainty for our customers, field crews and Vector in the long term. As this is a nationwide issue affecting every electricity lines company, we will continue to work with the ENA to call for a review of the regulation governing right-of-way poles. To date, the ENA has raised these concerns directly with the MBIE, and is awaiting guidance on how appropriate amendments to the current regulations can be made. THE WAY FORWARD FOR AUCKLAND Auckland City is expansive. People’s homes and businesses are spread far and wide. We have a high- density CBD, along with harbours, islands, mountain ranges, and isolated peninsulas, and we live and work in all these places. There are significant costs associated with continuing to build a traditional network to keep up with demand. Putting the interests of our customers first, we are turning to new, affordable and cost-deferring technology options to grow our network as efficiently as we can. If we do not innovate in how we design, plan and adjust for Auckland’s growth, especially when we consider the rapid pace of disruption, then we run a real risk of increasing the stranded asset risk. This could also potentially result in a large traditional asset base paid for by future generations, that may not be required.

Some trees are also very fast growing and may require two trims in a season, which is both costly and inefficient. Fast-growing trees also tend to be less resilient to high winds and therefore pose a greater risk. Unfortunately, risk is not considered under the tree regulations, only distance. The first ‘trim’ of vegetation inside the growth limit zone is funded by Electricity Distribution Businesses (EDBs), and then all further tree trimming should be paid for by the tree owner. Often, tree owners do not complete the tree trimming they are legally required to do due to cost. Under current regulations we are limited in our ability to reduce the negative impact vegetation can have on our network. We rely on tree-owners, including private landowners and Council, to ensure that they are aware of their obligations under the tree regulations, and are aware of at-risk vegetation near power lines. Vector is investing in education and awareness efforts to encourage tree-owners to remove at-risk vegetation (such as fast-growing trees) and replacing them with more suitable vegetation. The advantage to the tree owner is that they will avoid the risk of having to pay for subsequent trims in future years, or any damage to the network caused by the tree. As effective tree management is a nationwide issue affecting every electricity lines company, we will continue to work with the ENA to call for a review of the regulations governing vegetation management. To date, the ENA has raised these concerns directly with the Ministry of Business Innovation and Employment (MBIE), and is awaiting guidance on how appropriate amendments to the current regulations can be made to improve outcomes for consumers. AUCKLAND TRAFFIC Auckland’s growth is impacting how long it takes for Vector’s field crews to reach power outages across the city, which adds to the length of time that customers can be without power. Commonly-used arterial roads and routes in Auckland are now increasingly affected by traffic congestion, and this is affecting outage response times. Vector is investigating alternative measures to overcome traffic congestion, including increasing the number of equipment depots across the city and basing crews at these locations during peak traffic periods. In the future, it may be possible for scoping work to be carried out using drones.

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