Electricity Asset Management Plan 2019-2029
196
Vector Limited://
In addition to information gathered from attending sites that have resulted in failure, Vector has inspected a number of properties across the region to assess the size of the problem. We have estimated that there are approximately 5,000 shared driveways in the Auckland region that have non-Vector overhead assets and that there could be approximately 15,000 structures in the urban area, with another 5,000 structures expected in rural areas. Based on these survey results Vector has assessed that the majority of these are likely to be well beyond their economic life and in poor condition. Vector estimates that the total cost to remediate and make safe customer owned service lines would cost up to $94m. The cost of repairs at each site can vary substantially, but it is not uncommon for costs to exceed $3,000 and can go as high as $15,000. Our experience to date is that many property owners cannot afford these costs which could expose them to protracted disconnection. In addition, when there is an issue it is often complicated by absentee land owners. This problem of unmanaged and unsafe customer structures is an industry problem and is not isolated to urban areas. Vector has engaged with a number of other electricity lines businesses who have confirmed they have similar concerns and issues across their network footprints. On 14 February 2018, the Electricity Networks Association held a workshop to highlight industry concerns to a number of government agencies including MBIE, the Electricity Authority and Energy Safety. At this workshop, Vector indicated that if it was given the right liability protections and confirmation of an increase in its regulated allowable CAPEX and OPEX, that it would be prepared to proactively identify and remediate structures down shared right of ways to ensure public safety. Once the assets were up to network standards Vector would take ownership and assume maintenance responsibilities.
TARGETED OUTCOMES
CUSTOMER EXPERIENCE
SAFETY
RELIABILITY
RESILIENCE
OPERATIONAL EFFICIENCY
CYBER SECURITY AND PRIVACY
OPTIONS CONSIDERED
DESCRIPTION
DISCUSSION OF OPTION
ESTIMATED COST (NPV IF APPLICABLE)
STATUS
Option 1: Do nothing
In mid-2014, an increasing rate of deterioration and failure of non-Vector owned assets deployed along Right of Ways within the Auckland region was identified. Poles and conductors make up the majority of these assets and can cause significant damage and harm to people and property when they fail. A Do-nothing approach means that this risk will continue to exist and as these assets age the risk of failure will increase. Vector has experienced an increase in costs and customer outages as a result of these customer assets being in poor condition. Customers typically do not either realise they are responsible for these assets and/or call Vector for advice. This incurs an increase in operational costs including the costs of sending a reactive crew to confirm the state of the asset and/or whether it is part of our network. Continuing this programme of works will remove the risks and H&S concerns associated with this asset, although this level of investment would see assets operating at a balance of cost/risk/performance not comparable with the rest of the Vector owned LV network. As option 2, but this programme addressing high risk right of way assets only and the remainder of works being included in our business as usual maintenance investments. This level of investment would see assets operating at a balance of cost/risk/performance comparable with the rest of the Vector owned LV network.
Rejected
Option 2: Continue with the programme of works to remediate right of way poles to bring all assets up to present design standards, and inclusion into business as usual processes.
$93.9M Rejected
Option 3: Continue with the programme of works to remediate right of way poles to address high risk assets, and inclusion into business as usual processes.
$42.60M Selected
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