Electricity Asset Management Plan 2019-2029
235
Vector Limited://
CAPEX FORECAST The forecast CAPEX during the next 10-year planning period, broken down into the asset categories defined in the Commerce Commission’s Electricity Distribution Information Disclosure Amendments Determination 2012 is shown in Table 6-1.
FINANCIAL YEAR ($000)
AMP19
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29
TOTAL
Customer connection
73,201
72,656
61,623
59,169
55,776
54,008
54,008
52,156
49,129
49,129
580,855
System growth
51,167
42,660
31,149
36,325
34,556
28,882
39,654
34,563
37,247
33,427
369,630
Asset replacement and renewal Asset relocations
104,588
99,464
101,474
99,230
94,162
89,396
90,656
97,111
92,200
94,321
962,602
33,228
43,406
51,765
44,880
41,871
28,560
23,460
23,460
23,460
23,460
337,550
Reliability, safety and environment:
24,847
25,153
29,121
33,813
32,732
33,507
37,077
36,567
36,567
39,285
328,669
Quality of supply
0
0
0
0
0
0
0
0
0
0
0
Legislative and regulatory Other reliability, safety and environment
0
0
0
0
0
0
0
0
0
0
0
24,847
25,153
29,121
33,813
32,732
33,507
37,077
36,567
36,567
39,285
328,669
Non network asset
30,913
27,231
24,313
19,785
17,275
18,135
33,007
15,471
14,687
15,262
216,079
Total CAPEX
317,945
310,571
299,444
293,202
276,372
252,487
277,862
259,328
253,290
254,885 2,795,386
Table 6-1 2019 Forecast CAPEX
A limited re-categorisation of projects has occurred where some projects previously categorised System growth or Asset replacement and renewal have been moved to the Other reliability, safety and environment category. These projects have been identified as directly addressing network reliability and the new categorisation is considered their key driver. This re- categorisation has a twofold impact on the 2019 AMP as follows: • reallocating $161m of projects that were in the 2018 AMP categorised as System growth ($38m) and Asset replacement and renewal ($123m); and • allocating new projects (totalling $109m) to the Other reliability, safety and environment category that in previous years, would have been allocated to System growth or Asset replacement and renewal. Figure 6-1 shows the difference between the 2018 and 2019 AMP expenditure forecasts year on year, with Table 6-2 breaking down the variance by expenditure categories. It highlights the projected uplift in expenditure per asset category, in particular in asset relocation, reliability, safety and environment and non-network, relative to the 2018 forecast (based on the 9-year period that the two forecasts overlap). This additional spend stems principally from significant new projects whose network implications have become clearer over the last year (particularly Auckland Light Rail), digital enablement to support targeted outcomes, and proactive management and replacement of assets to improve network reliability and address quality standards
Note for comparative purposes, the CAPEX forecast disclosed in the 2018 AMP has been escalated to 2020 prices using an inflator of 2.0%.
Made with FlippingBook - professional solution for displaying marketing and sales documents online