AMP 2019-2029

Electricity Asset Management Plan 2019-2029

33 Vector Limited://

These changes are all about customers having more control and the ability to decide how and when they want to communicate – and who they want to interact with. Vector is further speeding up these processes by automating them where possible. RELIABILITY MATTERS Clearly, reliability matters to customers and this is a constant challenge. We recognise that changes to practices such as ceasing live line work has impacted customers and we are actively working to lower the impacts through such activities as mobile generation, new hot-sticking technology and also customer notifications. THE ROLE OF SHARED RESILIENCE Our analysis shows customers are not planning a long- term resilience strategy, they are instead taking a reactive approach and mitigating the resulting disruption and damage as best they feel they can. Only one in 10 residential customers currently have back-up power equipment. The incidence is higher for businesses, who have more to lose because of power outages. A third of SMEs have some type of back-up power. A quarter of customers are aware of residential battery technology. However, the high capital cost is limiting interest. A third of customers would consider installing solar panels and a battery, with the most looking for at least some control over usage, however cost is a barrier to uptake for both residential and SME customers. There is quite low ownership of electric cars among our customers, and while those who do own one are aware of V2H (vehicle-to-home) technology, the high cost of installing it is a major barrier. In talking to our customers, it became clear that resiliency isn’t the driving force behind taking up consumer power solutions. Discussions were dominated by sustainability and environmental concerns, or reducing costs. Alternative eco-friendly power sources are desirable, but uptake is low. The cost and return on investment are both deciding factors when it comes to taking up new technologies. The main barriers are seen as the large up-front cost; waiting for others to try the technology out first, and wondering whether a new, cheaper product will be available soon, so not wanting to invest now.

GREATER UNDERSTANDING LEADS TO BETTER SOLUTIONS The reason for understanding our customers, their lives and the role energy plays in them, all helps us deliver creative solutions of real benefit. Our analysis flows directly through to our understanding of the challenges our customers face. We do this in practical ways that create a better customer experience. Below are some examples of how our customer research has helped inform our operational and investment strategy. We continue to evolve our approach here to better understand customers including the use of research, advisory boards and community engagement. SIMPLIFYING NEW CONNECTIONS FOR OUR CUSTOMERS Because Auckland is growing so fast, Vector gets a lot of requests to connect new homes; this year alone we received 7976 of these requests, a 58 per cent increase on last year. But customers don’t always find the connection process easy. Concerns range from frustration at not being able to request multiple connections, inconsistent pricing and approvals taking too long. From initial request to installation usually takes 8 to 12 weeks but can be quicker if it’s a simple connection. Customers have said the process is too complex, so to simplify it we have created standard pricing for common types of connections and simplified the design process. We are looking to add extra service providers, so customers have a choice of which contractor they can use. We have worked to set accurate expectations for customers too. This has been helped by streamlining both the pricing and unit costs across different types of jobs, and by providing more concise job and design descriptions. Customers who need a new connection can make the request through our on-line self-service web portal, or simply call us.

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