AMP 2019-2029

Electricity Asset Management Plan 2019-2029

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Vector Limited://

Remote Safety Isolations The most significant cause for the SAIFI performance in RY18 exceeding the current DPP target was from the application of Vector’s new Remote Safety Isolation policy for public reporting of low or downed lines. Previously isolation would occur only after a field crew went to site and confirmed the need for de-energising a circuit for public safety risks. This change was undertaken to meet the heightened expectations of the community for health and safety. It is also a practice that was undertaken in response to the enactment of the Health and Safety at Work Act 2015 (the HSWA). There were 0.6 interruptions for the year caused by Remote Safety Isolations in RY18. The interruption frequency for Remote Safety Isolations has no allowance in the Reference Period. Planned works The other significant cause for the SAIFI performance in RY18 was the impact of Planned Works for the period and the application of the Vector’s Live-Line Policy. The new Live-Line Policy limits the risk of working on or near assets in a livened electrified state to only occur in exceptional circumstances. Undertaking more of our Planned Works program in a de- energised state is a significant operational change to the conditions for Planned Works incurred during the Reference Period. Its impact is more than six times greater than the Reference Period. Third-Party Damage In RY18 the impact of Third-Party Damage was significant. For RY18, 0.22 of the SAIFI for Third-Party Damage SAIFI can be attributed to vehicle damage. The higher car vs pole incidents reflect the growing traffic fleet in Auckland. These types of incidents possess a stochastic nature to their impact on the network and therefore cannot be controlled within a reasonably defined price constraint for asset management. 2.4.2 NUMBER OF CUSTOMER INTERRUPTIONS PERFORMANCE AGAINST AGREED SERVICE STANDARDS SERVICE LEVEL DEFINITION This service level measures the number of unplanned supply interruptions experienced by customers on Vector’s distribution network. It differs from SAIFI as it is the actual number of interruptions that a customer experiences rather than the average across the network. As with SAIFI, the interruptions are those of 1-minute duration or greater. At this stage, this metric only includes outages on the HV network. We see this measure as a much more effective representation of the impact of outages on customers that enables us to effectively engage customers affected by outages on issues such as cost quality trade-offs, etc. The Use of System Agreements between Vector and energy retailers and Vector’s Service Standards for Residential and Business & Commercial Electricity Consumers define the standard for customer interruptions. The standard states the number of interruptions, longer than 1 minute, that a consumer experiences per year should not exceed: Activities to improve SAIFI performance are included in the Section 5 programmes of work. TARGET For the Regulatory Period (1 April 2015 to 31 March 2020) Vector’s SAIFI target has been set at 1.2914 (refer to DPP).

• 4 interruptions per annum in the CBD and urban areas; and • 10 interruptions per annum in rural areas.

MEASUREMENT All of Vector’s interruption data is held in the HV Spec system, which is used to calculate and report on the number of customer interruptions performance. This metric is measured on an annual basis.

DESCRIPTION

RY15

RY16

RY17

RY18

Customer interruptions performance

99.3%

97.8%

96.6%

92.6%

Table 2-8 Customer interruptions performance

The number of customer interruptions exceeding the agreed service standards has increased over the past year. In general, the cause of these interruptions is comparable to the reasons for increased SAIFI. An increase in the frequency of interruptions results in more customers exceeding Vector’s minimum number of interruptions target. The impact of the application of the new Remote Safety Isolation policy for public reporting of low or downed lines was also a contributing

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