Electricity Asset Management Plan 2019-2029
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Vector Limited://
3.6 ASSET INVESTMENT PROCESS Our present asset investment process consists of four stages as highlighted in Figure 3-4 and described in the following subsections.
Figure 3-4 Asset investment process
NEEDS MANAGEMENT This is the formative stage of our asset investment process where the needs of stakeholders are identified and measured against the target outcomes, i.e. customer experience, safety, risk, reliability, compliance, resilience, operational efficiency as well as the financial justification (direct and indirect). During this stage, all stakeholders are engaged to identify and understand the needs, requirements and the target outcomes. By understanding stakeholders’ requirements, Vector is able to develop meaningful service level metrics and associated performance targets that are used to assess asset performance. Section 2 provides details of our primary stakeholders and the service levels metrics and targets we use in managing our electricity distribution network assets. Vector assesses asset performance against the service level targets defined in Section 2. Trends are analysed to identify potential performance issues. Understanding historical performance is key but we also consider the expected future performance, likely influencers, expected changes in the operating environment through advanced data analytics. When actual or foreseen performance gaps are identified, root cause analysis and risks analysis are undertaken to identify the source and significance of any actual compliance or expected service level breaches. External influences, volatility and trends are used to identify any significant systemic performance issues. The result of this analysis is to identify the need for asset or service related interventions (corrective or preventative) to address actual or expected degradation of service performance. Project proposals are created to address these needs. These proposals specify the need identified, the options considered to address the need and the preferred option. Project proposals are also created through the network planning process (see below), which is responsible for managing the development of the network through a probabilistic planning approach. All project proposals are approved by Vector’s subject matter experts and are then subjected to a portfolio prioritisation and optimisation process as described in Section 6.1. Through the portfolio optimisation process, any conflicting requirements are addressed by assessment to select the option with the greatest overall benefits and least cost. The project proposals for this AMP are provided in Section 5 and the results of selections made through the optimisation process are set out in Section 6.4.
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