Vector Electricity Asset Management Plan— 2020 Update
3.3
Operating model As part of creating the New Energy Future, Vector is currently undertaking a review of some of its assets and business activities within the Vector group in order to deliver its Symphony strategy. The rationale for such a review is to optimise value from assets that are currently undervalued relative to market value and provide a new platform for Vector to provide services to third parties distinct from its electricity business. Should these intra-group transactions materially change the CAPEX and OPEX profile for the electricity business, this will be identified Vector’s 2021 Asset Management Plan. ORGANISATION AND GOVERNANCE Reflecting the advice of the Commerce Commission, we have restructured the networks business to improve lines of accountability for the regulatory quality standards and strengthen management focus. The electricity distribution business reports to the Chief Operating Officer Electricity, Gas and Fibre and this change in organisational design better supports the roles and governance responsibilities of the Board of Directors and Group Chief Executive – please see the structure illustrated below:
ASSET MANAGEMENT GOVERNANCE STRUCTURE
The Head of Field Services is a new role separated from the rest of the Service Delivery function. This role has specific accountability for the programmes of FSP work for corrective maintenance, preventative maintenance and reactive response. This role also has delegated responsibility for Networks OPEX. For quality compliance, this role has specific accountability for duration. A new Outage Manager role has also been established under the Head of Field Services to assist with optimising the outage experience for customers. This role has a key function of ensuring efficient customer switching occurs for the management of planned outage events and includes assistance with optimising fault locations for field technicians and managing the deployment of network hardening strategies such as fixed generation or mobile generation deployment. The role of Head of Network Performance is responsible for managing the network asset strategy. The key performance indicator for this function is SAIFI – as the measure of asset performance. This function maintains Vector’s design and maintenance standards and sets the asset investment prioritisation for the upcoming period. Under the new structure, the Service Delivery function is now dedicated to the delivery of the annual capital programme. Under the new design this function is managed by the Head of Capital Programme Delivery and includes projects for new technologies. Under the new alignment of accountabilities, the Head of Pricing and Regulatory Compliance is responsible for managing compliance to the Quality Standard. This role has primary responsibility within Vector for raising concern if there is a change to the company’s risk of complying with the DPP Quality Standard. To provide a specific focus on reliability, the Head of Pricing and Regulatory Compliance chairs a weekly review of outage performance and interrogates the Heads of Field Services and Network Performance on the week’s performance.
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