Vector Electricity Asset Management Plan— 2020 Update
USING ANALYSIS TO INFORM THE NEED Sound electricity industry practice demands that EDBs support their reliability-driven expenditure with robust evidence and analysis. Part of Vector’s journey over the course of DPP2 has been to invest significantly in data analytics and associated solutions to increase understanding of the drivers of our underlying network reliability. Given the volatility within metrics and the performance of the system on a year-on-year basis we are cautious to execute significant asset investment interventions in response to apparent trends which may in fact be the result of a momentary change as opposed to a sustained failure mode in a supply element. The risks of misdiagnosis and ill-defined intervention are significant, and we rely on evidence and observation of system performance to identify trends requiring a specific focus. Any changes to performance must be validated before significant asset management strategies are put in train. We are also acutely aware of the need for our response and solution to be efficient and proportionate to the problem. Determining the right intervention is especially important in today’s environment as the sector manages the transition to new technology solutions such as more affordable distributed generation (DG). In recognition of this uncertainty, our interventions and strategic plans are calculated to ensure we do not overcompensate the system into a deterministic high- redundancy network where reliability will improve but comes at an unnecessary excessive sustained price to consumers. This approach means we are confident of developing efficient rather than “knee jerk” responses for interventions that are clearly in the interests of consumers, both in terms of costs and operational impacts. RISK MANAGEMENT As part of our continuous improvement, adoption of the New Zealand Coordinated Incident Management System (CIMS) is currently underway for incident management at Vector. The CIMS model will ensure a consistent and scalable process across all incidents, regardless of size, complexity or criticality, and is already employed by Civil Defence, emergency services and a number of energy sector players. The transition to a CIMS model is commencing with externally-facilitated training for key members of staff likely to be actively involved in responding to a serious incident, with full implementation of the new approach expected to occur in the first half of 2020 (once training is complete). Until this time, all existing processes and documentation remain in force. Following the Commerce Commission’s review of EDB’s risk preparedness 5 we are reviewing our HILP and other risk management documentation in light of the recommendations made in that report. The Pandemic Response plan as part of the Vector group’s Crisis Management Framework is being utilised for planning of activities, resources and facilities as regards our COVID-19 pandemic response.
5 https://comcom.govt.nz/__data/assets/pdf_file/0028/153883/Partna-Consulting-Group-Expert-report-AMP-review-of-EDB-risk-preparedness-20-May-2019.PDF
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