Vector Electricity Asset Management Plan— 2020 Update
EXPLANATION OF MAJOR OPEX VARIANCES • Service interruptions and emergencies is $9m higher due to an increase in fault response actions contracted to reduce fault duration • Vegetation management has the balance of the acceleration project from the RY20 SRMP that will complete in FY21 • Changes made to the operating model for reactive maintenance under the SRMP will continue. This causes an increase of $2m in Routine and corrective maintenance and inspection costs • Asset replacement and renewal spend has been re-baselined against the increased corrective maintenance spend in FY20 • There is a $27m decrease in SystemOperations costs due to 1) a targeted reduction in third party services activity, 2) a reduction in communication costs due to a change in accounting treatment, 3) lower call centre fees due to the renegotiated Telnet contract and new outage manager service, 4) lower indirect costs driven by cost savings initiatives and 5) an increase in capital activity resulting in higher recoveries • Business support costs have decreased by $5m overall due to cost savings initiatives
— 26
Made with FlippingBook Proposal Creator