BUSINESS REVIEW Regulated Business
Revenue for our Regulated Networks business 1 increased 1.4% to $358.9 million from $353.8 million the year before, largely driven by higher connections and higher pass-through transmission costs. New electricity connections rose 32.9% to 6,090 from 4,583. New gas connections fell 13.2% to 1,656 from 1,907, but remain significantly above long term average growth rates. Total connections to the electricity network stood at 559,777 as at 31 December 2017, up 1.2% from 552,948 a year ago. Total gas connections were 108,270, up 2.2% from 105,918 a year ago. Despite the increase in connections, volumes transported across our electricity network increased only slightly to 4,352GWh from 4,340GWh a year earlier, with the growth in connections partially offset by declining electricity consumption per connection. Auckland gas distribution network volumes were 7.7 PJ, up 1.3% from 7.6PJ the previous year, due largely to connection growth. Adjusted EBITDA fell 1.5% on the prior year to $192.7 million from $195.7 million on the back of higher maintenance costs offset by higher revenue which was driven by additional connections and a reduction in internal communications charges. The increase in maintenance costs ($6.5 million above the prior period) is driven by an increase in vegetation maintenance targeting the worst performing feeders and higher planned maintenance. Capital contributions increased by 9.7% to $33.8 million, from $30.8 million in the prior year due to continued strong growth in Auckland. REGULATED BUSINESSES
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CONNECTIONS CONTINUE TO RISE ACROSS OUR BUSINESS.
32.9 %
New electricity connections up.
13.2 %
New gas connections down, but remain significantly above long term average.
1. Excluding capital contributions.
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