VECTOR ANNUAL REPORT 2021 /
Regulated networks
Regulated networks
Increased revenue Revenue increased 0.9% to
590,799 TOTAL ELECTRICITY CONNECTIONS, AN INCREASE OF 1.9% Auckland gas distribution volumes were down 1.4% at 14.1 PJ from 14.3 PJ a year earlier. Strong connection growth across electricity and gas New electricity connections increased to 14,995 from 12,231 in the prior year. We also added 3,844 new gas connections, up from 3,201 a year earlier. Total electricity connections stood at 590,799 up 1.9% from 580,060 a year earlier. While total gas connections were 116,472, up 2.2% from 113,960 a year ago. Both electricity and gas volumes have been impacted by Covid-19. Volumes transported across the electricity network were up only slightly at 8,325 GWh from 8,315 GWh a year earlier.
$767.5 million, due to an increase in capital contributions which were up $35.4 million to $121.1 million. This increase was partially offset by the full-year impact of the Commerce Commission’s lower DPP3 revenue allowance and lower pass-through costs. Despite the adverse impact of the DPP3 reset and inflation forecast assumptions used to set DPP3, the regulated networks delivered a solid result in the period. The increase in capital contributions reflects continued connection growth and a change in capital contribution policy where we now seek 100% contribution for electricity connections. Underlying revenue was down $10.9 million (2.4%) driven by the impacts of the DPP3 price reset and volume reductions.
Mt Albert undergrounding The Mt Albert undergrounding project was proudly funded by Entrust, the majority shareholder of Vector, and was delivered by Vector. The area, bound by Oakley Creek, New North Road, Carrington Road and Unitec, consists of 16 streets, with a combined street length of 5.4km, 166 poles and benefitting 867 customers. It is a significant project and will result in the removal of 10.2km of overhead electricity lines. The project commenced in October 2019 and is nearing completion. Where possible, Vector aims for a ‘dig-once’ approach, so residents benefit not only from underground power services, but also potentially from telecommunications, street lighting and pavement upgrades, resulting in an all-round visually enhanced street appeal at the end of the project. It takes a large crew to pull off an undergrounding project of this scale. Vector provides project ambassadors, who frequently communicate with residents and property owners about the project, how they will be impacted, and time frames.
ENTRUST TRUSTEES (FROM LEFT) DR PAUL HUTCHISON, WILLIAM CAIRNS AND ALASTAIR BELL AT THE SITE OF THE MT ALBERT UNDERGROUNDING PROJECT
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