Group Chief executive’s REPORT
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RECENT AWARDS
2018 DELOITTE ENERGY EXCELLENCE AWARDS Our OnGas Bottle Swap Plant in Papakura won the Health and Safety Initiative of the Year. Our project with Dominion Salt to design and build a new, innovative system integrating battery power with wind energy was a finalist in the Large Energy User Initiative of the Year. 2018 PUBLIC RELATIONS INSTITUTE OF NEW ZEALAND AWARDS Vector Lights won the Marketing Communication Award for Public Relations. 2018 RESPONSIBLE BUSINESS NETWORK AWARDS Finalist in the Communications Campaign of the year for Vector Lights.
The city we serve is rapidly changing also. As one of the fastest growing developed cities in the world, about a quarter of New Zealanders now call Auckland home. No other developed nation has such a concentration of its population in a single urban area. Auckland’s population is expected to hit two million by 2028 according to Auckland Council. Growth is a resilience challenge, as infrastructure must accommodate it smartly, reliably, and cost-effectively. One consequence of this growth is traffic congestion, which hampers response times for Vector’s field crews seeking to restore critical services each time the network is damaged and power is cut. Vector must provide the platform for new technologies while at the same time keeping the lights on for more and more people. We must continue to execute on our network and customer strategies to proactively respond to emerging technologies and the expectations of customers, now and into the future. To help this, Vector has, alongside tech start-up company mPrest, developed a ‘system of systems’ energy platform solution called DERMS (or Distributed Energy Resource Management System). This is allowing Vector to build an ‘Internet of Energy’ platform for the future, enabling a flexible and dynamic environment that responds quicker to new technologies and consumer preferences. In July 2018 Vector announced it will distribute more than $16 million of Loss Rental Rebate (LRR) surpluses directly to Auckland electricity account holders as an annual payment. LRRs are the surplus created once the costs in New Zealand’s electricity wholesale market have been calculated and they vary year by year. While historically Vector has provided LRRs to retailers, our concern has been that for retailers whose customer base extends beyond the Auckland area, it is difficult to ensure that the rebates are returned solely to Auckland customers. We believe direct distribution is fairer and more transparent. Gas Trading saw a growth in revenue on the back of increased Kapuni field production and higher LPG and Bottle Swap volumes, with the state-of-the-art new bottling plant opened in Papakura significantly increasing bottle fill and refurbishment capacity. Bottle Swap volumes were up 8% on the previous year, and the new plant is delivering significant efficiencies and safety benefits, as well as being the first Major Hazard Facility in New Zealand to have an accepted Safety Case. Our technology and unregulated businesses continue to develop. Vector Advanced Metering Services Australia (VAMSA), our Australian smart meter business, is successfully deploying smart meters for most of the major Australian electricity retailers following the Power of Choice market reforms in 2017. Vector has built a strong track-record of meter deployment in both Australia and New Zealand. Vector is putting the finishing touches on a large 5MW battery for Territory Generation in Alice Springs in the Northern Territory, while a similar PowerSmart project in Niue in the South Pacific is well underway. Strong connection growth and an increase in replacement capex has resulted in a significant increase in regulated capex, up to $245.8 million from $210.6 million in the prior year.
2017 SUSTAINABLE BUSINESS NETWORK AWARDS Our project with Ngāti Whātua Ōrākei property
investment arm Whai Rawa to install a networked system of solar panels and battery storage on the 30 home Kāinga Tuatahi housing development won the Revolutionising Energy award at the Sustainable Business Network Awards.
2017 NEW ZEALAND INNOVATION AWARDS
Our Glen Innes network-tied battery was highly commended in the Technology Solutions category.
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