OPERATIONAL PERFORMANCE FOR THE 9 MONTHS ENDED 31 MARCH 2023


Operational performance highlights:

·       609,550 electricity network connections, up 2.2% on March 2022
·       119,391 gas network connections, up 1.5% on March 2022
·       2.05 million advanced meters now installed across NZ and Australia 
·       More than 545,000 advanced meters now installed in Australian market 

Commentary:

The nine months ended 31 March 2023 have seen Auckland’s growth continue, with network connection numbers growing across Vector’s electricity and gas networks. In the year to 31 March 2023, total electricity connection numbers grew by 2.2%, with new electricity connections in the nine months ended 31 March 2023 up 20.9% on the comparative period in the prior year.  This is largely due to the impact of COVID-19 restrictions in Auckland in the first half of 2022.  Electricity distributed volume for the period was up 1.7% compared with the nine months ended 31 March 2022. Residential volumes were down 1.6% while business volumes were up 4.3%.
 
There has been a 1.5% increase in total connections on Auckland’s gas distribution network over the year to 31 March 2023. New gas connections in the nine months to 31 March 2023 were down 18.3% on the comparative period in the prior year. Gas distribution volume for the nine months to 31 March 2023 was up 4.1% compared with the nine months to 31 March 2022, as the first half of 2022 saw lower consumption of gas and reduced activity from the industrial and commercial sectors given the COVID-19 restrictions in Auckland. 
 
Vector has continued to grow its advanced metering business here and in Australia, with  a total fleet of 2.05 million meters as at 31 March 2023.  We have now installed more than 545,000 advanced meters in Australia.
 
BottleSwap has seen a 7.4% decrease in the number of 9kg bottles swapped in the nine months to 31 March 2023 compared with the same period last year due to the loss of a major customer. 
 
Natural gas volumes are down 2.4% on the March 2022 comparative period due to slightly lower wholesale sales.  Liquigas LPG tolling volumes are down 1.4% on the March 2022 comparative period due to lower customer demand.
 
Vector’s major network events SAIDI result has been severely impacted during the last quarter by extreme flooding in the Auckland area on 27 January 2023, which was followed by Cyclone Gabrielle starting on 12 February 2023. Both events compounded to cause significant damage to our network, along with challenges such as accessing some areas due to slips, fallen trees and unstable roads. Parts of the network remain inaccessible.
 
SAIDI minutes for normal operations for the twelve months ended 31 March 2023 is unfavourable compared to last year and exceeds the regulatory threshold. Vector, along with other EDBs impacted by Cyclone Gabrielle, is in a dialogue with the Commerce Commission given the exceptional conditions.  We note these results are preliminary and subject to audit.

1. As at 31 March.
2. Net number of customers added during the period, includes disconnected, reconnected, and decommissioned ICPs.
3. SAIDI (minutes) for the 12 months ended 31 March 2023 is an unaudited value and subject to change.
4. Billable ICPs.
5. Excludes gas sold as gas liquids.
6. Number of 9kg LPG bottles swapped and sold during the period.
7. The number of advanced meters as at 31 March 2023 includes 184,782 meters managed but not owned by Vector (31 March 2022: 181,991).

ENDS
 

Investor contact
Jason Hollingworth, Chief Financial Officer, Vector
Jason.Hollingworth@vector.co.nz, 021 312 928
 
Media contact
Matthew Britton, Senior Communications Partner, Vector
Matthew.Britton@vector.co.nz, 021 224 2966
 
 
About Vector
Vector is an innovative New Zealand energy company which runs a portfolio of businesses delivering energy and communication services to more than one million homes and commercial customers across Australasia, and the Pacific. Vector is leading the country in creating a new energy future through its Symphony strategy which puts customers at the heart of the energy system. Vector is listed on the New Zealand Stock Exchange with ticker symbol VCT. Our majority shareholder, with voting rights of 75.1%, is Entrust. For further information, visit www.vector.co.nz