Operational Performance for the 9 months ended 31 March

creating a new energy future


OPERATIONAL PERFORMANCE FOR THE
9 MONTHS ENDED 31 MARCH 2020


Operational performance highlights:

• 578,106 electricity network connections, up 1.6% on the same period last year
• 113,578 gas network connections, up 2.4% on the same period last year
• 6.6% lift in 9kg LPG bottle swaps
• 10.5% growth of smart meter fleet (1,677,405 installed across Aus/NZ)
• 250,000 advanced meters now installed in Australian market
Commentary:

To preface Vector’s quarterly operational update, it’s important to acknowledge COVID-19
and the context of New Zealand in alert level 4 lockdown. Only one week of the lockdown
falls in this quarterly update and as such it is too early to draw definitive conclusions on any
impact to volumes. As a lifeline utility, Vector has continued to operate essential services
during this period across its’ electricity, gas, fibre and metering businesses. Vector teams
were working under strict physical distancing, hygiene protocols with reconfigured teams
where necessary. All Vector businesses are now preparing to safely increase operations
further under alert level 3, from April 28.

In the third quarter of FY20 Auckland’s growth continued to rise, in turn driving strong
network connection numbers across Vector’s electricity and gas networks. In the nine
months to 31 March, total ICP connection numbers grew by 1.6% compared with the same
period last year.

Electricity distributed volume was down by 0.1% on the equivalent period – driven by
closures and reduced activity from the industrial and commercial sectors due to the COVID-
19 Level 4 lockdown.

The extent of the COVID-19 impact on volume and revenue will depend on how long each of
the different alert levels continue and how the industrial and commercial sector recover in the
coming weeks and months.

From 1 April, the new DPP3 revenue cap regime will apply. This is designed to mitigate the
impact of changes in volume on Vector’s electricity revenues,

Auckland’s third quarter growth helped drive an uplift in gas network distribution customers,
with a 2.4% increase compared with the same period last year. Gas distribution volume is
also up on last year’s corresponding period.

Vector’s metering business continues to perform in an increasingly competitive market both
here and in Australia. Connection numbers increased by 10.5% on the prior six-month
period, bringing the total fleet number to 1,677,405. In early April AMS Australia installed its
250,000th meter in Australia, marking a significant milestone for the business.

market release
23 April 2020

creating a new energy future


market release
23 April 2020
The seasonable weather has delivered an uplift in 9kg LPG bottle swap sales. Bottleswap
9kg and residential 45kg gas products saw a short-term but significant spike in demand at
the start of the COVID-19 Level 4 lockdown in late March. Demand has since flattened to
usual levels.

Liquigas LPG tolling sales increased due to demand adjustments from large commercial
customers. Natural gas and gas liquids are down on the corresponding period, with the
reduction in natural gas volumes driven primarily by the loss of a large customer in January
2020.

SAIDI minutes for the twelve months ended 31 March 2020 are 15.5% lower than the
comparable period which is primarily due to fewer extreme weather events, significant
investments and ongoing initiatives to improve network resilience.

9 Months ended 31
March


2020 2019 % change
Electricity
Customers
1, 6
578,106 568,897 1.6%
New connections
Net movement in customers
2

9,367
6,981
7,889
5,821
18.7%
19.9%
Volume distributed (GWh)

6,296 6,304 (0.1%)
SAIDI (minutes) – 9 months to 31 March
3

Normal operations 167.8
4
198.6 (15.5%)
Extreme events 3.0
5
347.1 (99.1%)
Total 170.8 545.7 (68.7%)

Gas Distribution
Customers
1,6
113,578 110,867 2.4%
New connections
Net movement in customers
2

2,647
1,936
2,374
1,638
11.5%
18.2%
Distribution volume (PJ)

10.8 10.6 1.9%

Gas Trading
Natural gas sales (PJ)
7
10.2 12.0 (15.0%)
Gas liquid sales (tonnes)
8
54,414 59,278 (8.2%)
9kg LPG bottles swapped
9

Liquigas LPG tolling (tonnes)
10

541,588
86,393
508,157
81,328
6.6%
6.2%

Metering
Electricity: smart meters
1, 11
1,677,405 1,517,677 10.5%

creating a new energy future


market release
23 April 2020
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 2020 is an unaudited value and
subject to change.
4. Normal Operations SAIDI includes the impact of 1 Major Event Day (MED) at the cap of
3.37 SAIDI minutes for each event.
5. This is the amount over and above the MED cap.
6. Billable ICPs.
7. Excludes gas sold as gas liquids. These sales are included within the gas liquids sales
tonnages.
8. Total of retail and wholesale LPG and natural gasoline.
9. Number of 9kg LPG bottles swapped and sold during the year.
10. The group has revised the methodology for Liquigas LPG tolling to reflect new contractual
terms and calculates product tolling domestic and exports. Product further tolled in South
Island has been removed.
11. The number of smart meters as at 31 March 2020 includes 167,165 meters managed but
not owned by Vector (31 March 2019: 151,472).
The Excel version can be found at: http://vector.co.nz/news


ENDS

Investor contact
Jason Hollingworth, Chief Financial Officer, Vector
Jason.hollingworth@vector.co.nz, 021 312 928

Media contact
Elissa Downey, Senior Manager Corporate Communications, Vector
Elissa.downey@vector.co.nz, 021 866 146


About Vector
Vector is New Zealand’s leading network infrastructure company which runs a portfolio of
businesses delivering energy and communication services to more than one million homes
and commercial customers across the country. Vector is leading the country in creating a
new energy future for customers and continues to grow and invest in the growth of Auckland,
and in a wide range of activities and locations. 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