Operational Performance for the year ended 30 June

creating a new energy future


OPERATIONAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2020

Operational performance highlights:
• 580,060 electricity network connections, up 1.6% on June 2019
• 113,960 gas network connections, up 2.1% on June 2019
• 6.6% lift in 9kg LPG bottle swaps
• 10.0% growth of advanced meter fleet (1,713,674 installed across Aus/NZ)
• Almost 280,000 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 levels 1 to 4 during the June quarter. As a lifeline
utility, Vector has continued to operate essential services during this period across its’
electricity, gas, fibre and metering businesses. As a business we continue to closely monitor
the situation in New Zealand and are prepared to move up alert levels if required. In
Australia, our teams are responding appropriately in line with government advice.

The fourth quarter has seen Auckland’s growth continue, in turn driving strong network
connection numbers across Vector’s electricity and gas networks. In the year to 30 June,
total electricity connection numbers grew by 1.6% compared with the same time last year.

Electricity distributed volume for the year was down 1.1% on 2019, driven by reduced activity
from the industrial and commercial sectors due to COVID-19.

From 1 April 2020, the new DPP3 revenue cap regime applied. This is designed to mitigate
the impact of changes in volume on Vector’s electricity revenues. Any increase or reduction
in electricity revenue in a regulatory year (to 31 March) relative to the revenue cap
determined by the Commerce Commission can be recovered from customers in future
periods.

Auckland’s continuing growth helped drive an uplift in gas network distribution customers,
with a 2.1% increase compared with the same time last year. Gas distribution volume was
slightly down compared with the prior year. There is no “revenue cap” regime for the gas
distribution business.

Vector’s metering business continues to perform in an increasingly competitive market both
here and in Australia. Connection numbers increased by 10.0% on 2019, with a total fleet of
1,713,674. We have now installed almost 280,000 advanced meters in Australia.

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
returned to usual levels during the June quarter.

Liquigas LPG tolling sales increased due to demand adjustments from a large commercial
customer. Natural gas and gas liquids are down on 2019, with the reduction in natural gas
volumes driven primarily by the loss of a large customer in January 2020.
market release
21 July 2020

creating a new energy future


market release
21 July 2020

On 31 March 2020, the group completed the sale of its interests in the Kapuni Gas Treatment
Plant (KGTP) and co-generation facility. As a result of the sale of KGTP we have changed the
methodology of calculating liquids volumes to reflect continuing activities only. LPG volumes
include LPG sold by the group’s OnGas business. LPG and Natural Gasoline sold by KGTP
have been excluded as the plant is no longer owned. Comparatives have been restated.

SAIDI minutes for the three months ended 30 June 2020 are 42% lower than the comparable
period which is primarily due to fewer extreme weather events and significant investments
and ongoing initiatives to improve network resilience. There was also less traffic movement
over the quarter due to COVID-19 resulting in fewer car versus pole incidents.

Year ended 30 June

2020 2019 % change
Electricity
Customers
1, 5
580,060 571,125 1.6%
New connections
Net movement in customers
2

12,231
8,935
11,000
8,049
11.2%
11.0%
Volume distributed (GWh)

8,315 8,410 (1.1%)
SAIDI (minutes) – 3 months to 30 June
3

Normal operations – unplanned
Normal operations - planned
19.8
4
8.4
34.7
11.1
(42.9%)
(24.3%)
Major network events 0.0 3.0 N/A
Total 28.3 48.8 (42.0%)

Gas Distribution
Customers
1,5
113,960 111,642 2.1%
New connections
Net movement in customers
2

3,201
2,318
3,322
2,413
(3.6%)
(3.9%)
Distribution volume (PJ)

14.3 14.4 (0.7%)

Gas Trading
Natural gas sales (PJ)
6
12.4 16.1 (23.0%)
Gas liquid sales (tonnes)
7
43,338 44,309 (2.2%)
9kg LPG bottles swapped
8

Liquigas LPG tolling (tonnes)
9

701,923
116,024
658,159
110,457
6.6%
5.0%

Metering
Electricity: advanced meters
1, 10
1,713,674 1,558,291 10.0%

creating a new energy future


market release
21 July 2020
1. As at 30 June.
2. Net number of customers added during the period, includes disconnected, reconnected
and decommissioned ICPs.
3. SAIDI (minutes) for the 3 months ended 30 June 2020 is an unaudited value and subject
to change.
4. SAIDI in relation to normal operations and major network events has been updated in
accordance with the DPP3 regulatory guidelines.
5. Billable ICPs.
6. Excludes gas sold as gas liquids.
7. The group completed the sale of its interests in the Kapuni Gas Treatment Plant (KGTP)
and co-generation facility on 31 March 2020. As a result. we have changed the methodology
of calculating liquids volumes to reflect continuing activities only. LPG volumes include LPG
sold by the OnGas business. LPG and Natural Gasoline sold by KGTP is now excluded.
Comparatives have been restated to reflect this.
8. Number of 9kg LPG bottles swapped and sold during the year.
9. 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.
10. The number of advanced meters as at 30 June 2020 includes 168,793 meters managed
but not owned by Vector (30 June 2020: 156,713).
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