Vector wants more spent on its network
Auckland lines company Vector says the Commerce Commission needs to let it spend more money to increase the resilience of its network and prepare for climate change.
That would also mean raising its charges, paid for by consumers and businesses, Stuff reports.
Vector chief executive Simon Mackenzie says current regulatory settings don’t facilitate “the type of innovation or level of investment required to boost resilience and achieve an affordable decarbonisation”.
Mackenzie says action is needed now.
He says Boston Consulting Group estimated prior to the recent floods that New Zealand would need to spend $22 billion by the end of decade to upgrade its electricity distribution infrastructure.
“Given that scale of investment, distribution businesses must have sufficient cash flows to support that level of investment, and appropriate commercial returns for investors,” Mackenzie adds.
Vector’s investments need to be approved by the Commerce Commission as Vector is a regulated company that passes on its costs to customers.
It posted a net profit of $100 million for the six months to December 31, down 13% on the same time last year, while Vector’s operating profit was up 3.9% at $274m.
Stuff reports a spokesperson as saying Vector expects repair costs to be between $5 million and $10m, although some are temporary.
Vector reported on February 20 that about 2000 homes and businesses remained without power, “following widespread and significant damage from Cyclone Gabrielle”.
“This number excludes customers in the (Auckland) west coast beaches of Piha, Bethells, and Muriwai, as in some cases there is still significant damage that will take considerable time to repair,” it adds.
“We have responded to a request from Auckland Emergency Management to provide power whereever possible in these areas, and will continue to make repairs if feasible, however much of the remaining work is extremely complex and challenging.”
Vector says it brought in extra crews to get the work done faster with all contractors carrying identification.
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