Vector’s Focus Remains On Merit Review Process

MEDIA RELEASE

3 December 2012

Vector Network News

Vector’s Focus Remains On Merit Review Process

The Commerce Commission’s final electricity distribution price decision released Friday is as expected, according to Vector’s Chief Executive, Simon Mackenzie.

“There is little change from the draft decision released by the Commission in August 2012 and today’s decision requires a reduction in our electricity distribution prices by an average of ten percent in 2013, with a further price adjustment in 2014.

“The Commission is making its final decision as part of the regulatory process, however more importantly our focus remains on the Merits Appeal process, which is well underway with a decision expected in the first half of next year,” he said.

NETWORK SUMMARY for week ending 2 December 2012

ELECTRICITY

Our faults crews attended seven car v pole incidents during the week in Otahuhu, Henderson, Papatoetoe, Helensville, Ranui, Otara and Epsom.

The week also saw response crews attending five house fires in East Tamaki, Manurewa, Kumeu, Northcote and Clover Park as well as a fire at Pink Bins manufacturing in Puhinui. The crews isolate the electricity supply to ensure the safety of the fire crews.

GAS TRANSMISSION AND DISTRIBUTION

There were several third party gas service pipe strikes during the week. In Kohimarama, a 50 mm gas pipe was ruptured by workers, crews capped the pipe for safety as it was not in use. In Taupo, contractors hit a service pipe with a drill and in Tauranga, contractors hit a gas pipe while horizontal digging which resulted in 12 houses being evacuated. Repairs were made and customers re-lit.

Crews also attended two suspected gas leaks. In Taupo a building was evacuated however there was no trace of gas detectable and the smell was attributed to an oily smell coming from the catch pit. And in Otahuhu located a gas pocket however no gas readings were detected after ventilation. In all cases fault crews made sites safe and repaired the equipment.

Please take care around our gas network and call 0508 B4 U WORK (248 967) or 0800 B4 U DIG if outside Auckland.

PROJECTS

Waimauku substation - A critical milestone was reached last weekend with the commissioning of a new transformer at Waimauku substation. This work is part of a project to enhance the security of supply to the area and has involved new cables installed in the roads, a new substation building and associated equipment. It is expected electrical works will be completed on site by Christmas with final reinstatements and civil secondary works being completed by approximately the end of January 2013.

Gas upgrade projects - Several high value projects to reinforce and upgrade large sections of our gas network in Hamilton and Auckland are currently underway. Hamilton East has just been completed, Frankton is well underway and two more are scheduled to start in January in the Hamilton region.

Auckland has just seen the completion of Lappington (Otara) while two 10 month long projects are nearly 40% complete in Onehunga. The work will increase the gas capacity to provide for new residential and commercial connections and enable a full range of gas appliances to be connected to our network.

The existing low pressure cast iron and steel network pipes are being replaced with new medium pressure pipes. This includes replacing customer service pipes that run from the network in the street to the gas meter on the house. Some existing gas meters will also need to be replaced. The method of installation for the new networks involves either inserting into the existing pipes, directional drilling (also known as thrust boring) or open trenching.

The usual safety precautions are being taken during the project and a full traffic management plan is in place in order to ensure smooth flow of traffic.

SHORTS

• Vector owns over 17,737 kilometres of overhead and underground lines in the greater Auckland area, and 12,572 kilometres of gas pipe lines, almost half of which supply gas to Auckland.

• Morrissey returns to New Zealand shores and plays Vector Arena on Saturday, 15 December for the first time in 20 years.

• On Sunday 16, December St. Paul's Church and Vector Arena are sharing the love and hosting a Christmas Carol Service for all. Hosted by Petra Bagust and featuring appearances by Nathan King and special guests, tickets are just $5 and all proceeds to the KidsCan charity.

• Vector, proud sponsor of the Arena.

Vector owns and manages a unique portfolio which consists of electricity distribution, gas transmission and distribution, electricity and gas metering installations and data management services, natural gas and LPG and fibre optic networks.

Vector is listed on the New Zealand Stock Exchange with ticker symbol VCT. For further information, visit www.vector.co.nz

ENDS

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