ANNUALREPORT//2010
KILOMETRES OF LINES Category km %
Overhead lines 3,241 64 Undergound lines 1,802 36
Total 5,043 100
OUTAGES Outage Causes SAIDI Minutes % SAIDI Minutes
Defective equipment 29.1 38.8 Adverse weather and other foreign interference 18.6 24.8 Vehicle accidents 11.1 14.8 Planned shutdowns and human errors 10.7 14.2 Insulators and discs 4.6 6.2 Tree contacts 0.9 1.2
Total 75.0 100.0
WELANNUALREPORT//2010 6 KEY PERFORMANCE INDICATORS
RETURN ON INVESTMENT The reduction in return has resulted from the increase in asset value following the triennial valuation, and an increase 12% in capital expenditure. The increased asset value has offset 10% the improved pro tability for the year.
8%
6% %
4%
2%
0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
ANNUAL GROWTH IN CUSTOMER NUMBERS The challenges of the global economic recession impacted on the growth in customer numbers for 2009 and 2010. The 2400 Waikato region saw an improvement in connections during 2000 the second half of the nancial year.
1600
1200
800
400
Growth in Customer Numbers (No/Year) 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
DISAGGREGATION OF RESIDENTIAL NOMINAL PRICES WEL had to increase prices during 2010 to continue to fund WEL (c/kWh) Transpower (c/kWh) Retailers (c/kWh) the increasing capital investment programme. The trend in 14 our prices over the last ten years compares very favourably 12 against the increasing cost of energy for the average
10 consumer.
8 c/kWh 6 Note: retailers’ components include 10% reduction for prompt
4 payment
2
0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
DIRECT AND INDIRECT COSTS PER CUSTOMER ($/CUSTOMER) Increasing costs per customer are an industry wide WEL Networks Industry Average challenge, as shown in this graph. WEL continues to $280 focus on cost control in an attempt to offset the impacts of $260 $240 increasing commodity prices. $220 $200 $180 $160 $140 $120 $100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
7 WELANNUALREPORT//2010 ANNUALREPORT//2010
RELIABILITY OF SUPPLY (TOTAL SAIDI) YEAR ENDED 31 MARCH 2009 The timing of the national industry benchmarking means this (Average number of minutes that customers were without electricity) graph relates to the 2008/09 performance gures. WEL’s 1000 performance continues to be signi cantly ahead of the industry 900 General WEL Networks (2010) average. WEL’s SAIDI for 2009/10 has been included for 800 WEL Networks (2009) comparative purposes. 700 Average 600 500 400 300 200 100 0 Electra Unison Powerco Mainpower Westpower Scanpower Top Energy Top Northpower Alpine Energy Vector Energy Vector Horizon Energy Counties Power Buller Electricity Waipa Networks Waipa Eastland Energy Central Lines Ltd Aurora Energy Ltd Network Waitaki Ltd Network Waitaki The Lines Company Electricity Ashburton Marlborough Electric Nelson Electricity Ltd Electricity Invercargill The Power Company WEL Networks (2009) WEL Networks (2010) WEL Orion New Zealand Ltd OtagoNet Joint Venture Network Tasman Limited Network Tasman Wellington Electricity Lines Wellington
PLANNED OUTAGES YEAR ENDED 31 MARCH 2009 Live line maintenance techniques continue to allow WEL to achieve industry leadership in the area of minimising planned 180 General 160 WEL Networks customer outages. 140 Average 120 100 80 60 40 20 0 Lines Electra Unison Powerco Mainpower Westpower Scanpower Top Energy Top Northpower Alpine Energy Vector Energy Vector WEL Networks WEL Horizon Energy Counties Power Buller Electricity Waipa Networks Waipa Eastland Energy Central Lines Ltd Aurora Energy Ltd Network Waitaki Ltd Network Waitaki The Lines Company Electricity Ashburton Marlborough Electric Wellington Electricity Wellington Nelson Electricity Ltd Electricity Invercargill The Power Company Orion New Zealand Ltd Network Tasman Limited Network Tasman
LOW VOLTAGE COMPLAINTS WEL continues to focus on quality of supply which is re ected in the ongoing reduction in low voltage complaints.
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2
No. of LVC (per thousand customers) No. of LVC 0.1 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
MAINTENANCE EXPENDITURE PER $ OF ODV The continuing industry trend of increasing costs impacts on the company’s maintenance expenditure. The reductions in 2.5 2009 and 2010 have been achieved through a close focus on
2.0 cost control combined with our increasing asset base.
1.5
1.0 Cents/$ODV
0.5
0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
WELANNUALREPORT//2010 8