2019 – 2020 Statement of Corporate Intent MainPower New Zealand Limited Directory
MainPower New Zealand Limited
Board of Directors Senior Leadership Team Address Tony King Andy Lester 172 Fernside Road Chairman Chief Executive PO Box 346, Rangiora 7440 Graeme Abbot Mark Appleman Director General Manager – Network Telephone: 0800 30 90 80 Janice Fredric Sarah Barnes www.mainpower.co.nz Director General Manager – Finance Fraser Jonker Karen Cameron Director Safety and Business Risk Manager Stephen Lewis Geoff Gale Director Chief Information Officer Brian Wood Penny Kibblewhite Director General Manager – Customer and Corporate Relations Sandra O’Donohue General Manager – People and Culture Bob Taylor General Manager – Operations (Acting) Todd Voice General Manager – Commercial MainPower Trust
Trustees Address Kevin Brookfield c/o Ms Kathy Hansell Chair Trust Secretary Richard Allison MainPower Trust Deputy Chairman PO Box 370, Rangiora 7440 Jim Abernethy Telephone: (03) 313 4509 Trustee Jo Ashby Facsimile: (03) 313 4509 Trustee www.mainpowertrust.org.nz Allan Berge Trustee Quentin de Hamel Trustee Hugh Lindo Trustee Contents
1 Introduction 1
2 Letter of Expectations 3
3 Statement of Intentions 5 3.1 About Us 5 3.2 Generation 5 3.3 Our Changing Future 5 3.4 Our Strategic Direction 5
4 Strategic Priorities 7
5 Business Priorities 9 5.1 Asset management 9 5.2 Operational excellence 10 5.3 Network pricing 10 5.4 Managing our risk 11 5.5 Environmental responsibility 11 5.6 Community engagement 12 5.7 Community support 12 5.8 People and culture 14
6 Other Business Activities 15 6.1 Generation 15 6.2 Kākāriki Power 16 6.3 Vircom Energy Management Services 16 6.4 Hurunui Water Project / Amuri Irrigation 16
7 Performance 17 7.1 Financial Performance 17 7.2 Service Performance 17 7.3 Performance Statement Financial - MainPower Group 19 7.3 Performance Statement Financial - MainPower Parent 20 7.4 Performance Statement Customer Service and Statistics 21
8 Other Measures 23 8.1 Distributions to the MainPower Trust 23 8.2 Rebates to Qualifying Customers 23 8.3 Acquisition of shares in other companies 23 8.4 Return on investment for the MainPower regulatory lines business 23 8.5 Return on shareholders’ equity for the MainPower Group of Companies (Consolidated) 23 8.6 Information to be provided to shareholders 23
Appendices Appendix 1: Corporate Governance Statement – 25 Appendix 2: Statement of Accounting Policies – 28 Appendix 3: Glossary of Terms and Abbreviations – 34 MainPower New Zealand Limited is an electricity distribution business servicing the North Canterbury region – from North of the Waimakariri River, through Hurunui and into Kaikoura – we’re committed to contributing towards a bright future for our region by delivering an electricity network that is ready for the future. 1 Introduction
This Statement of Corporate Intent (“SCI”) is (h) the procedures to be followed before any submitted to the MainPower Trust (the “Trust”) members of the group subscribes for, by the Board of MainPower New Zealand Limited purchases or otherwise acquires shares in any (“MainPower”) (the “Board”). company or other organisation; This SCI is prepared in accordance with clause 3 of (i) an estimate of the amount of fixed and variable MainPower’s Constitution. line charge revenue received from “Qualifying The SCI covers the activities of MainPower and its Customers” (as defined in the Trust Deed) subsidiaries, and sets out MainPower’s intentions of the Company during the “Financial Year” and the objectives agreed between the Board and (as defined in the Trust Deed) that is to be the Trustees for the Financial Year commencing 1 made available to Qualifying Customers of April 2019, and the two succeeding financial years. the Company in the “District” (as defined in the Trust Deed) during the Financial Year The following appendices are made available in or the following Financial Year in the form of support of the SCI: “Customer Discounts” (as defined in the Trust – Corporate Governance Statement Deed) or “Customer Rebates” (as defined in – Statement of Accounting Policies the Trust Deed) and the method for allocation of them; Clause 3 of MainPower’s Constitution requires the SCI to provide detail on the following: (j) A statement of performance relating to “Adjusted Shareholders’ Funds” which will (a) the objectives of the group; provide: (b) the nature and scope of the activities to be (i) the total value of Adjusted Shareholders’ undertaken; Funds (as defined in the Trust Deed); (c) the ratio of consolidated Shareholders’ funds to (ii) a statement specifying the Directors’ total assets and definitions of those terms; opinion on the optimum, before the (d) the accounting policies used in respect of the payment of tax, weighted average cost of Statement of Corporate Intent; capital for the Company; (e) the performance targets and other measures (iii) a statement of the method applied in (ii); (including the rate of return on Shareholders’ and funds after payment of tax) by which the (iv) the estimated rate of return on total performance of the group may be judged in Adjusted Shareholders’ Funds and the relation to its objectives; estimated shortfall (if any) with respect to (f) an estimate of the amount or proportion of (ii) before the payment of tax and before accumulated profits and capital reserves that is the granting of Customer Rebates; and intended to be distributed to the Shareholders; (k) such other matters as are agreed by the (g) the kind of information to be provided to the Trustees and Directors. Shareholders by the group during the course of those financial years, including the information to be included in each half-yearly report;
1 2 2 Letter of Expectations
The Letter of Expectations provided by the MainPower Trust, forms an important part of the Statement of Corporate Intent. The expectations of the Trust are taken into account during strategy development and when reviewing how the Company is operated.
Trustees will be consulted in circumstances where the Board’s intentions are at variance to these expectations.
Ownership of MainPower Health & Safety value of the capital of the Trust and Last year’s Capital Distribution The safety of MainPower staff recognise the potential for capital Review confirmed that our and the community will continue value appreciation. beneficiaries remain supportive to remain a major focus for the Return on Investment of the Trust’s continued 100% Company. The expectation is ownership of the Company. that the Company will be a good The Board will structure its corporate citizen, making sure business operations, including The Board will advise the Trust funding and the pricing of its immediately on becoming aware safety around electricity is a priority for staff and all members of the services, in order to earn an of any circumstances which could appropriate return on investment. potentially result in a change to community, whether or not they are customers. The Trust seeks The Trust expects that, when the Trust’s 100% ownership of the possible, surpluses not required Company. reassurance that MainPower is promoting a positive safety culture to fund the business and its Governance resulting in a safer, healthier and development will be returned to more productive workplace. This the Trust’s beneficiaries. Continuing adherence to the should exceed rather than merely principles of good governance Currently these returns are meet the requirements of the is a fundamental expectation. distributed to Qualifying Health and Safety at Work Act A competent, well balanced, Customers in the form of rebates 2015. Safety is a cornerstone of commercial and community off their electricity accounts. The the MainPower brand. The Trust focused Board will be developed methodology for distributing these expects that the results of the and structured to face the current returns in future is under review annual Health & Safety audit will and expected future issues facing and the Trust and Board have be communicated to the Trust on a the Company and the industry in established a joint Working Group timely basis. which it operates. The Trust further for the purpose of this review. It is expected that the Board will use its expects that regular monitoring of Investment Decisions the Board’s performance will be best endeavours and will support undertaken, both by peer review The Board will, when making Trustees in bringing this matter to a and independent evaluation, to investment decisions, take into conclusion as soon as possible. ensure that the skill sets which account the Trustees obligations have been identified as necessary under Sections 138 and 13E of Part for the Board’s performance are 2, Investment, of the Trustee Act maintained and exercised. It is 1956, which requires Trustees as expected that the Board will also the Ordinary Shareholders of the consider and address succession Company, to act prudently in terms issues. of the Trust’s own investments and to have regard to the need for the Trust to maintain the real
3 Scope of Business Customer Relationships Stakeholder Relationships Operations The Trust acknowledges that In addition to the customer and The Board will continue to the ICP holders (as customers staff relationships, central to the give priority to the ongoing of MainPower) are the primary realisation of the organisation’s development and operation of the stakeholders of the Company. objectives is the building electricity network in the North This is emphasised by the fact of relationships with other Canterbury and Kaikoura regions that most of the customers are stakeholders. Transparency, as the Company’s core business. in fact beneficiaries of the Trust openness and respect in The Board will investigate and, by virtue of that relationship. interactions with all stakeholders if deemed appropriate, invest The Trust expects that the Board will be especially important as in opportunities for core and will ensure that customers are the Company faces technological, unrelated business expansion both given appropriate attention and pricing, and investment challenges within and beyond the Company’s consideration, and that the level in the foreseeable future. traditional area of operation, of customer satisfaction will The expectation is that the including those involving third party continue to be measured by regular Company’s executive will actively collaboration or other forms of independent surveys together participate in, and represent the reconstruction. with any other measures which Company in the wider industry, are considered relevant. The Trust Innovation electricity distribution related expects that the results of such research, industry conferences The Trust acknowledges that measures will be communicated to and the consideration of trends the energy industry is facing the Trust on a timely basis. developing internationally. rapid technological change, and that traditional methods of Staff Relationships Disclosure energy supply and usage will MainPower will be a good employer, fostering new workers There is an expectation the be increasingly challenged by Company will meet all its new developments. Ensuring and encouraging career paths in the electricity supply industry. regulatory requirements and be MainPower stays relevant amid transparent in its disclosures, rapid change requires reinvention There should be encouragement for staff to increase their personal within appropriate commercial through the early adoption of boundaries. opportunities identified as part skills and development in the work of the strategic direction for the place, giving opportunities for Environmental Company. leadership roles and mentoring. The intention is to develop a The Board will adopt responsible, Innovation across almost all corporate culture that values each environmental practices and aspects of the business will be worker’s part in it and where all will provide its services in a essential and the Board is expected staff are working to a common manner that is consistent with to be actively looking for new and goal. This will foster the worth the Company’s commitment to innovative ways to gain and keep of a valuable career within the sustainability. market share within the wider electricity industry, as well as being Community Leadership energy industry. part of the “MainPower Family”. MainPower is a critical Network Performance commercial operation within the Network performance as a North Canterbury and Kaikoura measure of the reliability of supply communities. As such, the Trust is is a critical element both in the keen to ensure that the Company eyes of the beneficiaries and is a good corporate citizen. The the sector as a whole. The Trust Company will continue to take a expects that the Board will seek leadership and supportive role in to ensure that the Company’s the North Canterbury and Kaikoura performance remains above communities. average relative to appropriate industry comparisons.
4 3 Statement of Intentions 3.1 3.2 resources, to create opportunities About Us Generation and enable growth. MainPower New Zealand Limited MainPower has been investigating Strengthening our core (MainPower) is a consumer trust options for renewable distributed business for the future owned Electricity Distribution generation in and around the North • MPower safety Business (EDB) that builds, owns, Canterbury region since 2004. In • MPower our people operates and maintains the that time, we have built a mini- electricity distribution network hydro station at Cleardale and • Ensure the customer is at our in the North Canterbury region. gained resource consent for a wind core MainPower provides distribution farm at Mt Cass. The Mt Cass wind • Strategic asset management and services to over 40,000 residential farm project is progressing well operational excellence and business connections and and we believe this could bring a • Evolution to the ‘Network of the delivers electricity to a population huge economic advantage to North Future’ base of around 65,000 people. Canterbury. MainPower’s purpose is simple. • Fair and sustainable pricing We are responsible for providing a 3.3 • Strengthen our community and safe, secure and reliable network Our Changing Future regulatory relationships that delivers electricity supply The future of energy is evolving. to homes and businesses in the Growth – Creating new MainPower’s role in powering local North Canterbury region, from opportunities communities is also changing. north of the Waimakariri River This requires a new approach and • The new energy future through the Hurunui to Kaikoura. refreshed thinking of our strategic • Expanding beyond the network We play a crucial role in both direction – building and operating • Leveraging our core business supplying the energy needs of a network for the future that is our communities, as well as responsive to consumer demand, • Generation contributing to the growth of a while delivering value to our Our Plan vibrant and prosperous region. community. The New Zealand electricity sector Delivering on our strategic intent is facing significant transformation, 3.4 requires a clear strategic focus for driven by new energy technologies Our Strategic Direction each area of our business as well and changing end-user consumer as a commitment to build better behaviour. Going forward, our Our Vision relationships with our community. We use the word ‘community’ role is changing to one of an MainPower’s vision is to provide as an expression to encompass enabler where we partner with our safe, secure and sustainable everyone in our ecosystem customers to enable community services for current and future including customers, shareholders growth - through creating generations. employment and local economic and stakeholders. development, by connecting Our Mission Our Values people and places, while delivering To partner in our customers’ energy Our success is based on our value to our shareholders. future. values: No longer will electricity flow in one direction through our network, we Our Strategic Intent • Do what’s right will have to evolve with advancing Our strategy seeks to strengthen • Make it happen technologies and respond to rapidly the core business for the future, • Work together changing consumer behaviours and while generating new investments requirements. in the wider energy sector that • Make it better leverage existing capability and
5 Drivers of change The global electricity sector is experiencing unprecedented change.
Technology Customers Regulatory & Government Distributed generation Opportunities for and battery storage generation and storage Changing energy and environmental policies Behind the electricity Changing patterns in meter devices electricity consumption Government review of electricity pricing Smart grid Increased expectations on service providers Focus on infrastructure Electrification of investment transport sector Increased competition and new entrants Fluctuating weather patterns Advancing energy efficiency technology
Key network stats Forecast March 2020
Gigawatt-hours (GWHs) entering the system 617 GWhs
Gigawatt-hours (GWHs) delivered to customers 586 GWhs Circuit length (kilometers) 5,091 Total customer group 41,030
6 4 Safety and Business Risk Delivering our Integrated Management System Never compromise Strategic Environmental sustainability
Risk management Priorities People and Culture Performance management Being an employer of choice Employee engagement and retention Providing a safe, secure and sustainable network for current and Learning and development future generations. Operations Safety Doing things the right way Cost
Quality
Delivery
Network Public safety Strategic asset management and operational excellence Asset Management Plan
Network of the future
Finance and Administration Financial leadership Helping us make smart choices Timely and meaningful financial reporting
Profit and cashflow management
Commercial Fair and sustainable pricing Delivering shareholder value Strong regulatory relationships
Create new opportunities for growth
Information Technology Customer centric and customer driven Empowering us for success Empowering the business for operational excellence
Enabling efficiency gain and cost reduction
Customer and Corporate Relations Community engagement Enabling community growth Customer centricity, improving the customer experience and positive brand recognition
Sponsorship
7 Safety and Business Risk Delivering our Integrated Management System Never compromise Environmental sustainability
Risk management
People and Culture Performance management Being an employer of choice Employee engagement and retention
Learning and development
Operations Safety Doing things the right way Cost
Quality
Delivery
Network Public safety Strategic asset management and operational excellence Asset Management Plan
Network of the future
Finance and Administration Financial leadership Helping us make smart choices Timely and meaningful financial reporting
Profit and cashflow management
Commercial Fair and sustainable pricing Delivering shareholder value Strong regulatory relationships
Create new opportunities for growth
Information Technology Customer centric and customer driven Empowering us for success Empowering the business for operational excellence
Enabling efficiency gain and cost reduction
Customer and Corporate Relations Community engagement Enabling community growth Customer centricity, improving the customer experience and positive brand recognition
Sponsorship
8 5 Business Priorities
5.1 MainPower will design, construct, operate, maintain, renew and dispose of network assets Asset Management in an effective manner to deliver: MainPower’s strategic asset management plan summarises the management of current and • Compliance and regulatory excellence – ensuring future electricity demand, risks, we comply with laws, regulations, standards and objectives and processes. It industry codes of practice focuses specifically on service • Ensure customer engagement effectively informs level targets to customers, and asset management the required plan for investment, • Provide resources that ensure asset management maintenance, replacement, funding objectives can be delivered and organisational development. Asset management is MainPower’s • Apply quality management systems and strive for core business and it must be fully continuous improvement and innovation aligned with our corporate goals. It also means our business objectives • Apply industry best practices, systems and and network performance is techniques delivering what our customers • Apply performance monitoring and benchmark are telling us they want, while against industry ensuring the network is ready for • Apply a risk-based approach to managing our a “New Energy Future” which assets balancing cost, performance and risk includes operational readiness and effectiveness. The “New Energy • Ensure network growth delivers customer Future” includes the way our requirements while facilitating regional electricity distribution network will development be used in the future, influenced by changing customer behaviours • Effective systems and business process, roles and due to new technologies and responsibilities decarbonisation of the economy. • Enhance industry collaboration creating Effective asset management is partnerships that enable and support innovation essential to realise the asset value and involves the balancing of risks, opportunities and cost against the • Manage competence and training desired performance of assets, • Effectively plan our activities to achieve the organisational objectives over the asset life cycle. • Optimise operations and do it right, first time
9 5.2 5.3 The next step in the process is to Operational Excellence Network Pricing develop detailed pricing options and a strategy to implement MainPower is focused on delivering Pricing review timeline any required changes. Feedback work cost effectively, while gathered through the community meeting customer and business consultation undertaken in 2016- requirements. There are a number 2015-2016 2018 will inform the development of focus areas including: 2015-2016 of these plans. Defined overall pricing objectives • Reviewing and improving It is likely that any option will and started consultation with operational HSEQ systems to include a greater proportion of customers make sure work practices align fixed charges to reflect the largely with risk management. fixed cost nature of network costs. • All critical processes are to be The approach to determining the documented. Resources and 2016-2017 quantum of fixed charges will be training will be provided to assessed as part of the review ensure outcomes that protect Developed pricing options of options. A greater fixed price our people, the public, public and further consultation with component would also reduce property and the environment. customers and stakeholders MainPower’s exposure to revenue volatility due to climatic conditions. • The Field Services Agreement (FSA) will be fully implemented. We will consult with retailers The FSA aims to build a strong 2018-2019 and customers on preferred new professional relationship pricing options prior to making between Network and Identified costs of providing lines any final decisions on the pricing Operations that places clear services to each customer and structure, with a new pricing accountability for delivery of the further consultation methodology being issued before work programme. new prices take effect. Retailers will be notified of any price • A work flow will be established changes within the notice periods that ensures clear accountability FROM 2020 specified in our conveyance only for delivery of routine and project From 2020 use of system agreement. We are services under the FSA. Implementation of cost reflective pricing structures required to give customers at least • The implementation of the 45 days’ notice of pricing changes Work Management System via the electricity retailers under will be completed. This will Emerging technologies like solar the use of system agreement. enable Operations to operate panels and electric vehicles are MainPower plans to implement like a commercial entity and be influencing the way our customers more cost reflective pricing accountable for all job costs. are using the electricity network. structures from April 2020. Outputs include a full rate card In response, we are changing the detailing price and target labour way we charge for our services. hours for all standard routine and project services. Ultimately, we want to move to a pricing model that better reflects • Optimisation of inventory the actual cost of supplying power management including storage, to the individual customer’s handling, stock accuracy and installation control point (ICP). stock turnover. Over the last year, we have • Review of current fleet lease/ undertaken a significant piece ownership. of work to identify the cost of providing lines services to each customer ICP. This work is key to introducing more cost reflective pricing.
10 5.4 period in 2018 -19, which resulted will also provide our employees Managing Our Risk in ten safety critical risks and with the appropriate training, four business critical risks being support and information MainPower remains focused on identified and risk control plans for necessary to understand any ensuring the safety of our people, each being developed. environmental impacts we may customers and community as its A stringent monitoring programme have and to enable us to work in highest priority. has also been set up to test an environmentally responsible From tailgate talks at work sites, to the effectiveness of the critical manner. our far-reaching safety advertising controls. Monitoring is both Over the summer, we carried out campaigns, safety is a deeply planned (monthly and annually) a study to gather baseline data embedded part of our culture and and based on trigger events like on our waste levels and identify brand. near misses, industry learnings, opportunities to reduce waste and Our dedication to safety is audit and observations, new or emissions. underpinned by our Integrated emerging risks as well as changing From this work, three key actions Management System Policy that circumstances. were established and have been combines and strengthens our Managing our performance incorporated into MainPower’s commitment to health, safety, Strategic Business Plan. environment and quality (HSEQ). In addition to the work already Key action points: undertaken for critical risks, Supporting this is our Risk we have also focused on the 1. Review our procurement Management Plan which aims development of critical processes. policy from an environmental to anticipate risk and provide a perspective proactive plan for managing this Goals for this financial year: Considerations include risk. • All business units to complete transitioning to a more efficient It includes: process mapping of all critical vehicle fleet and making risks • Risk management planning environmentally conscious • All staff to complete one critical choices around the purchasing • Risk identification control observation and disposal of goods and • Risk assessment and analysis services. • Executive managers • Controls to prevent and treat complete three critical control 2. Minimise our SF6 emissions risks observations, alongside their The SF6 gas is used by the • A review process to measure the monthly field site visits industry as an insulator in circuit effectiveness of risk controls breakers. MainPower’s objective is to engage an expert to audit The risk management 5.5 the Company’s management of journey Environmental SF6, to identify business risks Risk management at MainPower Responsibility and establish best practice. is not done in isolation. We take a 3. Educate and empower all Through providing a safe and collaborative approach, involving MainPower employees in reliable source of electricity for our people at every stage, seeking the correct waste disposal homes and businesses in North input from those who understand practices Canterbury, MainPower plays a key the processes and tasks in Our staff have been involved in role in the community. question. this process and have already As a member of this community, identified a range of actions we “Critical risk” is defined as: it is our responsibility to set a can make in order to reduce • The actual or potential to cause positive example in all areas of our our waste. One example is to death to employees, contractors operations, including our efforts establish a process for recycling or members of the public; to conduct our business in an our used cable ducting. environmentally sustainable way. • Cause significant property damage; or As part of MainPower’s Integrated Management System Policy • Cause MainPower to be severely (approved by the Board in impacted as a business. 2018), the Company has made Our risk journey has brought our a commitment to identifying teams together to identify our opportunities to prevent and critical risks. We held a series reduce any pollution or waste of workshops over a five month created by our activities. We
11 5.6 • Customer Pulse survey (focused in 2018 is feeding into significant Community on the community perception improvements for the 2019-20 of MainPower). Facilitated by year. One key message from our Engagement an external research provider, customers centred around the Creating a network for the future the initial benchmarking for need for us to communicate with requires an understanding of what this survey was completed them more effectively, especially our customers and stakeholders in 2017, with the survey now when MainPower’s work impacted expect from us. We identify these being completed annually in them. expectations through a wide December each year. The 2019-20 year sees us investing range of engagement activities, • Voice of the Customer research in our communication channels, including surveys, consultation – a monthly survey sent out to making it easier for us to update and maintaining open channels customers who have interacted our customers on planned work, for feedback via our website. The with MainPower in the previous outages and general MainPower insights we gather determine our month. information. approach to service levels and our Additional community engagement A website redevelopment is overall strategic priorities. is also planned for the 2020 also scheduled, which will focus In addition, the MainPower financial year, with a key focus on on getting the right information Trust and the Company have engaging our customers to help online to help drive customer a comprehensive, annual inform future network planning. engagement through digital engagement plan for the purpose channels. The website project has a of sharing information. Measuring performance KPI of ensuring that our end users (our customers) are involved in Empowering our community By listening to our customers and the development of this, with user to make a difference community, we have developed a clear understanding of the testing being a key component. measures of performance that are most important to them and how 5.7 MainPower is currently performing In the last year, MainPower Community Support against those measures. Summary has continued our focus on Each year MainPower’s insights from recent customer engaging with our community sponsorship activity supports research indicate that our by developing a new customer dozens of community initiatives customers view electricity reliability engagement brand, MPower Us. and organisations. The Board has as a key performance deliverable. The focus of the brand and the previously agreed that priority range of activities that fall under Customer feedback should be given to activities it, is to enable our customers and that promote energy efficiency community to make a difference to Customer feedback gives us and conservation, facilitate their local lines company. an opportunity to develop a economic growth in North relationship with customers by The MPower Us brand Canterbury, support environmental demonstrating the value placed sustainability, and youth activities. demonstrates our ongoing on them by taking their concerns commitment to listening to our seriously and dealing with them Our sponsorship work allows us customers, with the key goal of effectively. MainPower has a to connect in a meaningful way taking these insights and allowing complaints resolution process, to a broad range of organisations these to drive positive change focused on resolving the majority and individuals in the community, within MainPower. of complaints received within building a strong network of Our programme of engagement seven working days. relationships and brand recognition. allows for consistent monitoring of The work also helps to position satisfaction levels and continuous Customer strategy MainPower as a community leader reviews of the services we provide. The customer strategy for 2020 is and valued member of the North Our standard research program to continue to build a commitment Canterbury community. includes our: to engage with our customers. This allows our customer insights • Service Monitoring survey to drive business improvement (focused on new power supplies and ensure that the services we and new ICP connections). Initial provide are meeting our customer’s benchmarking was completed in needs. late 2017 and is now completed annually. Already, the research and engagement we have completed
12 Activities we are supporting: Our Customer Pulse survey, completed in December 2018, found that Community Fund 74% of respondents could recall at least one example of MainPower’s Introduced in 2015, the community sponsorship. MainPower Community Fund has been a great success, with over 20,000 YOUTH GENERAL COMMUNITY SUPPORT votes received and $70,000 MainPower North Canterbury Sports Awards Māia Health Foundation distributed amongst 23 MainPower Youth Sports Scholarships Charity Mud Run event - Pegaus Lions different recipients.
MainPower Primary School Coaching Kaiwara Classic - Cheviot Lions The annual contestable fund Programme is open to public voting, Ashley River Ramble - Rangiora Lions WaiSwim Programme with a share of the proceeds MainPower Oval - Canterbury Country Cricket being awarded to groups Primary & Secondary School Prizes Association that receive the most votes. MainPower Scholarship - University Scholarship MainPower Hockey Turf In 2019, $30,000 will be NZRT12 Cadet Scholarship Omihi School Farm Race made available to charities, EPECentre – University of Canterbury Sefton Tug of War - Sefton School PTA cultural organisations,
MainPower Musical Theatre Taster Day Swannanoa Country Fair - Swannanoa School schools and community groups serving North Big Brothers Big Sisters of North Canterbury ThriveME app development - Miss Lilly’s Angel Trust Canterbury through the fund. This will allow ENERGY EFFICIENCY Hurunui Remembers – war commemoration event members of the community Insulation in Network Area - Community a greater say in where our Energy Action A&P Associations community sponsorship Energy Advice Service - Community Energy Summer garden concert – Vivacity Consort funding is directed. Action Rangiora Christmas Night Celebration – Evolocity - Electric Vehicle Competition Rangiora Promotions Recipients 2015-2018 Community Wellbeing Trust Hurunui Garden Festival ECONOMIC DEVELOPMENT North Canterbury Riding for the Kaiapoi Christmas Carnival and Santa Parade – Disabled Enterprise North Canterbury Kaiapoi Promotions Association Amberley Community Pool Society North Canterbury Business Awards Christmas on the Lake – Pegasus Residents’ Group North Canterbury Academy of Music North Canterbury Radio Trust (Compass FM) Miss Lilly’s Angel trust Rangiora Golf Club Rangiora Festival of Colour Waiau Community Pool Community Christmas lunch - Reflections Rangiora Winter Festival Community trust Coast Guard North Canterbury
You, Me, We, Us ENVIRONMENTAL SUSTAINABILITY Rachel’s House Trust MainPower Hurunui Natural Environment Fund North Canterbury BMX Club Green Corps Mini Ha Ha Horse Haven Flightpath – Orange-fronted Kakariki Rangiora Community Choir conservation project Big Brothers Big Sisters North Canterbury
Rangiora Toy Library
Sefton School
Leithfield School
Rotherham School
Southbrook School
Waiau School
Fernside School
Broomfield School
Rangiora High School
Omihi School
13 Employee benefit developing the next generation Jessica Price, daughter of MainPower Network Field Operator Brent Price, is the 2019 MainPower Bright Spark Scholar. Jessica is in her first year of study at the University of Canterbury, studying towards a Bachelor of Arts degree, majoring in Psychology. Jessica hopes to use her qualifications and experience gained during her studies to help the youth of North Canterbury. As part of her scholarship, she will be offered summer internship work within the company.
5.8 Learning and development The trial concluded at the end of People and Culture MainPower’s success is based March 2019, with feedback from on developing a skilled workforce employees being largely positive, MainPower remains focused on made up of individuals that are with many valuing the flexible developing a culture in which our empowered to develop their working arrangement. Based people feel valued and invested in personal and professional skills, on this feedback a winter trial the future of our business. and take on new challenges. has been put in place allowing We want to be an employer of employees to opt into a nine-day Our learning and development choice, capable of attracting and fortnight (working nine hours a conversations take place twice a retaining the best recruits to day) with the intention of gathering year, giving every staff member our industry. We achieve this by feedback at the end of winter to the opportunity to reflect, explore supporting our people through determine the best long-term career options and set goals for the training and mentorship, providing flexible working options. future. From these conversations, opportunities for growth within the training plans are created and Wellness Programme business and providing a range of opportunities for mentorship sought-after employee benefits. MainPower continues to deliver identified. a Wellness Programme aimed Trainees and interns This process ensures a pipeline of at supporting our employees’ Through training and mentoring, succession is in place within the overall health and wellbeing. we are producing qualified business. It also helps to maintain Our programme includes access tradespeople ready to take on the a culture in which everyone feels to health monitoring, including challenges of the future. valued and can see a place for MoleMapping and melanoma themselves in the future of the skin checks, vaccinations, This year we have welcomed five business. first aid training, subsidised trainees, who are working towards gym memberships and health qualifications as electricians, cable Four-Day Work Week trial insurance. jointers and line mechanics. We Offering positive and sought-after also had six interns join us over employee benefits is one element Asking our team the summer months who were in retaining talented staff and Introduced in 2018, we have recruited from universities across maintaining an enthusiastic and now completed three rounds of the country. They worked on a engaged workforce. our employee engagement and variety of projects in the Network, business improvement staff survey. Safety and Business Risk, and Over the summer, MainPower Each round provides insights into IT teams. In 2019, MainPower offered all employees the how our people are feeling and introduced the Bright Spark opportunity to participate in a where attention and action needs Scholarship, a tertiary scholarship four-day work week trial. Around to be focused. The insights gained available to the children, 30% of staff opted in to the trial, from the ‘MainPower 50’ survey grandchildren, step children, working for ten hours a day either allows leaders and teams to take brothers and sisters of current Monday-Thursday or Tuesday- ownership of the results and make employees. Friday. meaningful changes within the business. Our engagement score has continued to improve in each subsequent survey.
14 6Other Business Activities
6.1 Mt Cass consent to allow for a new type of Generation MainPower also holds the resource turbine to be used. consent for a wind farm at Mt Developed by world leaders in Cleardale Cass. Mt Cass is a fully consented renewable generation, General MainPower owns and operates a wind farm site located on the Mt Electric, the new GE4.2-117 wind 1 megawatt (MW) hydro power Cass ridge near Waipara in North turbines will allow for a reduction station at Cleardale in the Rakaia Canterbury. in the number of turbines required Gorge, which generates around In 2019, MainPower lodged an (from 26 down to 22). The new 3,500 MWhs of electricity each application to vary some of the turbines, with a total installed year. Cleardale provided around conditions of the resource consent capacity of 93MW, are capable of 123% greater revenue over authorising the development of generating more electricity than the 2018 year due to the higher the Mt Cass wind farm with the earlier models. electricity prices in the market Hurunui District Council. Given the and the increased volume from rapid advancement in technology reliability of the system. in recent years, MainPower has requested a change to the original
Photography Credit David Alexander
15 6.2 6.3 6.4 Kākāriki Power Vircom Energy Hurunui Water Project / MainPower established Kākāriki Management Services Amuri Irrigation Power in 2018 so that the The Vircom business was sold to In late 2018 the Amuri Irrigation electricity generated at Cleardale Vector Advanced Metering Services Company (AIC) made a takeover could be used to power our head in September 2018. offer to the Hurunui Water Project office, depots and substations. Our The sale followed a strategic (HWP) shareholders which was staff are also able to sign up for our subsequently accepted. In support Kākāriki Power retail offering. review of a range of options for developing new unregulated of this transaction MainPower sold The work we are doing to develop business opportunities. The future its full shareholding in HWP. Kākāriki Power is providing us of the Vircom business was The AIC shareholders have with valuable insights into peer-to- considered as part of that review subsequently voted in favour peer trading of electricity and the and the most compelling for of a proposal to construct a challenges of the market we work existing employees, future growth, 7,000-9,000-hectare piped irrigation within. and shareholder return was to scheme on the south side of the divest that business and sell to its Hurunui river. largest customer, Vector.
16 7Performance
7. 1 • Rebates will continue to be 7. 2 Financial Performance credited throughout 2019-2020; Service Performance 2.014 cents per kWh at a cost of A summary of budgeted financial $9.76M. Service level performance measure performance, financial position our key asset management • Total net capital expenditure of and other financial measures and objectives and include: $23.6M during the 2019-2020 performance statistics for the 2019- financial year will be funded – Safety 2020 financial year and the forecast by way of revenue $14.2M, for the following two financial years – Compliance customers’ capital contributions for the MainPower New Zealand – Quality of Service - Reliability $3M and borrowings $6.4M. Limited are provided in the table on – Quality of Service - Customer page 19. • Total maintenance expenditure of $5.19M has been budgeted Service The summary forecast for the for 2019-2020. year ended March 2019 compared – Risk Management to the financial budget for that • Provision has been made – Efficiency and Effectiveness - for investment in generation year and the actual financial Asset Utilisation performance for the year ended opportunities. – Efficiency and Effectiveness - March 2018 is also made available. • MainPower’s investment in The following assumptions have Vircom Energy Management Operational Effectiveness been made when presenting the Services was divested on 28 – Efficiency and Effectiveness - financial budgets for 2019-2020 and September 2018 and as this was Financial Efficiency succeeding years: the only trading subsidiary in the Group, the financial statements Actual and planned service level • Having reviewed the level for the Parent and the Group are performance is included in our of electricity distributed by similar in the forecast. Asset Management Plan. MainPower in February 2019, the volume of electricity • MainPower has secured funding SAIDI, the average minutes a conveyed by MainPower for the for the next 9 – 21 months. customer is without power during year ended 31 March 2019 is Tranche 1 ($27M) will mature the year and SAIFI, the average now estimated at 582 GWhs, December 2019, Tranche 2 number of supply interruptions with the year ending 31 March ($18M) will mature December per customer during the year, 2020 being estimated at 586 2020. continues to be the two key measures of service performance. GWhs, and the year ending 31 • All costs and revenues have March 2021 being estimated at been inflation adjusted in line Going forward, benchmarking 598 GWhs. These volumes of with Westpac’s Economics SAIDI and SAIFI against industry electricity distributed reflect both Forecast of 1 February 2019. peers, will also be provided. changing patterns of electricity Actual, Budget and Forecast consumption by consumers performance is detailed in the table and the volatility in demand the on page 21. Company is experiencing due to climate variation. • Effective 1 April 2019, there will be an average overall increase in MainPower’s delivery price to customers of 2%. This is made up of a decrease in transmission pricing component of 0.7% and an increase in the distribution pricing component of 2.8%
17 18 7. 3 Performance Statement Financial
MainPower Group For the year ending March1
Actual Budget Forecast Forecast Forecast 2018 2019 2019 2020 2021 $000 $000 $000 $000 $000
Financial performance Operating revenue 78,196 78,392 64,057 65,735 67,015
Profit before rebates and tax 18,137 14,846 11,909 13,979 12,439 Rebates (9,833) (9,719) (9,581) (9,757) (9,962) Taxation (2,274) (1,531) (870) (1,561) (709) Profit after rebates, tax and dividends 6,030 3,596 1,458 2,661 1,768
Total maintenance expenditure 4,316 5,425 5,156 5,185 7,149 Total capital development expenditure 9,960 17,353 7,141 23,601 16,209
Financial position Net working capital 5,605 2,727 2,998 3,459 3,251 Non current assets 291,855 299,863 297,766 306,877 309,588 Total assets 297,460 302,590 300,764 310,336 312,839 Term liabilities (70,030) (78,389) (70,381) (76,982) (77,456) Net assets 227,430 224,201 230,383 233,354 235,383
Cash flows from Operations 21,180 17,749 15,030 16,390 15,314 Cash flows from Investing Activities (8,889) (21,853) (16,220) (22,510) (16,209) Cash flows from Financing Activities (11,800) 3,857 2,812 6,385 395 Net Increase / (Decrease) in Cash flow 491 (247) 1,936 265 (500)
MainPower Group Financial Ratios2 % % % % % Profit before tax / Net assets 3.70 2.25 1.01 1.81 1.05 Profit after tax / Total assets 1.96 1.20 0.48 0.86 0.57 Profit after tax / Equity 2.68 1.58 0.63 1. 14 0.75 Equity / Total assets 72.88 76.33 76.60 75.19 75.22
MainPower Group Number of employees 266 266 165 168 168 Number of major non-conformances from external certification audit 5 Nil Nil Nil Nil
Number of enforceable regulatory notifications, e.g. notices, fines, prosecutions Nil Nil Nil Nil Nil Number of leadership safety observations 123 108 108 108 108 Number of work related accidents resulting in lost time 3 Nil Nil Nil Nil
Notes 1. As the net assets of Vircom were sold on 28 September 2018, the forecast Group and Parent numbers for 2020 onwards are the same.
2. Financial Ratios are calculated after the distribution of rebates.
19 7. 3 Performance Statement Financial
MainPower Parent For the year ending March1
Actual Budget Forecast Forecast Forecast 2018 2019 2019 2020 2021 $000 $000 $000 $000 $000
Financial performance Operating revenue 71,187 65,105 64,057 65,735 67,015
Profit before rebates and tax 18,903 14,780 12,223 13,979 12,439 Rebates (9,833) (9,719) (9,581) (9,757) (9,962) Taxation (2,456) (1,513) (870) (1,561) (709) Profit after rebates, tax and dividends 6,614 3,548 1,772 2,661 1,768
Total maintenance expenditure 4,316 5,425 5,156 5,185 7,149 Total capital development expenditure 9,786 12,133 7,141 23,601 16,209
Financial position Net working capital 1,793 1,180 3,312 3,459 3,251 Non current assets 295,046 302,728 297,766 306,877 309,588 Total assets 296,839 303,908 301,078 310,336 312,839 Term liabilities (67,918) (72,979) (70,381) (76,982) (77,456) Net assets 228,921 230,929 230,697 233,354 235,383
Cash flows from Operations 20,657 17,946 15,344 16,390 15,314 Cash flows from Investing Activities (8,593) (21,803) (16,220) (22,510) (16,209) Cash flows from Financing Activities (11,800) 3,857 2,812 6,385 395 Net Increase / (Decrease) in Cash flow 264 0 1,936 265 (500)
MainPower Parent Financial Ratios2 % % % % % Profit before tax / Net assets 3.99 2.20 1.14 1.82 1.06 Profit after tax / Total assets 2.20 1. 18 0.59 0.87 0.57 Profit after tax / Equity 2.91 1.54 0.77 1. 15 0.75 Equity / Total assets 77.12 75.99 76.62 75.19 75.24
MainPower New Zealand Limited (Parent) Number of employees 166 157 162 168 168 Number of major non-conformances from external certification audit Nil Nil Nil Nil Nil
Number of enforceable regulatory notifications, e.g. notices, fines, prosecutions Nil Nil Nil Nil Nil Number of leadership safety observations 98 108 108 108 108 Number of work related accidents resulting in lost time 3 Nil Nil Nil Nil
20 7. 4 Performance Statement Customer Service and Statistics
MainPower Group For the year ending March
Actual Budget Forecast Forecast Forecast 2018 2019 2019 2020 2021
Lines Business:
Quality of Supply SAIDI - Average minutes customer3 is without power during the year4 174.20 162.00 204.00 340.00 340.00 SAIFI - Average supply interruptions per customer during the year 1.60 1.59 1.58 1.73 1.73 Unplanned faults per 100 kms during the year 3.50 6.15 6.63 6.15 6.15
Statistics Lines business Total line service customers (number) 39,700 40,200 40,224 41,030 41,800 Gigawatthours entering the system (GWhs) 630.00 629.00 633.30 638.00 648.00 Gigawatthours delivered to customers (GWhs) 604.00 594.00 594.00 603.00 612.00 Losses 26.00 35.00 39.30 35.00 36.00 Electricity loss ratio (%) 4.13 5.56 6.21 5.49 5.56 Network maximum coincidental demand (MW) 113.70 114.00 116.40 117.00 119.00 Load factor (%) 64.20 62.00 62.13 61.00 61.50 Total Transformer capacity (MW) 556.60 560.00 562.16 571.00 581.00 Transformer capacity utilisation factor (%) 19.90 20.00 20.50 20.00 20.00 Circuit length lines (kms) 5,052 5,091 5,071 5,091 5,111
Actual Budget Forecast Forecast Forecast 2018 2019 2019 2020 2021 Efficiency Performance5 $ $ $ $ $ Capital cost per km 1,111 3,061 1,265 4,041 5,165 Capital cost per ICP 142 388 160 501 632 Operating cost per km 2,915 3,172 3,644 3,581 4,082 Operating cost per ICP 373 402 459 444 499
Notes (continued)
3. Customer means a person named in the records of the Company as a person whose premises are connected to the Company’s distribution network.
4. The Forecast numbers for 2020 and 2021 reflect the expected change in quantity of planned work for this period.
5. Capital cost is the total network capital expenditure for the year. Operating cost is the total network plus non network operational expenditure for the year. The total length of lines in the network and total ICP count are used as normalising parameters to allow comparison between EDBs.
21 22 8Other Measures 8.1 The Board will be guided by the 8.5 Distributions to the Major Transaction Rule provided Return on in MainPower’s Constitution. A MainPower Trust major transaction is defined as the Shareholders’ Equity The Board and Trust have agreed acquisition of, or an agreement to for the MainPower that it is timely to undertake a acquire, whether contingent or not, Group of Companies wide review of the approach assets equivalent in value to 25 (Consolidated) taken to rebates and dividends. percent or more of the assets of The electricity industry is facing MainPower before the acquisition. MainPower’s Forecast Return on much change and with that comes Equity for the Group for the financial opportunities (and risks). 8.4 year ending 31 March 2019, after rebates and taxation, is expected We need to take a longer term Return on Investment to be $1.46M, or $8.57M (1.01%) view on strategic opportunities, for the MainPower before rebates and after adjusting how the business funds its Regulatory Lines for notional tax. activities, regulatory requirements Business and expectations of the Trust, 8.6 beneficiaries of the Trust and The following information reflects MainPower’s customers. the return on investment for the Information to This review will take place during regulatory lines business, before be Provided to 2019 and the Board will not make deducting rebates from returns. Shareholders any decisions relating to dividends MainPower’s cost of capital (post- The following information will until this is completed. tax) has been determined at 6.17% be made available to the Trust and is derived using the Capital and, where applicable, to other 8.2 Asset Pricing Model which was Shareholders, i.e., all information Rebates to Qualifying established by the Board in 2015. required to be disclosed Customers This is viewed as optimal by the to Shareholders under the Board. Companies Act 1993, the Financial The gifting by the Trust of MainPower’s Return on Investment Reporting Act 1993, Commerce Redeemable Preference Shares to (before payment of rebates) for the Commission Information Disclosure Qualifying Customers in accordance year ended March 2018 was 7.04%, documentation, and any other with clause 4.10 and Schedule 8 above the Commerce Commission’s information the Board considers of the Deed gives the Board the 75th percentile estimate of 5.72%. should be in the public arena opportunity to provide a Customer including: Rebate Scheme in favour of The Return on Investment for the Qualifying Customers. year ended March 2018 is 7.04%, • Annual Report below the Commerce Commission’s The 2019-2020 financial budget • Interim Report default price path for non-exempt provides for $9.76M to be credited lines’ businesses of 7.5%. • Statement of Corporate Intent to Qualifying Customers as rebates. • Asset Management Plan This represents approximately 22% MainPower’s budgeted Return of total distribution lines revenue. on Investment of the regulatory • Electricity Information Disclosure lines business for the financial Information 8.3 year ending 31 March 2019, after The Board will meet with Trustees Acquisition of Shares in taxation, is expected to be $15.19M on a regular basis throughout the or 6.48%. Other Companies year in order to update Trustees on There is no shortfall between the the performance of MainPower and The acquisition of shares in other budgeted Return on Investment its subsidiaries. companies or organisations will only and MainPower’s Weighted Average The Board will also report to proceed where the Board concludes Cost of Capital. such an acquisition is in the best Trustees on significant operational The Return of 6.48% on Investment interests of MainPower. matters, changes to MainPower’s for MainPower’s regulatory lines company structure and progress on The Board will consult the Trust in business is considered acceptable, current and new business initiatives. circumstances where an acquisition given the expected level of is considered to be significant. investment in the network. 23 24 Appendix 1 Corporate Governance Statement Appendix 2 Appendices Statement of Accounting Policies Appendix 3 Glossary of Terms and Abbreviations
Appendix 1: that arrangements are in place to • approve and foster a corporate Corporate Governance adequately manage these risks. culture which requires To this end the Board will: management and every Statement employee to demonstrate • provide leadership in health the highest level of ethical 1. Role of the Board and safety and will ensure that behaviour; The Board is responsible for the employee and public safety • appoint, review the performance overall corporate governance of remain at the core of the of, and set the remuneration of MainPower. The Board guides organisation in order that it the Chief Executive; and monitors the business and remains as an integral part of affairs of MainPower on behalf of MainPower’s culture, its values • approve transactions relating to both the Ordinary Shareholder, and performance standards; acquisitions and divestment, and the MainPower Trust, to whom • continue to monitor all capital expenditure above it is primarily accountable and legislation and regulatory change • delegated authorities; the Preference Shareholders of impacting on Health and Safety • approve operating and the Company, i.e., the Qualifying requirements and compliance development budgets, review Customers in the region. and will ensure that they are performance against these The Board’s primary objective complied with; budgets, and monitor corrective is to satisfy the shareholders’ • set the strategic direction of actions by management; wish of enhancing shareholder the Company in consultation • ensure the preparation of the value through a commitment to with management, having Statement of Corporate Intent, customer service and regional particular regard to rate of return Interim and Annual Reports; prosperity. Customer service is expectations, financial policy measured in terms of both financial and the review of performance • enhance relationship with all return and MainPower’s ability to against strategic objectives; stakeholders. deliver excellence in electricity • maintain an understanding of the 3. Delegation distribution system security electricity industry, and continue and reliability, responsiveness The Board delegates the day-to-day to monitor industry reform, to customers, quality and price responsibility for the operation and security of supply, industry competitiveness. administration of MainPower to the governance and Government Chief Executive. Regional prosperity is measured intervention in order to identify in terms of MainPower’s role the impact on MainPower’s The Chief Executive is responsible in leading and/or supporting business; for ensuring MainPower achieves regional initiatives for economic its business objectives and values. • monitor and understand the development. expectations and needs of The Board ensures that the The Board aims to ensure that the growing North Canterbury Chief Executive, and through MainPower is a good employer and community; him, the senior management are corporate citizen. appropriately qualified, experienced • remain informed about Company and remunerated to discharge their affairs in order to exercise 2. Board Responsibilities responsibilities. judgment about management The Board acts on behalf of and is and its procedures; 4. Codes and Standards accountable to the shareholders. The Board seeks to identify the • identify risks and manage All Directors, executives and expectations of shareholders, as those risks by ensuring that the staff of MainPower New Zealand well as other legislative and ethical Company has implemented Limited are expected to act with expectations and obligations. comprehensive systems of integrity and to promote and internal control together with enhance the Company’s reputation In addition, the Board ensures appropriate monitoring of with its various stakeholders. areas of significant business risk compliance activities; are identified by management and
25 Behavioural standards and 8. Meetings • accounting policy and practice; accountabilities, the use of The Board meets monthly to • risk management framework confidential information, trade review, monitor, and initiate and the monitoring of practices, health, safety and action in respect of the health and compliance within that environmental management are safety, strategic direction, financial framework; set out in a range of formal codes, performance and compliance of • related party transactions; policies and procedures. These the Company and its subsidiaries. are subject to regular independent MainPower’s Business Plan details • compliance with applicable laws, review to ensure they remain matters which require Board regulations, standards and codes current and appropriate. consideration, including long-term of practice; 5. Conflicts of Interest strategic direction, operating and • integrity of external regulatory capital budgeting, statutory and reporting. All Directors and senior managers risk management. In addition to The activities of the Audit and Risk are required to disclose any the scheduled meetings, the Board specific or general interests Committee are reported annually. meets several times each year to The Audit and Risk Committee which could be in conflict with consider specific opportunities and their obligations to MainPower invites the Chief Executive, other matters of importance to General Manager - Finance and New Zealand Limited and its the Company. Annually the Board subsidiaries. the external auditor to be in takes the opportunity to debate attendance at meetings of the 6. Board Review and review its long-term strategic Committee from time to time in direction. accordance with the Audit and The Board will undertake a self- Risk Committee Charter. The Audit assessment of its performance 9. Committees and Risk Committee also monitors and the performance of individual The Board has two standing the independence of the auditor Directors on at least a biennial committees and one oversight and approves and reviews those basis. The result of this review group. services provided by the auditor will be made available to the other than in its statutory audit role. MainPower Trust. Health and safety governance is treated as a whole Board In addition, the auditor provides a 7. Company Constitution responsibility with quarterly quarterly certificate to the Audit meetings held outside of formal and Risk Committee of any non- The Company’s Constitution sets Board meetings. statutory audit service provided to out policies and procedures on the the MainPower Group. operations of the Board, including 9.1 Audit and Risk Committee the appointment and removal Three Non-Executive Directors are The Audit and Risk Committee of Directors. The Constitution appointed to the Audit and Risk operates under a comprehensive specifies that the number of Committee on an annual basis. Charter, which outlines Directors will not at any time be the Committee’s authority, Current membership of the Audit more than eight nor less than four, membership, responsibilities and and Risk Committee is Ms J and that one-third of the Directors activities and which is approved by Fredric, Chair, Mr B Wood and Mr will retire by rotation each year. the Board. T King. Non-Executive Directors of The Charter is reviewed annually Following meetings of the MainPower are elected by the against best practice and emerging Committee, the Chairman reports Ordinary Shareholder. The Board trends. The primary function of the all findings and recommendations currently comprises five Non- Committee is to assist the Board to the Board. Executive Directors. in relation to the Company and its 9.2 Remuneration Committee The Directors of the Company subsidiary companies, with the The Remuneration Committee’s currently in office are: proper and efficient discharge of primary role is to advise the its responsibilities, to exercise due Tony King, Chairman Board on performance reviews, care, diligence and skill in relation Graeme Abbot, Director remuneration policies and practices to the oversight of the: Janice Fredric, Director and to make recommendations • appointment and performance on remuneration packages and Stephen Lewis, Director of the external auditors; other terms of employment for Fraser Jonker, Director • integrity of external financial non-executive directors, executive Brian Wood, Director reporting; directors and senior executives which fairly reward individual • financial management and performance in relation to their internal control systems; contribution to the Company’s
26 overall performance. operations, and continually Trust, provide the company with a Three Non-Executive Directors are monitors the operational, including Letter of Expectations from which appointed to the Remuneration health and safety, and financial a Statement of Corporate Intent Committee on an annual basis. aspects of the Company’s activities is developed between the Board and the Company’s exposure and the MainPower Trust. This In order to retain and attract to risk. “Risk Management and Statement details the Company’s Directors and executives of Compliance” is a permanent item intent with respect to: sufficient calibre to facilitate on the Agenda of the monthly • Strategic Objectives the efficient and effective meeting of Directors. governance and management of • Business Activities An annual review of the level the Company’s operations, the • Non-core Activities Remuneration Committee seeks and appropriateness of the advice of external advisors on Company’s insurance cover and • Performance remuneration practices. regular reporting by management • Distributions to Shareholders addressing the major areas of and Rebates Current membership of the risk supports the Board’s risk Remuneration Committee is Mr G management process. • Corporate Governance Abbot, Chair, Mr T King and Mr S Information is also communicated Lewis. To fulfil its responsibility, management maintains appropriate to shareholders in the Annual Following meetings of the accounting records and systems of Report, Interim Report, the Committee, the Chairman reports internal control. Company’s website, and at regular all findings and recommendations formal and informal meetings with to the Board. The Board has commenced the the MainPower Trust. The Board process for the development of an encourages full participation of 9.3 Asset Management Steering internal audit programme for the all shareholders at the Annual Group coming year. Meeting. The Asset Management Steering MainPower has developed The Statement of Corporate Intent Group’s primary function is to a comprehensive Business is subject to consultation between provide a healthy and collaborative Continuity Plan. This Plan details the Board and the Trust, prior to its environment where: the criteria and guidelines to apply adoption. • MainPower’s approach to asset to cope with a number of crisis management can be challenged, scenarios. The Company actively 13. Customers participates with Civil Defence and verified and validated resulting in During the last few years other relevant agencies in order to informed decisions; MainPower has developed and test the plan for effectiveness. • facilitate and enable asset expanded its relationship with its management at MainPower; 11. Non-Executive Directors’ customers through the publication of Live Lines, customer surveys, • allow for the strategic growth Fees sponsorships, community- of asset management at Fees for non-executive directors based initiatives, publication of MainPower; are based on the nature of their its Asset Management Plan, work and responsibilities. • provide for business proposals Pricing Methodology, Annual and and investment opportunities to Independent professional advice Interim Reports and Statement of be reviewed; on the level and structure of Corporate Intent. • assist and develop the nonexecutive directors’ fees, is governance management made available to the Board on an 14. Subsidiary Companies interface for asset management. annual basis. Any recommendation MainPower’s subsidiary companies Current membership of the made to shareholders at the each have a formally constituted Asset Management Steering Annual Meeting on a change in Board of Directors for trading Group is Mr S Lewis and directors’ fees is in accordance subsidiaries. The MainPower New management representatives with this independent advice. Zealand Limited Board receives Mr A Lester, Mr M Appleman monthly updates on and monitors 12. The Role of Shareholders and Ms S O’Donohue. the performance of each company. The Board aims to ensure that 10. Risk Management shareholders are informed of all The Board puts considerable major developments affecting the emphasis on risk management, Group’s state of affairs. given the critical nature of Each year, the major shareholder this aspect to the Company’s of MainPower, the MainPower
27 Appendix 2 is based on the fair value of the customers. Apart from providing Statement of Accounting consideration given in exchange for more extensive disclosures the assets. adoption of this standard has Policies Accounting policies have been had no impact on the timing of recognition of all major revenue Statement of Compliance selected and applied in a manner which ensures that the resulting items and therefore on reported MainPower New Zealand Limited financial information satisfies revenue in the current or prior year. (the Company) is a profit-oriented the concepts of relevance and Electricity Line revenue is company incorporated in New reliability, thereby ensuring that recognised at the fair value of Zealand under the Companies the substance of the underlying services provided. These revenue Act 1993. The Group consists of transactions or other events is streams relate to the provision of MainPower New Zealand Limited reported. Electricity distribution services. and its subsidiaries. The accounting policies set Consistent with NZ IFRS 15 this MainPower New Zealand’s parent out below have been applied revenue is recognised over time and ultimate controlling party is the in preparing these financial based on an output method as MainPower Trust. statements for the year ended 31 the service is delivered to match These financial statements have March 2019 and the comparative the pattern of consumption. been prepared in accordance with information presented in these Customer contribution revenue Generally Accepted Accounting financial statements for the year relates to contributions received Practice (GAAP). They comply ended 31 March 2018. from customers towards the with New Zealand Equivalents to costs of electricity supply to International Financial Reporting Changes in Accounting new subdivisions, constructing Standards Reduced Disclosure Policies uneconomic lines and relocating existing lines. The revenue Regime (‘NZ IFRS RDR’) and IFRS 9 – Financial Instruments other applicable financial reporting recognised is the fair value of the (effective on or after 1 January asset being constructed. standards as appropriate for profit- 2018) oriented entities. For contracts with multiple NZ IFRS 9 Financial Instruments The Group has adopted External performance obligations revenue includes revised guidance on the is recognised at a point in time Reporting Board Standard A1 classification and measurement ‘Accounting Standards Framework when the performance obligation is of financial instruments, a new satisfied. (For-profit Entities Update)’ expected credit loss model for (‘XRB A1’). For the purposes of calculating impairment on financial Critical Judgements, complying with GAAP, the Group assets, and new general hedge Estimates and Assumptions is eligible to apply Tier 2 For-profit accounting requirements. It also in Applying the Entity’s Accounting Standards (New carries forward the guidance on Accounting Policies Zealand equivalents to International recognition and derecognition Financial Reporting Standards – Preparing financial statements of financial instruments from NZ to conform with NZ IFRS Reduced Disclosure Regime (‘NZ IAS 39. The Group’s assessment RDR requires management to IFRS RDR’)) on the basis that it of adopting NZ IFRS 9 is that it make judgements, estimates does not have public accountability will not have a material impact on and assumptions that affect and it is not a large for profit the financial statements or any the application of policies and public sector entity. The Group has required restatement or accounting reported amounts of assets and elected to report in accordance treatment to the Financial liabilities, income and expenses. with NZ IFRS RDR. Instruments of the group. The estimates and associated Basis of Financial Statement IFRS 15 - Revenue from contracts assumptions have been based Preparation with customers (effective on or on historical experience and after 1 January 2018) other factors that are believed These financial statements are to be reasonable under the NZ IFRS 15 was adopted applying presented in New Zealand dollars, circumstances. These estimates the cumulative retrospective rounded to the nearest thousand. and assumptions have formed approach. NZ IFRS 15 provides the These financial statements have the basis for making judgements principles an entity shall apply to been prepared on the basis of about the carrying values of assets report useful information to users historical cost, except for the and liabilities, where these are of financial statements, about revaluation of certain financial not readily apparent from other the nature, amount, timing and instruments as outlined in note (e) sources. Actual results may differ uncertainty of revenue and cash and property, plant and equipment from these estimates. flows arising from contracts with as outlined in note (j) below. Cost Estimates and underlying
28 assumptions are regularly employee benefits and the carrying Statement of financial position. reviewed. Any change to estimates value of generation assets. On 28 September 2018 MainPower is recognised in the period if the sold the business net assets change affects only that period, or Significant Accounting Policies (including the company name) into future periods if it also affects of the major trading subsidiary future periods. The following significant Vircom Energy Management In the process of applying the accounting policies have been Services Limited to Vector Group’s accounting policies, adopted in the preparation and Limited. The sale price of the management has made the presentation of these financial business closely matched the following judgements, estimates statements: value of the investment in and assumptions that have had (a) Basis of Consolidation the Company’s books. As this the most significant impact on Subsidiaries business discontinued operation the amounts recognised in these during the year, the Statement of financial statements. Subsidiaries are entities controlled Comprehensive Income has been by the Company. The Group operates an extensive restated to exclude Vircom and integrated electricity distribution The consolidated financial moved to the line “Discontinued network comprising large numbers statements are prepared by Operations” as with the of relatively minor individual combining the financial statements comparatives network asset components. of all the entities that comprise Associate Companies – equity These components are replaced the consolidated entity, being accounting over time as part of an ongoing MainPower New Zealand Limited Associates are those entities in maintenance/refurbishment and its subsidiaries. Consistent which MainPower New Zealand programme, consistent with the accounting policies are employed Limited holds an interest in the Group’s approved network asset in the preparation and presentation equity and over which MainPower management plan. Any errors in of the consolidated financial New Zealand Limited exercises the estimates of such removals statements. significant influence, generally a are corrected at the next asset On acquisition, the assets, shareholding of between 20% and revaluation and are not considered liabilities and contingent liabilities 50% of the voting rights. to be material on either an annual of a subsidiary are measured at Equity accounting involves or a cumulative basis with respect their fair values at the date of recognising the Group’s share of to either reported net profits or acquisition. Any excess of the cost net surpluses or deficits as part carrying values of the network. of acquisition over the fair values of of operating revenue in profit or Refer also note (j) property, the identifiable net assets acquired loss. In the Statement of financial plant and equipment regarding is recognised as goodwill. If, after position, the Group’s interest in revaluations. reassessment, the fair values of the associate company is carried The Group invoices its customers the identifiable net assets acquired, at an amount that reflects the (predominantly electricity retailers) exceeds the cost of acquisition, the Group’s share of the net assets of monthly for electricity delivery difference is credited to profit or that company unless the Group services on the basis of an loss in the period of acquisition. The has determined that the Associate estimation of usage, adjusted for consolidated financial statements company has little or any value. the latest washed-up data available include the information and results (b) Goods and Services Tax from the electricity wholesale of each subsidiary from the date market and certain metering on which the Group obtains control Revenues, expenses, cash flows data from electricity retailers. and until such time as the Group and assets are recognised net of When determining line revenue, ceases to control the subsidiary. In the amount of goods and services management recognises actual preparing the consolidated financial tax (GST), except for receivables amounts billed during the financial statements, all intergroup balances and payables which are recognised period and, if material, makes and transactions, and unrealised inclusive of GST. Where GST is not an adjustment to recognise the profits arising within the Group are recoverable as an input tax it is estimated value of unread meters eliminated in full. recognised as part of the related where applicable. In dealing with acquisitions from asset or expense. Cash flows in respect of payments to and Other areas where judgement entities under common control receipts from Inland Revenue are has been exercised in preparing the assets and liabilities of the shown net in the statement of these financial statements are in entity acquired is included at their cash flows. relation to assessing the level of pre-acquisition carrying amount. any unrecoverable work in progress Equity of subsidiaries are shown and calculating provisions for separately in the consolidated
29 (c) Foreign Currency are stated at cost less impairment difference arises from the initial The functional and presentation losses. recognition of goodwill or from currency is New Zealand dollars. Contract work in progress is stated the initial recognition of an asset Transactions in foreign currencies at cost plus attributable profit to and liability in a transaction that are translated at the foreign date (based on percentage of is not a business combination, exchange rate ruling on the day of completion of each contract) less and at the time of the transaction, the transaction. Foreign currency progress billings. Cost includes all affects neither accounting profit monetary items at balance date costs directly related to specific nor taxable profit. Deferred tax is are translated at the exchange contracts and an allocation of recognised on taxable temporary rate ruling at that date. Exchange general overhead expenses differences arising on investments differences are recognised in profit incurred by the contracting in subsidiaries, except where the or loss in the period in which they subsidiaries. Losses on contracts Company can control the reversal arise. are taken to profit or loss in the of the temporary difference and period in which they are identified. it is probable that the temporary (d) Cash and Cash Equivalents Details of the impairment tests difference will not reverse in the Cash and cash equivalents performed are disclosed in note (i). foreseeable future. Deferred comprise cash on hand, cash in tax is calculated at the tax rates banks, investments in money (f) Inventories that are expected to apply in the market instruments, and bank Inventories are valued at the lower period when the liability is settled overdrafts. of cost, determined on a weighted or the asset is realised, using tax average basis, and net realisable rates that have been enacted or (e) Financial Assets value. substantively enacted by balance Investments are recognised and date. (g) Income Tax derecognised on trade date where Current tax and deferred tax is purchase or sale of an investment Income tax expense in relation to charged or credited to profit or is under a contract whose terms the surplus for the year comprises loss, except when it relates to require delivery of the investment current tax and deferred tax. items charged or credited directly within the timeframe established Current tax is the amount of to equity, in which case the tax is by the market concerned. income tax payable based on the dealt with in equity. The classification into the following taxable profit for the current year, (h) Leased Assets categories depends on the purpose plus any adjustments to income tax for which the investments were payable in respect of prior years. MainPower leases certain motor vehicles, plant and equipment acquired. Management determines Current tax is calculated using and land and buildings. All leases the classification of its investments rates that have been enacted or are classified as operating leases. at initial recognition and reevaluates substantively enacted by balance Operating lease payments, this designation at every reporting date. where the lessors effectively date. Deferred tax is the amount of retain substantially all the risks income tax payable or recoverable Financial assets at fair value through and benefits of ownership of the in future periods in respect of profit or loss leased items, are recognised as temporary differences and unused The Group has certain derivatives an expense on a straight-line basis tax losses. Temporary differences which are stated at fair value and over the lease term. the movements are recognised in are differences between the profit or loss (refer to note (q)). carrying amount of assets and (i) Impairment of Assets liabilities in the financial statements The carrying amounts of the Held to maturity investments and the corresponding tax bases Certain deposits, notes and bonds Group’s assets are reviewed at used in the computation of taxable each balance date to determine held by the Group classified profit. as being held to maturity are whether there is any indication of measured at amortised cost using Deferred tax liabilities are impairment. If any such indication the effective interest method. generally recognised for all taxable exists for an asset, the asset’s temporary differences. Deferred recoverable amount is estimated Loans and receivables tax assets are recognised to the in order to determine the extent of Accounts receivable are stated at extent that it is probable that the impairment loss (if any). Where amortised cost less impairment taxable profits will be available the asset does not generate cash losses. All known bad debts are against which the deductible flows that are independent from written off during the financial temporary differences or tax losses other assets, the consolidated year. Intergroup balances due can be utilised. Deferred tax is entity estimates the recoverable from subsidiaries and associates not recognised if the temporary amount of the cash-generating unit
30 to which the asset belongs. in respect of an investment in an Depreciation is provided on The recoverable amounts are the equity instrument classified as property, plant and equipment, higher of fair value (less costs to available-for-sale is not reversed including freehold buildings and sell) and value in use. In assessing through profit and loss. landscaping. value in use, the estimated future (j) Property, Plant and Equipment Depreciation on revalued buildings pre-tax cash flows are discounted and the distribution system is Land and buildings are valued at fair to their present value using a charged to profit or loss. On the value. Fair value is determined on pre-tax discount rate that reflects subsequent sale or retirement of the basis of a periodic independent current market assessments of a revalued item, the attributable valuation prepared by external the time value of money and the revaluation surplus remaining in valuers, based on discounted risks specific to the asset for which the asset revaluation reserve, net cash flows or capitalisation of net the estimates of future cash flows of any related deferred taxes, is income (as appropriate). The fair have not been adjusted. transferred directly to retained values are recognised in these earnings. Plant and equipment are A cash generating unit is defined financial statements of the Group, valued at cost less accumulated as the smallest identifiable group of and are reviewed at the end of depreciation and impairment. Cost assets that generates cash inflows each reporting period to ensure includes expenditure that is directly that are largely independent of the that the carrying value of land and attributable to the acquisition of the cash inflows from other assets or buildings is not materially different item. The cost of self-constructed groups of assets. from fair value. assets includes the cost of Goodwill is tested for impairment The electricity distribution network materials and direct labour and an annually and whenever there is an is valued at fair value. Fair value allowance for overheads. indication that it may be impaired; is determined on the basis of a Depreciation is calculated on any impairment is recognised periodic independent valuation a straight-line basis so as to immediately in the Statement of prepared by external valuers, write off the net cost or other comprehensive income and is not based on a discounted cash flow revalued amount of each asset subsequently reversed. methodology. The fair values are over its expected useful life to recognised in these financial If a revalued asset is determined to its estimated residual value. statements of the Group and be impaired, then the impairment Leasehold improvements are are reviewed at the end of each is firstly applied against the related depreciated over the period of reporting period to ensure that the component of the revaluation the lease or estimated useful life, carrying value of the distribution reserve, with any remaining whichever is the shorter, using the system is not materially different impairment loss expensed in profit straight-line method. The estimated from fair value. Consideration is or loss. If the impairment loss is useful lives, residual values and given as to whether the distribution subsequently reversed, the reversal depreciation method are reviewed system is impaired as detailed in is firstly applied to profit or loss to at the end of each annual reporting note (i). the extent of previously expensed period. The main bases for the impairment losses relating to that Any revaluation increase arising calculation of depreciation are as asset, with any further increase on the revaluation of land and follows: taken to the revaluation reserve. buildings and the distribution Years For assets which are not revalued, system is credited to the asset Electricity an impairment loss is expensed revaluation reserve, except to 7 to 70 distribution network immediately in profit or loss. An the extent that it reverses a impairment loss is reversed only revaluation decrease for the same Buildings 6 to 100 to the extent that the asset’s asset previously recognised as an Office furniture carrying amount does not exceed expense in profit or loss, in which 3 to 20 and equipment the carrying amount that would case the increase is credited to Plant and have been determined, net of profit or loss to the extent of the 2 to 25 depreciation, if no impairment loss decrease previously charged. equipment had been recognised. A decrease in carrying amount Vehicles 4 to 10 arising on the revaluation of land Equity instruments, being shares and buildings and the distribution Generation in subsidiaries, are deemed to 10 to 20 system is charged as an expense Assets be impaired whenever there is a in profit or loss to the extent that significant or prolonged decline it exceeds the balance, if any, held The carrying amount for an item in fair value below the original in the asset revaluation reserve of property, plant and equipment purchase price. Any subsequent relating to a previous revaluation of is written down immediately to its recovery of an impairment loss that asset. recoverable amount if the asset’s
31 carrying amount is greater than its at fair value (being cost), and derivative financial instruments to estimated recoverable amount. subsequently at amortised cost. manage its exposure to interest rate and foreign exchange rate Gains and losses on disposals are (n) Borrowings determined by comparing proceeds risks, including foreign exchange Borrowings are recorded initially at with carrying amount. These gains forward contracts, interest rate fair value, plus transaction costs. and losses are included in profit swaps and currency swaps. Subsequent to initial recognition, or loss. When revalued assets are Derivatives are initially recognised borrowings are measured at sold, the amounts included in the at fair value at the date the amortised cost with any difference revaluation reserve in respect of derivative contracts are entered between the initial recognised those assets are transferred to into and are subsequently amount and the redemption value retained earnings. remeasured to their fair value at being recognised in profit or loss the end of each reporting period. (k) Intangible Assets over the period of the borrowing The resulting gain or loss is using the effective interest rate Computer software recognised in profit or loss. Acquired computer software method. (r) Revenue Recognition licences are capitalised on the (o) Employee Benefits basis of costs incurred to acquire Revenue from lines revenue, Provisions made in respect of and bring to use the specific capital contributions and the sale employee benefits expected to software. These costs are of goods is recognised when the be settled within 12 months are amortised over their estimated Group has transferred to the buyer measured at their nominal values useful lives. Usually this period the significant risks and rewards of using the remuneration rate does not exceed 5 years. ownership of the goods. Revenue expected to apply at the time of from a contract to provide services Research and development costs settlement. Expenditure on research activities is recognised by reference to the Provisions made in respect of is recognised as an expense in stage of completion of the contract employee benefits which are not the period in which it is incurred. at the balance date as measured expected to be settled within 12 An intangible asset arising by progress invoices raised to months, such as long service, from development (or from customers in conjunction with an sickness and retiring leave, are the development phase of an assessment of costs incurred to measured as the present value of internal project) is recognised if date. the estimated future cash outflows future benefits are expected to Interest revenue is recognised in to be made by the Group in respect exceed these costs. Otherwise profit or loss as it accrues, using of services provided by employees development expenditure is the effective interest rate method. up to reporting date taking into recognised as an expense in the account years of service, years (s) Capital Contributions period in which it is incurred. to entitlement and the likelihood Capital contributions from (l) Goodwill staff will reach the point of customers, relating to assets, are Goodwill, representing the excess entitlement, determined annually credited directly to income when of the cost of acquisition over the by independent actuarial valuation. the asset is connected to the fair value of the identifiable assets, (p) Financial Instruments Issued network. liabilities and contingent liabilities by the Group (t) Distinction between Capital acquired, is recognised as an Debt and equity instruments and Revenue Expenditure asset and is not amortised, but it are classified as either liabilities is tested for impairment annually Capital expenditure is defend or as equity in accordance with and whenever there is an indication as all expenditure incurred in the substance of the contractual that the goodwill may be impaired. the creation of a new asset and arrangement. Interest and Any impairment is recognised any expenditure that results in a dividends are classified as immediately in profit or loss and is significant restoration or increased expenses or as distributions not subsequently reversed. Refer service potential for existing of profit consistent with the also to note (i). assets. Constructed assets are Statement of financial position included in property, plant and (m)Payables classification of the related debt or equipment as each becomes Trade payables and other accounts equity instruments or component operational and available for use. payable are recognised when the parts of compound instruments. Revenue expenditure is defined as Group becomes obliged to make (q) Derivative Financial expenditure that is incurred in the future payments resulting from the Instruments maintenance and operation of the purchase of goods and services. property, plant and equipment of The Group enters into a variety of Trade payables are recognised the Group.
32 (u) Borrowing Costs Borrowing costs are expensed using the effective interest rate method.
Adoption of New and Revised Standards and Interpretations In the current year, the company has adopted all new mandatory and amended standards and interpretations as issued by the External Reporting Board.
Standards and Interpretations in Issue Not Yet Adopted At the date of authorisation of these financial statements, the following standards were in issue but not yet adopted.
Adoption of New and Revised Standards and Interpretations – Standards and Interpretations in Issue not yet Effective No new accounting, standards or interpretations have been adopted during the year that have had a material impact on these financial statements. The Group is currently reviewing but has not yet fully assessed the impact of NZ IFRS 16 Leases and Equipment (31 March 2020).
33 Appendix 3: Glossary of Terms and Abbreviations
TERM OR ABBREVIATION DEFINITION
Asset Management Plan Annual plan that documents asset management risks, objectives, processes and plans with specific focus on service targets, and the development, maintenance and replacement plans for our assets. The plan complies with the requirements of clause 2.6.1 of the Electricity Distribution Information Disclosure Determination 2012.
Behind the meter On the owner’s property; not on the side of the electricity grid
Distribution Network or Grid The power lines and underground cables that transport electricity from the national grid to homes and businesses.
Employer Value Proposition Characteristics and appeal of working for an organisation
EV Electric vehicle
FY Fiscal Year
GWh Gigawatt-hour
HSEQ Health, Environment, Safety and Quality
Installation Control Point Physical point of connection on a local network
Internet of Things The interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.
Master Plan Long term network capacity development plan
MW Megawatt. One megawatt = 1,000 kilowatts = 1,000,000 watts.
Network Area MainPower’s electricity network extends from the north of Christchurch city starting at Kainga, Stewarts Gully, Coutts Island; through to and across the Waimkariri, Hurunui and Kaikoura Districts, up to the Clarence River
SAIDI System Average Interruption Duration Index
SAIFI System Average Interruption Frequency Index
Smart Grid Embracing technology to produce a grid that responds quickly to changing demand.
Transmission Transpower owns and operates the national grid. The high-voltage transmission network that connects areas of generation with towns and cities across New Zealand.
Substation A collection of equipment at one location, including any necessary housing, used to convert or transform electric energy and connect between two or more feeders.
34 MainPower New Zealand Limited 172 Fernside Road PO Box 346, Rangiora 7440 Telephone 0800 30 90 80 www.mainpower.co.nz
Version 4.0 20.06.19