Ownership Review 2016

Total Page:16

File Type:pdf, Size:1020Kb

Ownership Review 2016 West Coast Electric Power Trust Ownership review June 2016 Ownership review of West Coast Electric Power Trust Final report 15 April 2011 Mr Ian Hustwick Chairman West Coast Electric Power Trust Sunny Bight Road Lake Kaniere Hokitika 16 June 2016 Ownership review – final report Dear Ian, In accordance with the terms of our engagement letter dated 21 January 2016, we attach our final report regarding the ownership review of West Coast Electric Power Trust. Our key findings are contained in the Executive Summary of the report. If you have any queries please do not hesitate to contact us. Yours sincerely Craig Rice Lynne Taylor Partner Director T: (09) 355 8641 T: (09) 355 8573 M: 021 624 462 M: 021 779 088 PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz Table of Contents West Coast Electric Power Trust .................................................................................................................................. 1 1. Introduction ............................................................................................................................................................ 5 2. Executive summary ................................................................................................................................................. 6 2.1. Trust performance ............................................................................................................................................. 6 2.2. Westpower (group) performance ...................................................................................................................... 6 2.3. Network performance benchmarking................................................................................................................ 7 2.4. ElectroNet performance ..................................................................................................................................... 7 2.5. Generation performance .................................................................................................................................... 7 2.6. Ownership structure .......................................................................................................................................... 8 2.7. Conclusions ........................................................................................................................................................ 8 3. WCEPT Performance .............................................................................................................................................. 9 3.1. Overview ............................................................................................................................................................. 9 3.2. Financial performance....................................................................................................................................... 9 3.3. Trust benchmarking .........................................................................................................................................10 4. Westpower performance ........................................................................................................................................ 12 4.1. Overview ............................................................................................................................................................ 12 4.2. Financial performance...................................................................................................................................... 12 4.3. Financial position ............................................................................................................................................. 14 4.4. Performance against SCI targets ...................................................................................................................... 15 5. Westpower electricity network performance ........................................................................................................ 17 5.1. Industry performance benchmarking.............................................................................................................. 17 5.1.1. Overview ...................................................................................................................................................... 17 5.1.2. Grouping Networks for Comparison Purposes .......................................................................................... 17 5.1.3. Westpower and the Peer Group .................................................................................................................. 19 5.1.4. Network Characteristics .............................................................................................................................. 19 5.1.5. Growth trends .............................................................................................................................................. 21 5.1.6. Reliability ..................................................................................................................................................... 21 5.1.7. Expenditure ................................................................................................................................................ 24 5.1.8. Prices ............................................................................................................................................................ 31 5.1.9. Profits .......................................................................................................................................................... 33 5.2. Conclusion on Peer Group Comparisons ....................................................................................................... 34 6. ElectroNet group performance ............................................................................................................................. 35 6.1. Overview ........................................................................................................................................................... 35 6.2. Financial performance..................................................................................................................................... 35 6.3. Financial position ............................................................................................................................................ 35 6.4. Performance against SCI targets ..................................................................................................................... 36 WCEPT Ownership Review PwC Page 3 of 59 6.5. Future prospects .............................................................................................................................................. 36 7. Generation Performance ....................................................................................................................................... 37 7.1. Overview ........................................................................................................................................................... 37 7.2. Financial performance..................................................................................................................................... 37 7.3. Performance against SCI targets ..................................................................................................................... 37 7.4. Future prospects .............................................................................................................................................. 38 8. Ownership structure ............................................................................................................................................. 39 8.1. Overview ........................................................................................................................................................... 39 8.2. Company objectives ......................................................................................................................................... 39 8.3. WCEPT trust model .......................................................................................................................................... 41 8.4. Ownership options ............................................................................................................................................ 41 8.5. Assessment of options ..................................................................................................................................... 42 8.6. Conclusions ...................................................................................................................................................... 44 9. Conclusions ........................................................................................................................................................... 46 Appendix A: Restrictions ........................................................................................................................................... 47 Appendix B: Benchmarking ....................................................................................................................................... 48 WCEPT Ownership Review PwC Page 4 of 59 1. Introduction West Coast Electric Power Trust (“WCEPT” or “the
Recommended publications
  • Distributed Generation – Information Pack
    DISTRIBUTED GENERATION INFORMATION PACK Issue 1.5 December 2017 DDiissttrriibbuutteedd GGeenneerraattiioonn Guidelines & Application Form For small generators – total capacity less than 10 kW (Simplified Approval Process – Part 1A) Issue 1.5 / 20 December 2017 Installing distributed See the attached guide for generation with a This document is subject to details of each numbered step. capacity less than change without any prior notice. 10 kW Interpretation: Please ensure you have the (Simplified Process) Generator - is referred to the person or an latest version. organisation that owns or operates distribution START HERE generators. 1 Note: The Generator can apply for Typically smaller distributed generation systems approval under “Simplified Process” if of this size are rotating (turbine) based systems, the system meets all requirements System Selection solar photovoltaic panels, etc. presented in the “System selection” section. Application Process 2 Note: The Generator will submit the Within 2 business days of receiving the application accompanied with the application, Westpower will advise the Generator additional information and the Submission of that the application has been received. If no application fee. Application response is received within this period, the Generator should contact Westpower. 3 Notes: Within 10 business days of receiving the complete application, Westpower will inspect 1. Westpower will assess the application the distributed generation system and provide for completeness and deficiencies as the final approval. well as compliance with Congestion Westpower will provide the Generator with a Management Policy. Application Approval time and date for the inspection within 2 2. If there are any deficiencies identified Process business days. during the approval process, Westpower will notify the Generator The Generator has to remedy the deficiencies within 10 business days, with what is and pay the applicable fees within 10 business required to correct these deficiencies.
    [Show full text]
  • Cross-Submission on the IM Review: Draft Decision Papers
    Cross-Submission on the IM Review: Draft Decision Papers Unison Networks Limited 18 August 2016 Unison Cross-Submission on the IM Review – Draft Decision Papers TABLE OF CONTENTS 1. INTRODUCTION AND SUMMARY ............................................................................ 3 1.1 Introduction ............................................................................................................................... 3 1.2 Summary .................................................................................................................................. 3 1.3 Submission Contact ................................................................................................................. 3 2. RESPONSE TO ERANZ – EMERGING TECHNOLOGY ............................................. 4 2.1 Competition and Scope of Regulated Service ......................................................................... 4 2.2 ERANZ Alternative Proposal .................................................................................................... 5 3. RESPONSE TO CONTACT ENERGY – EMERGING TECHNOLOGY ......................... 7 3.1 Regulatory Treatment of Revenues and Costs from Emerging Technology ........................... 7 4. RESPONSE TO TRUSTPOWER – EMERGING TECHNOLOGY ................................ 8 4.1 Treatment of emerging technologies under Part 4 regime ....................................................... 8 4.2 Distributed Generation Pricing Principles (DGPPs) ................................................................
    [Show full text]
  • 1 Kawatiri Energy Ltd 212 Crawford Street PO Box 851 Dunedin, 9016
    Kawatiri Energy Ltd 212 Crawford Street PO Box 851 Dunedin, 9016 New Zealand By email: [email protected] 9 October 2018 Submissions Electricity Authority P O Box 10041 Wellington By email: [email protected] Dear Electricity Authority Board members, RE: Consultation Paper – List of distributed generation eligible to receive ACOT, Upper South Island Kawatiri Energy owns and operates a 4.2MW hydro generating station at Lake Rochfort in the Buller region on the West Coast. This plant has storage and has been operating since 2013. Water comes into the storage lake from a number of tributaries along the Mt Rockfort range and the generation plant can operate at 100% capacity for 2.5 days from a position of full storage. The plant has a frequency governor and is able to support the entire Buller network outside of peak load periods as well as inject power into the transmission network. Kawatiri’s plant is significant in the Buller Electricity Limited (BEL) network. Distributed generation (DG) accounts for ~30% of maximum coincident MWs and GWh demand on that network1. Transpower2 explicitly includes Kawatiri generation in its planning for operating and maintaining the grid to the required standards. Kawatiri is a member of the Independent Electricity Generators Association Incorporated (IEGA) and support the IEGA’s submission. 1 Buller Electricity Limited 2018 Asset Management Plan. Maximum coincident demand on the network is 11MW made up of supply from DG of 3MW and supply from the grid at 8MW. For the year end 31 March 2019 BEL forecast DG to supply 16GWhs of total demand of 54GWhs.
    [Show full text]
  • Register Now at NEW ZEALAND
    NEW ZEALAND THE ENERGY SECTOR’S ANNUAL STRATEGIC FORUM 2014 5 & 6 March 2014, SKYCITY Convention Centre, Auckland Macro Gas Issues Christoph Frei Carl Hansen Ken Sutherland World Energy Council Electricity Authority Unison New Retailers Smart Meter Stocktake Alison Andrew Sjoerd Post David Parker Emerging International Trends Transpower Rening NZ Labour Party See the Tesla Roadster DIAMOND SPONSOR GOLD SPONSOR DINNER SPONSOR LUNCH SPONSOR CAFE SPONSOR FOUNDATION PARTNERS Register now at www.nzdownstream.co.nz NEW ZEALAND THE ENERGY SECTOR’S ANNUAL STRATEGIC FORUM 2014 Bringing the key strategic, commercial and stakeholder issues to the table • Hear from the major political parties and industry in the debate on NZ Power • The annual Leaders’ Panel focus on the consumer HIGHLIGHTS FOR 2014 • Rening NZ CEO talks transport fuels and the next chapter for New Zealand • Inaugural industry address from the new Transpower CEO • Unlocking energy poverty – the role of the industry The Downstream Gala Dinner is a great opportunity for the industry to round off the rst day and proved to be a great hit ANNUAL NEW ZEALAND in 2013. Take advantage of the informal atmosphere to share ideas, network and do business with your peers and clients DOWNSTREAM DINNER whilst enjoying a lavish dinner and drinks reception. International speed painter Brad Blaze will be joining us. Brad is the fastest portrait artist in the world and has enthralled audiences around the globe. Register now at www.nzdownstream.co.nz Dr. Christoph Frei, Secretary General, World Energy Council Dr. Christoph Frei became the fth WEC Secretary General on 1 April 2009.
    [Show full text]
  • EEA Conf Programme 2021
    Conference Programme - Provisional - 29 March 2021 WEDNESDAY, 30 JUNE 2021 8.30am REGISTRATION & TRADE EXHIBITION OPENS ROOM 3 ROOM 4 ROOMS 2 TO 4 9.30am CONFERENCE OPENING 9.35am Keynote Address 1 10.10am Keynote Address 2 10.45am ROOM 1 ROOM 2 ROOM 3 ROOM 4 CARBON ZERO SMART TECHNOLOGY FUTURE GRIDS PANEL SESSION 1 11.00am Architecture of the Future Low-Carbon, ConductorDown – A groundbreaking safety solution for New approaches to network planning. Details to be advised Resilient, Electrical Power System. overhead distribution networks. Richard Kingsford, WEL Networks Prof. Neville Watson, University of Rodger Griffiths, Electronet Technology Canterbury 11.30am Perverse incentives creating an impact on Practical experience of IEC61850 and future IoT for a smarter grid. network performance and New Zealand’s zero applications. Max Feickert, Energy Outcomes & Darren carbon future. Nathan Rich, Connetics Ltd Lucinsky, Electra Ltd Dougal McQueen & Junaid Qureshi, Aurora Energy 12.00pm The effects on the wider electricity network of Enhancing rating studies through soil digital twin. The use, development and improvement of heating decarbonisation projects. Nu’man Rashid, Unison Networks Ltd approaches for generation balancing to meet peak Campbell Rae, Connetics Ltd demand. Katherine Moore, Transpower NZ Ltd 12.30pm LUNCH ASSET MANAGEMENT INNOVATION FUTURE ENERGY SECURITY INNOVATIVE TECHNOLOGY SMART TECHNOLOGY 1.30pm Rethinking test data and reporting. An Electricity network infrastructure resilience through the Implementation of Whangamata’s
    [Show full text]
  • EEA Conf Programme
    Conference Programme - 11 June 2018 WEDNESDAY, 20 JUNE 2018 12.00pm AGM AUCKLAND 3 & 4 1.30pm Bob Taylor EEA President 1.45pm Olivia Carpenter, Ricardo Energy & Environment (IET UK) The cutting edge of the UK Power Sector: making innovation happen 2.30pm Shay Bahramirad, ComEd, (IEEE PES, US) Utility of the Future: The Foundation of Smart Cities 3.15pm AFTERNOON TEA AUCKLAND 1 AUCKLAND 2 AUCKLAND 3 AUCKLAND 4 NOVEL APPROACHES TO LV NETWORK - ADAPTING TO ASSET MANAGEMENT - FORECASTING, LESSONS LEARNT IN HYDROPOWER TRADITIONAL ASSETS DISTRIBUTED GENERATION CRITICALITY & RISK Distribution Overhead HV Switchgear Six Stations, One Set-point - Teviot Hydro Benefits of using voltag e regulating distribution Defects Risk Analysis - Visibility for 3.45pm Maintenance and Replacement Learning's Scheme Automatic Optimal Dispatch transformers for grid integration of renewables – Engagement Leo Liu, Counties Power Pete McClean, Pioneer Energy & Jamie Walton, Lessons learned from first installations in Karen Frew, Powerco Beca Ltd Australia and New Zealand Dr. Thomas Smolka, Reinhausen Australia 4.15pm Finalised Surface Foundations for Lessons learned from the Manapouri station Study of Voltage Profile in a Low Voltage Experience in Asset Management Improvement Emergency Poles ramp-down event Distribution Network based on ISO 55001 Principles Wal Marshall, LineTech Consulting & Bradley Chris Ewers, Meridian Energy Parash Acharya, EPECentre, University of Dr. Robin Platfoot, Covaris Pty Ltd & Ying Wang, Singh, Wellington Electricity Lines Ltd Canterbury Consulink 4.45pm Insulating Oil - Electrical Considerations Bricks and Mortar, Fire and Water – Protecting Predicting voltage variations with new Asset renewal of a distribution network – Chian Yaw Toh, Nynas Pte Ltd/Nynas AB, Power Transformers at Meridian Energy’s Ohau prosumers in low voltage networks the need for increased investment Singapore A Power Station Ashish Gupta, University of Melbourne Michael O’Brien, Powerco Dr.
    [Show full text]
  • Electricity and Gas Complaints Commissioner Scheme
    Electricity and Gas Complaints Commissioner Scheme ANNUAL REPORT ANNUAL 13 14 The Electricity and Gas Complaints Commissioner Scheme offers a free and independent service for resolving complaints about electricity and gas companies Definitions: Complaint issues Complaint – an expression of dissatisfaction related to services, or the complaints handling process itself, where a response or resolution is explicitly or 11 - 12 12 - 13 13 - 14 implicitly expected Billing 42.3% 46.4% 43.0% In EGCC statistics: Enquiry – any contact where the person wants information Customer service 17.7% 16.3% 16.9% Complaint – any contact where the person makes a complaint Deadlock / complaint reaching deadlock – when a complaint has not been Disconnection 8.1% 9.2% 9.7% resolved within 20 working days and is within the Commissioner’s jurisdiction Acronyms: Meter 9.5% 7.0% 9.5% EGCC – Electricity and Gas Complaints Commissioner Scheme, sometimes the Scheme Supply 5.1% 4.5% 5.1% EA – Electricity Authority GIC – Gas Industry Company This table shows the top five issues in complaints. See the website for a full list. MBIE – Ministry of Business, Innovation and Employment EIA – Electricity Industry Act 2010 Days to close Enquiries and complaints received Cost per case deadlocked102 complaints Average working days to close $436.88 $440.91 11 - 12 12 - 13 13 - 14 65 4783 4312 61 61 Enquiries 4387 $304.47 2707 2045 Complaints 2070 7490 6357 Total cases 6457 11 12 13 11 12 13 12 13 14 12 13 14 2 Chair’s report This is my first report as Independent Chair of the Electricity and Gas Complaints Commissioner Scheme (the EGCC).
    [Show full text]
  • ENA's Response to Climate Change Commission's Draft Advice
    Date: 28 March 2021 Name of submitter: Electricity Networks Association Industry/area of interest: Utilities/infrastructure Contact details Richard Le Gros, Manager, Policy and Innovation Address: Level 5, Legal House 101 Lambton Quay WELLINGTON 6011 Telephone: 64 4 471 1335 Email: [email protected] 2021 Draft Advice for Consultation Submission to the Climate Change Commission From the Electricity Networks Association ELECTRICITY NETWORKS ASSOCIATION Draft Advice submission to Climate Change Commission Contents 1. Introduction ................................................................................................................ 3 2. Overview ..................................................................................................................... 3 3. Question 1 - Principles to guide our advice ................................................................... 3 4. Question 15 - Do you support the package of recommendations and actions for the heat, industry and power sectors? ................................................................................ 5 5. Question 19 - Multisector strategy - Do you support the package of recommendations and actions to create a multisector strategy? ................................................................ 9 6. Conclusion .................................................................................................................. 10 7. Appendix ...................................................................................................................
    [Show full text]
  • Electricity Distributors' Performance from 2008 to 2011
    ISBN no. 978-1-869453-02-2 Project no. 14.20/13107 Public version Electricity distributors’ performance from 2008 to 2011 Date: 29 January 2013 2 Chapter 1 Introduction 4 Helping customers understand how their electricity distributor is performing 4 We have focused on some key areas of performance 4 We use public information to give an overview of distributors’ performance 5 Structure of this report 5 We would like to hear how useful you found this report 5 Chapter 2 Overview of New Zealand’s electricity industry 6 The main parts of the electricity industry supply chain 6 Key features of the New Zealand electricity distribution sector 7 Chapter 3 Our role in the electricity industry 11 How we regulate electricity distributors in New Zealand 11 Chapter 4 Overview of industry performance 14 Prices, revenue and demand 16 How reliable is electricity distribution in New Zealand? 25 Expenditure 28 3 On 5 February 2013 we made some corrections to the paper. The table below summarises the changes. Distributor Change Buller corrected information in Table 7.1 Electricity Invercargill corrected information in Table 13.1; replaced $7.5m with $1m in commentary under Figure 13.3 MainPower corrected information in Table 16.1 Orion corrected information in Table 22.1; replaced ‘Electra’ with ‘Orion’ in notes to Figures 22.13 and 22.14 OtagoNet corrected information in Table 23.1 Powerco corrected information in Table 24.1 The Power Company corrected information in Table 25.1 Vector corrected information in Table 29.1; added note under Figure 29.1; corrected Figure 29.17 WEL Networks corrected information in Table 31.1 Wellington corrected wording above Figure 32.17 Westpower corrected information in Table 33.1 Introduction 4 Chapter 1 Introduction Helping customers understand how their electricity distributor is performing We have written this report primarily for customers of electricity distribution services, by which we mean people who have, and pay for, a connection to an electricity distribution network.1 This includes both households and businesses.
    [Show full text]
  • Energy Complaints Scheme – Accepted Deadlocked Complaints Report for the Period 1 April 2020 - 31 March 2021
    Energy Complaints Scheme – accepted deadlocked complaints report for the period 1 April 2020 - 31 March 2021 Accepted deadlocked complaints The tables below show the number of deadlocked complaints that were accepted for consideration, and the relevant provider. Not all providers in the Energy Complaints Scheme had an accepted deadlocked complaint in this period. A full provider list is available on our website: www.utilitiesdisputes.co.nz The tables also show each providers’ market share, which is calculated by the number of installation control points (ICPs) or equivalent. Total ICPs (or equivalent) were calculated on 28 February 2021 from ICPs on the electricity and gas registries, and customer numbers obtained from providers. Distributors Distributor Accepted Share of Total ICPs Market share deadlocked accepted (or of ICPs (or complaints deadlocked equivalent) equivalent) complaints Alpine Energy 1 1.8% 33,113 1.3% Aurora Energy 7 12.7% 92,584 3.7% Counties Power 2 3.6% 44,978 1.8% Electra 1 1.8% 45,697 1.8% ElectroNet Services * 1 1.8% 0 0.0% Horizon Networks 1 1.8% 24,940 1.0% MainPower 1 1.8% 41,494 1.6% Northpower 3 5.5% 60,326 2.4% Orion 1 1.8% 208,259 8.2% Powerco 6 10.9% 447,295 17.7% The Lines Company (TLC) 3 5.5% 23,716 0.9% Top Energy 4 7.3% 33,049 1.3% Unison 4 7.3% 113,586 4.5% Vector 17 30.9% 699,786 27.7% WEL Networks 3 5.5% 95,851 3.8% Total 55 100% 1,964,674 77.8% Total ICPs (or equivalent) for all electricity and gas distributors: 2,524,362 Key: *Subsidiary of Westpower.
    [Show full text]
  • Annual Report
    2017 WEL Networks Annual Report 0800 800 935 | wel.co.nz ISSN 2463-4646 (print) 02 2017 WEL Networks | Annual Report THIS IS THE ANNUAL REPORT OF WEL NETWORKS LIMITED Dated this 25th day of May 2017 Signed for and on behalf of the Board of Directors MARGARET DEVLIN Chairman PAUL MCGILVARY Chairman Audit and Risk Committee CONTENTS VISION 02 COMPANY PROFILE 03 QUICK FACTS 04 KEY PERFORMANCE INDICATORS 06 CHAIRMAN’S REPORT 11 CHIEF EXECUTIVE’S REPORT 13 IN THE NEWS 16 DIRECTOR PROFILES 19 CORPORATE GOVERNANCE 21 DIRECTORS’ DISCLOSURES OF INTEREST 22 EXECUTIVE MANAGEMENT 23 WEL ENERGY TRUST 26 FINANCIAL STATEMENTS 28 AUDITORS’ REPORT 70 DIRECTORS’ REPORT AND STATUTORY INFORMATION 73 DIRECTORY 76 02 2017 WEL Networks | Annual Report VISION PROVIDING HIGH QUALITY, RELIABLE UTILITY SERVICES VALUED BY OUR CUSTOMERS WHILST PROTECTING AND ENABLING OUR COMMUNITY 2017 WEL Networks | Annual Report 03 COMPANY PROFILE At WEL Networks we’ve kept the lights on in Waikato communities for nearly 100 years. Our core focus is to distribute power from the national grid, connecting over 160,000 people to electricity services through 89,000 installation connection points. Each year we invest around $45 million to keep our assets in top condition and our crews work around the clock to maintain our network. As our communities grow we continue to play an We’re a trusted member of the community employing essential role in the region’s economic and social approximately 240 employees with a range of expertise; development. We identify and invest in new technologies from Live Line Mechanics, Faults Technicians and Technical that benefit our people, modernise our network and Planners, to in-house Health & Safety professionals, future proof our communities.
    [Show full text]
  • Leveraging Network Utility Asset Management Practices for Regulatory Purposes
    Leveraging Network Utility Asset Management Practices for Regulatory Purposes Appendices November 2009 Disclaimer: The views expressed in this report are those of KEMA, Inc., and do not necessarily represent he views of, and should not be attributed to, the Ontario Energy Board, any individual Board Member, or OEB staff. Table of Contents Table of Contents Synopsis of International Markets Studied ........................................................................................1 1. Appendix A: Australia.............................................................................................................. 1-1 1.1 Characteristics of Utilities Affected.......................................................................... 1-2 1.1.1 Number of Companies .............................................................................. 1-2 1.1.2 Geographic Areas Served ......................................................................... 1-3 1.1.3 Key Technical and Financial Statistics per Utility.................................... 1-8 1.1.4 Ownership Structures.............................................................................. 1-11 1.2 Assessment of Utility Investment Plans.................................................................. 1-13 1.3 Regulatory Information Requirements.................................................................... 1-17 1.4 Explicit Asset Management Requirements ............................................................. 1-19 1.5 Relevant Regulatory Instruments ...........................................................................
    [Show full text]