Electricity

Electricity volume distributed in Auckland increased by 0.5% to 2294.4 Gigawatt hours (GWh) compared to the same quarter last financial year. This was due primarily to a 1.0% increase in numbers of customers connected over the previous 12 months, but that rate of increase has slowed, down from 1.4% for the prior comparative period. Volume per connection also fell slightly due to power savings campaigns this winter, and slightly warmer weather. This volume was 2.1 % below expectations.

 Vector’s Systems Average Interruption Duration Index (SAIDI) score for the first half of the regulatory year (6 months to 30 September) is 61.1 minutes of electricity outages on average per customer, due to normal operations. A further 49.1 minutes of outages were due to extreme events. Post divestment of the Wellington electricity network, our annual group regulatory SAIDI target has been adjusted to 104 minutes.

Gas

Gas transmission volumes have increased this quarter against the same period last year by 2.7% to 30.9 petajoules (PJ) primarily due to increased industrial and commercial demand, partially offset by lower volumes to power stations.

Despite an increase in gas connections, gas distribution has remained consistent at 6.4 PJ against the same period last year, due to milder weather conditions. The rate of increase in gas connections for the three months ending 30 September 2008 quarter is 2.5%, down from 2.8% in the prior comparable period. Natural gas sales volumes have decreased 36% to 9.6 PJ against the previous corresponding period because of previously advised one off sales to the petrochemical sector and other utilities, and reduced sales to power stations due to decreased thermal generation.

Total gas liquids (LPG including Liquigas and natural gasoline) sales volumes have decreased against the previous corresponding period by 10.2% to 67,066 tonnes, due to reduced demand from bulk customers and reduced production of liquids at the Kapuni Gas Treatment Plant.

Metering

During the September quarter Vector’s metering business (NGCM) signed a contract with Genesis Energy to install advanced electricity meters for 500,000 Genesis Energy customers. The rollout of advanced meters for Contact Energy in Christchurch has also commenced.

Communications

Vector Communications continued to expand its Auckland based fibre optic network.

Three months ended 30 September 2008