There is a Lot Wrong with Vector

A Post columnist asked this morning whether it is time to tackle the “cushiest pork barrel” in New Zealand politics: bringing Vector back into Auckland Council ownership. A cash cow? Not under the bonnet. Sorting Vector out is going to cost a lot of money, and I do not think Auckland Council or ratepayers are on to a winner.

The cash comes from several places. Vector collected more from connecting customers than it spent connecting them in three of the last five years. Some of the conduct falls short of what is expected of one of New Zealand’s largest companies, and SANZ has published a small sample of it. There is a great deal more.

SANZ also believes the line charges are too high. Vector runs one of the densest networks in the country, which should make it one of the two cheapest by a decent amount.

Costs are being stripped out. Reduced inspections save $10 million. The balance sheet stays comfortable partly because Vector sold half its metering business in 2023 and still holds the other half.

New connections are wising up. Connection contributions fell $21 million last year as developers sorted the civil work themselves, and that was not easy to get over the line. Imagine if the same applied to maintenance work.

The Commerce Commission regulates the price and the outages. Last month it told every lines company that the work must be open to competition.

I want to know who regulates the vision. What is the vision, for poles and wires from the 1960s? What will it cost to bring them into the 2030s?

Ownership matters. Stewardship with integrity, please.

https://www.thepost.co.nz/nz-news/361073997/entrust-dividend-debate-time-tackle-cushiest-pork-barrel-nz-politics