itb-nz logo
Story image

Vector penalised $3.5 million for excessive levels of power outages

Auckland electricity lines company Vector Limited has been ordered by the Auckland High Court to pay a penalty of $3.575 million for breaching its network quality standard through an excessive level of power outages.

Vector serves more than half a million homes and businesses in the greater Auckland region and as a regulated business must comply with Commerce Commission regulations regarding the maximum revenue it can collect and the minimum standards of quality it must deliver. Quality is measured in the duration and frequency of power outages.

Commission deputy chair Sue Begg said Vector failed to adhere to good industry practice in some aspects of its network management, which resulted in it breaching the Commission's regulations on quality standards in the 2015 and 2016 financial years.

''Auckland consumers have a right to expect a good quality of service from their lines company and Vector failed to deliver it,'' Begg said.

''Given the impact electricity outages have on consumers and businesses it is crucial that lines companies have the systems in place to identify and manage the risks present in their networks. 

“The court has found that Vector’s governance of compliance with the quality standard did not meet good industry practice.”

“Vector underestimated the risks it faced and did not meet best practice in managing vegetation or the life-cycle of certain ageing assets. We expect better management decisions going forward, as do its customers.''

The penalty imposed by the court was discounted by 35% for mitigating factors, including Vector agreeing not to contest the proceedings.

Vector has now exceeded the annual limit set by the Commission for the duration of outages for five years in a row. 

In addition to the breaches covered by today's penalty, Vector also breached its quality standard in 2017 and 2018. 

The Commission is currently investigating those further breaches and expects to make a decision about enforcement action later this year.

Link image
The 5G network emulation solution that accelerates device workflow
Here's how to streamline your workflow across test domains including protocol, radio frequency (RF)/radio resource management, and functional and performance testing.More
Story image
How 'data gravity' centres can spell trouble for enterprises
In the not-too-distant past, data was created in a much more centralised place, and users and systems had far less access to it. Now, with digital data from social, analytics, mobile, cloud, IoT and more being created with both simultaneity and omnipresence, so much information is being collected that it’s forming a ‘centre of gravity’.More
Story image
Verizon launches international private 5G platform
Delivered in partnership with Nokia, the offering will enable businesses to deploy a private industrial grade dedicated 5G network capability within their premises. More
Story image
IBM expands SAP capabilities for cloud
With new services, partnerships and certifications IBM aims to capitalise on the mass-movement to cloud.More
Link image
It’s almost time for StorageCraft’s NZ October Technical Bootcamps
Whether you’re in Hamilton, Auckland, Christchurch of Wellington, StorageCraft’s technical bootcamps will take you through technical updates and deep dives into ShadowProtect, ShadowXafe, and OneXafe. These are not to be missed! More
Story image
Boomi and Snowflake join forces to bring enterprises greater data insights
The pair have combined the cloud native Boomi AtomSphere platform and Snowflake’s cloud data platform to enable customers to leverage all their enterprise data and accelerate business outcomes.More