SAPN Historical Performance Trends 2006- 2013 Prepared by the Consumer Challenge Panel for illustration purposes only The charts are based on the SAPN RIN published data (May 2014) and may not align with other published annual reporting data The SAPN Story (for Standard Control Services) • Growth in revenue & Growth in Asset Base (RAB) since 2010 – RAB growth driven by new asset investment post 2010 (chart 3 & 4) • Revenue growth has been most rapid in the residential sector (chart 5) • Operating expenditure (opex) also grown rapidly since 2010. Corporate Services and Vegetation management opex categories growing fastest (chart 6); • Noting growth in employee bonuses parallel growth in revenue (chart 7) • Demand declining in all sectors – drive future price increases given asset base expansion (charts 8 & 9) • Capital investment in last few years has significantly reduced average asset life (chart 10) • Growing spare capacity in the system (chart 11) • But little change in service quality (chart 12). 2/06/14 Public 2 Total Revenue & Asset Base for Standard Control Services (SCS) Annual Revenue and Total Asset Base (RAB) (Standard Control Services) 3,600,000 3,400,000 800,000 3,200,000 700,000 3,000,000 600,000 2,800,000 2,600,000 500,000 2,400,000 400,000 2,200,000 300,000 2,000,000 2006 2007 2008 2009 2010 Revenue (SCS) 2/06/14 Asset Base for SCS ($000s Nom) Revenue from SCS ($000s Nom) 900,000 Public 2011 2012 2013 Asset Base (SCS) 3 Revenue & New Asset Investment for SCS Source: SAPN Economic benchmarking data templates: “Revenue” 900,000 400,000 800,000 350,000 $ Value in $000s (Nom) 700,000 300,000 600,000 250,000 500,000 200,000 400,000 150,000 300,000 100,000 200,000 50,000 100,000 0 0 2006 2007 2008 2009 Total Revenue (SCS) 2/06/14 New Asset Additions $000s (Nom) Total Revenue for SCS & New Asset Additions ($000s Nom) Public 2010 2011 2012 2013 Asset Adds (inc WACC) 4 Revenue by Customer Class Source: SAPN economic benchmarking data templates: “Opex” 450,000 400,000 Revenue by Customer Class for Standard Control Services (SCS) 350,000 Revenue ($000s) 300,000 250,000 200,000 150,000 100,000 50,000 0 2006 2/06/14 2007 2008 2009 2010 2011 2012 Residential Non-Res; No Demand Tariff (SME) Non-Res Low Voltage Demand Tariff Non-Res High Voltage Demand Tariff Public 2013 5 Chart uses “current opex categories and cost allocations” for all costs 2/06/14 Public 6 Decline in Usage (Residential) Source: SAPN economic benchmarking data templates: “Operational Data” Residential Average Annual Consumption (MWh) 6.5 6.4 Average Annual Consumption (MWh) 6.2 6.2 6.2 6.1 6.0 6.0 5.5 5.5 5.3 5.0 4.5 4.0 2006 2/06/14 2007 2008 2009 Public 2010 2011 2012 2013 7 Decline in Usage (Non-Residential) Source: SAPN economic benchmarking data template: “Operational Data” 26 Av Annual Usage Demand Tariffs (LV & HV) 12,000 30 Average Annual Usage Non Residential (MWh) 26 25 25 25 25 10,000 20 18 18 8,000 18 15 6,000 10 4,000 5 2,000 0 0 2006 2007 Non-Res LV Demand Tariff 2/06/14 Average Annual Usage Non-Demand Tariffs (Small business) 14,000 2008 2009 2010 Non-Res HV Demand Tariff Public 2011 2012 2013 Non-Res Not Demand Tariff (SME) 8 Residual Asset Life Reducing Residual life as % of average life Average Residual Asset Service Life as % of Average Asset Life by Asset Category Source: SAPN Economic benchmarking data templates: “ Assets (RAB)” 50% 45% 40% 35% 30% 25% 20% 2006 2007 2008 2009 2010 2011 2012 2013 Overhead network assets less than 33kV (wires and poles) Underground network assets less than 33kV (cables) Distribution substations including transformers Overhead network assets 33kV and above (wires and towers / poles etc) Underground network assets 33kV and above (cables, ducts etc) Zone substations and transformers 2/06/14 Public 9 Growing Spare Capacity in the System Source: SAPN economic benchmarking data template: “Physical Assets” Overall Capacity Utilisation 75 Total Transformer Capacity (MVA) & Cold Spare Capacity (%) Spare Total Capacity 12.0% % 6,000 Capacity Percentage utilisation 70 5,000 10.0% 4,000 8.0% 3,000 6.0% 2,000 4.0% 1,000 2.0% 0 0.0% 65 60 55 50 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 Capacity Utilisation 2/06/14 Cold spare capacity % Public Total S/S Transformer Capacity 10 No clear trend in service quality Source: SAPN Economic benchmarking data templates: “Quality of services”. Graphs exclude impact of “Major Events” Service Quality: SAIDI Service Quality: SAIFI & Unplanned System Losses 350 2.50 7.0 Minutes/Customer 250 200 150 100 6.0 2.00 5.0 1.50 4.0 3.0 1.00 2.0 0.50 1.0 50 0.00 0 2006 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 2/06/14 0.0 SAIFI inc MEDs (exc exc outages) SAIDI inc MEDs (exc exc outages) SAIFI exc MEDs (exc excd outages) SAIDI exc MEDs (exc excd outages) Energy not supplied (unplanned) Public 11 Energy not supplied (GWh) SAIFI (interruptions/customer) 300