Security of supply standard

Our security of supply standard is a 'table of rules' that describes the service we aim to provide on our network. It defines whether the power will go out if something fails on our network, and the length of time that customers can then expect to be without power.

Review

We developed our first security of supply standard with community input in 1998. In 2006 we reviewed the standard and consulted with customers to check that it still met our customers' needs. In reviewing the standard we were conscious of the need to balance investment in our network (which influences the performance of our network) with the value which consumers place on reliable electricity supply.

If we established a 'high' standard, we would invest more in our network, electricity delivery prices would increase and customers would have fewer power cuts. Conversely, if we established a ‘low’ standard, we would invest less in our network, electricity delivery prices would be lower, but customers would have more power cuts.

Proposal

We proposed a revised standard similar to our existing standard. Under the new standard:

• current levels of electricity supply reliability for existing Christchurch customers would stay the same
• electricity reliability in new subdivisions on the outskirts of Christchurch would be slightly lower than that in Christchurch today (on average, new subdivisions would be without power for about five minutes longer each year). This level of reliability is still well above most other areas in New Zealand.
• existing reliability in rural areas would stay the same
• all other things being equal, the need for future electricity delivery price rises would be reduced.

Consultation

In late 2006 we consulted with our customers and interested parties (including business groups, electricity retailers and local councils who represent our community) about the proposed standard to ensure it met customers’ requirements.

Several groups commended Orion on its efforts to discuss the standard with community groups and the level of thought put into the issue. No one suggested that we should alter the proposed standard.

The revised security of supply standard will now be used in our future asset management planning.