8 Sep 2014

Vector 'not interested' in housing plan

9:03 am on 8 September 2014

Vector says it is not interested in expanding its network to accommodate a government strategy to build 40,000 new homes in Auckland.

Speaking at the Shareholders' Association's annual meeting over the weekend, Vector's head Simon Mackenzie said his company is focused on expanding the more profitable, non-regulated side of its business.

Mr Mackenzie said the electricity and gas lines company did not like the returns it was currently getting from the regulated side of the business.

He said Vector did not like the cash flow process of the return from assets in the regulated sector because of the way the regulatory model worked.

Mr Mackenzie said Vector also did not like the way the forecast errors played into assets.

He said Vector has significantly invested in its unregulated space over the last three or four years because that best serves the company's shareholders.

Mr Mackenzie said Vector is under no regulatory obligation to build a network.