Vector Electricity Customer Growth Slows to Five-Year Low

By Gavin Evans

Aug. 28 (Bloomberg) -- Vector Ltd., New Zealand's biggest electricity and gas distributor, said new connection growth to its power networks slowed to the lowest in at least five years as home construction declined.

Electricity connections rose 1 percent to 680,664 at June 30, having increased 1.5 percent a year earlier, according to data the Auckland-based company e-mailed today. The rate is the slowest since Vector's 2002 acquisition of UnitedNetworks Ltd.

New Zealand building approvals fell to the lowest in almost 22 years in June amid falling home prices and declining consumer confidence. New connections since June have fallen by as much as 50 percent from a year earlier, Vector Chief Executive Officer Simon Mackenzie said yesterday.

Vector last month sold its Wellington power network to Cheung Kong Infrastructure Holdings Ltd. to focus on faster- growing Auckland, home to about a quarter of the nation's 4.3 million people.

Electricity connections in the Auckland and Northland regions increased 1.2 percent to 518,467 at June 30, after rising 1.6 percent a year earlier, according to today's data. Gas pipeline connections rose 2.9 percent to 147,198, after gaining 3 percent a year earlier.

To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net