Our profits were lower in 2011/12 due to lower
network profits (as advised we held pricing in
April 2011). In addition, the profit of 2010/11 was
abnormally high due to the streetlight contracts. We
did not complete any streetlight contracts in 2011/12
but expect that, in the future, these contracts will
become regular contributors to company profit.
The Board and Management of TLC are committed
to having a customer-centric organisation
and in 2011 we employed a Relationship and
Communications Manager to ensure that there was
a programme of proactive customer contact. The
feedback gained from this programme has shaped a
customer engagement plan for 2012 that includes
customer advocacy at all levels and a systematic
approach to improving customer service.
It is widely understood by our customers that
our network is spread across a rural landscape and
that we cater for a small population. In order to
be successful in both increasing distributions and
having lower comparative lines charges, we have
worked on developing new and innovative ways of
lowering costs. We have put in place a project team
to keep looking for ways in which we can reduce
costs. This team was born in the Asset Management
Group but has grown to include representatives
from the wider organisation. They are working on
a plan to decrease net CAPEX (Capital Expenditure)
spend by 20 per cent while maintaining the same
volumes. Decreasing net CAPEX gives us both
lower prices in the long term and more cash
available for distributions in the short term.
We are continuing to use load charging to ensure
that load levels in our communities grow at
sustainable rates. Load increases drive network
upgrades. If the customers responsible for the load
growth do not want to pay for the extra load this
simply drives up prices for all other customers.
This is not affordable. As a significant part of our
Transpower charges are also based on load, then
constraining load growth to affordable levels has
overview
Executive Summary
The Lines Company
has focused on
four
main objectives
over
the past year and will
continue to do so in
the 2012/13 year:
1
Having the lowest prices
for normal domestic and
commercial customers when
compared to those of like
network companies
2
Increasing customer
engagement
3
Improving network
performance
4
Increasing distributions
to customers through the
shareholder trusts.
John Anderson, CEO
MalcolmDon, Chairman
6
A n n u a l R e p o r t
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