Independent auditor’s report

For the year ended 30 June 2011

To the directors of Vector Limited

Report on the performance measures

We have audited the accompanying financial and efficiency performance measures. These performance measures have been prepared by Vector Limited and its subsidiaries ("the Group") in respect of its gas transmission activities for the purposes of regulations 15 and 16 of the Gas (Information Disclosure) Regulations 1997 ("the Regulations"). These measures are disclosed in the Group’s Gas Transmission Activities Information Disclosure financial statements for the year ended 30 June 2011.

Director’s responsibility for the performance measures

The directors are responsible for ensuring that the financial and efficiency performance measures are prepared in accordance with Schedule 1 of the Gas (Information Disclosure) Regulations 1997 and for such internal control as the directors determine necessary to enable the preparation of the financial and efficiency performance measures that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to examine the financial performance measures prepared in accordance with clause i of Part 2 of Schedule 1 of the Regulations and the financial components (being “direct expenditure” and “indirect expenditure”) of the efficiency performance measures prepared in accordance with clause 2 of Part 2 of Schedule 1 of the Regulations and to report thereon based on the evidence obtained. We have not been engaged to provide any assurance in respect of the non-financial components of the efficiency performance measures or on the energy delivery efficiency performance measures and statistics. We conducted the engagement in accordance with the International Standard on Assurance Engagements (New Zealand) 3000: Assurance Engagements Other than Audits or Reviews of Historical Financial Information and the Standard on Assurance Engagements (New Zealand) 3100: Compliance Engagements issued by the New Zealand Institute of Chartered Accountants. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance about whether the financial and efficiency performance measures are prepared, in all material respects, in accordance with the Regulations.

The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial and efficiency performance measures whether due to fraud or error. In making those risk assessments, we have considered internal control relevant to the preparation and presentation of the financial and efficiency performance measures in order to design assurance procedures that are appropriate in the circumstances, but not for the purposes of expressing a conclusion as to the effectiveness of the Group’s internal control.

Our firm also performs the audit of the statutory financial statements of the Group, as well as providing other related assurance services and general accounting services. Partners and employees of our firm may also deal with the Group on normal terms within the ordinary course of trading activities of the business. These matters have not impaired our independence as auditors of the Group. The firm has no other relationship with, or interest in, the Group.