Wellington, Oct 23 NZPA - Electricity and gas distributor Vector says warmer, wetter weather and subdued consumer and business activity affected its operations in the three months to the end of September.

Volumes on its Auckland and northern electricity networks were down 1.4 percent, compared to a year earlier, to 2262.6 gigawatt hours.

"Warmer weather, particularly in August, reduced volumes, as did the soft economic conditions," Vector said today.

The number of connections lifted by 1130, or just 0.2 percent, in the quarter to 524,524.

Group chief executive Simon Mackenzie said the slowdown in connections growth and the fall in energy volumes were in line with expectations.

Gas transmission throughput volumes rose 0.6 percent from a year earlier, to 31.1 petajoules.

New gas connections lifted by 686 or 0.4 percent, down slightly from 0.5 percent growth for the corresponding period a year ago, mainly due to falling residential demand.

Despite the rise in connections, gas distribution was down 0.4PJ from a year earlier as large industrial customers cut consumption, Vector said.

Natural gas sales fell 11.5 percent from a year earlier. That was mainly due to reduced sales to thermal power generators as a wetter winter led to increased hydro generation.

Total gas liquid volumes fell 9.2 percent to 21,770 tonnes, mainly due to lower volumes to bulk customers, partially offset by increased volumes in LPG cylinders, the Kapuni gas treatment plant and natural gasoline.

Vector was hopeful about its chances of being involved in the Government's fibre optic infrastructure initiative.

The company said it was well positioned in relation to the Government's preference for a regionally-based fibre to the home solution. Work was under way to prepare an offer document.

Vector shares were up 1c in early trading to $2.01.