New Zealand Gazette – 1994 – No. 128

Page 3840

✨ Financial Statements Notes



3840

NEW ZEALAND GAZETTE

No. 128

NOTES TO THE FINANCIAL STATEMENTS

  1. LAND CLAIMS
    Under the Treaty of Waitangi Act 1975, the Waitangi Tribunal has the power to recommend, under appropriate circumstances, that land purchased by the Corporation under the State-Owned Enterprises Act 1986 may be resumed by the Crown in order that it be returned to the Maori claimants. In the event that the Tribunal's initial recommendation is confirmed and the land is to be returned, compensation will be paid to the Corporation under the provisions of the Public Works Act 1981. If this is insufficient to cover the loss, certain additional compensation is payable under the Sale and Purchase agreement between the Corporation and the Crown.

  2. TRANSACTIONS WITH RELATED PARTIES
    The ultimate shareholder of the Corporation is the Crown. The Corporation undertakes many transactions with other State-Owned Enterprises and Government Departments, carried out on a commercial and arms length basis. Because it is considered that these do not fall within the intended scope of related party disclosures they have not been treated as such in these financial statements.

The Corporation enters into certain transactions with its subsidiaries. Outstanding balances at year end are disclosed separately as current assets and liabilities.

Trans Power New Zealand Limited (Trans Power) was a wholly owned subsidiary of the Corporation. As at 1 July 1994 the Corporation disposed of its shares in Trans Power at book value to the Crown (ultimate shareholder of both companies). Trans Power owns and operates the National Grid (transmission system). The Corporation owns and operates the electricity generation assets. Due to the nature of the electricity business, Trans Power and the Corporation depend on each other for their revenue.

Following separation, the Corporation is committed to pay Trans Power the following :

  • an annual payment of $11 million for Trans Power, as agent for the Corporation, to reduce the cost of electricity to the Corporation's South Island customers. This payment will remain until new power generators, other than the Corporation, enter the electricity wholesale market.

  • an amount to be determined each year and paid to Trans Power for variable transmission losses. The payment will remain until a wholesale electricity market pool is established.

As at 1 July 1994 Trans Power had the following loans owing to the Corporation.

Loans ($000) Interest Rate Repayment Date
Loan 1 127,633 10.48% 30 September 94
Loan 2 20,000 7.10% 30 September 94
Loan 3 32,500 10.48% 30 September 94
Loan 4 5,865 Interest free On demand
Total of all loans to the Trans Power Group 185,998

  1. INVESTMENTS IN ASSOCIATE ENTITIES

Electricity Market Company Limited (EMCO) Percentage interest 50% Balance date 30 June
Energy Advances Limited (EAL) Percentage interest 40% Balance date 30 June



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1994, No 128


NZLII — PDF NZ Gazette 1994, No 128




✨ LLM interpretation of page content

🌾 Electricity Corporation of New Zealand Limited Financial Statements (continued from previous page)

🌾 Primary Industries & Resources
Financial statements, Land claims, Related party transactions, Subsidiaries, Loans