✨ Electricity Industry Information Disclosure
Again for completeness and better understanding the information disclosure requirements of the line business and energy business should be defined. The information required is :-
For the Line Business
(a) Standard and non-standard contract prices and associated terms and conditions
(b) Pricing policies and methodologies
(c) Costs and policies and methodologies used in their allocation for the price formulation
(d) Value of assets
(e) Performance measures
(f) Policies and methodologies in allocating costs, revenues, assets, liabilities and cash flows to the line business
(g) Audited financial statements
For the Energy Business
(a) Standard and non-standard contract energy prices and associated terms and conditions
(b) Disclosure of line and transmission charges on customer bills
(c) Audited financial statements
In addition to the legislated requirements there is also a commercial requirement for obtaining separate charges for the line and energy businesses. The separation has made the energy part of a power company a contestable activity, which means that the power company will be supplying a network service not only for it's own energy division but also for other energy retailers, and so the power company needs a pricing methodology by which to charge line costs to energy traders.
To derive the line charges for Rotorua Electricity the methodology applied generally follows those outlined in the "Guide to Derivation of Line Charges" prepared by the Separation of Line and Energy Charges (SOLEC) working party for ESANZ, 28 January 1992, and the "Provisional Guidelines for Electricity Line and Energy Business Procedures" prepared by the Ministry of Commerce Energy and Resources Division, July 1991. The process begins with the 1993/94 Budget and follows a series of distributions of the budgeted costs, firstly to the 3 businesses, then to cost categories within the line business, then to components of the network, and then to the customer groups who use the different component groups.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1995, No 95
NZLII —
NZ Gazette 1995, No 95
✨ LLM interpretation of page content
🌾
Information Disclosure Requirements for Line and Energy Businesses
(continued from previous page)
🌾 Primary Industries & ResourcesElectricity, Information Disclosure, Line Business, Energy Business, Pricing Policies, Financial Statements, Cost Allocation, Audited Statements, Rotorua Electricity, SOLEC, Ministry of Commerce