New Zealand Gazette – 1995 – No. 95

Page 2949

✨ Cost Allocation for Line Business



6 SEPTEMBER NEW ZEALAND GAZETTE 2949

2. IDENTIFICATION OF COSTS FOR THE LINE BUSINESS

2.1 Allocation of Budgeted Costs to the Line, Energy and Generation Businesses

The budgeted costs for labour, cost of supply, other expenses, depreciation, finance charges and other income for the 6 cost divisions of the company, viz. generation, distribution, commercial, technical, finance and corporate, have been taken from the 1993/94 budgets and allocated to the 3 businesses. Where costs are clearly identifiable as belonging specifically to a business they have been allocated as such. Where it is impossible to identify a cost as belonging to one particular business it has been allocated according to management assessment based on proportions of staff involvement in the particular businesses.

2.2 Allocation of Line Business Costs to Cost Groups

Within the line business a number of cost categories have been isolated for further suitable splitting of the line business costs. These cost categories, or cost groups, are :-

  • Administration
  • Transmission
  • Losses
  • Metering and Control Costs
    • Meter Reading
    • Meter Costs
    • Load Control Costs
  • Network Costs
    • Operations and Maintenance
    • Depreciation and Finance Charges
    • Return on Assets

Notes:

  1. Losses are allowed for in the revenue budget, and are taken as the budgeted differences between units of energy purchased and generated, and the units sold.
  2. The return on assets is obtained from the allocation of assets to cost groups, see Section 2.4.

For the allocation to the cost groups where costs are clearly identifiable as belonging to one or more of the cost categories within the line business, they are allocated as such. When a cost is not clearly identifiable as belonging to a particular cost category or categories, then it is allocated according to management assessment which is based on proportions of staff involvement.



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✨ LLM interpretation of page content

🌾 Allocation of Budgeted Costs to Line, Energy, and Generation Businesses (continued from previous page)

🌾 Primary Industries & Resources
Cost Allocation, Budgeted Costs, Labour, Cost of Supply, Depreciation, Finance Charges, Other Income, Generation, Distribution, Commercial, Technical, Finance, Corporate

🌾 Allocation of Line Business Costs to Cost Groups

🌾 Primary Industries & Resources
Cost Groups, Administration, Transmission, Losses, Metering, Control Costs, Network Costs, Operations, Maintenance, Depreciation, Return on Assets