New Zealand Gazette – 1996 – No. 172

Page 4536

✨ Financial Guidelines for ECNZ



4536 NEW ZEALAND GAZETTE No. 172

independent auditor will assess the reasonableness of the assumptions behind the cashflow projections used for determining the required commercial rate of return.

21 Each year, ECNZ will supply information to the independent auditor on the calculation of the commercial rate of return for each RFE, based on the methodology, and using relevant variables as at that date. This information is required in order that the independent auditor may assess the achievement of such a commercial rate of return by each RFE.

Annual Certification and Publication of Accounts

22 The MoU requires that:

  1. An independent auditor appointed by the Secretary of Commerce, in consultation with ECNZ, will be required to ascertain, and provide annual public certification (which would appear in ECNZ’s annual report) as to, whether ECNZ is complying with these ring-fencing requirements.

23 The public certificate of audit compliance for each RFE will be published in each year of its operation in ECNZ’s annual report.

Duration

24 The MoU states that:

  1. These ring-fencing requirements will cease to apply when ECNZ’s share (including its interests in ring-fenced companies and joint ventures as defined in Appendix 4) of the total New Zealand generating capacity measured in MW capacity terms is less than 45% of that total, and that share has been verified by the Secretary of Commerce.

Conclusion

25 Should any situation emerge in which compliance with these guidelines is insufficient to meet the expectations of the Government and ECNZ as set out in appendix 5 of the MoU, ECNZ undertakes to take all reasonable steps to ensure that the spirit of the agreement in that appendix is achieved.

Electricity Corporation of New Zealand Limited
Wellington
October 1996

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✨ LLM interpretation of page content

💰 Financial Guidelines for Cost Allocation and Pricing Methodologies (continued from previous page)

💰 Finance & Revenue
Cost Allocation, Pricing Methodologies, Independent Auditor, Costing Model, Commercial Rate of Return, Annual Certification, Audit Compliance, Ring-Fencing Requirements