✨ Financial Statements Notes
2 DECEMBER
NEW ZEALAND GAZETTE
4595
ELECTRICITY CORPORATION OF NEW ZEALAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
19. DEBT DEFEASANCE (Cont.)
Sale of Assets to Contact
On 1 February 1996 ECNZ sold eight power stations to Contact (note 26). Of the $1,592 million received from Contact, $419 million was used to defease debt of an equivalent amount and the balance was treated as surplus equity and distributed to the Crown as a special dividend.
20. LAND CLAIMS
Under the Treaty of Waitangi Act 1975, the Waitangi Tribunal has the power to recommend, in appropriate circumstances, that land purchased by ECNZ under the State-Owned Enterprises Act 1986 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 ECNZ 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 ECNZ and the Crown.
21. TRANSACTIONS WITH RELATED PARTIES
The shareholder of ECNZ is the Crown. ECNZ undertakes many transactions with other State-Owned Enterprises and Government Entities, all of which are carried out on a commercial arms length basis. During the year, ECNZ entered into material transactions with two such parties - Contact (note 26) and Trans Power New Zealand Limited (“Trans Power”).
Trans Power operates the national electricity distribution grid. During the year ECNZ received $20 million of revenue from Trans Power, mainly for the provision of ancillary services such as spinning reserve and voltage control. ECNZ also paid Trans Power transmission and connection fees amounting to $150 million. The balances outstanding between the two parties at balance date were not material.
During the year ECNZ also paid professional engineering fees of $111,405 (1995 $158,756) to Beca Carter Hollings & Ferner Limited which is wholly owned by Beca Group Limited of which Mr R P Carter is the Executive Chairman and a minority shareholder. Mr Carter is a Director of ECNZ Limited. Professional engineering services provided by Beca Carter Hollings & Ferner Limited were supplied on normal commercial terms. A balance of $5,259 outstanding at 30 June 1996 (1995 $27,631) is included in accounts payable.
22. INVESTMENTS
| Company Name | Percentage Owned | Principal Activity | Balance Date |
|---|---|---|---|
| Subsidiary Companies | |||
| As at balance date the subsidiaries, | |||
| all wholly owned, were as follows: | |||
| DesignPower New Zealand Limited | 100 | Design and engineering consultancy | 30 June |
| ECNZ Energy Limited | 100 | Holding Company | 30 June |
| ECNZ Insurance Limited | 100 | Insurance | 30 June |
| ECNZ International Limited | 100 | Finance | 30 June |
| Electricity Farmland Holdings No 1 | 100 | Development | 30 June |
| Limited | |||
| Energy Promoters Limited | 100 | Dormant | 30 June |
| Kinleith Cogeneration Limited | 100 | Construction | 30 June |
| Rutherford House Limited | 100 | Property management | 30 June |
| Associate Entities | | | |
| Electricity Market Company Limited | 35 | Wholesale market development | 30 June |
| (EMCO) | | | |
| Rangitata Diversion Race Management | 38 | Irrigation | 30 June |
| Limited | | | |
23. SEGMENTAL INFORMATION
ECNZ operates predominantly in one industry, the generation and wholesale marketing of electricity. Its operations are carried out predominantly in New Zealand and are therefore within one geographical segment for reporting purposes.
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VUW Te Waharoa —
NZ Gazette 1996, No 174
NZLII —
NZ Gazette 1996, No 174
✨ LLM interpretation of page content
💰
Debt Defeasance Transactions
(continued from previous page)
💰 Finance & RevenueDebt Defeasance, Sale of Assets, Contact, Power Stations, Crown Dividend
🪶 Land Claims Under Treaty of Waitangi
🪶 Māori AffairsLand Claims, Treaty of Waitangi, Waitangi Tribunal, Compensation, Public Works Act
💰 Transactions with Related Parties
💰 Finance & RevenueRelated Party Transactions, Contact, Trans Power, Beca Carter Hollings & Ferner Limited, Professional Fees
💰 Investments in Subsidiary and Associate Entities
💰 Finance & RevenueSubsidiary Companies, Associate Entities, Investment Holdings, Wholly Owned, Percentage Owned
💰 Segmental Information
💰 Finance & RevenueSegmental Reporting, Industry Operations, Geographical Segment, Electricity Generation