✨ Financial Report Continuation
19 AUGUST NEW ZEALAND GAZETTE 2225
Horowhenua Energy Limited Line and Energy Businesses - Annual Report 1997
8. Contingent liabilities
a) The company has entered into an underwriting agreement with an associate, PowerBuy Group Limited. The underwriting requires the injection of equity capital into PowerBuy Group Limited in the event this is required as a result of trading losses incurred by that Company in the wholesale electricity market. The requirement is on a several basis with other shareholders of PowerBuy Group Limited and the maximum amount that Electra may be called upon under the underwriting is $2,557,824 (1996 $2,557,824). This is based on the shareholding held by Electra in PowerBuy Group Limited at balance date.
b) On 15 April 1997 the company gave a letter of guarantee for payments in the NZ Wholesale Electricity Market. The guarantee, which is several, provides assurance of payment by the Company via PowerBuy Group Limited, to the Wholesale Electricity Market. The amount of the guarantee is $1.62 million and expires on 30 September, 1997.
c) At any point in time the Company will be investigating complaints or queries about various aspects of the service it provides to customers. In a number of these action may be taken against the Company. At 31 March 1995 there was legal action taken against the former Horowhenua Electric Power Board which remains unresolved. The Directors have been advised that the Company has good defence against any action that may be taken against it and that no provision for loss is required in the financial statements.
9. Commitments
Capital commitments
At balance date, estimated expenditure contracted for and approved by the Company totalled $112,270 (1996: $986,000).
10. Transactions with related parties
During the year Horowhenua Energy Limited purchased construction and maintenance services from a subsidiary, Linework Limited, to an amount of $4.79 million (1996: $2.63 million).
During the year the Company purchased all it’s electricity requirements through PowerBuy Limited, an associate company. Total purchases for the year amounted to $15.89 million (1996 $15.90 million). In addition, a management fee of $60,202 (1996 $47,310) was paid to PowerBuy Limited.
No related party debts have been written off or forgiven during the year.
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VUW Te Waharoa —
NZ Gazette 1997, No 94
NZLII —
NZ Gazette 1997, No 94
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Horowhenua Energy Limited Line and Energy Businesses - Annual Report 1997
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🏭 Trade, Customs & Industry30 May 1997
Electricity, Information Disclosure, Horowhenua Energy Limited, Financial Statements, Performance Measures, Valuation, Audit