✨ Electricity Company Financial Notes
23 SEPTEMBER NEW ZEALAND GAZETTE 3731
BAY OF PLENTY ELECTRICITY LIMITED
Special Purpose Financial Statements
Electricity (Information Disclosure) Regulations 1994
Notes to the Financial Statements
for the 12 Months ended 31 March 1998
(iv) Electricity Hedge Contracts
In common with other electricity companies the group seeks to limit its exposure to spot price movements by purchasing hedge instruments against future spot price. On maturity of these agreements there is potentially an asset or liability, in relation to the electricity price hedges which has not been recognised in the financial statements. The face value of electricity hedge contracts entered into at balance date, with a view to protecting future profits, amounted to $7,070,030 covering exposures from balance date forward three years (1997 - nil).
(b) Fair Values
Financial instruments in the current section of the balance sheet, with the exception of the current portion of term loans, are shown at values equivalent to their fair values. The fair value of term loans is disclosed in section (a) (i) above. Investments are shown at cost which is not significantly different from their fair values.
The fair value of electricity hedge contracts at balance date has not been reported as it is not practicable to estimate that value with an acceptable level of reliability, due to the lack of depth of the forward market. On maturity of these instruments there is potentially an asset or liability in relation to the electricity price hedges which has not been recognised in the financial statements as it would be offset by opposite cost impacts on the items hedged.
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VUW Te Waharoa —
NZ Gazette 1998, No 156
NZLII —
NZ Gazette 1998, No 156
✨ LLM interpretation of page content
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Bay of Plenty Electricity Limited Financial Performance
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🏭 Trade, Customs & IndustryElectricity, Financial Statements, Bay of Plenty, Regulations, Revenue, Operating Expenses, Surplus, Taxation, Share Capital, Reserves, Dividends, Investments, Joint Venture, Imputation Credit Account, Hedge Contracts, Fair Values