Financial Statements




10 DECEMBER

NEW ZEALAND GAZETTE

4515

TRANSPower NEW ZEALAND LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1999

  1. OPERATING EXPENSES
LINES BUSINESS GROUP
1999 1998
$000 $000

Administration and general costs
45,742
66,298

Asset operation and maintenance costs
85,120
96,252

Security Product Costs

24,241

Charges in respect of assets:

Depreciation - leased assets
14,719
15,558

Depreciation - owned assets
76,878
102,198

Infrastructure asset service

potential adjustment
14,139
22,443

Stock and asset write-offs
8,648
20,521

Charges in respect of receivables:

Bad debts written off
39
7

Movement in the provision

for doubtful debts
(39)
(1,500)

Directors’ fees
247
221

Donations
154
316

Lease and rental costs
2,217
2,219

Total operating expenses
247,864
348,774

Related party transactions

Expenses charged by :

ECNZ
20,400
18,923

Mighty River Power Limited
2,383

Meridian Energy Limited
70

Genesis Power Limited
15

BCL
255
284

Contact Energy Limited
3,807
6,061

26,930
25,268

Expenses charged by ECNZ relate to certain contracts for the operation and
maintenance of components of the National Grid, systems costs and consultancy services.
Systems costs are also charged by Contact Energy Limited, Meridian Energy Limited and
Genesis Power Limited. Lease costs for communications sites are charged by BCL.

Net loss on the disposal of assets
included in stock and asset write-offs

Net loss on the disposal of assets
8,123
18,105

8,123
18,105

Electricity regulations additional
disclosures

Employee salaries and redundancies
19,616

Human resource expenses
2,377

Payment for metering data
900

Marketing / advertising expenses
158

Legal and consultancy expenses (including industry reform)
8,961

Corporate and administration expenses
4,322

Total expenses including gross financing costs amount to $346,087,000.



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