NOTES TO THE FINANCIAL STATEMENTS

12 Operating expenditure

a Payment for transmission charges | 1,715 | 1,654 |

b Transfer payments to the “Other” business for:

(i) Asset maintenance | 355 | 346 |

(ii) Consumer disconnection/reconnection services | 0 | 0 |

(iii) Meter data | 0 | 6 |

(iv) Consumer-based load control services | 6 | 6 |

(v) Royalty and patent expenses | 0 | 0 |

(vi) Avoided transmission charges on account of own generation | 0 | 0 |

(vii) Other goods and services not listed in (i) to (vi) above | 16 | 16 |

(viii) Total transfer payment to the “Other” business | 377 | 374 |

c Expense to entities that are not related parties for:

(i) Asset maintenance | 0 | 0 |

(ii) Consumer disconnection/reconnection services | 0 | 0 |

(iii) Meter data | 14 | 7 |

(iv) Consumer-based load control services | 59 | 0 |

(v) Royalty and patent expenses | 0 | 0 |

Total of specified expenses to non-related parties (sum of (i) to (v)) | 73 | 7 |

d Employees salaries, wages and redundancies | 299 | 244 |

e Consumer billing and information system expense | 13 | 15 |

f Depreciation on:

(i) System fixed assets | 214 | 262 |

(ii) Other assets not listed in (i) | 52 | 51 |

(iii) Total depreciation | 266 | 313 |

g Amortisation of:

(i) Goodwill | 0 | 0 |

(ii) Other intangibles | 0 | 0 |

(iii) Total amortisation of intangibles | 0 | 0 |

h Corporate and administration | 417 | 403 |

i Human resource expenses | 16 | 10 |

j Marketing/advertising | 31 | 26 |

k Merger and acquisition expenses | 0 | 0 |

l Takeover defence expenses | 0 | 0 |

m Research and development expenses | 0 | 0 |

n Consultancy and legal expenses | 0 | 0 |

o Donations | 0 | 0 |

p Directors' fees | 74 | 72 |

q Auditors’ fees:

(i) Audit fees paid to principal auditors | 27 | 32 |

(ii) Audit fees paid to other auditors | 11 | 4 |

(iii) Fees paid for other services provided by principal and other auditors | 7 | 0 |

(iv) Total auditors’ fees | 45 | 36 |

r Costs of offering credit:

(i) Bad debts written off | 0 | 0 |

(ii) Increase in estimated doubtful debts | 0 | 0 |

(iii) Total cost of offering credit | 0 | 0 |

s Local authority rates expense | 6 | 6 |

t AC loss-rentals (distribution to retailers/customers) expense | 0 | 0 |

u Rebates to consumers due to ownership interest | 1,600 | 1,632 |

v Subvention payments | 0 | 0 |

w Unusual expenses | 0 | 0 |

x Other expenditure not listed in (a) to (w) | 0 | 0 |

13 Total operating expenditure | 4,932 | 4,792 |

14 Operating surplus before interest and income tax| 333 | 348 |