New Zealand Gazette – 2006 – No. 139

Page 4040

✨ Financial Statements Notes



NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2006

Note 8 Continued

The most recent Optimised Deprival Valuation for the Nelson Electricity Ltd network system assets was dated 31 March 2004 and the total value recorded was $19,393m.

The current rating valuation for improvements is $138,000 (2005 $138,000)

9. Term Loans

As At As At
31-Mar-06 31-Mar-05
$000 $000
Westpac Trust Multi Option Credit Facility 3,500 1,100

The effective interest rate at 31 March 2006 is 7.70% (2005, 7.59%). This is a three year revolving facility reviewed and able to be extended annually. The facility limit is $8.1m and the company has granted a negative pledge as an alternative to issuing security in respect of the facility. The agreement expires on 31 October 2008.

10. Related Party Transactions

Marlborough Lines limited and Network Tasman Limited each own 50% of the shares in Nelson Electricity limited and have in the past year provided management and administrative services to the following value:

2006 2005
Marlborough Lines Ltd 167,496 167,496
Network Tasman Ltd 132,502 132,504
Payable to Marlborough Lines at 31 March 13,958 13,958
Payable to Network Tasman at 31 March 11,042 11,042

Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. Salaries totalling $31,510 remained payable to Marlborough Lines as at 31 March 2006. (2005 $35,809)

Network Tasman uncharged to Nelson Electricity Transpower national grid charges during the year totalling $1,782,305 (net). (2005, $1,797,012). As at 31 March 2006 Nelson Electricity owed Network Tasman $148,735 (net) for transmission charges. (2005, $149,738)

Network Tasman credited Nelson Electricity with loss rental rebates (from Transpower) totalling $280,506 (net). (2005, $126,084). As at 31 March 2008 Network Tasman owed Nelson Electricity $22,200 (net) for loss rental rebates. (2005, $12,846)

During the year Nelson Electricity paid dividends totalling $1,900,000 to each of Marlborough Lines limited and Network Tasman Limited. (2005, $1,100,000 each)

2006 2005
Directors fees paid to Marlborough Lines in respect of Mr K Forrest 10,080 9,340

There were no related party transactions at nil or nominal value.
There were no related party debts written off or forgiven during the year. (2005 Nil)

11. Financial Instruments

Credit Risk

Credit risk is the risk that an outside party will not be able to meet its obligations to the company. The company places its cash deposits with high credit quality financial institutions. Credit risk in respect of accounts receivable is minimised through the company’s ability to place bonding requirements on its major electricity retailing customers and the substantial financial nature of these businesses. The company does not have any other significant concentrations of credit risk.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 139


Gazette.govt.nz — PDF NZ Gazette 2006, No 139




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Nelson Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Deprival Valuation, Term Loans, Related Party Transactions, Financial Instruments, Credit Risk, Nelson Electricity Limited
  • K Forrest (Mr), Directors fees paid to Marlborough Lines