New Zealand Gazette – 2006 – No. 146

Page 4206

✨ Financial Transactions Report

4206 NEW ZEALAND GAZETTE, No. 146 22 NOVEMBER 2006

Transactions with "other" businesses

For the purposes of Requirement 8, transactions taking place between the line business and "other" businesses must be identified.

The company had considerable numbers of transactions with its wholly-owned contracting subsidiary, Connetics Limited, during the years ended 31 March 2006 and 2005.

A description of the intercompany transactions, revenue amounts and balances at 31 March 2005 and 2005 follows. Note that estimated data has had to be used in the determination and apportionment of costs for Connetics into the required categories.

Connetics has provided construction and maintenance services to the line business for the period 1 April 2005 to 31 March 2006, and for a number of prior years.

These services follow the awarding of a contract based on a contested lowest-price conforming tender. In virtually every case multiple parties were invited to tender for such work. In the case of emergency maintenance, a contract comprising a negotiated schedule of rates has been agreed. A contract has also been negotiated for the management of system spares.

Contract variations and adjustments have been negotiated between the parties. No debts have been written off or forgiven during the year. Amounts are due the 20th of the month following date of invoice.

| | 2006
| | $000's | 2005
| | | $000's |
|----------------------------------|--------|--------|
| Services provided by Connetics: | | |
| Asset maintenance | | |
| - asset storage | 221 | 215 |
| - emergency work | 2,465 | 2,043 |
| - other asset maintenance | 4,132 | 4,384 |
| | 6,818 | 6,642 |
| Asset construction | | |
| - subtransmission assets | 833 | 809 |
| - zone substations | 54 | 3,575 |
| - distribution lines and cables | 2,886 | 4,126 |
| - medium voltage switchgear | 2,255 | 752 |
| - distribution transformers | 75 | - |
| - distribution substations | 54 | 323 |
| - low voltage lines and cables | 4,831 | 3,410 |
| - other system fixed assets | 493 | 174 |
| | 11,481 | 13,169 |
| Other services provided to line business | | |
| - meter data | - | - |
| - consumer-based load control | - | - |
| - disconnection/reconnection services | - | - |
| - avoided transmission charges | - | - |
| - other goods and services | - | - |
| | 18,299 | 19,811 |
| Balance outstanding at 31 March | 2,846 | 3,095 |

The company has provided directors and some specialised administrative support to Connetics. These have been charged on a commercial arms-length basis.

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