✨ Commerce Act Notice
NEW ZEALAND GAZETTE, No. 106
27 JUNE 2008
(e) operating expenditure which is the result of an insurance event and has been recovered by insurance income, or is reasonably anticipated by Transpower to be so recovered.
(3) If Transpower’s actual operating costs in providing specified services for the relevant assessment period less the costs specified in subclause (2)(b) to (e) differs from the indexed opex for the relevant assessment period, the difference (whether positive or negative) is to be the account of Transpower and is not to be recovered from or returned to customers.
(4) For the purposes of subclause (3), expenditure relating to investigation and feasibility work that is accounted for as an expense for financial reporting purposes is to be included as an actual operating expense.
(5) Operating lease costs for assets are to be excluded from indexed opex. Future committed operating lease costs are to be capitalised and a WACC return on the average net present value of leased assets included in the AC or HVDC revenue requirement. A depreciation charge is also to be included in the AC or HVDC revenue requirement. The depreciation and net present value is to exclude the estimated financing component inherent in the operating leases. Any capitalised operating leases entered into after 30 June 2006 are to be treated as capital expenditure.
7 Depreciation, impairment and asset stranding
(1) Transpower is to receive a return of capital through a depreciation charge based upon the life of the underlying assets. The calculation of the depreciation charge and any asset write off is to be consistent with GAAP and the depreciated historical cost valuation methodology, and is to include "depreciation" relating to operating leases and pseudo assets.
(2) Transpower is to adjust cash flows (using accelerated depreciation) to achieve a return of capital as asset stranding or impairment becomes apparent. Asset stranding may be handled through the relevant customer account with recovery achieved through an adjustment to the relevant customer account if stranding is not anticipated at the time the forecast revenue requirement is set. Transpower is not to earn a return on capital for stranded or impaired assets.
8 Tax
Transpower is to use a tax payable approach to calculate the AC or HVDC revenue requirement.
9 Economic value framework
(1) The ex-post economic gains or losses in respect of the provision of specified services by Transpower are to be—
(a) calculated at the end of each assessment period on the basis that revenue received in the pricing year starting immediately prior to the start of the assessment period is deemed to have been received in the assessment period; and
(b) allocated between customers and Transpower; and
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NZ Gazette 2008, No 106
✨ LLM interpretation of page content
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Commerce Act (Transpower Thresholds) Notice 2008
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🏭 Trade, Customs & Industry27 June 2008
Commerce Act, Transpower, Thresholds, Notice, 2008, Asset Management, Information Requirements, Compliance, Revenue Requirement