29 JANUARY 2008

NEW ZEALAND GAZETTE, No. 13

315

| | 2007
| $(000) | 2006
| $(000) |
|--------------------|--------|--------|
| 12 | | |
| Operating expenditure | | |
| (a) Payment for transmission charges: | 2,111 | 1,782 |
| Transfer payments to the “Other” business for- | | |
| (b) Transfer payments: | 0 | 0 |
| (i) Asset maintenance: | 0 | 0 |
| (ii) Consumer disconnection/reconnection services: | 0 | 0 |
| (iii) Meter data: | 0 | 0 |
| (iv) Consumer-based load control services: | 0 | 0 |
| (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): | 0 | 0 |
| (viii) Total transfer payment to the “Other” business (sum of (i) to (vii)): | 0 | 0 |

| (c) Expense to entities that are not related parties for- | | |
| (i) Asset maintenance: | 558 | 601 |
| (ii) Consumer disconnection / reconnection services: | 0 | 0 |
| (iii) Meter data: | 0 | 0 |
| (iv) Consumer-based load control services: | 0 | 0 |
| (v) Royalty and patent expenses: | 0 | 0 |
| Total of specified expenses to non-related parties (sum of (i) to (v)): | 658 | 601 |

| (d) Employee salaries, wages, and redundancies: | 340 | 308 |
| (e) Consumer billing and information system expense: | 0 | 0 |
| (f) Depreciation on- | | |
| (i) System fixed assets: | 963 | 940 |
| (ii) Other assets not listed in (i): | 28 | 33 |
| Total depreciation (sum of (i) and (ii)): | 991 | 973 |

| (g) Amortisation of- | | |
| (i) Goodwill: | 0 | 0 |
| (ii) Other intangibles: | 0 | 0 |
| Total amortisation of intangibles (sum of (i) and (ii)): | 0 | 0 |

| (h) Corporate and administration: | | |
| (i) Human resource expenses: | 634 | 504 |
| (j) Marketing / advertising: | 0 | 0 |
| (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: | 63 | 43 |
| (o) Donations: | 0 | 0 |
| (p) Directors’ fees: | 63 | 63 |

| (q) Auditors’ fees: | | |
| (i) Audit fees paid to principal auditors: | 23 | 22 |
| (ii) Audit fees paid to other auditors: | 0 | 0 |
| (iii) Fees paid for other services provided by principal and other auditors: | 3 | 3 |
| Total auditors’ fees (sum of (i) to (iii)): | 26 | 25 |

| (r) Costs of offering credit: | | |
| (i) Bad debts written off: | -1 | 3 |
| (ii) Increase in estimated doubtful debts: | 0 | 0 |
| Total cost of offering credit (sum of (I) to (III)): | -1 | 3 |

| (s) Local authority rates expense: | 14 | 12 |
| (t) AC loss-rentals (distribution to retailers/customers) expenses: | 0 | 0 |
| (u) Rebates to consumers due to ownership interest: | 0 | 0 |
| (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 (sum of 12(a) to 12(x)): | 4,899 | 4,314 |

| 14 Operating surplus before interest and income tax (11(-)13): | 2,802 | 3,173 |

| 15 Interest expense: | | |
| (a) Interest expense on borrowings: | 256 | 76 |
| (b) Financing charges related to finance leases: | 0 | 0 |
| (c) Other interest expense not listed in (a) or (b): | 0 | 0 |
| (d) Total interest expense (sum of (a) to (c)): | 256 | 76 |

| 16 Operating surplus before income tax (14-15(d)): | 2,546 | 3,097 |

| 17 Income tax: | 942 | 1,127 |

| 18 Net surplus after tax (16-17): | 1,604 | 1,970 |