3 MARCH 2008

NEW ZEALAND GAZETTE, No. 46

1329

Notes to and Forming Part of the Financial Statements

For the year ended 31 March 2007

ELECTRICITY DIVISION

14

REGULATION 6 AND PART II OF THE FIRST SCHEDULE OF THE ELECTRICITY INFORMATION DISCLOSURE REGULATIONS 2004

Operating revenue:

(a) Revenue from line/access charges: | 268,346 | 198,790 | 250,197 |
(b) Revenue from "Other" business for services carried out by the line business (transfer for payment): | - | - | - |
(c) Interest on cash, bank balances and short term investments: | 8,453 | 3,667 | 9,483 |
(d) AC loss–related rebates: | - | - | - |
(e) Other operating revenues not listed in (a) to (d): | - | 200,457 | - |
Total operating revenue: | 276,839 | 200,457 | 259,680 |

Other income | 12,379 | 8,365 | 4,210 |
Total revenue and other income | 289,218 | 208,822 | 263,890 |

15

REGULATION 6 AND PART II OF THE FIRST SCHEDULE OF THE ELECTRICITY INFORMATION DISCLOSURE REGULATIONS 2004

Operating expenditure:

(a) Payment for transmission charges: | 68,593 | 48,715 | 59,384 |
Transfer payments to the "Other" business for:
(b) Asset maintenance: | 28,802 | 21,467 | 29,061 |
(i) Consumer disconnection/reconnection services: | - | - | - |
(ii) Meter data: | - | - | - |
(iii) Consumer-based load control services: | - | - | - |
(iv) Royalty and patent expenses: | - | - | - |
(v) Avoided transmission charges on account of own generation: | - | - | - |
(vi) Other goods and services not listed in (i) to (v) above: | - | - | - |
Total transfer payment to the "Other" business: | 28,802 | 21,467 | 29,061 |

(c) Exposure to entities that are not related parties for:
Asset maintenance:
(i) Consumer disconnection/reconnection services: | - | - | - |
(ii) Meter data: | - | - | - |
(iii) Consumer-based load control services: | - | - | - |
(iv) Royalty and patent expenses: | - | - | - |
Total of specified expenses to non-related parties (sum of (i) to (iv)): | - | - | - |
(d) Employee salaries, wages, and redundancies: | 9,051 | 7,134 | 2,868 |
(e) Consumer billing and information system expense:
(f) Depreciation:
(i) System fixed assets: | 38,040 | 29,048 | 38,091 |
(ii) Other assets not listed in (i): | 6,912 | 3,293 | - |
Total depreciation: | 45,852 | 32,301 | 38,301 |

(g) Amortisation of:
(i) Goodwill: | - | - | - |
(ii) Other intangibles: | 1,902 | 1,364 | - |
Total amortisation of intangibles: | 1,902 | 1,364 | - |

(h) Corporate and administration:
Human resource expenses: | 6,467 | 3,278 | 16,230 |
(i) Salaries/wages/training: | 439 | 389 | 535 |
(ii) Meetings/entertaining: | 627 | 556 | 811 |
(iii) Merger and acquisition expenses: | - | - | 197 |
(iv) Takeover defense expenses: | - | - | - |
Research and development expenses: | - | - | - |
(v) Consultancy and legal expenses: | 2,398 | 1,644 | 3,875 |
(vi) Donations: | 32 | 18 | 114 |
(vii) Directors' fees: | - | - | - |
(viii) Audit fees paid to principal auditors: | 195 | 195 | 193 |
(ix) Audit fees paid to other auditors: | 534 | 534 | 513 |
Fees paid for other services provided by principal and other auditors: | 729 | 729 | 360 |
Total auditors' fees: | 729 | 729 | 360 |

(i) Cost of offering credit:
(i) Bad debts written off: | 168 | 126 | 19 |
(ii) Increase in estimated doubtful debts: | - | - | - |
Total cost of offering credit: | 168 | 126 | 19 |