✨ Financial Statements
23 NOVEMBER 2012
NEW ZEALAND GAZETTE, No. 140
4097
The North Island Grid Upgrade (NIGU) project property relates totalled $24.3 million. The property impairment held at balance date is $5.2 million.
As at 30 June 2012, the Transpower Lines Business holds 82 properties along the route of the line being constructed between Whakamaru and South Auckland relating to NIGU (2011: 72 properties). The new assets approved by the Electricity Commission on 5 July 2007, with designations and resource consents being granted by the Board of Inquiry on 18 September 2009. 26 properties were purchased (2011: 6 properties).
For the NIGU project:
LINES BUSINESS
| 2012 | 2011 | |
|---|---|---|
| Net book value of properties sold | $M | $M |
| Sale and associated costs | 5.3 | 1.6 |
| Gain/(loss) on property sales | 0.0 | (0.1) |
| Previously recognised impairment | (1.6) | (2.7) |
| Total (gain)/loss | (1.6) | (2.9) |
For regulatory purposes, the Transpower Lines Business does not charge consumers for losses (or realise any gains) from movements in property values, where the property was purchased for the purposes of obtaining an easement and then re-selling. Only easements and related costs from these properties are charged to customers.
Hold for sale assets
NIGU assets - these relate to properties on the North Island Grid Upgrade (NIGU) route between Whakamaru and South Auckland purchased for the purposes of establishing easements and then on-selling. Some of these properties are classified as ‘held for sale’, they are expected to be sold within 12 months. The above section on impairment has information on past sales and gains/losses on sale.
Low voltage assets - relate to substations and lines that are not integral to Transpower’s transmission network. These assets are sold or expected to be sold within 12 months.
For the low voltage assets:
LINES BUSINESS
| 2012 | 2011 | |
|---|---|---|
| Net book value | $M | $M |
| Sales amount | 0.7 | 0.7 |
| Gain/(loss) on low voltage asset sales including impairment | 0.7 | 9.7 |
| Gain/(loss) on low voltage asset sales excluding impairment | N/A | 0.7 |
Intangible assets
Expenditures are charged to have an indefinite useful life based:
-
There is no ‘foreseeable’ date to use the easements indefinitely.
-
Transpower is expected to use the easements, patrol costs and related costs such as resource consents.
There was no impairment on easements during the year (2011: none).
Right to access assets
The most significant right to access relates to the Vector Tunnel to access asset in Auckland for $68 million. The Vector Tunnel right to access asset is being amortised over the contract life, 99 years.
Software
The amortisation of software occurs over 8 years.
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NZ Gazette 2012, No 140
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Transpower New Zealand Limited Financial Statements
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🏭 Trade, Customs & IndustryFinancial statements, Property, Impairment, NIGU project, Lines Business, Hold for sale assets, Intangible assets, Right to access assets, Software