✨ Financial Provisions
15. Provisions
| Employee benefits | LINES BUSINESS | Total | ||
|---|---|---|---|---|
| Redundancy | Dismantling | |||
| $M | $M | $M | $M | |
| Balance at 1 July 2012 | 5.6 | 0.2 | 10.7 | 16.5 |
| Provisions made during the period | 6.5 | 1.1 | - | 7.6 |
| Provisions used during the period | (5.6) | (0.5) | (5.8) | (11.9) |
| Provisions reversed during the period | - | - | - | - |
| Balance at 30 June 2013 | 6.5 | 0.8 | 4.9 | 12.2 |
| Current portion of provisions | 6.5 | 0.8 | 2.1 | 9.4 |
| Non current portion of provisions | - | - | 2.8 | 2.8 |
| Balance at 30 June 2013 | 6.5 | 0.8 | 4.9 | 12.2 |
Employee benefits
The Transpower Lines Business, for accounting purposes, has a constructive obligation with regard to certain employee benefits. This provision is expected to be used within one year.
Dismantling
In September 2007, the Transpower Lines Business removed from service the HVDC Pole 1 (Pole 1) due to the low probability, high consequence risks posed by continuing operation of the aging technology.
The Transpower Lines Business recognises site restoration and rehabilitation liabilities where the Transpower Lines Business believes an obligation exists. Pole 1 contains mercury and the Transpower Lines Business has estimated the decommissioning cost based on engineering advice. Decommissioning of the remaining half of Pole 1 is planned to be completed by June 2015. Actual decommissioning costs may vary from the figures indicated.
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NZ Gazette 2013, No 155
✨ LLM interpretation of page content
🏭
Transpower New Zealand Limited Statement of Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statement, Provisions, Employee Benefits, Dismantling Costs