✨ Financial Report
NEW ZEALAND GAZETTE, No. 155
25 NOVEMBER 2013
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
The following are the balances and expected cashflows from the EV account, by HVAC and HVDC customers
30 June 2013 balance
| HVAC | HVDC | Total | |
|---|---|---|---|
| $M | $M | $M | |
| To be recovered (paid) over the period 1 July 2013 to 30 June 2020 | (47.1) | 94.0 | 46.9 |
| To be recovered (paid) over the period 1 April 2013 to 31 March 2014 | (39.1) | 5.9 | (33.2) |
| To be recovered (paid) over the period 1 April 2014 to 31 March 2015 | (11.4) | (7.5) | (18.9) |
| Total to be recovered (paid) | (97.6) | 92.4 | (5.2) |
30 June 2012 balance
| HVAC | HVDC | Total | |
|---|---|---|---|
| $M | $M | $M | |
| To be recovered (paid) over the period 1 July 2012 to 30 June 2020 | (52.1) | 104.1 | 52.0 |
| To be recovered (paid) over the period 1 April 2013 to 31 March 2014 | (36.5) | 5.5 | (31.0) |
| Total to be recovered (paid) | (88.6) | 109.6 | 21.0 |
(iv) Regulated rate of return
On 23 December 2010 the Commerce Commission (CC) announced the new regulatory framework that applies to Transpower and which has been brought into effect by the Commerce Act (Transpower Individual Price-Quality Path) Determination 2010 and the Commerce Act (Transpower Input Methodologies) Determination 2010. Under this framework the CC has determined a regulated rate of return for Transpower of 7.19%, which was below a level that the directors and their specialist advisors considered appropriate. The 7.19% applies for the period from 1 July 2011 to 30 June 2015.
The process leading to the decision on the rate of return has been subject to judicial review. The High Court released its judgment on this review on 21 December 2011. The Court found that the CC had erred in that part of the process that related to the leverage rate used to calculate Transpower’s regulated rate of return. The Court ordered that the CC reconsult on its leverage assumptions. Transpower has also appealed the merits of the rate of return decision itself. The appeal was heard in late 2012 and a judgment is expected in late 2013. As a result of these actions it is possible (but by no means certain) that the regulated rate of return may be changed retrospectively. An increase in the regulated rate of return of 10 basis points approximates to revenue of $4m per annum.
(v) Various other lawsuits, claims and investigations
Various other lawsuits, claims and investigations have been brought or are pending against the Group. The directors of Transpower cannot reasonably estimate the adverse effect (if any) on the Group if any of the foregoing claims are ultimately resolved against the Group’s interests.
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NZ Gazette 2013, No 155
✨ LLM interpretation of page content
💰
Capital Commitments for Transpower New Zealand Limited Lines Business
(continued from previous page)
💰 Finance & RevenueCapital commitments, Financial commitments, Transpower, Lines Business, Contingencies, Regulation, Capital Projects, NIGU Project, Guarantees, NZPCL, Debt, Bonds
💰 Balances and Expected Cashflows from the EV Account
💰 Finance & RevenueBalances, Cashflows, EV Account, HVAC, HVDC, Financial Report, Transpower
💰 Regulated Rate of Return for Transpower
💰 Finance & RevenueRegulated rate of return, Commerce Commission, Transpower, Judicial Review, High Court, Leverage Rate
⚖️ Various Lawsuits, Claims, and Investigations
⚖️ Justice & Law EnforcementLawsuits, Claims, Investigations, Transpower, Group