EirGrid plc Annual Report 2012

EIRGRID PLC ANNUAL REPORT & ACCOUNTS 201214. Trade and Other Payables (continued)Taxation and social welfare comprises of the following:GroupCompany30 Sep 2012 30 Sep 2011 30 Sep 2012 30 Sep 2011€’000 €’000 €’000 €’000PAYE/PRSI 1,077 1,019 862 819VAT 3,444 892 6,006 892Withholding tax 354 160 354 160Total 4,875 2,071 7,222 1,871Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.The Directors consider that the carrying amount of trade payables approximates their fair value. The Group hasfinancial risk management policies in place to ensure that all payables are paid within the credit timeframe.€27.0m (2011: €30.8m) of the Group trade payables balance and €7.0m (2011: €5.8m) of the Groupaccruals balance relates to the charges payable to ESB and NIE as Transmission Asset Owners in Ireland andNorthern Ireland respectively. €27.0m (2011: €30.8m) of the Company trade payables balance relates to thecharge payable to ESB as Transmission Asset Owner. Accruals consist mainly of the direct costs of runningthe transmission system for the last two months of the accounting period and uninvoiced work performed bysuppliers on the East West Interconnector project during the final quarter of the year.There were no regulatory over-recoveries recognised as at 30 September 2012. The liability in respect ofregulatory over-recoveries as at 30 September 2011 relates to internal operating costs which were overrecoveredin the period following the vesting of EirGrid plc in 2006. This over-recovery was fully returnedto customers at the end of the 2011 tariff period. The over-recovery occurred in the context of regulatoryuncertainty surrounding internal operating costs arising on the vesting of EirGrid plc and the fundamentalchange in market design. The CER issued the instruction that the sum of €9.2m be returned to customers.In the year to 30 September 2011, €6.9m of this amount was returned, with €2.3m returned in the year to30 September 2012.15. Deferred IncomeGroupCapital Grants €’000Balance as at 1 October 2010 2,318Grants received 33,000Balance as at 30 September 2011 35,318Grants received 43,962Balance as at 30 September 2012 79,280Analysed as: €’000Current -Non-current 79,280Balance as at 30 September 2012 79,280Capital grants received during the year were related to the East West Interconnector project and were receivedfrom the EU Commission. There are no unfulfilled conditions or other contingencies attaching to capital grantsreceived. Capital grants will be amortised in line with depreciation of the EWIC asset.111