Annual Report

Recommendations

Info

62 Ausgrid and Controlled Entity Notes to financial statements For the year ended 30 June 2015 (ii) Joint venture Further to the Umbrella Cooperation Agreement, the DNSPs have entered into a joint venture agreement for the purpose of realising cost savings through joint procurement and service provision activities. A legal entity Networks NSW Pty Limited has been used as the vehicle for this joint venture. Networks NSW Pty Limited will not incur any costs in its own right or enter into any sourcing agreements. Ausgrid has a one third ownership interest in Networks NSW Pty Limited. (iii) Directors Some Directors of Ausgrid are also Directors of other companies or have an interest in other companies or entities that may have had transactions with Ausgrid during the year. A Register of Directors’ interests is maintained by the Board Secretary and updated as required during the year. In particular, in accordance with the Board Charter and the Corporation’s Code of Conduct, Directors have declared any potential conflicts of interest in matters discussed at the meetings. (iv) Subsidiaries During the period ended 30 June 2015, Ausgrid provided funding to its subsidiary, Ausgrid Pty Ltd, to enable it to meet its commitments but did not receive any repayments from it. It is expected that this funding will continue in 2015/16. There were no loans (net) to the subsidiary at 30 June 2015 (2014: nil). During the financial year, Ausgrid entered into a number of services for nil consideration with its subsidiary. These services have been categorised as follows: • accounting services • supply and rental of premises • inter‐company funding • information technology services • administrative and other services The subsidiary is the lessee of 570 George Street, Sydney. Ausgrid has also provided the necessary cash facilities for the subsidiary, with respect to external transactions which were not settled by the subsidiary. (v) Transactions with other related parties The proclamation of the Energy Services Corporations Amendment (Distributor Efficiency) legislation discussed above has put Ausgrid, Endeavour Energy and Essential under the control of a single board of Directors. This new requirement means that transactions between these Corporations starting from 27 August 2013 should be disclosed as related parties. Transactions before 27 August 2013 are not considered to be between related parties. During the year Ausgrid purchased the contestable metering business from Endeavour Energy. This transaction was conducted at arms-length. In addition, the following transactions occurred with Essential Energy and Endeavour Energy. Consolidated Entity & Ausgrid Network use of system income* 0.5 0.8 Management fee recharge income 9.9 6.8 Other income 2.6 3.8 2015 $M 2014 $M 13.0 11.4 Network use of system expenses* 11.5 8.8 Management fee recharge expense 7.1 4.5 Other expenses 10.0 0.4 28.6 13.7 *representing inter distributor charges.
Ausgrid – <strong>Annual</strong> <strong>Report</strong> 2014/15 63 (vi) Outstanding balances arising from sales/purchases of goods and services. The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: Current receivables – amounts receivable 3.9 5.1 Current payables – amounts payable 8.7 2.1 No impairment provision (2014: $nil) in respect of receivables has been raised in relation to any outstanding balances, and no other expense has been recognised in respect of impaired receivables from related parties. (vii) Terms and conditions Management fee recharge income and recharge expenses are calculated at a rate which reflects the cost of providing the service, and are made on normal commercial terms and conditions. Network use of system income recoveries are based on normal commercial terms and conditions. Network use of system income recoveries represent inter distributor charges where Ausgrid supplies electricity to other distribution network service providers (DNSPs), Endeavour Energy and Essential Energy, where the respective DNSPs are not in a position to get supply from a Bulk Supply Point (BSP). Amounts receivable are unsecured and made on normal commercial terms and conditions. Amounts payable are unsecured and made on normal commercial terms and conditions. 22. REMUNERATION OF AUDITOR Amounts paid and payable to the Audit Office of New South Wales 2015 $M 2014 $M Consolidated Entity & Ausgrid Audit of financial statements 0.4 0.4 Audit of regulatory returns – 0.2 2015 $M 2014 $M 0.4 0.6 23. CONTINGENT LIABILITIES AND CONTINGENT ASSETS Contingent liabilities Consolidated Entity & Ausgrid Guarantees provided to regulatory and statutory authorities 14.8 18.1 Potential claims from litigation 5.3 – 2015 $M 2014 $M 20.1 18.1 Contingent assets Potential recoveries from pass through application – April 2015 storms 37.4 – Potential recoveries from gross workers compensation claim payments 0.1 1.8 37.5 1.8
Page 1 and 2:
Annual Report 2014/15
Page 3 and 4:
Ausgrid - Annual Report 2014/15 3 A
Page 5 and 6:
Ausgrid - Annual Report 2014/15 5 T
Page 7 and 8:
Ausgrid - Annual Report 2014/15 7 O
Page 9 and 10:
Ausgrid - Annual Report 2014/15 9 T
Page 11 and 12: Ausgrid - Annual Report 2014/15 11
Page 61: Ausgrid - Annual Report 2014/15 61
Page 71 and 72: Ausgrid and Controlled Entity State
Page 73 and 74: Ausgrid and Controlled Entity Indep
Page 81 and 82: Ausgrid Pty Limited ACN 060 979 688
show all

Annual Report

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?