Endeavour Energy Annual Performance Report - Parliament of New ...

09
Financial
statements
Notes to the Financial Statements
For the year ended 30 June 2011
2 Statement of Significant
Accounting Policies
continued
The Corporation paid a special
dividend of $863.7m in 2011, sourced
from proceeds from the sale of
the Retail net assets. The special
dividend was issued pursuant to
section 59B of the Public Finance and
Audit Act 1983 (NSW).
(aa) Greenhouse legislation
The Commonwealth Renewable
Energy (Electricity) Act 2000
imposes on electricity retailers the
obligation to “surrender” sufficient
certificates each year to meet the
Commonwealth Government’s
strategy to lift Australia’s use of
electricity generated from renewable
sources. This imposes an obligation
on Endeavour Energy to purchase
Renewable Energy Certificates
(RECs) and surrender them to the
Office of the Renewable Energy
Regulator in discharge of Endeavour
Energy’s renewable energy
obligations. These certificates are
accounted for as “other assets” and,
as such, are reviewed for impairment
and carried at the lower of cost or
net realisable value at the close of
the reporting period.
The NSW Electricity Supply
Amendment (Greenhouse Gas
Emission Reduction) Act 2000
imposes on electricity retailers the
obligation to “surrender” sufficient
certificates each year to satisfy the
State Government’s strategy to
reduce greenhouse gas per capita
emissions from electricity purchases.
This imposes an obligation on
Endeavour Energy to purchase
or produce NSW Greenhouse
Abatement Certificates (NGACs) and
surrender them to the Independent
Pricing and Regulatory Tribunal
(IPART) in discharge of Endeavour
Energy’s greenhouse gas emission
reduction obligations.
Endeavour Energy’s obligations in
regards to RECs and NGACs ceased
on 1 March 2011 following the sale
of the Retail business’ net assets.
REC and NGAC assets within the
Statement of Financial Position relate
to obligations with respect to the
period 1 January 2011 to 28 February
2011 (sale Completion Date), which
are expected to be settled in the
2012 calendar year.
Endeavour Energy accounts for
NGAC certificates under AASB 102
Inventories. Certificates which
are created and held for sale are
recognised initially at the point of
registration and measured at the
registration fee paid. Certificates
which are purchased and held for
sale are recognised initially at the
point of acquisition and measured
at cost, being the fair value of
the consideration paid. They are
subsequently measured at the lower
of cost and net realisable value.
The profit on sale is recognised when
the entity delivers the certificates
under an agreement or sells them.
The surrender of these certificates
will be recognised in the underlying
purchase commitment as an element
of electricity purchase costs.
3 Revenue
2011
$’000
2010
$’000
Revenues
Network use of system income 1,136,535 977,006
Sales revenue 1,136,535 977,006
Interest income 1,848 992
Capital contributions 61,616 44,679
Other income 82,257 53,724
Other income 145,721 99,395
Total revenue and other income 1,282,256 1,076,401
62