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