INFORMATION FOR DISCLOSURE
PURSUANT TO SECTION 57T OF THE COMMERCE ACT 1986
CERTIFICATION OF FINANCIAL STATEMENTS, PERFORMANCE MEASURES, AND STATISTICS DISCLOSED BY EASTLAND NETWORK LIMITED
We, Trevor William Taylor and Roger Neil Taylor, directors of Eastland Network Ltd certify that, having made all reasonable enquiry, to the best of our knowledge, -
(a) The attached audited financial statements of Eastland Network Ltd, prepared for the purposes of requirement 6 of the Commerce Commission's Electricity Information Disclosure Requirements 2004 comply with those Requirements; and
(b) The attached information, being the derivation table, financial performance measures, efficiency performance measures, energy delivery efficiency performance measures, statistics and reliability performance measures in relation to Eastland Network Limited, and having been prepared for the purposes of requirements 15, 16, 20 and 21 of the Electricity Information Disclosure Requirements 2004, comply with those Requirements.
The valuations on which those financial performance measures are based are as at
31 March 2004.
Director Director
Dated this 22nd day of November 2006.
Statement of Financial Performance
For the year ended 31 March 2006
Note 2006 2005
$'000 $'000
Operating Revenue 2 25,507 23,349
Operating Expense 3 15,409 14,542
Earnings before Interest and Tax 10,098 8,807
Interest Expense 4 3,220 2,972
Net Surplus before Tax 6,878 5,835
Taxation Expense 5 2,061 2,209
Net Surplus after Tax. 4,817 3,626
Statements of Movements in Equity
For the year ended 31 March 2006
Note 2006 2005
$'000 $'000
Total equity at beginning of year 48,117 36,957
Net surplus after tax 4,817 3,626
Increase(decrease) in value of fixed assets
recognised in equity
System Assets (45) 11,992
Land and Buildings - 17
Total recognised revenues and expenses 4,772 15,635
Distributions to Owners
Dividends 2,179 4,475
Total Distributions to owners 2,179 4,475
Total equity at end of year 7 50,710 48,117
Statement of Financial Position
As at 31 March 2006
Note 2006 2005
$'000 $'000
Current Assets
Cash 2,682 1,327
Receivables and prepayments 10 2,552 2,438
Inventories - 2
Total Current Assets 5,234 3,767
Non current Assets
Property, plant and equipment 9 97,837 94,371
Total Non Current Assets 97,837 94,371
Total Assets 103,071 98,138
Current Liabilities
Payables and accruals 11 4,979 3,939
Total Current Liabilities 4,979 3,939
Non Current Liabilities
Bank Borrowings 12 34,100 33,800
Deferred Taxation 6 3,282 2,282
Capital Notes 10,000 10,000
Total Non Current Liabilities 47,382 46,082
Total Liabilities 52,361 50,021
Net Assets 50,710 48,117
Total Equity 7 50,710 48,117
Statement of Cash Flows
For the year ended 31 March 2006
Note 2006 2005
$'000 $'000
Cash flows from(used in) operating activities
Cash provided from:
Receipts from customers 25,708 23,444
Interest received 127 69
25,835 23,513
Cash applied to:
Payments to suppliers and employees (11,681) (10,970)
Interest paid (2,968) (2,917)
Income Tax paid (1,114) (1,155)
Net GST 64 (18)
(15,699) (15,060)
Net cash flows from(used in) operating activities 10,136 8,453
Cash flows from(used in) investing activities
Cash provided from:
Disposal of property, plant and equipment - 14
Cash applied to:
Acquisition of property, plant & equipment (6,902) (6,969)
Net cash flows from(used in) investing activities (6,902) (6,955)
Net cash flows from(used in) financing activities
Cash provided from:
Proceeds of borrowings 34,100 3,650
Cash applied to:
Repayment of borrowings (33,800) -
Dividends paid (2,179) (4,475)
(35,979) (4,475)
Net cash flows from(used in) financing activities (1,879) (825)
Net increase (decrease) in cash held 1,355 673
Add opening cash brought forward 1,327 654
Ending cash carried forward 2,682 1,327
Notes to the financial statements
For the year ended 31 March 2006
1) Statement of accounting policies
Basis of Preparation
The financial statements prepared are the consolidation of the electricity lines businesses of Eastland Network Limited and Eastland Infrastructure Limited (the management company owned by the shareholder of Eastland Network Limited). Both companies are registered under the Companies Act 1993 and are reporting entities for the purposes of the Financial Reporting Act 1993.
The financial statements have been completed in accordance with Commerce Commission's Electricity Information Disclosure Requirements 2004.
Measurement base
The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain property has been revalued.
Specific accounting policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied.
(A) Fixed Assets
Owned Assets
Fixed assets are initially stated at cost and depreciated as outlined below. Where appropriate, the cost of fixed assets includes site preparation costs, installation costs, and the cost of obtaining resource consents.
Leased Assets
Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Assets acquired by way of finance lease are stated at an amount equal to the present value of the future minimum lease payments, and are depreciated as outlined below.
Revaluations
Land and buildings are stated at valuation as determined, on a cyclical basis not exceeding three years by an independent valuer. The basis of valuation is market value less the estimated costs of disposal, on an existing use basis.
Notes to the financial statements (continued)
For the year ended 31 March 2006
Network assets are stated at valuation as determined, on a cyclical basis not exceeding five years. The basis of valuation is optimised depreciated replacement cost, as reviewed by an independent engineering consultant.
Any surplus on revaluation is transferred directly to equity unless it offsets a previous decrease in value recognised in the statement of financial performance, in which case it is recognised in the statement of financial performance. A decrease in value is recognised in the statement of financial performance where it exceeds the surplus previously transferred to equity.
Disposal of Fixed Assets
Where a fixed asset is disposed of, the profit or loss recognised in the statement of financial performance is calculated as the difference between the sale price and the carrying value of the fixed asset.
Depreciation
Depreciation is calculated on a straight line basis to allocate the cost or revalued amount of an asset, less any residual value, over its useful life.
Major depreciation periods are:
Buildings 40 - 100 years
Distribution System 10 - 60 years
Motor Vehicles 5 - 10 years
Plant & Equipment 5 - 15 years
(B) Receivables
Receivables are stated at estimated realisable value after providing against debts where collection is doubtful.
(C) Inventories
Inventories are stated at the lower of cost or net realisable value. The estimated costs of marketing, selling and distribution are deducted in calculating net realisable value.
Cost is determined on a weighted average basis and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition and location.
(D) Taxation
The income tax expense charged to the statement of financial performance includes both the current year's provision and the income tax effect of timing differences calculated using the liability method.
Notes to the financial statements (continued)
For the year ended 31 March 2006
Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
(E) Financial instruments
The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, investments, accounts receivable, accounts payable and term borrowings. All financial instruments are recognised in the statement of financial position and all revenues in relation to financial instruments are recognised in the statement of financial performance.
Except for those items covered by a separate accounting policy, all financial instruments are shown at their fair value.
(F) Employee Entitlements
A liability for annual leave and long service leave is accrued and recognised in the statement of financial position. The liability is calculated on an actual entitlement basis.
(G) Foreign Currency Transactions
Transactions denominated in foreign currencies are translated into the reporting currency using the exchange rate in effect at the transaction date.
Monetary items receivable or payable in a foreign currency, other than those resulting from short term transactions covered by forward exchange contracts, are translated at balance date at the closing rate. For transactions covered by short term forward exchange contracts, the rates specified in those contracts are used as the basis for measuring and reporting the transaction.
Exchange differences on foreign currency balances are recognised in the Statement of Financial Performance.
(H) Changes in Accounting Policies
There have been no changes in accounting policies. All Policies have been applied on bases consistent with those in the prior year.
Notes to the Financial Statements (continued)
For the year ended 31 March 2006
Note 2006 2005
$'000 $'000
2 Operating Revenue
(a) Revenue from line/access charges: 22,914 21,888
(b) Revenue from "Other" business for services carried out by
the line business (transfer payment): 98 166
(c) Interest on cash, bank balances and short term investments: 88 252
(d) AC loss-rental rebates: 1,290 735
(e) Other revenue not listed in (a) to (d): 1,117 308
(f) Total operating revenue 25,507 23,349
3 Operating expenditure
(a) Payment for transmission charges 5,046 5,409
(b) Transfer payments to the "Other" business for: - -
(i) Asset maintenance: - -
(ii) Consumer disconnection/reconnection services: - -
(iii) Meter data: - -
(iv) Consumer-based load control services: - -
(v) Royalty and patent expenses: - -
(vi) Avoided transmission charges on account of own generation 1,293 1,282
(vii) Other goods and services not listed in (i) to (vi) above - -
(viii) Total transfer payment to the "Other" business 1,293 1,282
(c ) Expense to entities that are not related parties for:
(i) Asset maintenance: 1,891 1,774
(ii) Consumer disconnection/reconnection services - -
(iii) Meter data - -
(iv) Consumer-based load control services - -
(v) Royalty and patent expenses - -
(vi) Total of specified expenses to non-related parties 1,891 1,774
(d) Employee salaries, wages and redundancies 922 928
(e) Consumer billing and information system expense 80 139
(f) Depreciation on:
(i) System fixed assets: 3,268 2,632
(ii) Other assets not listed in (i) 218 347
(iii) Total depreciation 3,486 2,979
(g) Amortisation of:
(i) Goodwill: - -
(ii) Other intangibles: - -
(iii) Total amortisation of intangibles - -
(h) Corporate and administration: 504 540
(i) Human resource expenses: 65 106
(j) Marketing/advertising: 24 6
(k) Merger and acquisition expenses: - -
(l) Takeover defence expenses: - -
(m) Research and development expenses: - -
(n) Consultancy and legal expenses: 194 205
(o) Donations: - -
(p) Directors' fees: 160 193
(q) Auditors' fees:
(i) Audit fees paid to principal auditors: 45 37
(ii) Audit fees paid to other auditors: - -
(iii) Fees paid for other services provided by principal/other auditors: - -
(iv) Total auditors' fees: 45 37
Notes to the Financial Statements (continued)
For the year ended 31 March 2006
Note 2006 2005
$'000 $'000
3 Operating expenditure (continued)
(r ) Costs of offering credit:
(i) Bad debts written off: 66 18
(ii) Increase in estimated doubtful debts: - -
(iii) Total cost of offering credit: 66 18
(s) Local authority rates expense: 125 107
(t) AC loss-rentals (distribution to retailers/customers) expense: 1,290 661
(u) Rebates to consumers due to ownership interest: - -
(v) Subvention payments: - -
(w) Unusual expenses: - -
(x) Other expenditure not listed in (a) to (w) 217 158
Total operating expenditure 15,408 14,542
4 Interest Expense
(a) Interest expense on borrowings 3,220 2,972
(b) Financing charges related to finance leases - -
(c) Other interest expense - -
(d) Total interest expense 3,220 2,972
Notes to the Financial Statements (continued)
For the year ended 31 March 2006
Note 2006 2005
$'000 $'000
5 Taxation
Surplus before tax 6,878 5,835
Prima facie taxation at 33% 2,270 1,925
Add(subtract) tax effect of permanent differences 284
Income Tax expense 2,270 2,209
Income Tax expense is made up of
Current taxation 1,270 1,268
Deferred taxation 1,000 941
2,270 2,209
6 Deferred Taxation
Balance at beginning of year (2,282) (1,341)
Recognised in the Statement of
Financial Performance (1,000) (941)
Balance at end of year (3,282) (2,282)
7 Shareholders' Equity
Paid in Share Capital 5,573 5,573
Asset Revaluation Reserve 8 30,429 30,474
Other Equity 14,708 12,070
50,710 48,117
8 Asset Revaluation Reserve
Balance at beginning of year 30,474 18,465
Revaluation current year
System Assets - 11,992
Land & Buildings - 17
- 12,009
Disposal of revalued assets
System Assets 45 -
Balance at end of year 30,429 30,474
Notes to the Financial Statements (continued)
For the year ended 31 March 2006
2006 2005
$'000 $'000
9 Property, Plant and Equipment
System fixed assets at valuation 99,631 90,126
less accumulated depreciation (6,843) (2,747)
92,788 87,379
Customer Billing & information system assets at cost 1,159 1,511
less accumulated depreciation (958) (1,070)
201 441
Motor Vehicles at cost 254 175
less accumulated depreciation (171) (125)
83 50
Office Equipment at cost 240 256
less accumulated depreciation (43) (181)
197 75
Land and Buildings at valuation 1,454 1,456
less accumulated depreciation (75) (48)
1,379 1,408
Capital works under construction at cost 3,095 4,873
Other plant and equipment at cost 463 538
less accumulated depreciation (369) (393)
94 145
Total Property, Plant and Equipment 97,837 94,371

10 Receivables
Trade Debtors 2,182 2,303
Other receivables 370 135
Income Tax refundable -
Total Receivables 2,552 2,438

11 Creditors and Borrowings
Current
Trade Creditors 2,327 3,209
Other Creditors 1,703 -
Interest Payable 569 323
Income Tax Payable 128 144
Employee Provisions 252 263
4,979 3,939

Non Current
Bank Loans unsecured - 33,800
Intercompany Borrowings 34,100 -
34,100 33,800
Notes to the financial statements (continued)
For the year ended 31 March 2006
12 Bank and Intercompany Borrowings
In December 2005 Eastland Infrastructure Limited arranged bank funding from Commonwealth Bank and Westpac on behalf of the Eastland Infrastructure Group of Companies (Eastland Infrastructure Limited, Eastland Network Limited and Eastland Port Limited). The facility, initially for $50 million increases to $75 million over a three year period, is unsecured and subject to a Deed of Negative Pledge. The borrowings are in the name of Eastland Infrastructure Limited with the other two companies acting as guarantors.
Drawings under the facility commenced on 28 December 2005 and were on lent to clear existing borrowings by Eastland Port Limited and Eastland Network Limited.
Existing borrowings from ASB Bank were repaid progressively from 28 December 2005 using funds advanced by Eastland Infrastructure Limited as "group" borrower under the above facility. The final payment to ASB Bank was made on 28 February 2006. Borrowings at 31 March 2006 were $34,100,000 advanced from Eastland Infrastructure Limited.
The company (and the "group") has a policy of hedging interest rates and at 31 March 2006. Eastland Network Limited had interest cover of $33 million for up to 5 years. The average fixed rate cover at this date was 6.52%. $19 million of these hedges are subject to a Novation Agreement dated 31 March 2006, transferring these hedges from Eastland Network Limited to Eastland Infrastructure Limited (and from ASB Bank to Commonwealth Bank). The transfers take effect at the next interest rate reset date progressively over the three months to 30 June 2006.
13 Net Cash Flow from Operating Activities 2006 2005
$'000 $'000
The following is a reconciliation between the surplus after tax shown in the Statement of
Financial Performance and the net cash flow from operating activities.
Surplus after tax 4,817 3,626
Add(less) items classified as investing/financing activities
Capitalised interest on constructed assets - (182)
Loss(gain) on sale of other non current assets (95) 4
(95) (178)
Add(less) non-cash items
Depreciation 3,486 2,979
Decrease in future tax benefit 1,000 941
4,486 3,920
Add(less) movement in working capital
Decrease(increase) in trade and other receivables (113) (311)
Decrease/increase) in inventories 2 3
(Decrease)/increase in trade and other payables 1,039 1,393
928 1,085
Net Cash flow from Operating Activities 10,136 8,453
Notes to the financial statements (continued)
For the year ended 31 March 2006
14 Contingent Liabilities
At 31 March 2006, the Company has a contingent liability of $64,799 (2005 $66,736) in respect of Subdivision Developers' Rebates on sections that are reticulated but undeveloped. The individual liabilities will be brought to charge as each section is developed and line charges become payable.
15 Commitments
There were no capital commitments not provided for at year end. The figure for 2005 was also nil.
16 Financial Instruments
Credit risk
Financial assets which potentially subject the company to a credit risk are the book value of these financial instruments. However, the company considers the risk of non recovery of these amounts to be minimal.
Bank balances and investments in short term deposits are made with registered banks with satisfactory credit ratings. Exposure with any financial Institution is restricted in accordance with company policy.
Currency risk
The company had no material exposure to currency risk at 31 March 2006.
Interest risk
The interest rate risk is limited to bank borrowings. The company (and the "group") has a policy of hedging interest rates and at 31 March Eastland Network Limited had interest cover of $33 million for up to 5 years. The average fixed rate cover at this date was 6.52%.
Fair values
The carrying value of cash and bank deposits, accounts receivable and accounts payable is equivalent to their fair value.
Notes to the financial statements (continued)
For the year ended 31 March 2006
17 Transactions with related parties
EASTLAND COMMUNITY TRUST
Eastland Network Limited, Eastland Port Limited and Eastland Infrastructure Limited are related parties being 100% owned by Eastland Community Trust.
Other than payment of interest on Capital Notes and the payment of dividends there have been no significant transactions between company and the trust during the financial year.
EASTLAND INFRASTRUCTURE LIMITED
Eastland Infrastructure Limited provided management services to Eastland Network Limited for which management fees were paid to Eastland Infrastructure Limited. These fees amount to $2.890 million. The portion relating to the "Non-Lines Business" has been excluded from these financial statements.
EASTLAND PORT LIMITED
Eastland Network Limited leases land from Eastland Port Limited for a substation. Lease payments are $280 per annum.
18 Financial and efficiency performance measures under Requirement 14 of the Commerce Commission's Electricity Information Disclosure Requirements 2004.
2006 2005 2004 2003
1) Financial performance measures
a) Return on funds 10.9 9.6 9.7 12.9
b) Return on Equity 10.7 8.8 8.8 15.0
c) Return on Investment 7.5 6.4 23.2 9.3
2) Efficiency performance measures
a) Direct line costs per
Kilometre $647 $675 $744 $646
b) Indirect line costs per
electricity consumer $77 $70 $61 $67
19 Annual Valuation Reconciliation Report
Year ended 31 March 2006 $'000
Systems fixed assets at ODV - end of the previous Year 87,521
Add system fixed assets acquired during the year at ODV 8,298
Less system fixed assets disposed of during year at ODV 50
Less depreciation on system fixed assets at ODV 3,268
Add revaluations of system fixed assets -
Equals system fixed assets at ODV - end of financial year 92,501
SCHEDULE 1 - PART 7
FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS
Derivation Table Input and Calculations Symbol in formula ROF ROE ROI
Operating surplus before interest and income tax from financial statements 10,097,851
Operating surplus before interest and income tax adjusted pursuant to requirement 18 (OSBIIT) 10,097,851
Interest on cash, bank balances, and short-term investments (ISTI) 87,776
OSBIIT minus ISTI 10,010,075 a 10,010,075 10,010,075
Net surplus after tax from financial statements 4,817,007
Net surplus after tax adjusted pursuant to requirement 18 (NSAT) 4,817,007 n 4,817,007
Amortisation of goodwill and amortisation of other intangibles 0 g add 0 add 0 add 0
Subvention payment 0 s add 0 add 0 add 0
Depreciation of SFA at BV (x) 2,992,364
Depreciation of SFA at ODV (y) 2,992,364
ODV depreciation adjustment 0 d add 0 add 0 add 0
Subvention payment tax adjustment 0 s*t deduct 0 deduct 0
Interest tax shield 1,062,474 q deduct 1,062,474
Revaluations 0 r add 0
Income tax 2,061,226 p deduct 2,061,226
Numerator 10,010,075 4,817,007 6,886,375
OSBIITADJ = a + g + s + d NSATADJ = n + g + s - s*t + d OSBIITADJ = a + g - q + r + s + d - p - s*t
Fixed assets at end of previous financial year (FA0) 94,370,547
Fixed assets at end of current financial year (FA1) 97,836,940
Adjusted net working capital at end of previous financial year (ANWC0) -172,152
Adjusted net working capital at end of current financial year (ANWC1) 254,202
Average total funds employed (ATFE) 96,144,768 c 96,144,768 96,144,768
(or requirement 32 time-weighted average)
Total equity at end of previous financial year (TE0) 48,116,411
Total equity at end of current financial year (TE1) 50,709,653
Average total equity 49,413,032 k 49,413,032
(or requirement 32 time-weighted average)
WUC at end of previous financial year (WUC0) 4,872,625
WUC at end of current financial year (WUC1) 3,095,131
Average total works under construction 3,983,878 e deduct 3,983,878 deduct 3,983,878 deduct 3,983,878
(or requirement 32 time-weighted average)
Revaluations 0 r
Half of revaluations 0 r/2 deduct 0
Intangible assets at end of previous financial year (IA0) 0
0
Intangible assets at end of current financial year (IA1) 0
Average total intangible asset 0 m add 0
(or requirement 32 time-weighted average)
Subvention payment at end of previous financial year (S0) 0
Subvention payment at end of current financial year (S1) 0
0
Subvention payment tax adjustment at end of previous financial year 0
Subvention payment tax adjustment at end of current financial year 0
Average subvention payment & related tax adjustment 0 v add 0
System fixed assets at end of previous financial year at book value (SFAbv0) 87,809,051
System fixed assets at end of current financial year at book value (SFAbv1) 92,788,794
Average value of system fixed assets at book value 90,298,923 f deduct 90,298,923 deduct 90,298,923 deduct 90,298,923
(or requirement 32 time-weighted average)
System Fixed assets at year beginning at ODV value (SFAodv0) 87,520,945
System Fixed assets at end of current financial year at ODV value (SFAodv1) 92,500,689
Average value of system fixed assets at ODV value 90,010,817 h add 90,010,817 add 90,010,817 add 90,010,817
(or requirement 32 time-weighted average)
Denominator 91,872,785 45,141,049 91,872,785
ATFEADJ = c - e - f + h Ave TEADJ = k - e - m + v - f + h ATFEADJ = c - e - ½r - f + h
Financial Performance Measure: 10.9 10.7 7.5
ROF = OSBIITADJ/ATFEADJ x 100 ROE = NSATADJ/ATEADJ x 100 ROI = OSBIITADJ/ATFEADJ x 100
Efficiency Performance Measures (Schedule 1, Part 3)
2006 2005 2004 2003
Direct line costs per kilometre 647 675 744 646
Direct expenditure 2,372,204 2,477,409 2,698,961 2,428,814
System length 3,666.64 3,671.80 3,629.30 3,758.25
2006 2005 2004 2003
Indirect line costs per consumer 77 70 61 67
Indirect expenditure 1,922,798 1,733,061 1,507,781 1,695,627
Total consumers 24,864 24,856 24,876 25,264
Energy Delivery Efficiency Performance Measures (Schedule 1, Part 4)
2006 2005 2004 2003
Load Factor (= [a/bc]*100/1) 61.75% 62.68% 61.11% 58.06%
where -
a = Kwh of electricity entering system
during the financial year 302,358,736 306,333,406 296,456,944 269,908,821
(this figure should be same as the total for (g) from Statistics)
b = Maximum Demand 55,894 55,699 53,847 55,463
c = Total number of hours
in financial year 8760 8760 8784 8,760
2006 2005 2004 2003
Loss Ratio (= a/b*100/1) 6.35% 7.58% 7.31% 7.32%
where -
a = losses in electricity in kWh 19,196,656 22,467,161 21,712,954 21,250,391
(this figure should be the difference between (f) and (g) from Statistics)
b = Kwh of electricity entering system
during the financial year 302,358,736 306,333,406 296,456,944 269,908,821
2006 2005 2004 2003
Capacity Utilisation (= a/b*100/1) 27.87% 28.17% 28.23% 29.50%
where -
a = Maximum Demand 55,894 55,699 53,847 55,463
b = Transformer Capacity 200,520 197,711 190,763 188,006
Statistics (Schedule 1, Part 4)
Statistics Nominal Voltage 2006 2005 2004 2003
System Length (Total) (kms)
50kV 295.75 293.91 293.30 254.24
33kV 34.39 34.32 34.40 35.50
11kV 2,561.24 2,573.62 2,575.65 2,620.27
230/400 V 775.26 769.88 725.95 848.24
Total 3,666.64 3,671.80 3,629.30 3,758.25
Circuit Length (Overhead) (kms)
50kV 294.93 293.91 293.30 254.24
33kV 34.32 34.32 34.30 35.40
11kV 2,437.91 2,448.80 2,453.65 2,502.40
230/400 V 567.90 573.18 538.40 660.34
Total 3,335.06 3,350.21 3,319.65 3,452.38
Circuit Length (Underground) (kms)
50kV 0.82 0.00 0.00 0.00
33kV 0.07 0.07 0.10 0.10
11kV 123.33 124.82 122.00 117.87
230/400 V 207.36 196.70 187.55 187.90
Total 331.58 321.59 309.65 305.87
Transformer Capacity (kVA) in kVA 200,520 197,711 190,763 188,006
Maximum Demand (kW) in kW 55,894 55,699 53,847 55,463
Total Electricity entering the System, before losses of electricity (kWh) 302,358,736 306,333,406 296,456,944 296,908,821
Name of retailer/generator
Total amount of electricity conveyed through the system, after losses of electricity, on behalf of each person that is an electricity generator or electricity retailer or both: Contact Energy Ltd 164,054,061 169,852,670 162,920,804 166,214,066
Mercury Energy Ltd (Mighty River) 28,564,857 24,012,438 12,857,080 1,538,842
Transalta NZ Ltd
Trustpower Ltd 40,248,140 40,403,654 41,054,204 53,549,918
Meridian Energy Ltd 16,020,077 14,058,206 18,071,846 39,254,678
Genesis Energy Ltd 34,274,945 38,930,950 39,085,849 14,638,363
NGC/Energy
TOTAL 283,162,080 287,257,918 273,989,783 275,195,867
Total number of consumers Number 24,864 24,856 24,876 25,264
Reliability Performance Measures (Requirement 21)
Interruptions Average Interruption Targets Interruption Targets Actual Interruptions
2007/2011 2007 2006 2005 2004 2003
Class
Class A 1 0 1 1
Planned Interruptions Class B 72 72 89 123 115 130
Unplanned Interruptions Class C 130 130 231 235 247 214
Class D 3 2 2 1
Class E 0 0 0
Class F 0 0 0
Class G 0 0 1 0
Class H 0 0 0
Class I 2 0 0
Total 326 360 366 346
Proportion of Total Class C Interruptions not restored: (= a/b*100/1) Within 3 Hours Within 24 Hours
where -
a = No. of interruptions not restored within 148 1
b = Total number of Class C interruptions 231 231
Proportion expressed as a percentage 64.07% 0.43%
Faults Average Faults Targets Faults Targets Actual number of faults
2007/10 2007 2006 2005 2004 2003
Faults per 100 circuit kilometres of prescribed voltage electric line Nominal Voltage
50kV 3 3 4 2 2 3
33kV 5 6 9 3 6 11
11kV 7 7 7 8 8 8
Total 5.8 5.8 7 7 8 12
Faults Actual number of faults
2006 2005 2004 2003
Faults per 100 circuit kilometres of underground prescribed voltage electric line Nominal Voltage
50kV 0 0
33kV 0 0
11kV 5 8 4 5
Total 5 8 4 5
Faults Actual number of faults
2005 2005 2004 2003
Faults per 100 circuit kilometres of overhead prescribed voltage electric line Nominal Voltage
50kV 3 2 2 3
33kV 9 3 6 11
11kV 8 8 8 7
Total 7 7 8 12
Reliability Performance Measures (Requirement 21)
SAIDI Class Average SAIDI Targets SAIDI Targets Actual SAIDI
2007/11 2007 2006 2005 2004 2003
SAIDI for total number of interruptions (= a/b) 358.95 282.53 397.61 367.66
where -
a = sum of interruption duration factors for all interruptions
b = Total consumers
SAIDI Targets (=a/b)
Planned Interruptions Class B 43 43
Unplanned Interruptions Class C 242 242
where-
Planned Interruptions (pi) Class B
api = sum of interruption duration factors for all interruptions 1,069,152 1,069,152
Unplanned Interruptions (ui) Class C
aui = sum of interruption duration factors for all interruptions 6,017,088 6,017,088
b = Projected total consumers 24,864 24,864
SAIDI for total number of interruptions within each interruption class (= a/b)
Class A 5.53 0.00 3.17 23.27
Class B 27.50 31.00 38.05 56.95
Class C 321.80 249.98 295.24 285.54
Class D 1.22 1.55 18.75 1.91
Class E 0.00 0.00 0.00 0.00
Class F 0.00 0.00 0.00 0.00
Class G 0.00 0.00 1.11 0.00
Class H 0.00 0.00 0.00 0.00
Class I 2.90 0.00 0.00 0.00
SAIDI for total of interruptions 358.95 282.53 356.31 367.66
where -
a = sum of interruption duration factors for all interruptions within the particular interruption class
Class A 137,428 0 78,750 587,769
Class B 683,679 770,671 946,417 1,438,693
Class C 8,001,348 6,213,421 7,344,364 7,213,916
Class D 30,383 38,505 466,448 1,545,201
Class E 0 0 0 0
Class F 0 0 0 0
Class G 0 0 27,721 0
Class H 0 0 0 0
Class I 72,195 0 0 0
b = Total consumers 24,864 24,856 24,876 25,264
Reliability Performance Measures (Requirement 21)
SAIFI Class Average SAIFI Targets SAIFI Targets Actual SAIFI
2006/11 2007 2006 2005 2004 2003
SAIFI for total number of interruptions (= a/b) 2.65 2.13 2.82 2.78
where -
a = sum of electricity consumers affected by each of those interruptions
b = Total consumers
SAIFI Targets (=a/b)
Planned Interruptions Class B 0.30 0.30
Unplanned Interruptions Class C 1.70 1.70
where-
Planned Interruptions Class B
a = projected number of electricity consumers affected by each of those interruptions 7,459 7,459
b = Projected total customers 24,864 24,864
Unplanned Interruptions Class C
a = projected number of electricity consumers affected by each of those interruptions 42,269 42,269
b = Projected total customers 24,864 24,864
SAIFI for total number of interruptions within each interruption class (= a/b)
Class A 0.02 0.00 0.02 0.07
Class B 0.15 0.19 0.20 0.39
Class C 2.46 1.92 1.75 2.54
Class D 0.02 0.02 0.84 0.21
Class E 0.00 0.00 0.00 0.00
Class F 0.00 0.00 0.00 0.00
Class G 0.00 0.00 0.00 0.00
Class H 0.00 0.00 0.00 0.00
Class I 0.00 0.00 0.00 0.00
SAIFI for total of interruptions 2.65 2.13 2.82 4.39
where -
a = sum of electricity consumers affected by each of those interruptions within that interruption class
Class A 383 0 375 1,883
Class B 3,663 4,723 5,026 9,765
Class C 61,095 47,724 43,485 64,049
Class D 615 497 20,791 5,000
Class E 0 0 0 0
Class F 0 0 0 0
Class G 0 0 180 0
Class H 0 0 0 0
Class I 70 0 0 0
b = Total consumers 24,864 24,856 24,876 25,264
Reliability Performance Measures (Requirement 21)
CAIDI Class Average CAIDI Targets CAIDI Targets Actual CAIDI
2007/11 2007 2006 2005 2004 2003
CAIDI for total number of interruptions (= a/b) 136 133 127 134
where -
a = sum of interruption duration factors for all interruptions
b = sum of electricity consumers affected by each of those interruptions
CAIDI Targets (=a/b)
Planned Interruptions Class B 143 143
Unplanned Interruptions Class C 142 142
where-
Planned Interruptions Class B
a = sum of interruption duration factors for all interruptions 1,069,152 1,069,152
b = projected number of electricity consumers affected by each of those interruptions 7,459 7,459
Unplanned Interruptions Class C
a = sum of interruption duration factors for all interruptions 6,017,088 6,017,088
b = projected number of electricity consumers affected by each of those interruptions 42,269 42,269
CAIDI for total number of interruptions within each interruption class (= a/b)
Class A 359 0 210 312
Class B 187 166 188 147
Class C 131 130 169 113
Class D 49 309 22 309
Class E 0 0 0 0
Class F 0 0 0 0
Class G 0 0 154 0
Class H 0 0 0 0
Class I 1,031 0 0 0
CAIDI for total of interruptions 136 133 127 134
where -
a = sum of interruption duration factors for all interruptions
Class A 137,428 0 78,750 587,769
Class B 683,679 770,671 946,417 1,438,693
Class C 8,001,348 6,213,421 7,344,364 7,213,916
Class D 30,383 38,505 466,448 1,545,201
Class E 0 0 0 0
Class F 0 0 0 0
Class G 0 0 27,721 0
Class H 0 0 0 0
Class I 72,195 0 0 0
b = sum of electricity consumers affected by each of those interruptions within that interruption class
Class A 383 0 375 1,883
Class B 3,663 4,723 5,026 9,765
Class C 61,095 47,724 43,485 64,049
Class D 615 497 20,791 5,000
Class E 0 0 0 0
Class F 0 0 0 0
Class G 0 0 180 0
Class H 0 0 0 0
Class I 70 0 0 0
CERTIFICATION OF VALUATION REPORT OF DISCLOSING ENTITIES
We, Trevor William Taylor and Roger Neil Taylor, directors of Eastland Network Limited certify that, having made all reasonable enquiry, to the best of our knowledge-
(a) the attached valuation report of Eastland Network Limited, prepared for the purposes of requirement 19 of the Commerce Commission's Electricity Information Disclosure Requirements 2004 complies with those requirements: and
(b) the replacement cost of the line business system fixed assets of Eastland Network Limited is $187,619,000; and
(c) the depreciated replacement cost of the line business system fixed assets of Eastland Network Limited is $87,482,000; and
(d) the optimised depreciated replacement cost of the line business system fixed assets of Eastland Network Limited is $86,184,000; and
(e) the optimised deprival valuation of the line business system fixed assets of Eastland Network Limited is $86,184,000; and
(f) the values in paragraphs (b) through to (e) have been prepared in accordance with the ODV Handbook (as defined in the Electricity Information Disclosure Requirements 2004). These valuations are as at 31 March 2004.

Director Director
3 March 2005
KPMG
AUDITORS OPINION IN RELATION TO ODV VALUATION
EASTLAND NETWORK LIMITED
We have examined the valuation report of Eastland Network Limited and dated 6 December 2004, which report contains valuations of system fixed assets as at 31 March 2004.
In our opinion, having made all reasonable enquiry, and to the best of our knowledge, the valuations contained in the report, including the total valuation of system fixed assets of $86,184,000 have been made in accordance with the ODV Handbook (as defined in the Commerce Commissions Electricity Information Disclosure Requirements 2004).
Bruce Loader
KPMG
P O Box 274
Christchurch
6 December 2004
Deloitte
REPORT OF THE AUDITOR-GENERAL
TO THE READERS OF THE FINANCIAL STATEMENTS OF EASTLAND NETWORK LIMITED FOR THE YEAR ENDED 31 MARCH 2006
We have audited the financial statements of Eastland Network Limited on pages 2 to 13. The financial statements provide information about the past financial performance of Eastland Network Limited and its financial position as at 31 March 2006. This information is stated in accordance with the accounting policies set out on pages 5 to 7.
Directors' responsibilities
The Commerce Commission's Electricity Information Disclosure Requirements 2004 made under section 57T of the Commerce Act 1986 require the Directors to prepare financial statements which give a true and fair view of the financial position of Eastland Network Limited as at 31 March 2006, and the results of its operations and cash flows for the year ended on that date.
Auditor's responsibilities
Section 15 of the Public Audit Act 2001 and Requirement 30 of the Electricity Information Disclosure Requirements 2004 require the Auditor-General to audit the financial statements. It is the responsibility of the Auditor-General to express an independent opinion on the financial statements and report that opinion to you.
The Auditor-General has appointed Bruce Taylor of Deloitte to undertake the audit.
Basis of opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:
§ the significant estimates and judgements made by the Directors in the preparation of the financial statements; and
§ whether the accounting policies are appropriate to Eastland Network Limited's circumstances, consistently applied and adequately disclosed.
We conducted the audit in accordance with the Auditing Standards published by the Auditor General, which incorporate the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements.
Other than in our capacity as auditor acting on behalf of the Auditor-General, we have no relationship with or interests in Eastland Network Limited.
Qualified opinion
As explained in Note 1 in the Notes to the Financial Statements, these financial statements have been prepared in accordance with the Requirements and as such represent an aggregation of the financial statements of Eastland Network Limited's Lines Business and Eastland Infrastructures Limited's Lines Business. While required by the Requirements this treatment does not comply with generally accepted accounting practice.
These two entities do not form a group as defined in Financial Reporting Standard No.37: Consolidating Investments in Subsidiaries, but are owned in common by The Eastland Energy Community Trust.
Deloitte
In our opinion:
§ proper accounting records have been maintained by Eastland Network Limited as far as appears from our examination of those records;
§ the financial statements of Eastland Network Limited's Lines Business's on pages 2 to 13:
(a) do not comply with generally accepted accounting practice in New Zealand; and
(b) do not give a true and fair view of Eastland Network Limited's Lines Business's financial position as at 31 March 2006 and the results of its operations and cash flows for the year ended on that date because of the non-compliance with Financnal Reporting Stardard No.37: Consolidating Investments in Subsidiaries.
§ the financial statements of Eastland Network Limited's Lines Business on pages 2 to 13 do comply with the Electricity Information Disclosure Requirements 2004.
Our audit was completed on 22 November 2006 and our qualified opinion is expressed as at that date.
Bruce Taylor
Deloitte
On behalf of the Auditor-General
Hamilton, New Zealand
This audit report relates to the financial statements of Eastland Network Limited's Lines Business for the year ended 31 March 2006 included on Eastland Network Limited's website. Eastland Network Limited's Board of Directors is responsible for the maintenance and integrity of Eastland Network Limited's website. We have not been engaged to report on the integrity of Eastland Network Limited's website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 22 November 2006 to confirm the information included in the audited financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements and summary financial statements may differ from legislation in other jurisdictions.
Deloitte
AUDITOR-GENERAL'S OPINION ON THE PERFORMANCE MEASURES OF EASTLAND NETWORK LIMITED
We have examined the information on pages 14 to 22, being -
(a) the derivation table in requirement 15;
(b) the annual ODV reconciliation report in requirement 16;
(c) the financial performance measures in clause 1 of Part 3 of Schedule 1; and
(d) the financial components of the efficiency performance measures in clause 2 of Part 3 of Schedule 1, -
that were prepared by Eastland Network Limited and dated 31 March 2006 for the purposes of the Commerce Commission's Electricity Information Disclosure Requirements 2004.
In our opinion, having made all reasonable enquiry, and to the best of our knowledge, that information has been prepared in accordance with those Electricity Information Disclosure Requirements 2004.
Bruce Taylor
Deloitte
On behalf of the Auditor-General
Christchurch, New Zealand
22 November 2006
This audit report relates to the Performance Measures of Eastland Network Limited's Lines Business for the year ended 31 March 2006 included on Eastland Network Limited's website. Eastland Network Limited's Board of Directors is responsible for the maintenance and integrity of Eastland Network Limited's website. We have not been engaged to report on the integrity of Eastland Network Limited's website. We accept no responsibility for any changes that may have occurred to the Performance Measures since they were initially presented on the website. The audit report refers only to the Performance Measures named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the Performance Measures and related audit report dated 22 November 2006 to confirm the information included in the audited summary financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements and summary financial statements may differ from legislation in other jurisdictions.