These scenarios aim to represent a reasonable view of heat pump uptake and domestic energy consumption from lighting and appliances, based on the assumption that Government remains committed to meeting carbon targets. The protection and enhancement of the natural environment impacted by our activities is a core value of the Company. It is not expected that they will have a material impact on the financial statements of the Group, except as noted below:. Management’s key controls and a sample of projects were tested, as was capitalised interest cost to ensure compliance with IAS Cost is based on weighted average cost and includes expenditure incurred in acquiring the inventories, conversion costs and other costs in bringing them to their present location and condition. One problem to be dealt with was the incentive on the network companies to argue for as high a cost as possible for each price control business plan because they received a rate of return on the value of their asset base, and they were able to keep the savings.
There have been no such acquisitions or disposals in the current or prior year. The proportion of borrowings at effective fixed rates of interest for a period greater than one year is set in conjunction with the level of floating rate borrowings and projected regulatory revenues that are exposed to inflationary adjustments index-linked. In doing so, the Board takes into account all stakeholders, including its shareholders, employees, suppliers and the communities in which it operates. In order to achieve an energy transformation, multiple dimensions need to come together. An overview of performance in the year against our corporate goals is contained within the Strategic Report. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Perhaps most importantly, RIIO requires benchmarking — which is a very time consuming, and intrusive, regulatory mechanism but also a mechanism which ultimately requires utilities to be similar.
The carrying amount is reduced by any provision for impairment where necessary. RIIO is an attempt to do this, but is still far from successful even on its own terms, and anyway is very cautious. A detailed description of the engagement activities that were undertaken in preparing this business plan, busihess feedback we received and the outputs that are contained within the plan as a result.
Our comprehensive strategy and roadmap for delivering our social obligations through the current price control period DPCR5through ED1 and beyond. Management assesses the recoverability of tangible and intangible assets on an annual basis. IFRIC14 provides guidance on the extent to which a pension scheme surplus should be recognised as an asset and may also require additional liabilities to be recognised where minimum funding requirements exist.
Certain new and amended standards have taken effect during the year, as outlined below. Such a change should be considered as a continuation of the original plan of disposal and hence requirements set out in IFRS 5 regarding the change of sale plan do not apply.
We see this today within our operations, for example using technology better to identify the location of transient faults, reducing customer interruptions and traffic disruptions, or automated restoration systems to reconnect as many buwiness as possible in the event of faults. In other words, a base revenue is the amount of money the DNO is allowed to spend, and recoup from customers, to meet the agreed outputs via a Business Plan.
We agreed with the Audit Committee that we would report to rkio Committee all audit differences in excess of GBP82, The incentives or additional innovation allowances in RIIO are either additional or negative to this business plan base revenue. This involves meetings with the Board, the Company Secretary, other members norrth the Executive and Senior Leadership Teams and site visits. Predominantly all Group revenues arise from electricity distribution in the North West of England and associated activities.
The Chairman is also responsible for ensuring that all new Directors receive a tailored induction programme that reflects their experience and ee1 as either an Executive or Non-Executive Director.
IGov | New thinking: The RIIO EDI Review: Just how successful is RIIO?
Independent assessment to confirm that the process used to correct and amend the asset volume information in both SPD and SPM is robust, effectively implemented and results in a more accurate regulatory asset count. The tax expense represents the sum of current and deferred tax charges for the financial year, adjusted for prior year items. The Company works closely with its shareholders and both shareholders endorse the UK Stewardship Code and see their stewardship commitments as a key feature of their investment philosophy.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Distribution Business Plan Supporting Annexes – SP Energy Networks
The Group’s business is asset-intensive. Directors served for the whole year except where otherwise indicated. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised based on tax rates and laws that have pln enacted or substantively enacted at the balance sheet date.
The Remuneration Committee agreed some further business via roio during July without meeting formally.
Electricity North West Limited Annual Financial Report
The re-submitted business plans are held up to closer scrutiny regarding their outputs and whether Ofgem believe these to be good value for consumers. A significant piece of work for the Committee during the year was reviewing the Company’s Executive Incentive Plan, the long-term incentive scheme for senior individuals covering the eight-year period beginning on 1 Aprilaligned with the RIIO-ED1 price control period.
Utilisation of undrawn facilities remains subject to limits based on gearing levels determined against the Regulatory Asset Value. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Electricity North West
There are also opportunities to improve cross functional team-working across the business. It is accrued on a time basis, by reference to the principal outstanding and the effective interest rate. Approximately 17p from every pound of a standard domestic electricity bill comes to Electricity North West to provide our services equivalent to GBP85 per home last year. The Committee members are all Non-Executive Directors. As is required by the Company’s Regulator, Ofgem, the Company reports on how the principles and provisions of the UK Corporate Governance Code the Code have been applied during the year.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a financial liability. He is a fellow if the Institute of Materials Minerals and Mining.
In particular, I would note the need to improve the safety culture of the business as well as the level of performance in customer satisfaction, upon which the Chairman has already commented.
As the Company is privately owned and both shareholders are represented on the Board, it is felt that the needs of shareholders are met through their presence on the Board.
The external auditor is engaged to express an opinion on the Company’s and Group’s financial statements.