ElectraNet
| TIF interest in ElectraNet: - Shares and Shareholder Loan Notes: - Preferred Loan Notes: |
3.6% 8.4% |
| UTA indirect interest in equity in ElectraNet: | 10.0% |
ElectraNet operates and manages the electricity transmission network throughout South Australia, providing the high voltage, large capacity network for generators to transport their electricity to end users. ElectraNet has a long-term lease expiring in 2199.
Performance highlights 2008
ElectraNet generated a return of 22.2 percent for the year and 16.2 percent per annum since inception.
ElectraNet generated revenue of $206.2 million for the year, a 6.0 percent increase on the previous year. EBITDA increased by 8.5 percent to a total of $154.5 million, with additional unregulated revenue from new contestable network connections.
ElectraNet experienced strong growth in its regulated asset base for the year. While regulated capital expenditure of $74.0 million was below budget for the 2007/2008 year, management delivered the total capital expenditure of $362.5 million which was slightly above the target for the current regulatory period (2003/2008) of $361 million.
On 30 April 2008 the Australian Energy Regulator (AER) released its final regulatory decision for the five-year period 1 July 2008 to 30 June 2013. The final decision provides capital and operating expenditure allowances to ElectraNet for the next five years to facilitate the continued growth and delivery of reliable and efficient transmission services in South Australia. Overall, the final decision was positive for ElectraNet, its shareholders and its customers.
During the year, ElectraNet Transmission Investments (ETI) completed its first project, an unregulated connection to the Snowtown Wind Farm. ETI's purpose is to allow existing shareholders to fund unregulated transmission connection opportunities outside of the regulated entity.
Performance outlook
Increased interest in unregulated transmission connection opportunities has been experienced with ETI currently evaluating the provision of a number of potential unregulated and negotiated transmission connections. The bulk of these connections relate to either new renewable energy generation or mining developments in South Australia.
The primary focus for ElectraNet management during the 2008/2009 year will be on planning and implementing the proposed operating and capital expenditure programs proposed in the final decision for the next five years.
ElectraNet
Financial and operational performance
| 30 June year end | 2004 | 2005 | 2006 | 2007 | 2008 | CAGR* |
| Regulated asset base ($m) | 861.6 | 893.8 | 989.2 | 1075.4 | 1196.6 | 8.6% |
| Revenue ($m) | 164.4 | 173.6 | 182.7 | 194.6 | 206.2 | 5.8% |
| EBITDA ($m) | 126.6 | 134.9 | 135.4 | 142.4 | 154.5 | 5.1% |
* CAGR: Compound Annual Growth Rate
For more information please visit the ElectraNet website