Territory Stories

Statement of Corporate Intent 2022-2023, Territory Generation Power Generation Corporation (Trading as Territory Generation)

Details:

Title

Statement of Corporate Intent 2022-2023, Territory Generation Power Generation Corporation (Trading as Territory Generation)

Other title

Tabled paper 565

Collection

Tabled Papers for 14th Assembly 2020 -; Tabled Papers; ParliamentNT

Date

2022-07-26

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

Publisher name

Legislative Assembly of the Northern Territory

Place of publication

Darwin

File type

application/pdf

Use

Copyright

Copyright owner

Legislative Assembly of the Northern Territory

License

https://www.legislation.gov.au/Details/C2019C00042

Parent handle

https://hdl.handle.net/10070/874709

Citation address

https://hdl.handle.net/10070/874710

Page content

Page 17 of 18 2022-23 SCI Committed Savings Committed savings have been assumed for the full period of the SCI. Item ($ Million) 22-23 23-24 24-25 25-26 Committed savings 3.5 3.5 3.5 3.5 A formal work plan will be developed to create and test initiatives to achieve the delivery of the committed savings. Capital Expenditure The total forecast for capital expenditure is: Item ($ Million) 21-22 22-23 23-24 24-25 25-26 Total all items 58.1 61.8 50.8 46.2 46.4 The continued increase in solar PV has resulted in an increased emphasis on the management of the Corporations assets as this increases physical stress on the generators that will need to stop and start more often than designed. Fixed Assets and Depreciation Expense The cost and book value of fixed assets is based on the fair value recorded in the Corporations accounts. Depreciation rates are forecast based on equivalent operating hours for the Prime Movers, and all other depreciable assets on the straight-line method over their useful lives. An approximate apportionment of depreciation expense by method is provided below: Straight line 90% Equivalent operating hours 10% A capitalisation threshold of $1,000 has been adopted, with new assets capitalised and depreciated from the time they are available and ready for use. Consumer Price Index (CPI) Revenue and cost escalation assumptions are based on contractual or employment obligations where applicable. Where no mandated escalations exist, the following CPI rates have been assumed: 2022-23 1.4% 2023-24 1.8% 2024-25 2.2% 2025-26 2.2% Debt and Interest Debt is interest only and is assumed to be extended upon maturity through the SCI period. 21-22 22-23 23-24 24-25 25-26 Average Interest Rate 3.23% 3.40% 3.67% 3.88% 4.36% Tax Tax expense is assumed at the corporate tax rate and includes the impact of tax effect accounting on taxable income over the period. Dividend The NTG is considered to have the right to receive a dividend from applicable entities calculated at 50% of the 30 June net profit after tax, subject to recommendation by the Corporations Board.