The SCI is submitted in accordance with the provisions of Sections 39 and 40 of the Energy Companies Act 1992.

Transcription

1 1 Intrductin 2 Peel Street, Waipukurau Phne: Fax: centralines@centralines.c.nz This Statement f Crprate Intent (SCI) is submitted t the CHB Cnsumers Pwer Trust (the Sharehlder) by the Bard f Directrs f Centralines Limited (the Cmpany) and sets ut the Bard s verall intentins and bjectives fr the Cmpany fr the financial year ended 31 March 2014 and the tw succeeding financial years. The SCI is submitted in accrdance with the prvisins f Sectins 39 and 40 f the Energy Cmpanies Act Centralines is a cmmunity wned Cmpany. 8,000,000 Shares have been issued and are wned by the CHB Cnsumers Pwer Trust, the beneficiaries f which are the cnsumers cnnected t the Cmpany s distributin assets as defined in the Trust Deed. This statement represents the Directrs intent t ensure the Cmpany will perate as a successful business. 2 The Cmpany s Missin is: T prvide, in a sustainable manner, a safe, efficient and reliable electricity netwrk system 3 Principal Objectives The Cmpany, thrugh a fcus n service and recgnitin f the value f skilled staff, will strive t achieve the fllwing bjectives: Safety Centralines bjective is t achieve an injury-free wrkplace by creating a culture where each persn truly believes that safety first is a cre value, and that wrking safely is part f all emplyees everyday activities. Financial Perfrmance Centralines shall deliver sustained financial perfrmance thrugh sund investment plicy, efficient and cst effective services, and strategic grwth. Peple Centralines is cmmitted t building an rganisatin that peple want t be a part f. We aim t develp a perfrmance driven culture that is guided by cmpany values. The business must ensure that it has the apprpriate number f skilled and engaged emplyees t deliver peratinal success. Netwrk Perfrmance Centralines Limited Statement f Crprate Intent Page 1 f 7

2 Centralines aims t sustain and imprve the level f netwrk perfrmance t ur custmers while imprving emergency respnse thrugh enhanced netwrk security and safety. Wrks Delivery Centralines shall deliver its Asset Management Plan cmmitments t ensure the cntinued peratin f the netwrk meets stakehlder requirements. Custmer Service Centralines aims t nt nly meet, but exceed custmer expectatins thrugh the prvisin f an ecnmic electricity netwrk service t cnsumers, priced at sustainable levels, and characterised by n time, n budget, delivery. A custmer driven apprach is cupled with strng netwrk perfrmance t deliver high levels f custmer satisfactin. Cmmunity Centralines aims t be a gd crprate citizen by engaging with ur custmers and cmmunity t understand their needs and expectatins and respnding apprpriately. Cmpliance Thrugh a culture f cmpliance, Centralines will deliver against its legal, crprate gvernance and cmmunity bligatins. 4 Nature and Scpe f Activities t be Undertaken Sectin 36 f the Energy Cmpany s Act 1992 requires Centralines, as its principle bjective, t perate as a successful business. T achieve this, the Cmpany is structured t prvide the fllwing services: 4.1 Netwrk Services This includes the maintenance and peratin f the Netwrk Assets t allw Retailers t cnvey electricity frm the natinal pwer grid t an end custmer s premises. The cmpany welcmes and encurages cmpetitin acrss its netwrk subject t certain credit criterin fr Retailers. 4.2 Electrical Cntracting This includes the undertaking f a wide range f cntracting wrk fr bth the Cmpany and fr ther custmers predminantly within the Centralines Gegraphical area.. The Cmpany will undertake these activities in a manner cnsistent with: The safe and effective utilisatin f the Cmpany s physical assets and human resurces. The prudent management f the Cmpany s business risks. All activities will be carried ut with the bjectives f prtecting and grwing sharehlder value. In supprt f these bjectives the Cmpany will: Understand and meet ur custmers needs in terms f netwrk reliability and security f supply. Ensure electricity netwrk services are maintained and priced at sustainable levels. Achieve efficient Operating Csts Centralines Limited Statement f Crprate Intent Page 2 f 7

3 Undertake new investments n the electricity distributin netwrk which ver their lives: are aimed at yielding a return at least equal t the Cmpany s cst f capital, can add t the cmmercial value f the Cmpany, add t the stability, safety and security f the Netwrk, are cmpatible t the verall strategy f the Cmpany, Maintain active participatin with ther lines cmpanies and wider industry stakehlders and participants. Cntinue t investigate distributed generatin pprtunities in Central Hawke s Bay. Cntinue t maintain and extract value frm the fibre ptic netwrk Cntinue t explre ther pprtunities relevant t the cmpany s capabilities Centralines Limited Statement f Crprate Intent Page 3 f 7

4 5 Perfrmance Targets and Measures T be cnfirmed when final budgets signed ff The fllwing are the perfrmance targets fr the next three years ending 31 March 2016 Safety Measures 2011/201 2 Actual 2012/ 2013 Frecast 2013/ / / 2016 Number f Lst Time Injuries Ttal Financial Return Measures (a) Earnings Befre Interest, Tax, Depreciatin and Amrtisatin (EBITDA) (excluding discunts) as a percentage f Average Assets Emplyed. (b) Net Prfit after tax (adjusted fr discunts) as a percentage f Average Sharehlders Funds (c) Netwrk Operatinal Csts - per ICP (Excluding Transmissin Csts and Depreciatin) (d) Netwrk Operatinal Csts - per kilmetre f line (Excluding Transmissin Csts and Depreciatin) (e) Ttal Planned Electricity Netwrk Capital Expenditure 10.18% 8.66% 8.47% 10.61% 11.05% 5.93% 4.35% 4.04% 5.59% 5.87% $372 $483 $521 $453 $426 $1,783 $2,332 $2,536 $2,213 $2,091 $1.49m $3.34m $2.71m $2.54m $2.74m Reliability Measures The System Average Interruptin Duratin Index SAIDI is the average length (in minutes) f interruptins fr all custmers that have interruptins in any ne year. It includes interruptins fr maintenance wrk but nt interruptins frm Transpwer. Planned Unplanned Ttal Regulatry Target The System Average Interruptin Frequency Index SAIFI is the average number f supply interruptins that a custmer experiences in the perid including maintenance but excluding transmissin (Transpwer) Regulatry Target Number f majr (33kV) faults which result in interruptins t supply, per 100 kilmetres f line per year Centralines Limited Statement f Crprate Intent Page 4 f 7

5 6 Rati f Cnslidated Sharehlders Funds t Ttal Assets The rati f cnslidated sharehlders funds t ttal assets will be maintained fr each year at nt less than 60%. Cnslidated Sharehlders Funds means the ttal cntributed capital, reserves and retained earnings at the end f the previus financial year. Ttal Assets means all the recrded tangible assets f the Cmpany as shwn in the Statement f Financial Psitin. 7 Accunting Plicies The Cmpany s accunting plicies will cmply with the legal requirements f the Cmpanies Act 1993 and the Financial Reprting Act 1993 and be cnsistent with generally accepted accunting principles. Details f material accunting plicies are cntained in Appendix 1. 8 Infrmatin t be reprted t Sharehlder In additin t infrmatin required by legislatin, the Cmpany will prvide sufficient infrmatin t enable the Sharehlder t assess the value and perfrmance f the Cmpany. Befre the cmmencement f the financial year the Directrs will deliver t the Sharehlder a draft SCI in accrdance with Sectin 39 f the Energy Cmpanies Act 1992 and will as required by Sectins 40 and 41 f that Act make any mdificatins required and then deliver such SCI t the Sharehlder. Within tw mnths after the end f the first half f the financial year f the Cmpany the Directrs will deliver t the Sharehlder an un-audited reprt f the Cmpany s peratins during that half year. This reprt will include such details as are necessary t permit an infrmed assessment f the cmpany s perfrmance during the reprting perid. Within three mnths after the end f the financial year f the Cmpany the Directrs will deliver t the Sharehlder in accrdance with Sectin 44 f the Energy Cmpanies Act 1992: Operatins: A reprt n the peratins f the Cmpany during the financial year. Financial Statements: Audited cnslidated financial statements fr that financial year in respect f the Cmpany. Auditrs Reprt: The Auditrs reprt n thse financial statements; and perfrmance targets and ther measures by which perfrmance has been judged in relatin t the bjectives. Every reprt will cntain such infrmatin as is necessary t enable an infrmed assessment f the peratins f the Cmpany and including a cmparisn f the perfrmance f the Cmpany and its subsidiaries with any relevant SCI. Centralines Limited Statement f Crprate Intent Page 5 f 7

6 The Chairman will prvide regular briefings t the Sharehlder n all material matters and the cmpany will prvide further infrmatin as the Sharehlder may require in rder t prperly undertake its duties and t act as a diligent trustee sharehlder. 9 Dividend Plicy The Cmpany will pay an annual dividend f at least $80,000 t the CHB Cnsumers Pwer Trust. 10 Extrardinary Capital Expenditure Electricity Netwrk Capital Expenditure is cmmensurate with clause 3 and is nt extrardinary by definitin. 11 Prjectins The financial frecasts in the SCI fr the perid 1 April 2014 t 31 March 2016 have been prepared fr the purpses f this dcument and may nt be apprpriate fr ther purpses. The actual results fr any perid are likely t vary frm the infrmatin presented. 12 Discunt Plicy Centralines may discunt a percentage f its perating surplus each year as the Directrs deem prudent, after cnsultatin with the Trustees and after making allwance fr current and future capital and ther expenditure. This will include any expenditure referred t in Nte Acquisitin Prcedure N acquisitin by the Cmpany f shares r assets in anther cmpany r rganisatin, the value f which exceeds 5% f the Share Capital f the Cmpany (ther than in the curse f a rerganisatin, recnstructin, merger etc as defined in Clause 9.9 f the Trust Deed) shall be undertaken withut prir Sharehlder apprval. 14 Dispsal f Assets N assets will be dispsed f ther than in the nrmal curse f business withut cnsultatin with the Sharehlder. Befre any assets are transferred t a subsidiary cmpany the Directrs will cnsult with the Sharehlder. 15 Reserves In accrdance with the lng term strategic plan, The Cmpany has cmmitted t a capital expenditure prgramme greater than the rate f depreciatin f the netwrk. Hwever, brrwings will nt be required fr cre netwrk activities within the perid f frecast f this Statement. 16 Investment f Surplus Funds The Cmpany will make prudent investments with minimum risk t an apprpriate level frm time t time having taken prfessinal advice and in accrdance with the cmpany s investment Plicy. Centralines Limited Statement f Crprate Intent Page 6 f 7

7 17 Cmmunity Cntributin The Cmpany acknwledges a rle in cntributing t significant Cmmunity activities as shall be mutually agreed upn frm time t time by the Bard and the Trust. 18 Relatinship with the Sharehlder The Cmpany will make available facilities and resurces fr the peratin f the CHB Cnsumers Pwer Trust. The Cmpany will supply t the Trust within a reasnable time f receiving a written request the name and address f each cnsumer as defined by the Trust Deed. The Cmpany will meet with the Trust at nt mre than six mnthly intervals t discuss matters f mutual interest... S Rbinsn Chairman.. Date Centralines Limited Statement f Crprate Intent Page 7 f 7