Opening capital 1000 1040 1080 1120 1160 – base Plus actual net 50 50 50 50 50 250 capex Minus forecast 10 10 10 10 10 50 depreciation 1040 1080 1120 1160 1200 – Closing capital base Table D.2 Stylised capital base roll forward under actual depreciation approach (underspend) ($m, nominal) 2013 2014 2015 2016 2017 Total Opening capital 1000 1045 1090 1135 1180 – base Plus actual net 50 50 50 50 50 250 capex Minus actual 5 5 5 5 5 25 depreciation Closing capital 1045 1090 1135 1180 1225 – base Table D.3 Summary of differences in the event of an underspend ($m, nominal) Forecast depreciation approach Actual depreciation approach Depreciation recovered through tariffs from $50 $50 2013–17 Return on capital recovered through tariffs from $400 $400 2013–17 $250 $250 Total capex added to capital base
Opening capital base 1000 1040 1080 1120 1160 – Plus actual net capex 50 50 50 50 50 250 Minus forecast depreciation 10 10 10 10 10 50 Closing capital base 1040 1080 1120 1160 1200 – Table D.2 Stylised capital base roll forward under actual depreciation approach (underspend) ($m, nominal) 2013 2014 2015 2016 2017 Total Opening capital base 1000 1045 1090 1135 1180 – Plus actual net capex 50 50 50 50 50 250 Minus actual depreciation 5 5 5 5 5 25 Closing capital base 1045 1090 1135 1180 1225 – Table D.3 Summary of differences in the event of an underspend ($m, nominal) Forecast depreciation approach Actual depreciation approach Depreciation recovered through tariffs from 2013–17 $50 $50 Return on capital recovered through tariffs from 2013–17 $400 $400 Total capex added to capital base $250 $250
Envestra%20-%20Final%20Decision%20-%20Part%203_0.docx