Revenue Our 2010 distribution determination applied a weighted average cap (WAPC) form of control to SA Power Networks’ distribution services over the 2010–15 regulatory control period. A WAPC imposes controls over the prices a DNSP may charge for its services. SA Power Networks' total revenue recovered for standard control services over the first three years of the 2010–15 regulatory control period was approximately 6 per cent higher than our approved forecast (Figure 9–67). SA Power Networks indicated the weather in the first three years of the 2010–15 regulatory control period impacted on its actual revenue being higher than our approved forecasts. SA Power Networks estimated the possible incremental impacts associated with customer response to weather represent $15.6 million of revenue. It also indicated other variations would account for the estimated balance of $34.7 million, which is approximately 1.6 per cent of the amended AER forecast for the period. Chapter 7 provides further information on the WAPC control mechanism as well as our comparative assessment of revenue for all DNSPs in the NEM. Figure 9–67 Revenue SA Power Networks – Financial performance SA Networks' average EBIT for standard control services was approximately 43 per cent of its total revenue earned for standard control services over 2010–13. The EBIT in Figure 9–68 includes depreciation and amortisation and should not be used as a definitive measure of core profitability. For SA Power Networks EBIT margin is shown as EBIT divided by both gross and net revenue, reflecting different treatment of revenues received and expenditures made for transmission services (TUoS revenue). Gross EBIT margin (including TUoS revenue) is consistent with reporting in the 2012–13 Annual Reporting RIN and SA Power Networks' statutory financial accounts. Figure 9–68 Earnings before interest and tax– SA Power Networks SA Power Networks indicated its EBIT margin increased in the 2010–15 regulatory control period due to additional revenue from: higher capital allowances which were approved by us: additional EBIT is required to service increased levels of debt and investment higher WACC which was approved by us due to the higher cost of funds in the financial crisis environment additional allowed revenues starting from 2011–12 for outcomes from the Tribunal decision following our 2010 distribution determination, noting five of this additional revenue is being recovered over the final four years of the regulatory control period
Revenue Our 2010 distribution determination applied a weighted average cap (WAPC) form of control to SA Power Networks’ distribution services over the 2010–15 regulatory control period. A WAPC imposes controls over the prices a DNSP may charge for its services. SA Power Networks' total revenue recovered for standard control services over the first three years of the 2010–15 regulatory control period was approximately 6 per cent higher than our approved forecast (Figure 9–67). SA Power Networks indicated the weather in the first three years of the 2010–15 regulatory control period impacted on its actual revenue being higher than our approved forecasts. SA Power Networks estimated the possible incremental impacts associated with customer response to weather represent $15.6 million of revenue. It also indicated other variations would account for the estimated balance of $34.7 million, which is approximately 1.6 per cent of the amended AER forecast for the period. Chapter 7 provides further information on the WAPC control mechanism as well as our comparative assessment of revenue for all DNSPs in the NEM. Figure 9–67 Revenue – SA Power Networks Financial performance SA Networks' average EBIT for standard control services was approximately 43 per cent of its total revenue earned for standard control services over 2010–13. The EBIT in Figure 9–68 includes depreciation and amortisation and should not be used as a definitive measure of core profitability. For SA Power Networks EBIT margin is shown as EBIT divided by both gross and net revenue, reflecting different treatment of revenues received and expenditures made for transmission services (TUoS revenue). Gross EBIT margin (including TUoS revenue) is consistent with reporting in the 2012–13 Annual Reporting RIN and SA Power Networks' statutory financial accounts. Figure 9–68 Earnings before interest and tax– SA Power Networks SA Power Networks indicated its EBIT margin increased in the 2010–15 regulatory control period due to additional revenue from: higher capital allowances which were approved by us: additional EBIT is required to service increased levels of debt and investment higher WACC which was approved by us due to the higher cost of funds in the financial crisis environment additional allowed revenues starting from 2011–12 for outcomes from the Tribunal decision following our 2010 distribution determination, noting five of this additional revenue is being recovered over the final four years of the regulatory control period
Electricity%20distributors%202011-13%20performance%20report%20-%20June%202015.docx