New South Wales Consolidated Acts

ELECTRICITY NETWORK ASSETS (AUTHORISED TRANSACTIONS) ACT 2015 - SECT 6

6 Calculation of private sector interest

(1) The private sector interest in the State's electricity network assets is to be calculated for the purposes of this Part as follows--

(a) for each transacted electricity network SOC the asset value of the SOC is to be multiplied by the level of the interest of the private sector in the transacted business of the SOC on completion of the relevant authorised transaction, to arrive at an amount that is the private sector interest in the assets of the SOC,

(b) the amounts calculated under paragraph (a) for all transacted electricity network SOCs are to be summed to arrive at an amount that is the total private sector interest in the assets of transacted electricity network SOCs,

(c) the amount arrived at under paragraph (b), expressed as a percentage of the total of the asset values of the 3 electricity network SOCs and of Essential Energy, is the private sector interest in the State's electricity network assets.

(2) The level of the interest of the private sector in the transacted business of a SOC is--

(a) the share to which a person other than a public sector agency is entitled, as at the completion of the relevant authorised transaction, of the distributed profits from the operation of the transacted business of the SOC (unless the share referred to in paragraph (b) is greater), or

(b) the share of the assets of the transacted business of the SOC to which a person other than a public sector agency is entitled, as at the completion of the relevant authorised transaction, on a winding up of an entity that controls or operates the business.

(3) In this section--

"asset value" of a SOC means the amount of the forecast closing regulatory asset base of the SOC for the 2014-15 regulatory year as set out in the final determination of the Australian Energy Regulator (published on 30 April 2015), being--

(a) for Ausgrid--$14,752.3 million, or

(b) for Endeavour Energy--$5,944.3 million, or

(c) for Essential Energy--$7,187.4 million, or

(d) for TransGrid--$6,241.5 million.

"relevant authorised transaction" for a SOC means the authorised transaction that results in the SOC becoming a transacted electricity network SOC.

"transacted business" of a SOC means the business of a SOC that becomes a business controlled and operated by the private sector as a result of an authorised transaction.

"transacted electricity network SOC" means an electricity network SOC the business of which becomes a business controlled and operated by the private sector as a result of an authorised transaction.