Network Service Plan

CICL Network Service Plan, (NSP), 2012-2017 - Additional Information

The following information is provided to assist members to better understand aspects of CICL’s NSP:

Planning Assumptions:

  • CPI (inflation) factor - 3% p.a.
  • Salary Increases - 4% in 2012-2013 and 3% (CPI) in each successive year
  • Interest on cash & term deposits – 5% p.a.
  • Interest on & revaluation of longer term investments – 8% p.a.
  • Income tax – 30%

Revenue by Source

The revised figures immediately below vary from those on page 15 in the NSP and reflect the pricing decisions taken by the CICL Board after the NSP was provided to the ACCC and customers.

 Water Income

 2012/13

 Fixed Charges $6,685,000

 Usage Charges $1,895,000

 Miscellaneous Water Charges $959,000

 Additional Water Revenues $0 

 Termination Fees $0

 Total Water Income

 $9,538,000

  

 Cost Of Sales (Bulk Charges)

 

 Fixed External Bulk Charges $1,201,000

 Variable External Bulk Charges $1,895,000

 CIMCL Levy Income - $1,291,000

 CIMCL Levy Expenditure $1,291,000

 Other External Charges $60

 Total Cost of Sale (Bulk Charges)

 $3,156,000

  

 Total Gross Water Income

 $6,382,000

 

PIIOP Accounting

  • SP1 (Clay Lining): This work will be fully expensed against the full funding provided under PIIOP and because the work is in effect R&M (repairs and maintenance), there will be no capitalisation.
  • SP3 (TCC for Kerarbury): CICL’s involvement in this project is limited to that of being a contractor.
  • SP4 (TCC for WCC): Once these works have been completed, the related assets will be taken to account and depreciated over 40 years.
  • SP6 (In-line storage): Once this asset has been created, the dam will depreciated over 200 years and the pumping station over 40 years.
  • SP7 (Meter Replacement): Once installed, the meters will be depreciated over 40 years.