Investor Presentaiton
INFRASTRUCTURE FOR THE FUTURE
VICTORIA POWER NETWORKS
Key Financial Drivers
Regulated Revenue
Up by 4.2%
•
•
CPI of 1.59% from 1 January 2020
•
X-factors for Powercor: -2.40% and Citi Power: -1.88% representing a real increase in revenue before CPI
$11.1m STPIS recovery
.
Network Relief Package ($2.4m)
Regulated Asset Base
Up by 5.4%(4)
Other Revenue
(excl. Beon)
Down by 8.8%
Operating Costs
•
•
.
.
RAB increased to $6,520m
Increase driven by net capex of $604m(1), less regulatory depreciation of $380m, and CPI uplift of $111m
Semi-regulated revenue: up 3.4% – increased new connections revenue driven by residential growth in the Powercor Network
AMI revenue: down 4.9% - depreciating RAB
Unregulated revenue: down 27.8% - sale of properties in the previous half year
Larger than CPI salary increases driven by EBA's partially offset by tight cost control in the business
(excl. Beon)
Up by 0.9% (2)
Beon Margin
.
Continued growth in new solar projects such as Jemalong and Melbourne Airport Solar Projects
Up by 31.7%
Net Capital Expenditure
Up by 41.0%
•
•
Growth capex of $206.2m up 39.5% (network connections and augmentation) – continuation of REFCL (3) program
Maintenance capex of $105.3m up 44.1% – zone substation replacement projects
Highest ever capex program
Victoria Power Networks RAB has increased 5.4% over the last 12 months
(1) Excludes corporate overheads (2) Excluding $1.9m positive (non-cash) revaluation adjustments to employee entitlements provisions (HY2019: includes $9.4m loss) (3) Rapid Earth Fault Current Limiter (4) From 30 June 2019
Spark Infrastructure I Investor Presentation I August 2020
12View entire presentation