83 ―
24. Related party transactions continued
Receivables / (Payables)
2020 $M
2019 $M
– –
Tree Scape Limited
(0.4)
KEJV
0.3
25. Contingent liabilities Disclosures
The directors are aware of claims that have been made against entities of the group and, where appropriate, have recognised provisions for these within note 17. No material contingent liabilities have been identif ied.
26. Events after balance date COVID-19 pandemic
Auckland, New Zealand On 12 August 2020 the New Zealand Government announced the city of Auckland would return to Alert Level 3 (and the rest of New Zealand to Alert Level 2) in response to signs of community transmission of the virus in the city. Further announcements by the New Zealand Government have extended Alert Level 3 for Auckland until 11:59pm 30 August 2020, with the rest of New Zealand including Auckland remaining at Alert Level 2 thereafter until at least 6 September 2020. Vector’s businesses have continued to operate as essential services in the past two weeks except for the energy solutions business and the metering segment has seen a slight drop in work volumes within the Auckland region. Work volumes have remained at a consistent level for the rest of New Zealand. The f inancial impact from these events therefore has not been signif icant. Victoria, Australia On 30 June 2020, the State Government of Victoria (“Victorian Government”) announced a number of areas in the state of Victoria would return to Stage 3 restrictions fromWednesday 1 July 2020 in response to a resurgence of COVID-19 in the country, centred from Victoria. In the weeks that followed, the Victorian Government made further related announcements, extending the restrictions to further areas in Victoria and extended the State of Emergency to Sunday 16 August 2020. Vector’s metering business is managed out of Melbourne. Since metering services have been allowed to operate under essential services, disruption to the business has not been signif icant. Meters deployment work, which take place predominantly in the state of New South Wales and managed from the Sydney off ice, have also continued without signif icant disruptions. Overall these recent events in Australia have not had a material impact on the financial statements. On 26 August 2020, the Board resolved that, in a change from previous practice, it would not be distributing loss rental rebates to customers in September 2020. Under the new regulatory regime that came into effect on 1 April, any under recovery of the allowed regulated revenue can be recovered from customers in subsequent periods. Vector will retain loss rental rebates with a view to offsetting the impact of any electricity volume reductions on revenue and mitigating potential future prices increases for consumers under the new revenue cap regulatory regime. This change will not disadvantage customers and any excess loss rental rebate not required to mitigate revenue shortfalls will be returned to customers at a later date. As at 30 June 2020, Vector had recognised a provision of $15.5 million for loss rental rebates for distribution to customers.
Loss rental rebates
Approval
The f inancial statements were approved by the Board on 26 August 2020.
Final dividend
On 26 August 2020, the Board declared a f inal dividend for the year ended 30 June 2020 of 8.25 cents per share. No adjustment is required to these f inancial statements in respect of this event.
Notes to the Financial Statements
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