NOTES TO THE INTERIM FINANCIAL STATEMENTS
3. SIGNIFICANT TRANSACTIONS AND EVENTS Significant transactions and events that have occurred during the six months to 31 December 2017:
Commerce Commission settlement
On 7 July 2017, Vector and the Commerce Commission agreed the settlement of an over-recovery of electricity revenue by Vector during the regulatory years ended 31 March 2014 and 31 March 2015. The settlement will be effected through a price adjustment for the regulatory year ending 31 March 2019 and 31 March 2020. The total amount of the adjustment is approximately $13.9 million which will impact revenues reported for the financial years ending 30 June 2018 (3 months), 30 June 2019 (12 months), and 30 June 2020 (9 months). As the settlement will be enacted through future pricing, no amount is recorded in the period ended 31 December 2017. mPrest Systems (2003) Limited On 4 October 2017, Vector invested $14.0 million (US $10.0 million) into mPrest Systems (2003) Limited for 7.8% of the company’s total issued capital (7.1% diluted share capital). The investment is accounted for as a financial asset on the Balance Sheet. The mPrest technology allows companies to better monitor, analyse, and control energy networks and connect traditional infrastructure like electricity lines and substations with new technology like solar and battery energy solutions. Vector is in the process of rolling out the mPrest technology across its Auckland network. SolPho Limited Vector Energy Solutions Limited acquired 100% of the shares in SolPho Limited for cash consideration of $0.7 million on 1 November 2017. SolPho Limited owns one of the largest photovoltaic arrays in New Zealand, and the power is sold via a long-term offtake agreement. Aircon Direct Limited E-Co Products Group and its associated subsidiary acquired the business of Aircon Direct Limited for cash consideration of $1.0 million on 22 September 2017. Aircon Direct Limited is a provider of air conditioning and ventilation system services and represents a geographical expansion to E-Co Products Group’s business. On 25 October 2017, Vector issued a total of $415.8 million (US $300.0 million) of USD senior notes maturing on 25 October 2027 and 25 October 2029 respectively. On 26 October 2017, the group repaid $400.0 million of Floating Rate Notes.
Investments
Debt programme
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