Vector Annual Report 2021

Creating a new energy future – a bold vision

26. 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 18. No material contingent liabilities have been identif ied.

27. Events after balance date Loss rental rebates

On 23 August 2021, the board have approved the distribution of loss rental rebates to customers on the Vector electricity network at a rate of $20 per household. The distribution is expected to take place in September 2021.

Australia On 19 July 2021, the State Government of New South Wales (“NSW Government”) imposed additional restrictions to the area of Greater Sydney which included a pause on construction activity. This has resulted in some disruption to the deployment of meters in the Greater Sydney area. On 28 July 2021, the NSW Government announced a 4-week extension to the lockdown until 28 August 2021. This announcement established a red zone and a green zone within Greater Sydney. We continue to work in green zone areas but have suspended all activity aside from emergency works in the red zones. At the time these f inancial statements are approved, it is not clear when these restrictions will be lifted and when the deployment of meters will return to normal. The situation in other parts of Australia reflects mainly short-term restrictions which we continue to carefully monitor. Overall, these recent events in Australia have no material impact on the f inancial statements. New Zealand On 17 August 2021 the New Zealand Government announced the country would return to Alert Level 4, where only essential services can operate, in response to signs of community transmission of the virus. Further announcements by the New Zealand Government have extended Alert Level 4 until at least 11:59pm 24 August 2021. As with its previous responses to alert level changes, Vector’s businesses have continued to operate as essential services except for the energy solutions business while the metering segment has seen a slight drop in work volumes. The f inancial impact from these events therefore has not been signif icant.

COVID-19 pandemic

Debt programme

As part of our debt management activities, the group replaced the $325.0 million bank facilities, which matured in July 2021, with bank facilities of the same level, and secured net additional facilities of $100.0 million.

Approval

The f inancial statements were approved by the board on 23 August 2021.

Final dividend

On 23 August 2021, the board declared a f inal dividend for the year ended 30 June 2021 of 8.50 cents per share. No adjustment is required to these f inancial statements in respect of this event.

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