Notes to the financial statements (continued) Section 4: Debt and equity (continued) 18. Borrowings A. Accounting policy Borrowings are initially recognised at fair value net of transaction costs incurred and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless Western Power has an agreement with the lender that allows refinancing of the liability for at least 12 months after the reporting date. This includes where a forward domestic borrowing commitment exists that replaces the existing borrowing on the date of maturity, and where this extends the maturity of the original borrowing to greater than 12 months after the reporting date. Forward domestic borrowing commitments Forward domestic borrowing commitments are entered into with the WATC to borrow specified amounts in the future at pre-determined interest rates. Fixed rate forward domestic borrowing commitments are recognised as derivative financial instruments in the period between entering into the forward domestic borrowing agreement and draw down of the loan principal. Once the loan is drawn down, the principal is accounted for at fair value like any other borrowing. Any fair value gain or loss relating to the effective portion of the forward is recognised in the hedging reserve and re-classified to profit or loss over the term of the loan.
B. Amounts recognised in statement of financial position See table 43 below. Western Power’s domestic borrowings are provided by the WATC, an entity owned by the Western Australian State Government. C. Classification of borrowings As at 30 June 2025, the non-current domestic currency loans of $7,910 million (30 June 2024: $7,565 million) included an amount of $988 million that will become due and payable during the 2025/26 reporting year (30 June 2024: $914 million that became due and payable during the 2024/25 reporting year). The loans have been classified as non-current, supported by: • a master lending agreement with the WATC that allows Western Power to refinance all or any part of maturing debt at regular intervals • Western Power’s forecast borrowing requirements for the next four years have been approved within the 2025 Western Australian State Budget, including no requirement for repayment of amounts classified as non-current below.
Table 43: Amounts recognised in statement of financial position
2024/25 Non- current $M
2023/24
Non- current $M
Current $M
Total $M 51 7,910 69
Current $M
Total $M 40 7,565 67
Note
Domestic working capital facility Domestic currency loans Accrued interest
51 - 69
- 7,910 -
40 - 67
- 7,565 -
18(c)
120
7,910 8,030
107
7,565 7,672
120
Western Power Annual Report 2025
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