Notes to the financial statements (continued)
correspond directly with the value to the customer of Western Power’s performance obligation completed to date. As at each reporting date, network tariff revenue and trade receivables include amounts attributable to ‘unbilled network tariff revenue’. Unbilled network tariff revenue is an estimate of electricity transported to customers not yet invoiced at the reporting date. It comprises read and unread (for periodical readings) metered services, with the latter estimated based on projected revenue consumption at observable stand-alone prices (fixed tariffs). Other services (regulated and unregulated): Western Power also receives revenue from the rendering of other network services, including the following: • Regulated non-standard access services where the customer is willing to accept different conditions to the standard access contract and service standard benchmark. The tariffs for these services are negotiated between Western Power and the individual customers but must be set with regard to the regulated network tariffs • Regulated services that can only be offered by Western Power but which are not core to the transmission and distribution of electricity. Where these are commonly requested services, the fees and charges are set in-line with a charging criteria and published on Western Power’s website. For other complex or non-standard services, Western Power negotiates commercially with the individual customers • Unregulated services contestable by other suppliers including the sales of materials. The fees and charges for these services are in-line with the methodology disclosed above for ‘other regulated services’. The revenue for other network services is recognised when the service is provided to the customer. The consideration invoiced for these services is based on observable stand-alone prices, being fixed at published or contracted fees and charges. Developer and customer contributions Western Power receives developer and customer contributions toward the extension or augmentation of electricity infrastructure to facilitate network connection. Contributions are mostly in the form of cash or gifted network assets. Cash contributions are charged using the methodology included in Western Power’s published Contributions Policy approved by the ERA as part of the access arrangement agreement.
Section 2: Profit for the reporting years presented 4. Income In this section This section presents details of Western Power’s profit results and performance by reference to the services rendered and operating expenses incurred.
A. Accounting policy i. Revenue
Western Power recognises revenue when the performance obligation to which it relates is satisfied. This is either at the point the service is provided – being when control of the service is transferred to the customer, or over time where control of the service is progressively transferred to the customer. It is measured at the fair value of the consideration received or receivable, being the invoiced amount including interest on overdue amounts, net of the amount of goods and services tax. Revenue also includes an estimate for the value of unbilled network tariff services.
Network services revenue Regulated tariff services:
Western Power primarily receives revenue from the rendering of network tariff services. These services largely relate to the transmission and distribution of electricity and are regulated by the Western Australian Economic Regulation Authority ( ERA ) via an access arrangement agreement. Where Western Power progressively transfers control of these services to the customer – being for on-going access to the network, the revenue is recognised over time. All other network tariff revenue is recognised when the service is provided to the customer – being at the point the network is used. The consideration invoiced for network tariff services is based on observable stand-alone prices, being mostly fixed access and usage tariffs approved by the ERA and published in Western Power’s annual price list. For network access revenue recognised over time, the output method is used, with revenue measured at the amount Western Power is entitled to invoice the customer. This is because the invoiced amount charged at fixed daily access tariffs, is deemed to
Western Power Annual Report 2025
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