Notes to the financial statements (continued) Section 2: Profit for the reporting years presented (continued) 4. Income (continued) A. Accounting policy (continued) i. Revenue (continued) Developer and customer contributions (continued) They are initially deferred and subsequently recognised as revenue at the point the developers or customers are connected to the network. This is in satisfaction of the performance obligation of the underlying connection contract. Gifted network assets are recognised as revenue at the point the assets are energised being in satisfaction of the performance obligation to connect the developer or customer to the network, and are measured at their fair value. The network assets resulting from contributions received or gifted are recognised as property, plant and equipment and depreciated over their estimated useful life. ii. Other income Western Power receives other income from the provision of services incidental to the core activities of the business. Other income is recognised when the service is provided.
B. Amounts recognised in profit or loss i. Revenue from rendering of services See table 2 below. ii. Other income See table 3 below. C. Critical accounting estimates and judgements: unbilled network tariff revenue For the reporting year ended 30 June 2025, transmission and distribution network tariff revenue included $158 million for unbilled services (30 June 2024: $164 million). The revenue from these services is measured using a projection model applying complex estimation methodologies and algorithms. The distribution tariff revenue from unbilled services is measured using a model which combines the following: • consumption data measured at intervals, remotely communicated by advanced meters. This data is based on actual consumption rather than estimates; and • consumption data projected based on assumptions and inputs such as customer billing profiles, historical and budget data, and seasonal, growth and emerging trends. Western Power considers it highly probable a significant reversal of this estimate will not be required. As the saturation of advanced meters increases, the measurement of unbilled distribution tariff revenue will improve in accuracy, having less reliance on estimates.
Table 2: Revenue from rendering of services
2024/25 $M
2023/24 $M
Note
Network services revenue Transmission tariff services Distribution tariff services Other services
4(c) 4(c)
568 1,314 128 2,010 213 2,223
571 1,218 127 1,916 185 2,101
Developer and customer contributions
Table 3: Other income
2024/25 $M
2023/24 $M
Rent Insurance recoveries Other
1 7 2
1 - 2 3
10
92
Western Power Annual Report 2025
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